As filed with the Securities and Exchange Commission on April 17, 2012
Registration No. 333-153773
811-07042
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Dreyfus/Transamerica Triple Advantage® Variable Annuity
FORM N-4
REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OF 1933 | x | |
Pre-Effective Amendment No. | ¨ | |
Post-Effective Amendment No. 4 | ¨ |
and
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 37
SEPARATE ACCOUNT VA-2L
(Exact Name of Registrant)
TRANSAMERICA LIFE INSURANCE COMPANY
(Name of Depositor)
4333 Edgewood Road N.E.
Cedar Rapids, IA 52499-0001
(Address of Depositors Principal Executive Offices)
Depositors Telephone Number: (319) 355-8330
Darin D. Smith, Esq.
Transamerica Life Insurance Company
4333 Edgewood Road, N.E.
Cedar Rapids, IA 52499-4240
(Name and Address of Agent for Service)
Copy to:
Frederick R. Bellamy, Esq.
Sutherland Asbill and Brennan LLP
1275 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2415
Title of Securities Being Registered: Flexible Premium Variable Annuity Policies
It is proposed that this filing become effective:
¨ | immediately upon filing pursuant to paragraph (b) of Rule 485 |
¨ | on pursuant to paragraph (b) of Rule 485 |
x | 60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
¨ | on pursuant to paragraph (a)(1) of Rule 485 |
If appropriate, check the following box:
¨ | This post-effective amendment designates a new effective date for a previously filed post-effective amendment |
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE®
VARIABLE ANNUITY
Issued Through
SEPARATE ACCOUNT VA-2L
by
TRANSAMERICA LIFE INSURANCE COMPANY
Prospectus - May 1, 2012
This flexible purchase payment deferred variable annuity contract has many investment choices. There is a variable account that currently provides a means of investing in various investment choices. There is also a fixed account, which offers interest at rates that are guaranteed by Transamerica Life Insurance Company (Transamerica). You can choose any combination of these investment choices. You bear the entire investment risk for all amounts you put in the variable account.
This prospectus and the underlying fund prospectuses give you important information about the contracts and the underlying fund portfolios. Please read them carefully. Transamerica will not accept purchase payments for new contracts.
If you would like more information about the Dreyfus/Transamerica Triple Advantage® Variable Annuity, you can obtain a free copy of the Statement of Additional Information (SAI) dated May 1, 2012. Please call us at (800) 525-6205 or write us at: Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, Iowa, 52499-0001. A registration statement, including the SAI, has been filed with the Securities and Exchange Commission (SEC) and the SAI is incorporated herein by reference. More information about the variable annuity contract can be reviewed and copied at the SECs Public Reference Room in Washington, D.C. You may obtain information about the operation of the public reference room by calling the SEC at 1-800-SEC-0330. The SEC also maintains a web site (http://www.sec.gov) that contains the prospectus, the SAI, material incorporated by reference, and other information. The table of contents of the SAI is included at the end of this prospectus.
Please note that the contracts and the variable account investment choices:
| are not bank deposits |
| are not federally insured |
| are not endorsed by any bank or government agency |
| are not guaranteed to achieve their goal |
| are subject to risks, including loss of purchase payments |
The Securities and Exchange Commission has not approved or disapproved these securities, or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
The subaccounts available under this contract invest in underlying funds of the Portfolio companies listed below:
DREYFUS INVESTMENT PORTFOLIOS
DREYFUS STOCK INDEX FUND, INC.
DREYFUS VARIABLE INVESTMENT FUND
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
TRANSAMERICA SERIES TRUST
For a complete list of the available subaccounts, please refer to Appendix A Portfolios Associated with the Subaccounts. For more information on the underlying funds, please refer to the prospectus for the underlying fund.
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Account Value On or before the annuity date, the account value is equal to the owners:
| purchase payments; minus |
| gross partial surrenders (partial surrenders plus or minus any excess interest adjustments plus the surrender charge (the portion of the requested partial surrender that is subject to surrender charge); plus |
| interest credited in the fixed account; plus |
| accumulated gains in the variable account; minus |
| losses in the variable account; minus |
| service charges, rider fees, premium taxes, transfer fees, and any other charges, if any. |
Adjusted Account Value The account value increased or decreased by any excess interest adjustment.
Annuitant The person on whose life any annuity payments involving life contingencies will be based.
Annuity Date The date upon which annuity payments are to commence. This date may be any date at least thirty days after the contract date and may not be later than the last day of the contract month following the month after the annuitant attains age 85, except as expressly allowed by Transamerica. In no event will this date be later than the last day of the month following the month in which the annuitant attains age 95. The annuity date may have to be earlier for qualified contracts and may be earlier if required by state law.
Annuity Payment An amount paid by Transamerica at regular intervals after the annuity date to the annuitant and/or any other payee specified by the owner. It may be on a variable or fixed basis.
Annuitize (Annuitization) When you switch from the accumulation phase to the income phase and we begin to make annuity payments to you (or your designee).
Cash Value The adjusted account value less any applicable surrender charge and any rider fees (imposed upon surrender).
Contract Year A contract year begins on the date in which the contract becomes effective and on each contract anniversary.
Excess Interest Adjustment A positive or negative adjustment to amounts surrendered (both partial or full surrenders and transfers) or applied to annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by Transamerica since the date any payment was received by (or an amount was transferred to) the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon surrender (either full or partial) or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.
Fixed Account One or more investment choices under the contract that are part of Transamericas general assets and are not in the variable account.
Guaranteed Period Options The various guaranteed interest rate periods of the fixed account which Transamerica may offer and into which purchase payments may be paid or amounts transferred.
Owner (you, your) The person who may exercise all rights and privileges under the contract. The owner during the lifetime of the annuitant and prior to the annuity date is the person designated as the owner or a successor owner in the information provided to us to issue a contract.
Separate Account Value The portion of the contract value that is invested in the separate account.
Subaccount A subdivision within the variable account, the assets of which are invested in specified underlying fund portfolios.
Valuation Period The period of time from one determination of accumulation unit values and annuity unit values to the next subsequent determination of values. Such determination shall be made on each business day.
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Variable Account Separate Account VA-2L, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940, as amended (the 1940 Act), to which purchase payments under the contracts may be allocated.
Variable Accumulation Unit An accounting unit of measure used in calculating the account value in the variable account before the annuity date.
Written Notice Written notice, signed by the owner, that gives the Company the information it requires and is received in good order at the Administrative and Service Office. For some transactions, the Company may accept an electronic notice such as telephone instructions. Such electronic notice must meet the requirements for good order that the Company establishes for such notices.
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The sections in this summary correspond to sections in this prospectus, which discuss the topics in more detail.
1. | THE ANNUITY CONTRACT |
The flexible premium deferred variable annuity contract offered by Transamerica Life Insurance Company (Transamerica, we, us, or our) provides a way for you to invest on a tax-deferred basis in the following investment choices: various subaccounts of the variable account and the fixed account of Transamerica. The contract is intended to accumulate money for retirement or other long-term investment purposes; and for persons who have maximized their use of other retirement savings methods, such as 401(k) plans. The tax-deferred feature is most attractive to people in high federal and state tax brackets. The tax deferral features of variable annuities are unnecessary when purchased to fund a qualified plan.
This contract currently offers subaccounts that are listed in Appendix A. Each subaccount invests exclusively in shares of one of the underlying fund portfolios. The account value may depend on the investment experience of the selected subaccounts. Therefore, you bear the entire investment risk with respect to all account value in any subaccount. You could lose the amount that you invest.
The fixed account offers an interest rate that Transamerica guarantees. We guarantee to return your investment with interest credited for all amounts allocated to the fixed account.
The contract, like all deferred annuity contracts, has two phases: the accumulation phase and the income phase. During the accumulation phase, earnings accumulate on a tax-deferred basis and are taxed as ordinary income when you take them out of the contract. The income phase occurs when you begin receiving regular payments from your contract. The money you can accumulate during the accumulation phase will largely determine the income payments you receive during the income phase.
2. | PURCHASE PAYMENTS |
You can add as little as $50 at any time during the accumulation phase. We will not accept purchase payments for new contracts.
3. | INVESTMENT CHOICES |
You can allocate your purchase payments to one of several underlying fund portfolios listed under Appendix A in this prospectus and described in the underlying fund prospectuses. Depending upon their investment performance, you can make or lose money in any of the subaccounts.
You can also allocate your purchase payments to the fixed account.
We currently allow you to transfer money between any of the investment choices during the accumulation phase. We reserve the right to impose a $10 fee for each transfer in excess of 18 transfers per contract year and to impose restrictions and limitations on transfers.
4. | PERFORMANCE |
The value of the contract will vary up or down depending upon the investment performance of the subaccounts you choose.
5. | EXPENSES |
Note: The following section on expenses and the Annuity Contract Fee Table may only apply to contracts issued after May 1, 2002. See Appendix C for older contracts. Please see your contract to determine your specific coverage and expenses.
No deductions are made from purchase payments at the time you buy the contract so that the full amount of each purchase payment is invested in one or more of your investment choices.
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We may deduct a surrender charge of up to 7% of purchase payments surrendered within seven years after the purchase payment is paid. We will calculate surrender charges by taking the earnings, if any, out before purchase payments.
Full surrenders, partial surrenders, and transfers from a guaranteed period option of the fixed account may also be subject to an excess interest adjustment, which may increase or decrease the amount you receive. This adjustment may also apply to amounts applied to an annuity payment from a guaranteed period option of the fixed account.
We deduct daily mortality and expense risk fees and administrative charges at an annual rate of 1.30% (if you choose the Return of Premium Death Benefit); 1.50% (if you choose the Annual Step-Up Death Benefit); or 2.10% (if you choose the Double Enhanced Death Benefit) from the assets in each subaccount.
During the accumulation phase, we deduct an annual service charge of no more than $35 from the account value on each contract anniversary and at the time of surrender. The charge is waived if either the account value or the sum of all purchase payments, minus all partial surrenders, is at least $50,000.
Upon total surrender, payment of a death benefit, or when annuity payments begin, we will deduct state premium taxes, which currently range from 0% to 3.50%.
If you elect the optional Initial Payment Guarantee, then there is a daily fee (during the income phase) equal to an effective annual rate of 1.25% of the unit value in the subaccounts will be applied after the annuity date and throughout the income phase.
If you elect the Additional Death Benefit Rider, then there is an annual rider fee during the accumulation phase of 0.25% of the account value.
If you elect the Additional Death Benefit Rider II, then there is an annual fee during the accumulation phase equal to 0.55% of the account value.
If you elect the Liquidity Rider, there is a daily fee equal to an effective annual rate of 0.40% of the unit value in the subaccounts. This fee is only charged for the first four contract years.
If you elect the Premium Accelerator Rider, a daily fee equal to an effective annual rate of 0.20% of the unit value in the subaccounts will be applied. This fee is only deducted for the first nine contract years.
The value of the net assets of the subaccounts will reflect the management fee and other expenses incurred by the underlying fund portfolios.
6. | ACCESS TO YOUR MONEY |
You can take out $500 or more anytime during the accumulation phase (except under certain qualified contracts). After one year, you may, free of surrender charges and once each contract year, take out up to the greater of:
| 10% of your purchase payments less surrenders deemed to be from purchase payments; or |
| any gains in the contract. |
Amounts surrendered in the first year, or in excess of this free amount, may be subject to a surrender charge and/or excess interest adjustment. You may have to pay income tax and a tax penalty on any money you take out.
The gains in the contract are the amount equal to the account value, minus the sum of all purchase payments, reduced by all prior partial surrenders deemed to be from purchase payments.
If you have account value in the fixed account, you may also take out any cumulative interest credited free of excess interest adjustments.
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Access to amounts held in qualified contracts may be restricted or prohibited by law or regulation or the terms of the plan.
Surrenders are not generally permitted during the income phase unless you elect the Life with Emergency Cash® annuity payment option.
7. | ANNUITY PAYMENTS |
(THE INCOME PHASE) |
The contract allows you to receive income under one of several annuity payment options. You may choose from fixed payment options, variable payment options, or a combination of both. If you select a variable payment option, the dollar amount of your payments may go up or down. However, the Initial Payment Guarantee is available as an optional rider and it guarantees a minimum amount for each payment.
8. | DEATH BENEFIT |
If you are both the owner and the annuitant and you die before the income phase begins, then your beneficiary will receive a death benefit. Required distribution rules require that the policy value be distributed upon the death of any owner.
Naming different persons as owner and annuitant can affect whether the death benefit is payable and to whom amounts will be paid. Use care when naming owners, annuitants and beneficiaries, and consult your agent if you have questions.
The contract generally offers a choice of one of the following optional guaranteed minimum death benefits:
| Double Enhanced; |
| Annual Step-Up; or |
| Return of Premium. |
Charges are lower for the Return of Premium Death Benefit.
If the owner is not the annuitant, no death benefit is paid if the owner dies.
9. | TAXES |
Earnings, if any, are generally not taxed until taken out. If you take money out of a nonqualified contract during the accumulation phase, earnings come out first for federal tax purposes, and are taxed as ordinary income. For nonqualified and certain qualified contracts, payments during the income phase may be considered partly a return of your original investment so that part of each payment may not be taxable as income. For qualified contracts, payments during the income phase are, in many cases, considered as all taxable income. If you are younger than 59 1/2 when you take money out, you may incur a 10% federal penalty tax on the taxable earnings.
10. | ADDITIONAL FEATURES |
This contract has additional features that might interest you. These include, but are not limited to, the following:
| You can arrange to have money automatically sent to you monthly, quarterly, semi-annually or annually while your contract is in the accumulation phase. This feature is referred to as the Systematic Withdrawal Option or SWO. Amounts you receive may be included in your gross income, and in certain circumstances, may be subject to penalty taxes. |
| You can elect an optional rider at the time of annuitization that guarantees your variable annuity payments will never be less than 50% of the initial variable annuity payment. This feature is called the Initial Payment Guarantee. There is an extra charge for this rider. |
| You can elect one of two optional riders that might pay an additional amount on top of the contract death benefit, in certain circumstances. These features are called the Additional Death Benefit Rider or ADB and the Additional Death Benefit Rider II or ADB II. There is an extra charge for these riders. |
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| You can elect an optional rider that reduces the number of years each purchase payment is subject to surrender charges. You can only elect this rider at the time you purchase your contract. This feature is called the Liquidity Rider. There is an extra charge for this rider. |
| You can elect an optional rider that adds a premium accelerator to the account value. You can only elect this rider at the time you purchase your contract. This feature is called the premium accelerator. There is an extra charge for this rider. |
| Under certain medically related circumstances, you may surrender all or part of the account value without a surrender charge and excess interest adjustment. This feature is called the Nursing Care and Terminal Withdrawal Option. |
| Under certain unemployment circumstances, you may surrender all or a portion of the account value free of surrender charges and excess interest adjustments. This feature is called the Unemployment Waiver. |
| You may generally make transfers and/or change the allocation of additional purchase payments by telephone. We may restrict or eliminate this feature. |
| You can arrange to automatically transfer money (at least $250 per transfer) monthly or quarterly from certain investment choices into one or more subaccounts. This feature is known as Dollar Cost Averaging or DCA. |
| We will, upon your request, automatically transfer amounts among the subaccounts on a regular basis to maintain a desired allocation of the account value among the various subaccounts. This feature is called Asset Rebalancing. |
These features may not be available for all contracts, may vary for certain contracts, may not each be available in combination with other optional benefits under the policy, and may not be suitable for your particular situation. Additionally, these features may not be offered in the future, as determined by Transamerica.
11. | OTHER INFORMATION |
Right to Cancel Period. You may return your contract for a refund, but only if you return it within a prescribed period, which is generally 10 days (after you receive the contract), or whatever longer time may be required by state law. The contract will then be deemed void. If state law requires, we will refund your original purchase payment(s).
No Probate. Usually, the person receiving the death benefit under this contract will not have to go through probate. State laws vary on how the amount that may be paid is treated for estate tax purposes.
Who should purchase the Contract? This contract is designed for people seeking long-term tax-deferred accumulation of assets, generally for retirement or other long-term purposes.
Older Contracts. See Appendix C for information on how older contracts have different features and requirements, and sometimes different fees and deductions.
Section 1035 Exchanges. Before exchanging one annuity contract for another under Section 1035 of the Internal Revenue Code (1035 Exchange), you should compare both annuities carefully. If you exchange an annuity contract for the contract described in this prospectus, you might have to pay a surrender charge and tax, including a penalty tax, on your old annuity contract, there will be a new surrender charge period for this contract, other fees and charges may be higher (or lower) under this contract, and the benefits under this contract may be different. You should not exchange another annuity contract for this contract unless you determine, after knowing all of the facts, that the exchange is in your best interest and not just better for the person trying to sell you this contract. If you decide to purchase this contract through a 1035
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Exchange, you should speak to your financial professional or tax advisor to make sure that the transaction will be tax free. If you surrender your old annuity contract for cash and then buy a new annuity contract, for example, you will have to pay tax on the surrender.
State Variations. Policies issued in your state may provide different features and benefits from, and impose different costs than, those described in this prospectus because of state law variations. These differences include, among other things, free look rights, issue age limitations, and the general availability of riders. Please note that this prospectus describes the material rights and obligations of a policy owner, and the maximum fees and charges for all policy features and benefits are set forth in the fee table of this prospectus. See your contract for specific variations because any such state variations will be included in your contract or in riders or endorsements attached to your contract. See your agent or contact us for specific information that may be applicable to your state.
Financial Statements. Financial Statements for Transamerica and the subaccounts are in the SAI. Condensed financial information for the subaccounts (those in operation before January 1, 2012) is in Appendix B to this prospectus.
12. | INQUIRIES |
If you need more information or want to make a transaction, please contact us at:
Transamerica Life Insurance Company
Attention: Customer Care Group
4333 Edgewood Road NE
Cedar Rapids, IA 52499-0001
1-800-525-6205
You may check your contract at www.transamericaannuities.com. Follow the logon procedures. You will need your pre-assigned Personal Identification Number (PIN) to access information about your contract. We cannot guarantee that you will be able to access this site.
You should protect your PIN, because on-line (or telephone) options may be available and could be made by anyone who knows your PIN. We may not be able to verify that the person providing instructions using your PIN is you or someone authorized by you.
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ANNUITY CONTRACT FEE TABLE AND EXPENSE EXAMPLES(1)
The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or transfer cash value between investment choices. State premium taxes may also be deducted, and excess interest adjustments may be made to amounts surrendered or applied to annuity payment options from cash value from the fixed account.
Contract Owner Transaction Expenses:
Sales Load On Purchase Payments |
0 | % | ||
Maximum Surrender Charge (as a % of purchase payments surrendered)(2) |
7 | % | ||
Transfer Fee(3) |
$ | 0 - $10 | ||
Special Service Fee |
$ | 0 - $25 |
The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including portfolio fees and expenses.
Annual Service Charge |
$ | 0 - $35 Per Contract | ||
Variable Account Annual Expenses (as a percentage of average separate account value): |
||||
Base Variable Account Expenses: |
||||
Mortality and Expense Risk Fee(4) |
1.15 | % | ||
Administrative Charge |
0.15 | % | ||
Total Variable Account Annual Expenses |
1.30 | % | ||
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Optional Variable Account Expenses: |
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Double Enhanced Death Benefit(5) |
0.80 | % | ||
Annual Step-Up Death Benefit(6) |
0.20 | % | ||
Liquidity Rider(7) |
0.40 | % | ||
Premium Accelerator(8) |
0.20 | % | ||
Total Variable Account Annual Expenses with Highest Optional Variable Account Expenses(9) |
2.50 | % | ||
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|
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Annual Optional Rider Fees(10): |
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Additional Death Benefit Rider(11) |
0.25 | % | ||
Additional Death Benefit Rider II(12) |
0.55 | % | ||
Guaranteed Minimum Benefit Rider(13) No Longer Available |
0.45 | % |
The next items shows the lowest and highest total operating expenses charged by underlying fund portfolios for the year ended December 31, 2011 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning underlying fund portfolios fees and expenses are contained in the prospectus for each portfolio.
Total Portfolio Annual Operating Expenses(14): |
Lowest | Highest | ||||||
Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses. |
0.52 | % | 1.50 | % |
The following Example is intended to help you compare the cost of investing in the contract with the cost of investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, variable account annual expenses, and portfolio fees and expenses.
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The Example assumes that you invest $10,000 in the contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year, the highest expenses of any of the portfolios for the year ended December 31, 2011, and the base contract with the Doubled Enhanced Death Benefit, Liquidity Rider, and Additional Death Benefit Rider II.
Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Example |
1 Year | 3 Years | 5 Years | 10 Years | ||||||||||||
If the contract is surrendered at the end of the applicable time period. |
$ | 1094 | $ | 1936 | $ | 2785 | $ | 4697 | ||||||||
If the contract is annuitized at the end of the applicable time period Or if you do not surrender your contract. |
$ | 461 | $ | 1389 | $ | 2324 | $ | 4697 |
For information concerning compensation paid for the sale of the contracts, see Distributor of the Contracts.
(1) | The fee table applies only to the accumulation phase. During the accumulation phase the fees may be different that those described in the Annuity Contract Fee Table. See Section 5, Expenses. |
(2) | The surrender charge, if any is imposed, applies to each contract, regardless of how account value is allocated among the investment choices. The surrender charge is decreased based on the number of years since the purchase payment was made. |
If you select the Life with Emergency Cash® annuity payment option, you will be subject to a surrender charge after the annuity date. See Section 5, Expenses.
(3) | The transfer fee, if any is imposed, applies to each contract, regardless of how account value is allocated among the investment choices. There is no fee for the first 18 transfers per policy year. For additional transfers, Transamerica may charge a fee of $10 per transfer. |
(4) | The mortality and expense risk fee shown (1.15%) is for the accumulation phase with the Return of Premium Death Benefit. |
(5) | The fee for the Double Enhanced Death Benefit (0.80%) is in addition to the mortality and expense risk and administrative fees. |
(6) | The fee for the Annual-Step Death Benefit (0.20%) is in addition to the mortality and expense risk and administrative fees. |
(7) | The fee for the Liquidity Rider (0.40%) is in addition to the mortality and expense risk and administrative fees. The fee is only charged in the first four contract years. |
(8) | The Premium Accelerator fee (0.20%) is only deducted in the first nine contract years. |
(9) | This reflects the base separate account expenses plus the Double Enhanced Death Benefit and Liquidity Rider, but does not include any annual optional rider fees. |
(10) | In some cases, riders to the policy are available that provide optional benefits that are not described in detail in this prospectus. There are additional fees (each year) for those riders. |
(11) | The annual Additional Death Benefit Rider fee is 0.25% of the account value and is deducted only during the accumulation phase. |
(12) | The annual Additional Death Benefit Rider II fee is 0.55% of the account value and is deducted only during the accumulation phase. |
(12) | The Guaranteed Minimum Income Benefit fee is 0.45% of the minimum annuitization value and is deducted only during the accumulation phase. If you annuitize under the rider, a guaranteed payment fee is deducted at an annual rate of 1.25%. See Appendix F. |
(14) | The fee table information relating to the underlying fund portfolios is for the year ending December 31, 2011 (unless otherwise noted) and was provided to Transamerica by the underlying fund portfolios, their investment advisers or managers, and Transamerica has not and cannot independently verify the accuracy or completeness of such information. Actual expenses of the portfolios in future years and the current year may be greater or less than those shown in the Table. Gross expense figures do not reflect any fee waivers or expense reimbursements. Actual expenses may have been lower than those shown in the Table. |
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1. | THE ANNUITY CONTRACT |
This prospectus describes the Dreyfus/Transamerica Triple Advantage® Variable Annuity contract issued by Transamerica Life Insurance Company. Contracts may have different features than those described in this prospectus (such as different death benefits or annuity payments) and different charges. These differences are noted in Appendix C.
An annuity is a contract between you - owner, and an insurance company (in this case Transamerica), where the insurance company promises to pay you an income in the form of annuity payments. These payments begin on a designated date, referred to as the annuity date.
The contract is a deferred annuity because until the annuity date, your annuity is in the accumulation phase and the earnings (if any) are tax deferred. Tax deferral means you generally are not taxed until you take money out of your annuity. After you annuitize, your annuity switches to the income phase.
The contract is a flexible premium variable annuity. You can use the contract to accumulate funds for retirement or other long-term financial planning purposes. Your individual investment and your rights are determined primarily by your own contract.
The contract is a flexible premium annuity because after you purchase it, you can generally make additional investments of $50 or more until the annuity date. You are not required to make any additional investments.
The contract is a variable annuity because the value of your investments can go up or down based on the performance of your investment choices. If you invest in the variable account, the amount of money you are able to accumulate in your contract during the accumulation phase depends upon the performance of your investment choices. You could lose the amount you allocate to the variable account. The amount of annuity payments you receive during the income phase from the variable account also depends upon the investment performance of your investment choices for the income phase. However, if you annuitize under the Initial Payment Guarantee, then you will receive stabilized annuity payments that will never be less than a percentage of your initial annuity payment. There is an extra charge for this rider.
The contract also contains a fixed account. The fixed account offers interest at rates that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that you select.
Do not purchase this contract if you plan to use it, or any of its riders, for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme. Your contract is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this contract, you represent and warrant that you are not using the contract, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.
2. | PURCHASE PAYMENTS |
Transamerica will not accept purchase payments for new contracts.
You are not required to make any additional purchase payments. However, you can make additional purchase payments as often as you like during the accumulation phase. Additional purchase payments must be at least $50. We will credit additional purchase payments to your contract as of the business day we receive your purchase payment and required information.
You should make checks for purchase payments payable only to Transamerica Life Insurance Company and send them to the Transamerica Annuity Service Center. Your check must be honored in order for Transamerica to pay any associated payments and benefits due under the contract.
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We do not accept cash. We reserve the right to not accept third party checks. A third party check is a check that is made payable to one person who endorses it and offers it as payment to a second person. Checks should normally be payable to Transamerica Life Insurance Company, however, in some circumstances, at our discretion we may accept third party checks that are from rollovers or transfers from other financial institutions. Any third party checks not accepted by the Company will be returned.
We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.
Maximum Total Purchase Payments
For issue ages 0 80 we reserve the right to reject cumulative purchase payments over $1,000,000 for contracts with the same owner or same annuitant issued. For issue ages over 80, we reserve the right to reject cumulative purchase payments over $500,000 for contracts with the same owner or same annuitant issued by us or an affiliate.
Allocation of Purchase Payments
When you add additional purchase payments to the contract, we will allocate your purchase payment to the investment choices you select. Your allocation must be in whole percentages and must total 100%. We will allocate additional purchase payments the same way, unless you request a different allocation.
If you allocate purchase payments to the Dollar Cost Averaging program, you must give us instructions regarding the subaccount(s) to which transfers are to be made or we cannot accept your purchase payment.
You may change allocations for future additional purchase payments by sending us written instructions or by telephone, subject to the limitations described under Telephone Transactions. The allocation change will apply to purchase payments received on or after the date we receive the change request.
You could lose the amount you allocate to the variable subaccounts.
Transamerica reserves the right to restrict or refuse any purchase payment.
You should expect your account value to change from valuation period to valuation period. The account value varies based on the performance of the accumulation units. A valuation period begins at the close of regular trading on the New York Stock Exchange on each business day and ends at the close of regular trading on the next succeeding business day. A business day is each day that the New York Stock Exchange is open. The New York Stock Exchange generally closes at 4:00 p.m. eastern time. Holidays are generally not business days.
3. | INVESTMENT CHOICES |
The Dreyfus/Transamerica Triple Advantage® variable annuity offers you a means of investing in various underlying fund portfolios offered by different investment companies (by investing in the corresponding subaccounts). The companies that provide investment advice and administrative services for the underlying fund portfolios offered through this Contract are listed in Appendix A Portfolios Associated with the Subaccounts. The subaccounts invest in shares of the various underlying fund portfolios.
The general public may not purchase shares of these underlying fund portfolios. The name and investment objectives and policies may be similar to other portfolios and managed by the same investment adviser or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as those of other underlying fund portfolios.
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More detailed information, including an explanation of the underlying fund portfolios investment objectives, may be found in the current prospectus for the underlying fund portfolios, which accompany this prospectus. You should read the prospectuses for the underlying fund portfolios carefully before you invest.
Selection of Underlying Fund Portfolios
The underlying fund portfolios offered through this product are selected by Transamerica, and Transamerica may consider various factors, including, but not limited to, asset class coverage, the strength of the advisers or sub-advisers reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying fund portfolio or its service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates. For additional information about these arrangements, see Revenue We Receive. We review the portfolios periodically and may remove a portfolio, or limit its availability to new premiums and/or transfers of cash value if we determine that a portfolio no longer satisfies one or more of the selection criteria, and/or if the portfolio has not attracted significant allocations from owners. We have included the Transamerica Series Trust (TST) underlying fund portfolios at least in part because they are managed by one of our affiliates, Transamerica Asset Management, Inc. (TAM).
We have developed this variable annuity product in cooperation with The Dreyfus Corporation and its affiliates, and have included underlying fund portfolios based on their recommendations; their selection criteria may differ from our selection criteria.
You are responsible for choosing the subaccounts which invest in the underlying fund portfolios, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Because investment risk is borne by you, decisions regarding investment allocations should be carefully considered.
In making your investment selections, we encourage you to thoroughly investigate all of the information regarding the underlying fund portfolios that is available to you, including each underlying fund portfolios prospectus, statement of additional information and annual and semi/annual reports. Other sources such as the Funds website or newspapers and financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a Fund or underlying fund portfolio. After you select underlying fund portfolios for your initial premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate.
You bear the risk of any decline in the cash value of your policy resulting from the performance of the underlying fund portfolios you have chosen.
We do not recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.
We do not guarantee that any of the subaccounts will always be available for purchase payments, allocations, or transfers. See the SAI for more information concerning the possible addition, deletion, or substitution of investments.
We reserve the right to limit the number of subaccounts you are invested in at any one time.
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Addition, Deletion, or Substitution of Investments
Transamerica cannot and does not guarantee that any of the subaccounts will always be available for purchase payments, allocations, or transfers. Transamerica retains the right, subject to any applicable law, to make certain changes in the variable account and its investments. Transamerica reserves the right to eliminate the shares of any portfolio held by a subaccount2 and to substitute shares of another underlying fund portfolios, or of another registered open-end management investment company for the shares of any portfolio, if the shares of the portfolio are no longer available for investment or if, in Transamericas judgment, investment in any portfolio would be inappropriate in view of the purposes of the variable account. To the extent required by the 1940 Act, as amended, substitutions of shares attributable to your interest in a subaccount will not be made without prior notice to you and the prior approval of the Securities and Exchange Commission (SEC). Nothing contained herein shall prevent the variable account from purchasing other securities for other series or classes of variable annuity contracts, or from affecting an exchange between series or classes of variable annuity contracts on the basis of your requests.
New subaccounts may be established when, in the sole discretion of Transamerica, marketing, tax, investment or other conditions warrant. Any new subaccounts may be made available to existing owners on a basis to be determined by Transamerica. Each additional subaccount will purchase shares in a mutual fund portfolio, or other investment vehicle. Transamerica may also eliminate one or more subaccounts if, in its sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any subaccount is eliminated, Transamerica will notify you and request a reallocation of the amounts invested in the eliminated subaccount.
Similarly, Transamerica may, at its discretion, close a subaccount to new investment (either transfers or purchase payments).
If you allocate purchase payments to a subaccount that is closed to new investment, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and the purchase payment will be returned.
In the event of any such substitution or change, Transamerica may, by appropriate endorsement, make such changes in the contracts as may be necessary or appropriate to reflect such substitution or change. Furthermore, if deemed to be in the best interests of persons having voting rights under the contracts, the separate account may be (i) operated as a management company under the 1940 Act or any other form permitted by law, (ii) deregistered under the 1940 Act in the event such registration is no longer required or (iii) combined with one or more other separate accounts. To the extent permitted by applicable law, Transamerica also may (1) transfer the assets of the separate account associated with the contracts to another account or accounts, (2) restrict or eliminate any voting rights of owners or other persons who have voting rights as to the separate account, (3) create new separate accounts, (4) add new subaccounts to or remove existing subaccounts from the separate account, or combine subaccounts, or (5) add new underlying fund portfolios, or substitute a new fund for an existing fund.
Purchase payments allocated and amounts transferred to the fixed account become part of Transamericas general account. Interests in the general account have not been registered under the Securities Act of 1933 (the 1933 Act), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are generally subject to the provisions of the 1933 or 1940 Acts.
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We guarantee that the interest credited to the fixed account will not be less than the guaranteed minimum effective annual interest rate shown on your contract specification page (the guaranteed minimum). We determine credited rates, which are guaranteed for at least one year, in our sole discretion. You bear the risk that we will not credit interest greater than the guaranteed minimum. At the end of the guaranteed period option you selected, the value in that guaranteed period option will automatically be transferred into a new guaranteed period option of the same length (or the next shorter period if the same period is no longer offered) at the current interest rate for that period. You can transfer to another investment choice by giving us notice within 30 days before the end of the expiring guaranteed period.
Full and partial surrenders and transfers from a guaranteed period option of the fixed account are generally subject to an excess interest adjustment (except at the end of the guaranteed period). This adjustment will also be made to amounts that you apply to an annuity payment option. This adjustment may increase or decrease the amount of interest credited to your contract. The excess interest adjustment will not decrease the interest credited to your contract below the guaranteed minimum, however.
We also guarantee that upon full surrender your cash value attributable to the fixed account will not be less than the amount required by the applicable nonforfeiture law at the time the contract is issued.
If you select the fixed account, your money will be placed with Transamericas other general assets. The amount of money you are able to accumulate in the fixed account during the accumulation phase depends upon the total interest credited. The amount of annuity payments you receive during the income phase from the fixed portion of your contract will remain level for the entire income phase.
We reserve the right to refuse any purchase payment to the fixed account.
During the accumulation phase, you may make transfers to or from any subaccount or to the fixed account within certain limitations.
Transfers out of a guaranteed period option of the fixed account are limited to the following:
| Transfers at the end of a guaranteed period. No excess interest adjustment will apply. |
| Transfers of amounts equal to interest credited. This may affect your overall interest-crediting rate, because transfers are deemed to come from the oldest purchase payment first. |
| Other than at the end of a guaranteed period, transfers of amounts from the guaranteed period option in excess of amounts equal to interest credited, are subject to an excess interest adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one contract year is 25% of the amount in that guaranteed period option, less any previous transfers during the current contract year. If it is a positive adjustment, we do not limit the amount that you can transfer. (Note: This restriction may prolong the period of time it takes to transfer the full amount in a guaranteed period option of the fixed account. You should carefully consider whether investment in the fixed account meets your needs and investment criteria.) |
Each transfer must be at least $500, or the entire subaccount value. Transfers of interest from a guaranteed period option of the fixed account, must be at least $50. If less than $500 remains as a result of the transfer, then we reserve the right to include that amount in the transfer. Transfers must be received at our administrative and service office while the New York Stock Exchange is open to get same-day pricing of the transaction.
We reserve the right to prohibit transfers to the fixed account if we are crediting the guaranteed minimum.
The number of transfers permitted may be limited and a $10 charge per transfer may apply.
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During the income phase, you may transfer values out of any subaccount; however, you cannot transfer values out of the fixed account. The minimum amount that can be transferred during this phase is the lesser of $10 of monthly income, or the entire monthly income of the annuity units in the subaccount from which the transfer is being made.
Transfers may be made by telephone, subject to the limitations described below under Telephone Transactions.
Market Timing and Disruptive Trading
Statement of Policy. This variable insurance product was not designed for the use of market timers or frequent or disruptive traders (frequent transfers are considered to be disruptive). Such transfers may be harmful to the underlying fund portfolios and increase transaction costs.
Market timing and disruptive trading among the subaccounts or between the subaccounts and the fixed account can cause risks with adverse effects for other contract owners (and beneficiaries and underlying fund portfolios). These risks and harmful effects include:
(1) | dilution of the interests of long-term investors in a subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolios investments (some market timers attempt to do this through methods known as time-zone arbitrage and liquidity arbitrage); |
(2) | an adverse effect on portfolio management, such as: |
(a) | impeding a portfolio managers ability to sustain an investment objective; |
(b) | causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or |
(c) | causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and |
(3) | increased brokerage and administrative expenses. |
These costs are borne by all contract owners invested in those subaccounts, not just those making the transfers.
We have developed policies and procedures with respect to market timing and disruptive trading (which vary for certain subaccounts at the request of the corresponding underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive trading.
Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.
Deterrence. If we determine you are engaged in market timing or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other policy owners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of
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expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be expedited transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by U.S. mail. We may also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.
We reserve the right to reject any purchase payment or transfer request from any person without prior notice, if, in our judgment, (1) the payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolios operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. Because determining whether to impose any such special restrictions depends on our judgment and discretion, it is possible that some contract owners could engage in disruptive trading that is not permitted for others. We also reserve the right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some contract owners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more variable insurance products that we believe are connected. If you engage a third party investment advisor for asset allocation services, then you may be subject to these transfer restrictions because of the actions of your investment advisor in providing these services.
In addition, transfers for multiple policies invested in the Transamerica Series Trust underlying fund portfolios which are submitted together may be disruptive at certain levels. At the present time, such aggregated transactions likely will not cause disruption if less than one million dollars total is being transferred with respect to any one underlying fund portfolio (a smaller amount may apply to smaller portfolios). Please note that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.
In addition to our internal policies and procedures, we will administer your variable insurance product to comply with any applicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement, administer, and charge you for any fee or restriction, including redemption fees, imposed by any underlying fund portfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of any of the underlying fund portfolios.
Under our current policies and procedures, we do not:
| impose redemption fees on transfers; or |
| expressly limit the number or size of transfers in a given period except for certain subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size. |
Redemption fees, transfer limits, and other procedures or restrictions may be more or less successful than ours in deterring market timing or other disruptive trading and in preventing or limiting harm from such trading.
In the absence of a prophylactic transfer restriction (e.g., expressly limiting the number of trades within a given period or limiting trades by their size), it is likely that some level of market timing and disruptive trading will occur before it is detected and steps taken to deter it (although some level of market timing and disruptive trading can occur with a prophylactic transfer restriction). As noted above, we do not impose a prophylactic transfer restriction and, therefore, it is likely that some level of market timing and disruptive trading will occur before we are able to detect it and take steps in an attempt to deter it.
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Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or other disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by contract owners (or those acting on their behalf) to avoid detection. As a result, despite our efforts to prevent harmful trading activity among the variable investment choices available under this variable insurance product, there is no assurance that we will be able to detect or deter frequent or harmful transfers by such contract owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict market timing or other disruptive trading may be limited by provisions of the variable insurance product.
Furthermore, we may revise our policies and procedures in our sole discretion at any time and without prior notice, as we deem necessary or appropriate (1) to better detect and deter harmful trading that may adversely affect other contract owners, other persons with material rights under the variable insurance products, or underlying fund shareholders generally, (2) to comply with state or federal regulatory requirements, or (3) to impose additional or alternative restrictions on owners engaging in market timing or disruptive trading among the investment choices under the variable insurance product. In addition, we may not honor transfer requests if any variable investment choice that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.
Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Contract owners should be aware that we may not have the contractual ability or the operational capacity to monitor contract owners transfer requests and apply the frequent trading policies and procedures of the respective underlying fund portfolios that would be affected by the transfers. Accordingly, contract owners and other persons who have material rights under our variable insurance products should assume that any protection they may have against potential harm from market timing and disruptive trading is the protection, if any, provided by the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading in certain subaccounts.
Contract owners should be aware that we are required to provide to an underlying fund portfolio or its designee, promptly upon request, certain information about the trading activity of individual contract owners, and to restrict or prohibit further purchases or transfers by specific contract owners identified by an underlying fund portfolio as violating the frequent trading policies established for that portfolio.
Omnibus Orders. Contract owners and other persons with material rights under the variable insurance products also should be aware that the purchase and redemption orders received by the underlying fund portfolios generally are omnibus orders from intermediaries such as retirement plans and separate accounts funding variable insurance products. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual owners of variable insurance products. The omnibus nature of these orders may
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limit the underlying fund portfolios ability to apply their respective frequent trading policies and procedures. We cannot guarantee that the underlying fund portfolios will not be harmed by transfer activity relating to the retirement plans or other insurance companies that may invest in the underlying fund portfolios. These other insurance companies are responsible for their own policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage harmful transfer activity, it will affect other owners of underlying fund portfolio shares, as well as the owners of all of the variable annuity or life insurance policies, including ours, whose variable investment choices correspond to the affected underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from owners engaged in market timing and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing your request.
4. | PERFORMANCE |
Transamerica periodically advertises performance of the various subaccounts. Performance figures might not reflect charges for options, riders, or endorsements. We may disclose at least three different kinds of non-standard performance. First, we may calculate performance by determining the percentage change in the value of an variable accumulation unit by dividing the increase (decrease) for that unit by the value of the variable accumulation unit at the beginning of the period. This performance number reflects the deduction of the mortality and expense risk fees and administrative charges. It does not reflect the deduction of any applicable premium taxes, surrender charges, or fees for any optional riders or endorsements. The deduction of any applicable premium taxes, surrender charges, or rider fees would reduce the percentage increase or make greater any percentage decrease.
Second, advertisements may also include total return figures, which reflect the deduction of the mortality and expense risk fees and administrative charges. These figures may also include or exclude surrender charges.
Third, in addition, for certain investment portfolios, performance may be shown for the period commencing from the inception date of the investment portfolio (i.e. before commencement of subaccount operations). These figures should not be interpreted to reflect actual historical performance of the subaccounts.
5. | EXPENSES |
Note: The following section on expenses and the Annuity Contract Fee Table and expense examples may only apply to contracts issued after May 1, 2002. See Appendix C for older contracts. Please see your contract to determine your specific expenses.
There are charges and expenses associated with your contract that reduce the return on your investment in the contract.
During the accumulation phase, you can surrender part or all of the cash value (restrictions may apply to qualified contracts). We may apply a surrender charge to compensate us for expenses relating to sales, including commissions to registered representatives and other promotional expenses.
After the first year, you can surrender up to the greater of 10% of your purchase payments (less partial surrenders deemed to be from purchase payments) or any gains in the contract once each year free of surrender charges. This amount is referred to as the free amont and is determined at the time of surrender. (The free amount is not cumulative, so not surrendering anything in one year does not increase the surrender charge free amount in subsequent years.) If you surrender money in excess of this free amount, you might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.
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The following schedule shows the surrender charges that apply during the seven years following payment of each purchase payment:
Number of Years Since Purchase Payment Date |
Surrender Charge (as a percentage of purchase payment surrendered) |
|||
0 1 |
7 | % | ||
1 2 |
7 | % | ||
2 3 |
6 | % | ||
3 4 |
6 | % | ||
4 5 |
5 | % | ||
5 6 |
4 | % | ||
6 7 |
3 | % | ||
more than 7 |
0 | % |
For example, assume your purchase payment is $100,000 and your account value is $106,000 at the beginning of the second contract year and you surrender $30,000. Since that amount is more than your free amount ($10,000), you would pay a surrender charge of $1,400 on the remaining $20,000 (7% of $30,000 - $10,000).
Likewise, assume your account value is $80,000 (purchase payments $100,000) at the beginning of the second contract year and you surrender your contract. You would pay a surrender charge of $6,300 [7% of ($100,000 ($100,000 x 10%))].
You can generally choose to receive the full amount of a requested partial surrender by directing us to deduct any applicable surrender charge (and any applicable excess interest adjustment) from your remaining account value. You receive your cash value upon full surrender.
For surrender charge purposes, earnings are considered to be surrendered first, then the oldest purchase payment is considered to be surrendered next.
Surrender charges are waived under the Nursing Care and Terminal Withdrawal Option or the Unemployment Waiver.
Keep in mind that surrenders may be taxable, and if made before age 59 1/2, may be subject to a 10% federal penalty tax. For tax purposes, surrenders from nonqualified contracts are considered to come from taxable earnings first. Under qualified contracts, surrenders may be prorated between taxable and nontaxable amounts.
Life with Emergency Cash® Surrender Charge
If you select the Life with Emergency Cash® annuity payment option, then you can surrender your contract even after annuity payments have begun. However, there is a surrender charge during the first four years after the annuity date. The following schedule shows the current surrender charge:
Number of Years Since Annuity Date |
Surrender Charge (as a percentage of adjusted account value) |
|||
0 1 |
4 | % | ||
1 2 |
3 | % | ||
2 3 |
2 | % | ||
3 4 |
1 | % | ||
more than 4 |
0 | % |
Note carefully the following three things about this surrender charge:
| this surrender charge is measured from the annuity date and not from the purchase payment date; |
| this surrender charge is a percentage of the adjusted account value applied to the Life with Emergency Cash® annuity payment option, and not a percentage of purchase payment; and |
| under this payment option, there is no surrender charge free amount. |
Surrenders and transfers from the fixed account may be subject to an excess interest adjustment. This adjustment could retroactively reduce the interest credited in the fixed account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts applied to an annuity payment option. See The Fixed Account in Section 3.
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Mortality and Expense Risk Fees
We charge a fee as compensation for bearing certain mortality and expense risks under the contract. This fee is assessed daily based on the net asset value of each subaccount. Examples of such risks include a guarantee of annuity rates, the death benefits, certain expenses of the contract, and assuming the risk that the current charges will be insufficient in the future to cover costs of administering the contract. We may also pay distribution expenses out of this charge.
During the accumulation phase, for the Return of Premium Death Benefit the daily mortality and expense risk fee is at an annual rate of 1.15%. For the Annual Step-Up Death Benefit, the mortality and expense risk fee is at an annual rate of 1.35%. For the Double Enhanced Death Benefit, the mortality and expense risk fee is at an annual rate of 1.95%. During the income phase, the mortality and expense risk fee is always at an annual rate of 1.10%.
If this charge does not cover our actual costs, we absorb the loss. Conversely, if the charge more than covers actual costs, the excess is added to our surplus. We expect to profit from this charge. We may use any profit for any proper purpose, including distribution expenses.
We deduct a daily administrative charge to cover the costs of administering the contract (including certain distributionrelated expense). This charge is equal to an annual rate of 0.15% per year of the daily net asset value of the variable account during both the accumulation phase and the income phase.
In addition, an annual service charge of $35 (but not more than 2% of the account value) is charged on each contract anniversary and at surrender. The service charge is waived if your account value or the sum of your purchase payments, less all partial surrenders, is at least $50,000.
Some states assess premium taxes on the purchase payments you make. We currently do not deduct for these taxes at the time you make a purchase payment. However, we will deduct the total amount of premium taxes, if any, from the account value when:
| you begin receiving annuity payments; |
| you surrender the contract; or |
| a death benefit is paid. |
Generally, premium taxes range from 0% to 3.50%, depending on the state.
Federal, State and Local Taxes
We may in the future deduct charges from the contract for any taxes we incur because of the contract. However, no deductions are being made at the present time.
We will deduct a charge for special services, such as overnight delivery, up to $25 per service provided.
You are generally allowed to make 18 free transfers per year before the annuity date. If you make more than 18 transfers per year, we reserve the right to charge $10 for each additional transfer. Purchase payments, Asset Rebalancing and Dollar Cost Averaging transfers do not count as one of your 18 free transfers per year. All transfer requests made on the same valuation day will be treated as a single request.
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If you elect the Initial Payment Guarantee at the time of annuitization, there is a daily fee (during the income phase) currently at an effective annual rate of 1.25% of the unit value of the subaccounts. This fee may be higher or lower at the time you annuitize and elect the rider.
Additional Death Benefit Rider
If you elect the Additional Death Benefit Rider, there is an annual rider fee during the accumulation phase of 0.25% of the account value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase.
Additional Death Benefit Rider II
If you elect the Additional Death Benefit Rider II, there is an annual rider fee during the accumulation phase of 0.55% of the account value. The rider fee will be deducted on each rider anniversary and upon termination of the rider during the accumulation phase.
If you elect the Liquidity Rider, a daily fee equal to an effective annual rate of 0.40% of the unit value in the subaccounts is deducted in calculating the variable accumulation unit values. The rider fee is only charged for the first four contract years.
If you elect the Premium Accelerator, a daily fee at an effective annual rate of 0.20% of the unit value of the subaccounts will be applied. This fee is only deducted for the first nine contract years.
The value of the assets in each subaccount will reflect the fees and expenses paid by the underlying fund portfolio. The lowest and highest fund expenses for the previous calendar year are found in the Fee Table section of this prospectus. See the prospectuses for the underlying fund portfolios for more information.
This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their advisers, subadvisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are sometimes referred to as revenue sharing arrangements and are described further below. While only certain types of payments described below may be made in connection with your particular contract, all such payments may nonetheless influence or impact actions we (and/or our affiliates) take, and recommendations we (and our affiliates) make, regarding each of the variable insurance products that we (and our affiliates) offer, including your contract.
We (and/or our affiliates) may receive some or all of the following types of payments:
| Rule 12b-1 Fees. We and/or our affiliate, Transamerica Capital, Inc. (TCI) who is the principal underwriter for the contracts, indirectly receive 12b-1 fees from the funds available as investment choices under our variable insurance products. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.25% of the average daily assets of the certain underlying fund portfolios attributable to the contracts and to certain other variable insurance products that we and our affiliates issue. |
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| Administrative, Marketing and Support Service Fees (Support Fees). As noted above, an investment adviser, sub-adviser, administrator and/or distributor (or affiliates thereof) of the underlying fund portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment advisor or sub-adviser realized on the advisory fee deducted from underlying fund portfolio assets. Contract owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying funds for more information). The amount of the payments we (or our affiliates) receive is generally based on a percentage of the assets of the particular underlying fund portfolios attributable to the policy and to certain other variable insurance products that we and our affiliates issue. These percentages differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others. |
The following chart provides the maximum combined percentages of 12b-1 fees and Support Fees that we anticipate will be paid to us on an annual basis:
Incoming Payments to Transamerica and/or TCI
Fund |
Maximum Fee % of assets(1) |
|||
Transamerica Series Trust(2) |
0.25 | % | ||
Dreyfus Variable Investment Fund |
0.55 | % | ||
Dreyfus Stock Index Fund, Inc. |
0.47 | % | ||
The Dreyfus Socially Responsible Growth Fund, Inc. |
0.55 | % | ||
Dreyfus Investment Portfolios |
0.55 | % |
(1) | Maximum Fee % of Assets: Payments are based on a percentage of the average assets of each underlying fund portfolio owned by the subaccounts available under this contract and under certain other variable insurance products offered by our affiliates and us. We and/or TCI may continue to receive 12b-1 fees and administrative fees on subaccounts that are closed to new investments, depending on the terms of the agreements supporting those payments and on the services provided. |
(2) | Transamerica Series Trust (TST): Because TST is managed by Transamerica Asset Management, Inc. (TAM), an affiliate of ours, there are additional benefits to us and our affiliates for amounts you allocate to the TST underlying fund portfolios, in terms of our and our affiliates overall profitability. These additional benefits may be significant. Payments or other benefits may be received from TAM. Such payments or benefits may be entered into for a variety of purposes, such as to allocate resources to us to provide administrative services to the policyholders who invest in the TST underlying fund portfolios. These payments or benefits may take the form of internal credits, recognition, or cash payments. A variety of financial and accounting methods may be used to allocate resources and profits to us. Additionally, if a TST portfolio is sub-advised by an entity that is affiliated with us, we may retain more revenue than on those TST portfolios that are sub-advised by non-affiliated entities. During 2011 we received $89,306,110.22 in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart. We anticipate receiving comparable amounts in the future. |
Proceeds from certain of these payments by the Funds, the advisers, the sub-advisers and/or their affiliates may be used for any corporate purpose, including payment of expenses (1) that we and our affiliates incur in promoting, marketing, and administering the contract, and (2) that we incur, in our role as intermediary, in promoting, marketing, and administering the underlying fund portfolios. We and our affiliates may profit from these payments.
For further details about the compensation payments we make in connection with the sale of the contracts, see Distributor of the Contracts in this prospectus.
6. | ACCESS TO YOUR MONEY |
During the accumulation phase, you can have access to the money in your contract in the following ways:
| by making a surrender (either a complete or partial surrender); or |
| by taking systematic payouts. |
If you take a complete surrender, you will receive your cash value.
If you want to take a partial surrender, in most cases it must be for at least $500. Unless you tell us otherwise, we will take the surrender from each of the investment choices in proportion to the account value.
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After one year, you may take up to the greater of 10% of your purchase payments (less partial surrenders deemed to be from purchase payments) or any gains in the contract free of surrender charges once each contract year. Remember that any surrender you take will reduce the account value, and the amount of the death benefit. See Section 8, Death Benefit, for more details. A surrender may also reduce other benefits.
Surrenders may be subject to a surrender charge. Surrenders from the fixed account may also be subject to an excess interest adjustment. Income taxes, federal tax penalties and certain restrictions may apply to any surrenders you make.
Surrenders from qualified contracts may be restricted or prohibited.
During the income phase, you will receive annuity payments under the annuity payment you select; however, you generally may not take any other surrenders, either complete or partial, unless you elect a Life with Emergency Cash® payment option.
If your contract was issued pursuant to a 403(b) plan, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request comply with applicable tax requirements and to decline requests that are not in compliance. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender, loan or transfer, you consent to the sharing of confidential information about you, the contract, and transactions under the contract and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.
Delay of Payment and Transfers
Payment of any amount due from the variable account for a surrender, a death benefit, or the death of the owner of a nonqualified contract, will generally occur within seven days from the date we receive all required information.
We may defer such payment from the variable account if:
| the New York Stock Exchange is closed other than for usual weekends or holidays or trading on the Exchange is otherwise restricted; |
| an emergency exists as defined by the SEC or the SEC requires that trading be restricted; or |
| the SEC permits a delay for the protection of owners. |
Transfers of amounts from the subaccounts also may be deferred under these circumstances.
In addition, if, pursuant to SEC rules, the Money Market Portfolio suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from the Money Market Portfolio until the portfolio is liquidated.
Federal laws designed to counter terrorism and prevent money laundering by criminals might in certain circumstances require us to reject a purchase payment and/or freeze a contract owners account. If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, surrenders, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator. We may also be required to provide information about you and your contract to government agencies or departments.
Pursuant to the requirements of certain state laws, we reserve the right to defer payment of the cash value from the fixed account for up to six months. We may defer payment of any amount until your purchase payment check has cleared your bank.
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Money that you transfer out of or surrender from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment. At the time you request a transfer or surrender (either full or partial), if interest rates set by Transamerica have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value on surrender. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value on surrender or transfer.
Any amount surrendered in excess of the cumulative interest credited is generally subject to an excess interest adjustment.
An excess interest adjustment may also be made on amounts applied to an annuity payment option.
There will be no excess interest adjustment on any of the following:
| surrenders or transfers of cumulative interest credited; |
| Nursing Care and Terminal Condition Withdrawal Option surrenders; |
| Unemployment Waiver surrenders; |
| surrenders to satisfy any minimum distribution requirements; and |
| Systematic Withdrawal Option payments, which do not exceed cumulative interest credited at the time of payment. |
Please note that in these circumstances you will not receive a higher cash value if interest rates have fallen nor will you receive a lower cash value if interest rates have risen.
The excess interest adjustment may vary for certain contracts and may not be applicable for all contracts.
As a protection against fraud, we require a signature guarantee (i.e., Medallion Signature Guarantee as required by us) for the following transaction requests:
| Any surrenders over $250,000; |
| Certain surrenders on or within 15 days of an address change; |
| Any surrender when the Company has been directed to send proceeds to a different personal address from the address of record for that contract owners account. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same owner in a tax-free exchange; |
| Any surrender when the Company does not have an originating or guaranteed signature on file; |
| Any other transaction where we require. |
We may change the specific requirements listed above, or add signature guarantees in other circumstances, in our discretion if we deem it necessary or appropriate to help protect against fraud. For current requirements, please refer to the requirements listed on the appropriate form or call us at (800) 525-6205.
You can obtain a Medallion signature guarantee from more than 7,000 financial institutions across the United States and Canada that participate in the Medallion signature guarantee program. This includes many:
| National and state banks |
| Savings banks and savings and loan associations; |
| Securities brokers and dealers; and |
| Credit Unions. |
The best source of a Medallion signature guarantee is a bank, savings and loan association, brokerage firm, or credit union with which you do business.
A notary public cannot provide a Medallion signature guarantee. Notarization will not substitute for a Medallion signature guarantee when required.
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7. | ANNUITY PAYMENTS |
(THE INCOME PHASE) |
You choose the annuity date. You can change this date by giving us notice with the information we need. New annuity commencement dates less than30 days after we receive notice of the change require prior approval. The latest annuity date generally cannot be after the contract month following the month in which the annuitant attains age 85 (in certain cases, we may allow the date to be up to the last day of the month following the month in which the annuitant attains age 95). The earliest annuity date is 30 days after you purchase your contract.
Before the annuity date, if the annuitant is alive, you may choose an annuity payment option or change your election. If the annuitant dies before the annuity date, the death benefit is payable in a lump sum or under one of the annuity payment options (unless the surviving spouse continues the contract).
Unless you specify otherwise, the annuitant will receive the annuity payments. After the annuitants death, the beneficiary will receive any remaining guaranteed payments.
The contract provides several annuity payments that are described below (these options are not available under the Guaranteed Minimum Income Benefit). You may choose any combination of annuity payments. We will use your adjusted account value to provide these annuity payments. If the adjusted account value on the annuity date is less than $2,000, we reserve the right to pay it in one lump sum in lieu of applying it under an annuity payment. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if payments would be less than $50.)
If you choose to receive fixed payments, then the amount of each payment will be set on the annuity date and will not change. You may, however, choose to receive variable payments. The dollar amount of the first variable payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the contract. The dollar amount of additional variable payments will vary based on the investment performance of the subaccount(s). The dollar amount of each variable payment after the first may increase, decrease, or remain constant. If the actual investment performance (net of fees and expenses) exactly matched the assumed investment return of 5% at all times, the amount of each variable annuity payment would remain equal. If actual investment performance (net of fees and expenses) exceeds the assumed investment return, the amount of the variable annuity payments would increase. Conversely, if actual investment performance (net of fees and expenses) is lower than the assumed investment return, the amount of the variable annuity payments would decrease. Please note that these changes only occur annually under the Guaranteed Minimum Income Benefit and Initial Payment Guarantee.
A charge for premium taxes and an excess interest adjustment may be made when annuity payments begin.
The annuity payments are explained below. Options 1 and 2 are fixed only. Options 3 and 4 can be fixed or variable.
Payment Option 1Income for a Specified Period. We will make level payments only for a fixed period. No funds will remain at the end of the period.
Payment Option 2Income of a Specified Amount. Payments are made for any specified amount until the amount applied to this option, with interest, is exhausted. This will be a series of level payments followed by a smaller final payment.
Payment Option 3Life Income. You may choose between:
| No Period Certain (fixed or variable)-Payments will be made only during the annuitants lifetime. |
| 10 Years Certain (fixed or variable)-Payments will be made for the longer of the annuitants lifetime or ten years. |
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| Guaranteed Return of Contract Proceeds (fixed only)-Payments will be made for the longer of the annuitants lifetime or until the total dollar amount of payments we made to you equals the amount applied to this option. |
| Life with Emergency Cash® (fixed or variable)-Payments will be made during the annuitants lifetime. With the Life with Emergency Cash® feature, you are able to surrender all or a portion of the Life with Emergency Cash® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see Expenses for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash® benefit will continue through age 100 of the surviving joint annuitant. |
The Life with Emergency Cash® benefit is also a death benefit that is paid upon the death of the annuitant and is generally equal to the surrender value without any surrender charges. For qualified policies, the death benefit ceases on the date the annuitant reaches the IRS age limitation.
Payment Option 4Joint and Survivor Annuity. You may choose between:
| No Period Certain (fixed or variable)-Payments are made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living. |
| Life with Emergency Cash® (fixed or variable)-Payments will be made during the joint lifetime of the annuitant and a joint annuitant of your selection. Payments will be made as long as either person is living. With the Life with Emergency Cash® feature, you are able to surrender all or a portion of the Life with Emergency Cash® benefit. The amount you surrender must be at least $2,500. We will provide you with a Life with Emergency Cash® benefit schedule that will assist you in estimating the amount you have available to surrender. A partial surrender will reduce all future payments pro rata. A surrender charge may apply and there may be tax consequences (consult a tax advisor before requesting a full or partial surrender). The maximum surrender charge is 4% of the annuitized amount (see Expenses for the surrender charge schedule). You will be subject to whatever surrender schedule is in effect at the time you annuitize under this annuity payment option. The Life with Emergency Cash® benefit will continue through age 100 of the annuitant. |
The Life with Emergency Cash® benefit is also a death benefit that is paid upon the death of the surviving joint annuitant and is generally equal to the surrender value without any surrender charges.
For qualified policies the death benefit ceases on the date the surviving joint annuitant reaches the IRS joint age limitation.
Other annuity payments may be arranged by agreement with Transamerica. Some annuity payments may not be available in all states.
If your contract is a qualified policy, payment options 1 and 2 may not satisfy minimum required distributions rules. Consult a tax advisor before electing either of these options.
NOTE CAREFULLY:
IF:
| you choose Life Income with No Period Certain or a Joint and Survivor Annuity with No Period Certain; and |
| the annuitant dies before the due date of the second (third, fourth, etc.) annuity payment; |
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THEN:
| we may make only one (two, three, etc.) annuity payments. |
IF:
| you choose Income for a Specified Period, Life Income with 10 years Certain, Life Income with Guaranteed Return of Contract Proceeds, or Income of a Specified Amount; and |
| the person receiving payments dies prior to the end of the guaranteed period; |
THEN:
| the remaining guaranteed payments will be continued to that persons beneficiary, or their present value may be paid in a single sum. |
However, IF:
| you choose Life with Emergency Cash®; and |
| the annuitant dies before age 101; |
THEN:
| a Life with Emergency Cash® death benefit will be paid. |
We will not pay interest on amounts represented by uncashed annuity payment checks if the postal or other delivery service is unable to deliver checks to the payees address of record. The person receiving payments is responsible for keeping Transamerica informed of their current address.
You must annuitize your policy no later than the maximum annuity commencement date specified in your policy (earlier for certain distribution channels). If you do not elect an annuity payment option, the default option will generally be Option 3 Life with 10 Years Certain, and all optional benefits (including guaranteed minimum death benefits and living benefits) will terminate.
8. | DEATH BENEFIT |
We will pay a death benefit to your beneficiary, under certain circumstances, if the annuitant dies during the accumulation phase. If there is a surviving owner(s) when the annuitant dies, the surviving owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an annuity payment option, or may choose to receive a lump sum.
We will determine the amount of and pay the death benefit proceeds, if any are payable on a policy, upon receipt at our administrative and service office of satisfactory proof of the annuitants death, written directions from each eligible recipient of death benefit proceeds regarding how to pay the death benefit, and any other documents, forms and information that we need (collectively referred to as due proof of death).
The death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the Company receives due proof of death, then investment in the separate account may be reallocated in accordance with the beneficiarys instructions.
The Company may permit the beneficiary to give a one-time written instruction to reallocate the investments in the separate account to the money market fund after the death of the annuitant. If there is more than one beneficiary, all beneficiaries must agree to the reallocation instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the annuitants death.
We will pay a death benefit IF:
| you are both the annuitant and sole owner of the contract; and |
| you die before the annuity date. |
We will pay a death benefit to you (owner) IF:
| you are not the annuitant; and |
| the annuitant dies before the annuity date. |
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If the only person receiving the death benefit is the surviving spouse, then he or she may elect to continue the contract as the new annuitant and owner, instead of receiving the death benefit. All current surrender charges will be waived.
When We Do Not Pay A Death Benefit
We will not pay a death benefit IF:
| you are not the annuitant; and |
| you die prior to the annuity date. |
Please note the new owner (unless it is the deceased owners spouse) must generally surrender the contract within five years of your death for the adjusted account value minus any applicable rider fees.
Distribution requirements apply to the account value upon the death of any owner. These requirements are detailed in the SAI.
The death benefit payable, if any, on or after the annuity date depends on the annuity payment option selected.
IF:
| you are not the annuitant; and |
| you die on or after the annuity date; and |
| the entire interest in the contract has not been paid; |
THEN:
| the remaining portion of such interest in the contract will continue to be distributed at least as rapidly as under the method of distribution being used as of the date of your death. |
IF:
| annuity payments under the Life with Emergency Cash®; and |
| annuitant dies before age 101 (or earlier, if a qualified contract); |
THEN:
| a Life with Emergency Cash® death benefit will be paid. |
If any owner dies during the accumulation phase, the annuitant will become the new owner.
Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum or as annuity payments. The amount of the death benefit depends on the guaranteed minimum death benefit option you chose when you bought the contract. The death benefit will generally be the greatest of:
| account value on the date we receive the required information; or |
| cash value on the date we receive the required information (this will be more than the account value if there is a positive excess interest adjustment that exceeds the surrender charge); or |
| guaranteed minimum death benefit (discussed below), plus purchase payments (after the date of death), less gross partial surrenders from the date of death to the date the death benefit is paid. |
Please note, the death benefit terminates upon annuitization and there is a mandatory annuitization date.
Guaranteed Minimum Death Benefit
NOTE: The following generally applies, depending on the state of issue, to contracts issued after May 1, 2002. For other contracts, see Appendix C. Please see your contract to determine your specific coverage.
After the contract is issued, you cannot make an election and the death benefit cannot be changed from the death benefit option selected on your contract application.
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A. | Double Enhanced Death Benefit |
The death benefit under this option is the greater of 1 or 2 below:
1. | The 2% Annually Compounding through age 80 Death Benefit is: |
| the total purchase payments; less |
| any adjusted partial surrenders accumulated at an effective annual rate of 2% from the date any purchase payment is made or the date the adjusted partial surrender taken to the earlier of the annuitants date of death or the annuitants 81st birthday. |
2. | On each contract anniversary before annuitants 81st birthday, a new stepped-up death benefit is determined and becomes the guaranteed minimum death benefit for that contract year. The death benefit is equal to: |
| the largest account value on the contract date or on any contract anniversary before the earlier of the date of the annuitants death or the annuitants 81st birthday; plus |
| any purchase payments since that date; minus |
| any adjusted partial surrenders since that date. |
The Annual Step-Up Death Benefit is not available if the annuitant is 75 or older on the contract date (and the owner is 75 or older on the contract date).
There is an extra charge for this death benefit of 0.80% annually, for a total mortality and expense risk fee of 1.95%.
B. | Annual Step-Up Death Benefit |
On each contract anniversary before annuitants 81st birthday, a new stepped-up death benefit is determined and becomes the guaranteed minimum death benefit for that contract year. The death benefit is equal to:
| the largest account value on the contract date or on any contract anniversary before the earlier of the date of the annuitants death or the annuitants 81st birthday; plus |
| any purchase payments since that date; minus |
| any adjusted partial surrenders since that date. |
| The Annual Step-Up Death Benefit is not available if you or the annuitant is 75 or older on the contract date. There is an extra charge for this death benefit of 0.20% annually, for a total mortality and expense risk fee of 1.35%. |
C. | Return of Premium Death Benefit |
The Return of Premium Death Benefit is equal to:
| total purchase payments; less |
| any adjusted partial surrenders as of the date of death. |
The Return of Premium Death Benefit will be in effect if you do not choose one of the other death benefit options on the contract application. The charges are lower for this option.
The Guaranteed Minimum Death Benefit may vary for certain contracts and may not be available for all contracts.
When you request a partial surrender, your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial surrender. Under certain circumstances, the adjusted partial surrender may be more than the dollar amount of your surrender request. This will generally be the case if the guaranteed minimum death benefit exceeds the account value at the time of the surrender. It is also possible that if a death benefit is paid after you have made a partial surrender, then the total amount paid could be less than the total purchase payments. We have included a detailed explanation of this adjustment in the SAI. This is referred to as adjusted partial surrender in your contract. If you have a qualified contract, minimum required distribution rules may require you to request a partial surrender.
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9. | TAXES |
NOTE: We have prepared the following information on federal income taxes as a general discussion of the subject. It is not intended as tax advice to any individual. No attempt is made to consider any applicable state or other income tax laws, any state and local estate or inheritance tax, or other tax consequences of ownership or receipt of distributions under the contract. You should consult your own tax adviser about your own circumstances. We have included an additional discussion regarding taxes in the SAI.
Deferred annuity contracts are a way of setting aside money for future needs like retirement. Congress recognized how important saving for retirement is and provided special rules in the Internal Revenue Code for annuities.
Simply stated, these rules generally provide that individuals will not be taxed on the earnings, if any, on the money held in an annuity contract until taken out. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain other entities other than tax-qualified trusts) owns a nonqualified contract, the contract will generally not be treated as an annuity for tax purposes and tax deferral will not apply.
There are different rules as to how you will be taxed depending on how you take the money out and the type of contract qualified or nonqualified.
You will generally not be taxed on increases in the value of your contract until a distribution occurs (either as a surrender or as annuity payments).
Qualified and Nonqualified Contracts
If you purchase the contract under an individual retirement annuity, a 403(b) plan, a pension plan, or specially sponsored program, your contract is referred to as a qualified contract.
Qualified contracts are issued in connection with the following:
| Individual Retirement Annuity (IRA): A traditional IRA allows individuals to make contributions, which may be deductible, to the contract. A Roth IRA also allows individuals to make contributions to the contract, but it does not allow a deduction for contributions, and distributions may be tax-free if the owner meets certain rules. |
| Tax-Sheltered Annuity (403(b) Plan): A 403(b) Plan may be made available to employees of certain public school systems and tax-exempt organizations and permits contributions to the contract on a pre-tax basis. Pursuant to new tax regulations, starting January 1, 2009 the contract is not available for purchase under a 403(b) plan and we do not accept additional premiums or transfers to existing 403(b) contracts. We generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders, loans or transfers you request from an existing 403(b) contract comply with applicable tax requirements before we process your request. |
| Corporate Pension and Profit-Sharing and H.R. 10 Plan: Employers and self-employed individuals can establish pension or profit-sharing plans for their employees or themselves and make contributions to the contract on a pre-tax basis. |
| Deferred Compensation Plan (457 Plan): Certain governmental and tax-exempt organizations can establish a plan to defer compensation on behalf of their employees through contributions to the contract. |
There is no additional tax deferral benefit derived from placing qualified funds into a variable annuity. Features other than tax deferral should be considered in the purchase of a qualified contract. There are limits on the amount of contributions you can make to a qualified contract. Other restrictions may apply including terms of the plan in which you participate.
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Optional death benefit features in some cases may exceed the greater of the purchase payments or the account value. Such a death benefit could be characterized as an incidental benefit, the amount of which is limited in any pension or profit-sharing plan or 403(b) plan. Because an optional death benefit may exceed this limitation, anyone using the contract in connection with such plans should consult their tax adviser before purchasing an optional death benefit. The Internal Revenue Service has not reviewed the contract for qualification as an IRA, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the contract, if any, comport with IRA qualification requirements. The value of death benefit options and riders elected may need to be considered in calculating minimum required distributions.
If you purchase the contract as an individual and not under an individual retirement annuity, 403(b) plan, 457 plan, or pension or profit sharing plan, your contract is referred to as a nonqualified contract.
SurrendersQualified Contracts Generally
There are special rules that govern qualified contracts. Generally, these rules restrict:
| the amount that can be contributed to the contract during any year; |
| the time when amounts can be paid from the contract; and |
| the amount of any death benefit that may be allowed. |
In the case of a withdrawal under a qualified policy, a pro rata portion of the amount you receive is taxable, generally based on the ratio of your investment in the contract to your total account balance or accrued benefit under the retirement plan. Your investment in the contract generally equals the amount of any non-deductible purchase payments made by you or on your behalf. In some cases, your investment in the contract can be zero.
In addition, a penalty tax may be assessed on amounts surrendered from the contract prior to the date you reach age 59 1/2, unless you meet one of the exceptions to this rule. You may also be required to begin taking minimum distributions from the contract by a certain date. The terms of the plan may limit the rights otherwise available to you under the contract. We have provided more information in the SAI.
We may make available under the policy certain guaranteed minimum withdrawal and other optional benefits. The tax rules for qualified policies may limit the value of these optional benefits. For example, if you elect a guaranteed minimum withdrawal benefit and your minimum required distribution amount exceeds your guaranteed withdrawal amount, you will have to withdraw more than the guaranteed withdrawal amount to avoid imposition of a 50% excise tax. It is not clear whether guaranteed minimum withdrawal benefit payments made during the settlement phase will be taxed as withdrawals or as annuity payments. In view of this uncertainty, we will apply the non-annuity rules for determining minimum required distributions, meaning that a percentage of the value of all benefits under the contract will need to be withdrawn each year. The value may have to include the value of enhanced death benefits and other optional contract provisions such as the guaranteed minimum withdrawal benefit rider itself.
If you are attempting to satisfy minimum required distribution rules through partial surrenders, the value of any enhanced death benefit or other optional rider may need to be included in calculating the amount required to be distributed.
The Internal Revenue Code generally requires that interests in a qualified policy be nonforfeitable. If your policy contains a bonus rider with a recapture, forfeiture, or vesting feature, it may not be consistent with those requirements. Consult a tax advisor before purchasing a bonus rider as part of a qualified policy.
You should consult your legal counsel or tax adviser if you are considering purchasing an enhanced death benefit or other optional rider, or if you are considering purchasing a contract for use with any qualified retirement plan or arrangement.
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The rules described above for qualified policies generally apply to 403(b) policies. However, specific rules apply to surrenders from certain 403(b) policies. The Internal Revenue Code limits surrenders from certain 403(b) contracts. Surrenders can generally only be made when an owner:
| reaches age 59 1/2; |
| leaves his/her job; |
| dies; |
| becomes disabled (as that term is defined in the Internal Revenue Code); or |
| declares hardship. However, in the case of hardship, the owner can only surrender the purchase payments and not any earnings. |
For contacts issued after 2008, amounts attributable to nonelective contributions may be subject to distribution restrictions in the employers section 403(b) plan. Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders or transfers you request from a 403(b) contract comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the contract, and transactions under the contract and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.
Defaulted loans from Code Section 403(b) arrangements, and pledges and assignments of qualified contracts generally are taxed in the same manner as surrenders from such contracts. Please refer to the SAI for further information applicable to distributions from 403(b) contracts.
Surrenders-Nonqualified Contracts
The information above describing the taxation of qualified policies does not apply to nonqualified policies. If you take a partial withdrawal or surrender (including systematic payouts and payouts under an optional feature, if any) from a nonqualified contract before the annuity commencement date, the Internal Revenue Code treats that surrender as first coming from earnings and then from your purchase payments. If your policy contains an excess interest adjustment feature (also known as a market value adjustment), then your account value immediately before the surrender may have to be increased by any positive excess interest adjustments that result from the surrender. There is, however, no definitive guidance on the proper tax treatment of excess interest adjustments, and you may want to discuss the potential tax consequences of an excess interest adjustment with your tax advisor.
When you make a surrender you are taxed on the amount of the surrender that is earnings. If you make a surrender, you are generally taxed on the amount that your surrender proceeds exceeds the investment in the contract, which is generally your purchase payments paid (adjusted for any prior surrenders or portions thereof that were not taxable). In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders. Different rules apply for annuity payments. See Annuity Payments below.
The Internal Revenue Code also provides that surrendered earnings may be subject to a penalty tax. The amount of the penalty tax is equal to 10% of the amount that is includable in income. Some surrenders will be exempt from the penalty tax. They include, among others, any amounts:
| paid on or after the taxpayer reaches age 59 1/2; |
| paid after an owner dies; |
| paid if the taxpayer becomes disabled (as that term is defined in the Internal Revenue Code); |
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| paid in a series of substantially equal payments made annually (or more frequently) under a lifetime annuity; |
| paid under an immediate annuity; or |
| which come from purchase payments made prior to August 14, 1982. |
Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions enumerated above.
If your nonqualified policy contains a guaranteed lifetime withdrawal benefit rider, certain rules may apply. It is not clear whether guaranteed minimum withdrawal benefit payments made during the settlement or income (payout) phase may be taxed as either withdrawals or annuities. In view of this uncertainty, we intend to adopt a conservative approach and treat guaranteed lifetime withdrawal payments during the settlement phase under nonqualified policies as withdrawals. Consult a tax advisor before purchasing a guaranteed lifetime withdrawal benefit rider or option.
All nonqualified deferred annuity contracts that are issued by us (or our affiliates) to the same owner during any calendar year are treated as one annuity for purposes of determining the amount includable in the owners income when a taxable distribution occurs.
Taxation of Death Benefit Proceeds
Amounts may be distributed from the contract because of the death of the annuitant. Generally, such amounts should be includable in the income of the recipient:
| if distributed in a lump sum, these amounts are taxed in the same manner as a surrender; or |
| if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments. |
Although the tax consequences may vary depending on the annuity payment option you select, in general, for nonqualified and certain qualified contracts, only a portion of the annuity payments you receive will be includable in your gross income.
In general, the excludable portion of each annuity payment you receive will be determined as follows:
| Fixed paymentsby dividing the investment in the contract on the annuity commencement date by the total expected value of the annuity payments for the term of the payments. This is the percentage of each annuity payment that is excludable. |
| Variable paymentsby dividing the investment in the contract on the annuity commencement date by the total number of expected periodic payments. This is the amount of each annuity payment that is excludable. |
The remainder of each annuity payment is includable in gross income. Once the investment in the contract has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income.
If you select more than one annuity payment option, special rules govern the allocation of the contracts entire investment in the contract to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise you to consult a competent tax adviser as to the potential tax effects of allocating amounts to any particular annuity payment option.
If, after the annuity commencement date, annuity payments stop because an annuitant died, the excess (if any) of the investment in the contract as of the annuity commencement date over the aggregate amount of annuity payments received that was excluded from gross income may possibly be allowable as a deduction in your tax return.
You should consult a tax advisor before electing the Initial Payment Guarantee or a feature with stabilized payments.
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If your policy contains a guaranteed minimum withdrawal benefit rider the application of certain tax rules, particularly those rules relating to distributions from your policy, are not entirely clear. In view of this uncertainty, you should consult a tax advisor before purchasing a guaranteed minimum withdrawal benefit rider.
Under a new tax provision enacted in 2010, if part of an annuity contracts value is applied to an annuity option that provides payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the contract is intended to qualify for this partial annuitization treatment and, if you apply only part of the value of the contact to a payment option, we will treat those payments as withdrawals for tax purposes.
Beginning in 2013, distributions from nonqualified annuity contracts will be considered investment income for purposes of the newly enacted Medicare tax on investment income. Thus, in certain circumstances, a 3.8% tax may be applied to some or all of the taxable portion of distributions (e.g. earnings) to individuals whose income exceeds certain threshold amounts. Please consult a tax advisor for more information.
Diversification and Distribution Requirements
The Internal Revenue Code provides that the underlying investments for a variable annuity must satisfy certain diversification requirements in order to be treated as an annuity. The contract must also meet certain distribution requirements at the death of an owner in order to be treated as an annuity. These diversification and distribution requirements are discussed in the SAI. We may modify the contract to attempt to maintain favorable tax treatment.
Federal Defense of Marriage Act
The right of a spouse to continue the Policy, and all Policy provisions relating to spousal continuation are available only to a person who meets the definition of spouse under federal law. The Federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, the spousal continuation provisions of this Policy will not be available to such partners or same-sex marriage spouses. Consult a tax advisor for more information on this subject.
While no attempt is being made to discuss the Federal estate tax implications of the contract, a purchaser should keep in mind that the value of an annuity contract owned by a decedent and payable to a beneficiary by virtue of surviving the decedent is included in the decedents gross estate. Depending on the terms of the annuity contract, the value of the annuity included in the gross estate may be the value of the lump sum payment payable to the designated beneficiary or the actuarial value of the payments to be received by the beneficiary. Consult an estate planning advisor for more information.
Generation-Skipping Transfer Tax
Under certain circumstances, the Internal Revenue Code may impose a generation skipping transfer tax when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the Internal Revenue Code may require us to deduct the tax from your Contract, or from any applicable payment, and pay it directly to the IRS.
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Federal Estate, Gift and Generation-Skipping Transfer Taxes
For 2012, the federal estate tax, gift tax and generation-skipping transfer (GST) tax exemptions and maximum rates are $5,120,000 and 35%, respectively. After 2012, in the absence of legislative action, the federal estate tax, gift tax and GST tax exemptions and rates will return to their 2001 levels (with inflation adjustments for the GST tax exemption but not for the estate or gift tax exemptions). This would result in significantly lower exemptions and significantly higher tax rates. Between now and the end of 2012, Congress may make the current exemptions and rates permanent, it may do nothing and allow the 2001 levels to go into effect, or it may change the applicable exemptions and/or tax rates.
The uncertainty as to how the current law might be modified in coming years underscores the importance of seeking guidance from a qualified adviser to help ensure that your estate plan adequately addresses your needs and those of your beneficiaries under all possible scenarios.
Annuity Purchases by Residents of Puerto Rico
The Internal Revenue Service recently announced that income received by residents of Puerto Rico under life insurance or annuity contracts issued by a Puerto Rico branch of a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.
Annuity Contracts Purchased by Nonresident Aliens and Foreign Corporations
The discussion above provided general information (but not tax advice) regarding U.S. federal income tax consequences to annuity owners that are U.S. persons. Taxable distributions made to owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the owners country of citizenship or residence. Prospective foreign owners are advised to consult with a qualified tax adviser regarding U.S., state, and foreign taxation for any annuity contract purchase.
Transfers, Assignments or Exchanges of Contracts
A transfer of ownership or assignment of a contract, the designation of an annuitant or payee or other beneficiary who is not also the owner, the selection of certain annuity commencement dates, the exchange of a contract and certain other transactions, or a change of annuitant other than the owner, may result in certain income or gift tax consequences to the owner that are beyond the scope of this discussion. An owner contemplating any such transfer, assignment, selection, exchange or change should contact a competent tax adviser with respect to the potential tax effects of such a transaction.
Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the contract could change by legislation, regulation, or otherwise. You should consult a tax adviser with respect to legal or regulatory developments and their effect on the contract.
We have the right to modify the contract to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity contract owners currently receive.
It is possible that the Internal Revenue Service may take a position that fees for certain optional benefits (e.g., death benefits other than the Return of Premium death benefit) are deemed to be taxable distributions to you. In particular, the Internal Revenue Service may treat fees associated with certain optional benefits as a taxable surrender, which might also be subject to a tax penalty if the surrender occurs prior to age 59 1/2. Although we do not believe that the fees associated with any optional benefit provided under the contract should be treated as taxable surrenders, the tax rules associated with these benefits are unclear, and we advise that you consult your tax advisor prior to selecting any optional benefit under the contract.
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We may benefit from any foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.
10. | ADDITIONAL FEATURES |
You can select at any time (during the accumulation phase) to receive regular payments from your contract by using the Systematic Withdrawal Option. Under this option, you can receive the greater of (1) or (2), divided by the number of payouts made per year, where:
(1) | is up to 10% (annually) of your purchase payments (less partial surrenders deemed to be from purchase payments); and |
(2) | is any gains in the contract. |
This amount may be taken free of surrender charges. Any payment in excess of the cumulative interest credited at the time of the payment may be subject to an excess interest adjustment.
Payments can be made monthly, quarterly, semi-annually, or annually.
Each payment must be at least $50. Monthly and quarterly payments may be required to be taken by electronic funds transfer directly to your checking or savings account.
If you request an additional surrender while a Systematic Withdrawal Option is in effect, the Systematic Withdrawal Option will terminate. There is no charge for this benefit.
Guaranteed Minimum Income Benefit
The Guaranteed Minimum Income Benefit (GMIB Rider) is no longer available, but contract owners who elected the GMIB prior to January 24, 2003, can still upgrade. If you upgrade, the annual effective interest rate is currently 4% per year. See Appendix F.
The Guaranteed Minimum Income Benefit may vary by state.
You may only elect to purchase the Initial Payment Guarantee at the time you annuitize your contract. The guarantee only applies to variable annuity payments. There is an additional charge for this guarantee.
If you do not elect the Initial Payment Guarantee, then the amounts of the stabilized payments you receive will not be guaranteed.
The Initial Payment Guarantee does not establish or guarantee the performance of any subaccount.
Under the Initial Payment Guarantee, you receive stabilized annuity payments that are guaranteed to never be less than a percentage of the initial payment (i.e., the guaranteed payment). Once the Initial Payment Guarantee is added, the guaranteed percentage will not change during the life of the Initial Payment Guarantee.
Fee. There is a charge for the Initial Payment Guarantee, which is in addition to the base product mortality and expense risk fee and administrative charge. This fee is reflected in the amount of the annuity payments that you receive if you select the Initial Payment Guarantee. It is reflected in the calculation of the annuity unit values after the annuity date.
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The Initial Payment Guarantee fee is currently equal to an effective annual rate of 1.25% of the unit value in the subaccounts. The fee may be higher (or lower) at the time you annuitize. We can change the fee, and you pay whatever the fee is when you annuitize.
Other Terms and Conditions. You may purchase the Initial Payment Guarantee only at the time you annuitize your contract. You cannot terminate this payment guarantee (or eliminate the charge for it) after you have selected this option.
The Initial Payment Guarantee uses a 5% assumed investment return to calculate your annuity payments. This means that the dollar amount of the annuity payments will remain level if the investment return (net of fees and expenses) exactly equals 5%. The payments will increase if actual investment performance (net of fees and expenses) exceeds the assumed investment return, and decrease if actual performance is below the assumed investment return (but not below the guaranteed level).
Termination. The Initial Payment Guarantee is irrevocable.
The Initial Payment Guarantee may vary for certain contracts and may not be available for all contracts.
Additional Death Benefit Rider
The optional Additional Death Benefit rider pays an additional amount (based on earnings since the rider was issued) when a death benefit is payable under your contract, in certain circumstances. The Additional Death Benefit Rider is only available for issue ages through age 80.
Additional Death Benefit Rider Amount. The Additional Death Benefit Rider is only payable if you elected the rider prior to the death triggering the payment of the contract death benefit and a death benefit is payable under the contract. The Additional Death Benefit Rider is equal to:
| the Additional Death Benefit Rider factor (see below); multiplied by |
| the rider earnings on the date the death benefit is calculated. |
Rider earnings equal:
| the account value on the date of death; minus |
| account value on the rider date; minus |
| purchase payments after the rider date; plus |
| surrenders after the rider date that exceed the rider earnings on the date of the surrender. |
No benefit is payable under the Additional Death Benefit rider if there are no rider earnings on the date the death benefit is calculated.
If you purchased your contract as part of a 1035 exchange or added the Additional Death Benefit rider after you purchased the contract, rider earnings do not include any gains before the 1035 exchange or the date the Additional Death Benefit Rider was added to your contract.
The Additional Death Benefit Rider factor is currently 40% for issue ages under 71 and 25% for issue ages 71-80.
No benefit is paid under this rider unless (a) the rider is in force, (b) a death benefit is payable on the contract, and (c) there are rider earnings when the death benefit is calculated.
For purposes of computing taxable gains, both the death benefit payable under the contract and the Additional Death Benefit Rider will be considered.
Please see Appendix D for an example which illustrates the Additional Death Benefit Rider payable as well as the effect of a partial surrender on the Additional Death Benefit Rider.
Spousal Continuation. If a spouse, as the new owner of the contract, elects to continue the contract instead of receiving a death benefit and the Additional Death
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Benefit Rider Amount, the spouse will receive a one-time account value increase equal to the Additional Death Benefit Rider Amount. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider as long as he or she is under the age of 80.
Rider Fee. A rider fee, 0.25% of the account value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the contract or other termination of the rider. The rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the Additional Death Benefit Rider would not pay any benefit (because there are no rider earnings).
Termination. The rider will remain in effect until:
| you cancel it by notifying our service center in writing, |
| the contract is annuitized or surrendered, or |
| the Additional Death Benefit Rider is paid or added to the account value under a spousal continuation. |
Once terminated, the Additional Death Benefit Rider may be re-elected, however, a new rider will be issued and the Additional Death Benefit rider Amount will be re-determined. Please note that if the rider is terminated and then re-elected, it will only cover gains, if any, since it was re-elected and the terms of the new rider may be different than the terminated rider.
The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax adviser before electing this rider.
Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.
The Additional Death Benefit Rider may vary for certain contracts and may not be available for all contracts.
Additional Death Benefit Rider II
The optional Additional Death Benefit Rider II rider pays an additional amount (based on earnings since the rider was issued) when a death benefit is payable under your contract, in certain circumstances. The Additional Death Benefit Rider II rider is available only for issue ages through age 75.
Additional Death Benefit Rider II Amount. The Additional Death Benefit Rider II rider is only payable if a death benefit is paid on the base contract to which the rider is attached. The amount of the additional benefit is dependent on the amount of time that has passed since the rider date as follows:
| If a death benefit is payable within the first five years after the rider date, the additional benefit amount will be equal to the sum of all rider fees paid since the rider date. |
| If a death benefit is payable after five years following the rider date, the additional benefit will be equal to the rider benefit base multiplied by the rider benefit percentage. |
The rider benefit base at any time is equal to the account value less any purchase payments added after the rider date.
The rider benefit percentage may vary, but currently equals 30% for issue ages 0 70 and 20% for issue ages 71 75.
No benefit is payable under the Additional Death Benefit Rider II if the account value on the date the death benefit is paid is less than the purchase payments after the rider date.
For purposes of computing taxable gains, both the death benefit payable under the contract and the additional benefit will be considered.
Please see Appendix E for an example which illustrates the additional death benefit payable as well as the effect of a partial surrender on the additional benefit.
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Spousal Continuation. If a spouse, as the new owner of the contract, elects to continue the contract instead of receiving the death benefit and additional benefit, the spouse will receive a one-time account value increase equal to the additional benefit. At this time the rider will terminate. The spouse will have the option of immediately re-electing the rider as long as he or she is under the age of 76.
Rider Fee. A rider fee, currently 0.55% of the account value, is deducted annually on each rider anniversary prior to annuitization. We will also deduct this fee upon full surrender of the contract or other termination of the rider. The rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the rider would not pay any benefits.
Termination. The rider will remain in effect until:
| you cancel it by notifying our service center in writing, |
| the contract is annuitized or surrendered, or |
| the additional death benefit is paid or added to the account value under a spousal continuation. |
Once terminated, the Additional Death Benefit Rider II may not be re-elected for one year.
The tax consequences associated with this rider are not clear. This rider may violate the requirements of certain qualified plans and IRAs. Consult a tax adviser before electing this rider.
Please note: This feature terminates upon annuitization and there is a mandatory annuitization date.
The Additional Death Benefit Rider II may vary for certain contracts and may not be available for all contracts.
The optional Liquidity Rider reduces the number of years each purchase payment is subject to surrender charges. This rider was only available at the time you purchased the contract.
Surrender Schedule. The following schedule shows the surrender charges that apply if the Liquidity Rider is elected:
Number of Years Since Purchase Payment Date |
Surrender Charge (as a percentage of purchase payment surrendered) |
|||
0 1 |
7 | % | ||
1 2 |
7 | % | ||
2 3 |
6 | % | ||
3 4 |
6 | % | ||
more than 4 |
0 | % |
Rider Fee. A rider fee equal to an effective annual rate of 0.40% of the daily net asset value in the subaccounts is deducted in calculating the variable accumulation unit values. The rider fee is only charged for the first four contract years. In addition, interest credited to the fixed account may be lower than interest credited to the contract without the Liquidity Rider.
Variable Accumulation Unit Values. After the end of the fourth contract year, the 0.40% rider fee will no longer be assessed. We intend to administer the removal of the 0.40% charge by changing to a different class of variable accumulation units. This will result in adjusting the number of variable accumulation units and adjusting the unit value of the subaccounts in which you were invested at the end of the fourth contract year. The elimination of the fee and the adjustment in the number of variable accumulation units and unit values will not affect contract values.
Performance Data. The Historical Performance Data in the SAI and in other marketing material does not reflect the fee for the Liquidity Rider. Performance figures would be lower if the fee were included.
Termination. The rider is irrevocable.
The Liquidity Rider may vary for certain contracts and may not be available for all contracts.
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The Premium Accelerator rider was only available at the time you purchased your contract and only if you were age 75 or younger. If you elect the Premium Accelerator rider at issue, the initial purchase payment and each subsequent purchase payment will receive a Premium Accelerator which is added to the account value. The Premium Accelerator is currently 2.25%; however, we may change the accelerator rate at any time. The amount of the Premium Accelerator is not considered a purchase payment and therefore may not be included in the calculation of certain contract features. No Premium Accelerator will apply if the contract is canceled pursuant to the right to cancel provision.
In certain unusual circumstances, you might be worse off because of the Premium Accelerator. This could happen if the overall investment performance of your contract is negative (if the overall investment performance of your contract is positive you would be better off). This could also happen if the market does not perform well enough to offset the additional costs associated with the Premium Accelerator.
Rider Fee. There is a daily charge for the Premium Accelerator at an effective annual rate of 0.20% of the unit value in the subaccounts, but this fee is only deducted for the first nine contract years. Also, interest credited to the fixed account may be lower than interest credited to the contract without the Premium Accelerator rider. In addition to this fee, the surrender charge is higher and lasts longer if you elect the rider. In addition to the Rider Fee, Transamerica may use a portion of the mortality and expense risk fee, administrative charge and/or the surrender charge to pay the Premium Accelerator.
The following schedule shows the surrender charges that apply during the nine years following payment of each purchase payment if you elect the Premium Accelerator rider:
Number of Years Since Purchase Payment Date |
Surrender Charge (as a percentage of purchase payment surrendered) |
|||
0 1 |
9 | % | ||
1 2 |
8 | % | ||
2 3 |
7 | % | ||
3 4 |
6 | % | ||
4 5 |
5 | % | ||
5 6 |
4 | % | ||
6 7 |
3 | % | ||
7 8 |
2 | % | ||
8 9 |
1 | % | ||
more than 9 |
0 | % |
You cannot elect both the Liquidity Rider and the Premium Accelerator rider.
Termination. The rider is irrevocable.
The Premium Accelerator rider may vary for certain contracts and may not be available for all contracts.
Nursing Care and Terminal Condition Withdrawal Option
No surrender charges or excess interest adjustment will apply if you make a surrender ($1000 minimum), under
certain circumstances, because you or your spouse has been:
| confined in a hospital or nursing facility for 30 days in a row after the policy issue date; or |
| diagnosed with a terminal condition after the policy issue date (usually a life expectancy of 12 months or less). |
This benefit is also available to the annuitant or annuitants spouse if the owner is not a natural person.
You may exercise this benefit at any time (during the accumulation phase). There is no charge for this benefit.
There is no restriction on the maximum amount you may surrender under this benefit.
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This benefit may vary for certain contracts and may not be available for all contracts.
No surrender charges or excess interest adjustment will apply to surrenders after you or your spouse become unemployed in certain circumstances, because you were terminated, laid off, or otherwise lost your job involuntarily. In order to qualify, you (or your spouse, whichever is applicable) must have been:
| employed full time for at least two years prior to becoming unemployed; |
| employed full time on the contract date; |
| unemployed for at least 60 days in a row at the time of surrender; |
| the contract must have a minimum cash value at the time of surrender of $5,000; and |
| you (or your spouse) must be receiving unemployment benefits. |
You must provide written proof from your States Department of Labor, which verifies that you qualify for and are receiving unemployment benefits at the time of surrender.
You may select this benefit at any time (during the accumulation phase) and there is no charge for this benefit.
This benefit is also available to the annuitant or annuitants spouse if the owner is not a natural person. There is no charge for this benefit.
There is no restriction on the maximum amount you may surrender under this benefit.
This benefit may vary by state and may not be available in all states.
You may generally make transfers and change the allocation of additional purchase payments by telephone.
If you authorize your registered representative to make transfers and change the allocation of additional purchase payments by telephone:
| select the Owner(s) and Owners Registered Representative box on the Telephone Transfer Authorization form. |
You will be required to provide certain information for identification purposes when requesting a transaction by telephone and we may record your telephone call. We may also require written confirmation of your request. We will not be liable for losses resulting from telephone requests that we believe are genuine. We reserve the right to revoke your telephone transaction privileges at any time without revoking all owners telephone transfer privileges.
We may deny the telephone transaction privileges to market timers and frequent or disruptive traders.
We cannot guarantee that telephone transactions will always be available. For example, our offices may be closed during severe circumstances or other emergencies. There may be interruptions in service beyond our control, and if the volume of calls is unusually high, we might not have anyone available, or lines available, to take your call.
During the accumulation phase, you may instruct us to automatically make transfers from certain source options (discussed below) into one or more variable subaccounts in accordance with your allocation instructions. This is known as Dollar Cost Averaging. While Dollar Cost Averaging buys more variable accumulation units when prices are low and fewer variable accumulation units when prices are high, it does not guarantee profits or assure that you will not experience a loss.
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There are two Dollar Cost Averaging programs available under your contract:
| TraditionalYou may specify the dollar amount to be transferred or the number of transfers. Transfers will begin as soon as the program is started. |
| SpecialYou may elect either a six or twelve month program. Transfers will begin as soon as the program is started. |
A minimum of $250 per transfer is required. Thus, for example, $1,500 is required to start a 6-month program and $3,000 is required to start a 12-month program. The minimum number of monthly or quarterly transfers is 6 and 4, respectively and the maximum is 24 and 8, respectively.
You can elect to transfer from one of the fixed or variable source options listed on the Dollar Cost Averaging election form (only fixed sources are available for special Dollar Cost Averaging programs).
A Dollar Cost Averaging program will begin once the minimum required purchase payment is received even if multiple sources are funding your contract. Please note, a Dollar Cost Averaging Program will not begin on the 29th, 30th or 31st of the month. If a program would have started on one of these dates, it will start on the first business day of the following month. If additional payments are received while a Dollar Cost Averaging program is running, absent new instructions to the contrary, the amount of the Dollar Cost Averaging transfers will increase but the length of the Dollar Cost Averaging program will not.
NOTE CAREFULLY:
IF:
| we do not receive all necessary information to begin an initial Dollar Cost Averaging program within 30 days of allocating the minimum required amount to a Dollar Cost Averaging program; |
| we do not receive the minimum required amount to begin an initial Dollar Cost Averaging program within 30 days of allocating an insufficient amount; |
THEN:
| any amount in a fixed account source will be transferred to the money market investment choice; and |
| any amount in a variable source will remain in that variable investment choice; and |
| new instructions will be required to begin a Dollar Cost Averaging program. |
IF:
| we receive purchase payments after a Dollar Cost Averaging program is completed and the additional purchase payment meets the minimum requirements to start a Dollar Cost Averaging program; |
THEN:
| we will, absent new instructions to the contrary, start a new Dollar Cost Averaging program using the previous instructions. |
IF:
| we receive additional purchase payments after a Dollar Cost Averaging program is completed, and the additional purchase payment does not meet the minimum requirements to start a Dollar Cost Averaging program |
THEN;
| we will, absent new instructions to the contrary, allocate the additional purchase payment as identified in the previous Dollar Cost Averaging program. |
IF:
| you discontinue a Dollar Cost Averaging program before completion; |
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THEN:
| we will absent new instructions to the contrary, transfer any remaining balance directly into the subaccounts in the Dollar Cost Averaging instructions. |
You should consider your ability to continue a Dollar Cost Averaging program during all economic conditions.
There is no charge for this benefit.
The Dollar Cost Averaging Program may vary for certain contracts and may not be available for all contracts. See your contract for availability of the fixed account options.
During the accumulation phase you can instruct us to automatically rebalance the amounts in your subaccounts to maintain your desired asset allocation. This feature is called Asset Rebalancing and can be started and stopped at any time. However, we will not rebalance if you are in the Dollar Cost Averaging program or if any other transfer is requested. If a transfer is requested, we will honor the requested transfer and discontinue Asset Rebalancing. New instructions are required to start Asset Rebalancing. Asset Rebalancing ignores amounts in the fixed account. You can choose to rebalance monthly, quarterly, semi-annually, or annually.
There is no charge for this benenfit.
11. | OTHER INFORMATION |
You, as owner of the contract, exercise all rights under the contract. You can change the owner at any time by notifying us in writing at our administrative and service office. An ownership change may be a taxable event.
You may return your contract for a refund, but only if you return it within a prescribed period, which is generally at least 10 days (after you receive the contract), or whatever longer time may be required by state law. The amount of the refund will generally be the purchase payments paid and accumulated gains or losses in the variable account. Please note, we will not credit interest on amounts that you allocate to the fixed account if you return your contract for a refund during the right to cancel period. If state law requires, we will refund your original purchase payment(s). We will pay the refund within 7 days after we receive written notice of cancellation and the returned contract (at our administrative and service office) within the applicable time period. The contract will then be deemed void.
You can also generally assign the contract any time during your lifetime. We will not be bound by the assignment until we receive written notice of the assignment. We will not be liable for any payment or other action we take in accordance with the contract before we receive notice of the assignment. There may be limitations on your ability to assign a qualified contract. An assignment may have tax consequences.
We reserve the right, except to the extent prohibited by applicable laws, regulations, or actions of the State insurance commissioner, to require that an assignment will be effective only upon acceptance by us, and to refuse assignments or transfers at any time on a non-discriminatory basis.
Transamerica Life Insurance Company
Transamerica Life Insurance Company is an Iowa stock life insurance company incorporated on June 30, 1906. It is mainly engaged in the sale of life insurance and annuity contracts. The address for Transamerica is 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499.
Transamerica is a wholly-owned indirect subsidiary of Transamerica Corporation, which conducts substantially all of its operations through subsidiary
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companies engaged in the insurance business or in providing non-insurance financial services. All of the stock of Transamerica Corporation is indirectly owned by AEGON N.V. of The Netherlands, the securities of which are publicly traded. AEGON N.V., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business.
All obligations arising under the contracts, including the promise to make annuity payments, are general corporate obligations of the Company. Accordingly no financial institution, brokerage firm or insurance agency is responsible for the financial obligations of the Company arising under the contracts.
Financial Condition of the Company
Many financial services companies, including insurance companies, have been facing challenges in this unprecedented economic and market environment, and we are not immune to those challenges. It is important for you to understand the impact these events may have, not only on your Policy Value, but also on our ability to meet the guarantees under your Policy.
Assets in the Separate Account. You assume all of the investment risk for your Policy Value that is allocated to the Subaccounts of the Separate Account. Your Policy Value in those Subaccounts constitutes a portion of the assets of the Separate Account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other business that we may conduct.
Assets in the General Account. You also may be permitted to make allocations to Guaranteed Period Options of the fixed account, which are supported by the assets in our general account. Any guarantees under a policy that exceed policy value, such as those associated with any lifetime withdrawal benefit riders and any optional death benefits, are paid from our general account (and not the Separate Account). Therefore, any amounts that we may be obligated to pay under the Policy in excess of Policy Value are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the Separate Account, however, are also available to cover the liabilities of our general account, but only to the extent that the Separate Account assets exceed the Separate Account liabilities arising under the Policies supported by it.
We issue other types of insurance policies and financial products as well, and we also pay our obligations under these products from our assets in the general account.
Our Financial Condition. As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligations, we monitor our reserves so that we hold sufficient amounts to cover actual or expected policy and claims payments. However, it is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and that there are risks to purchasing any insurance product.
State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurers operations. These risks include those associated with losses that we may incur as the result of defaults on the payment of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investements.
How to Obtain More Information. We encourage both existing and prospective Policy Owners to read and understand our financial statements. We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Iowa Department of Commerce, Insurance Division as well as the financial statements of the
48
separate account are located in the Statement of Additional Information (SAI). For a copy of the SAI, simply call or write us at the phone number or address of our Administrative and Service Office referenced in this prospectus. In addition, the SAI is available on the SECs website at http://www.sec.gov. Our financial strength ratings can be found on our website.
Transamerica established a separate account, called Separate Account VA-2L, under the laws of the State of California on May 22, 1992. The variable account receives and invests the purchase payments that are allocated to it for investment in shares of the underlying fund portfolios.
The variable account is registered with the SEC as a unit investment trust under the 1940 Act. However, the SEC does not supervise the management, the investment practices, or the contracts of the variable account or Transamerica. Income, gains and losses (whether or not realized), from assets allocated to the variable account are, in accordance with the contracts, credited to or charged against the variable account without regard to Transamericas other income, gains or losses.
The assets of the variable account are held in Transamericas name on behalf of the variable account and belong to Transamerica. However, those assets that underlie the contracts are not chargeable with liabilities arising out of any other business Transamerica may conduct. The variable account may include other subaccounts that are not available under these contracts.
Before making a decision concerning the allocation of purchase payments to a particular subaccount, please read the prospectuses for the underlying fund portfolios. The underlying fund portfolios are not limited to selling their shares to this variable account and can accept investments from any insurance company variable account or qualified retirement plan. Since the underlying fund portfolios are available to registered variable accounts offering variable annuity products of Transamerica, as well as variable annuity and variable life products of other insurance companies, and qualified retirement plans, there is a possibility that a material conflict may arise between the interests of this variable account and one or more of the other accounts of another participating insurance company. In the event of a material conflict, the affected insurance companies, including Transamerica, agree to take any necessary steps to resolve the matter. This includes removing their variable accounts from the underlying fund portfolios. See the underlying fund portfolios prospectuses for more details.
You can generally exchange one annuity contract for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both annuities carefully. Remember that if you exchange another annuity for the one described in this prospectus, then you may pay a surrender charge on the other annuity and there will be a new surrender charge period under this annuity and other charges may be higher (or lower) and the benefits may be different. You should not exchange another annuity for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person trying to sell you this contract (that person will generally earn a commission if you buy this contract through an exchange or otherwise).
You may surrender your contract and transfer your money directly to another life insurance company (sometimes referred to as a 1035 Exchange or a trustee-to-trustee transfer). You may also ask us to reinstate your contract after such a transfer and in certain limited circumstances we will allow you to do so by returning the same total dollar amount of funds to the applicable investment choices. The dollar amount will be used to
49
purchase new variable accumulation units at the then current price. Because of changes in market value, your new variable accumulation units may be worth more or less than the units you previously owned. We recommend that you consult a tax professional to explain the possible tax consequences of exchanges and/or reinstatements.
To the extent required by law, Transamerica will vote all shares of the underlying fund portfolios held in the variable account in accordance with instructions we receive from you and other owners that have voting interests in the funds/portfolios. We will send you and other owner requests for instructions on how to vote those shares. When we receive those instructions, we will vote all of the shares in proportion to those instructions. Accordingly, it is possible for a small number of policy owners (assuming there is a quorum) to determine the outcome of a vote, especially if they have large policy values. If, however, we determine that we are permitted to vote the shares in our own right, we may do so.
Each person having a voting interest will receive proxy material, reports, and other materials relating to the appropriate fund/portfolio.
We have entered into a distribution agreement with TCI for the distribution and sales of the contracts. Under the agreement, the contracts are offered to the public through broker-dealers (selling firms) that are licensed under the federal securities laws and state insurance laws, and that sell the policies through written agreements with TCI. We pay commissions to TCI which are passed through to selling firms. We also pay TCI an override that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and pay commissions to TCI for sales of the contracts by the selling firms. We also may pay compensation to financial institutions for their services in connection with the sale and servicing of the contracts.
Commissions of up to 7% of purchase payments plus an annual continuing fee based on account values will be paid to the selling firms (additional amounts may be paid as overrides to wholesalers). These commissions are not deducted from purchase payments.
To the extent permitted by FINRA rules of the Financial Industry Regulatory Authority, promotional incentives or payments may also be provided to selling firms based on sales volumes, the assumption of wholesaling functions, or other sales-related criteria. Other payments may be made for other services that do not directly involve the sale of the contracts. These services may include the recruitment and training of personnel, production of promotional literature, and similar services. We and/or TCI may pay selling firms additional amounts for: (1) preferred product treatment of the contracts in their marketing programs, which may include marketing services and increased access to their sales representatives; (2) sales promotions relating to the contracts; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses incurred by them and their representatives. We and/or TCI may make payments to selling firms based on aggregate sales of our variable insurance contracts (including the contracts) or persistency standards.
The selling firms may pass on to their sales representatives a portion of the payments made to the selling firms in accordance with their respective internal compensation programs. Those programs may also include other types of cash and non-cash compensation and other benefits. Ask your sales representative for further information about what your sales representative and the selling firm for which he or she works may receive in connection with your purchase of a contract.
50
We intend to recoup commissions and other sales expenses primarily, but not exclusively, through:
| the administrative charge; |
| the surrender charge; |
| the mortality and expense risk fee; |
| revenues, if any, that we receive from the underlying fund portfolios or their managers; and |
| investment earnings on amounts allocated to the fixed account. |
Other incentives or payments, like commissions, are not charged to the contract owners or the separate account.
Pending regulatory approvals, we intend to distribute the policies in all states, except New York, and in certain possessions and territories.
There are no legal proceedings to which the variable account is a party or to which the assets of the variable account are subject. Transamerica, like other life insurance companies, is involved in lawsuits. In some class action and other lawsuits involving other insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, Transamerica believes that at the present time there are no pending or threatened lawsuits that are reasonably likely to have a material adverse impact on the variable account, TCI, or Transamerica.
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
Glossary of Terms | ||
The Contract - General Provisions | ||
Certain Federal Income Tax Consequences | ||
Investment Experience | ||
Historical Performance Data | ||
Published Ratings | ||
State Regulation of Transamerica | ||
Administration | ||
Records and Reports | ||
Distribution of the Contracts | ||
Voting Rights | ||
Other Products | ||
Custody of Assets | ||
Legal Matters | ||
Independent Registered Public Accounting Firm | ||
Other Information | ||
Financial Statements | ||
Appendix A |
||
Condensed Financial Information |
||
Appendix B |
||
Guaranteed Minimum Income Benefit Additional Information |
51
PORTFOLIOLS ASSOCIATED WITH THE SUBACCOUNTS
SUBACCOUNT |
PORTFOLIO |
ADVISOR/SUBADVISOR | ||
Dreyfus Investment Portfolios - Service Class(1) |
||||
Core Value Portfolio |
Core Value Portfolio | The Dreyfus Corporation | ||
Investment Objective: Long-term growth of capital, with current income as a secondary objective. | ||||
MidCap Stock Portfolio |
MidCap Stock Portfolio | AllianceBernstein L.P. | ||
Investment Objective: Investment results that are greater than the total return performance of publicly traded common stocks of medium-size domestic companies. | ||||
Technology Growth Portfolio |
Technology Growth Portfolio | The Dreyfus Corporation | ||
Investment Objective: Capital appreciation. | ||||
Dreyfus Variable Investment Fund |
||||
Money Market Portfolio |
Money Market Portfolio | The Dreyfus Corporation | ||
Investment Objective: High level of current income as is consistent with the preservation of capital and maintenance of liquidity. | ||||
Dreyfus Variable Investment Fund - Service Class(1) |
||||
Appreciation Portfolio |
Appreciation Portfolio | The Dreyfus Corporation | ||
Investment Objective: Long-term capital growth consistent with the preservation of capital. | ||||
Opportunistic Small Cap Portfolio |
Opportunistic Small Cap Portfolio | The Dreyfus Corporation | ||
Investment Objective: Capital growth. |
||||
Growth and Income Portfolio |
Growth and Income Portfolio | The Dreyfus Corporation | ||
Investment Objective: Long-term capital growth, current income and growth of income consistent with reasonable investment risk. | ||||
International Equity Portfolio |
International Equity Portfolio | The Dreyfus Corporation | ||
Investment Objective: Capital growth. |
||||
International Value Portfolio |
International Value Portfolio | The Dreyfus Corporation | ||
Investment Objective: Long-term capital growth. | ||||
Quality Bond Portfolio |
Quality Bond Portfolio | The Dreyfus Corporation | ||
Investment Objective: Maximize total return, consisting of capital appreciation and current income. | ||||
The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class(1) |
The Dreyfus Corporation | |||
Investment Objective: Seeks to provide capital growth, with current income as a secondary goal. | ||||
Dreyfus Stock Index Fund, Inc. - Service Class(1) |
The Dreyfus Corporation | |||
Investment Objective: Match the total return of the Standard & Poors® 500 Composite Stock Price Index (S&P 500® Index). | ||||
Transamerica Series Trust - Service Class |
||||
TA AEGON Tactical Vanguard ETF Balanced |
Transamerica AEGON Active Asset Allocation Moderate VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Capital appreciation and current income. |
||||
TA AEGON Tactical Vanguard ETF Conservative |
Transamerica AEGON Active Asset Allocation Conservative VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Current income and preservation of capital. | ||||
TA AEGON Tactical Vanguard ETF Growth |
Transamerica AEGON Active Asset Allocation Moderate Growth VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Capital appreciation with current income as a secondary objective. | ||||
TA Legg Mason Dynamic Allocation Balanced |
Transamerica Legg Mason Dynamic Allocation Balanced VP | Legg Mason Global Asset Allocation, LLC | ||
Investment Objective: Seeks capital appreciation and income. | ||||
TA Legg Mason Dynamic Allocation Growth |
Transamerica Legg Mason Dynamic Allocation Growth VP | Legg Mason Global Asset Allocation, LLC | ||
Investment Objective: Seeks capital appreciation and income. |
52
SUBACCOUNT |
PORTFOLIO |
ADVISOR/SUBADVISOR | ||
TA Vanguard ETF Index Balanced |
Transamerica Index 50 VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Balance capital appreciation and income. | ||||
TA Vanguard ETF Index Conservative |
Transamerica Index 35 VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Current income and preservation of capital. | ||||
TA Vanguard ETF Index Growth |
Transamerica Index 75 VP | AEGON USA Investment Management, LLC | ||
Investment Objective: Capital appreciation as a primary objective and income as a secondary objective. | ||||
Transamerica Series Trust - Initial Class |
||||
TA WMC Diversified Growth |
Transamerica WMC Diversified Growth VP | Wellington Management Company, LLP | ||
Investment Objective: Maximize long-term growth. |
(1) | As of January 22, 2001, new contract owners may only invest in the Service Class sub-accounts, with the exception of the Money Market Sub-account and the TA WMC Diversified Growth Sub-account. The Initial Class sub-accounts (other than the Money Market Sub-account and TA WMC Diversified Growth Sub-account) are only available to contract owners that purchased the contract before January 22, 2001. |
53
CONDENSED FINANCIAL INFORMATION
The following tables list the accumulation unit value information for accumulation units outstanding for contracts with the highest total variable account expenses and contracts with the lowest total variable account expenses available on December 31, 2011. Should the total variable account expenses applicable to your contract fall between the maximum and minimum charges, AND you wish to see a copy of the Condensed Financial Information applicable to your contract, such information is contained in the SAI. You can obtain a copy of the SAI FREE OF CHARGE by:
calling: |
(800) 525-6205 | |
writing: |
Transamerica Life Insurance Company | |
Attention: Customer Care Group | ||
4333 Edgewood Road NE | ||
Cedar Rapids, IA 52499-0001 |
Subaccount |
Year | 2.50% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
TA WMC Diversified Growth Initial Class(1) Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.421934 1.237108 0.981483 1.863447 1.642755 1.548751 1.362102 1.205665 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.335537 1.421934 1.237108 0.981483 1.863447 1.642755 1.548751 1.362102 1.205665 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.307255 1.164695 0.976695 1.424649 1.366806 1.205500 1.186683 1.160764 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.386915 1.307255 1.164695 0.976695 1.424649 1.366806 1.205500 1.186683 1.160764 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.174493 0.920236 0.750021 1.235564 1.427691 1.413529 1.372503 1.266961 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
0.984789 1.174493 0.920236 0.750021 1.235564 1.427691 1.413529 1.372503 1.266961 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.239478 1.073949 0.857056 1.477374 1.399814 1.255088 1.246372 1.191613 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.173120 1.239478 1.073949 0.857056 1.477374 1.399814 1.255088 1.246372 1.191613 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
54
Subaccount |
Year | 2.50% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.840057 1.718665 1.410603 2.508614 2.201016 1.833214 1.641669 1.354955 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.527489 1.840057 1.718665 1.410603 2.508614 2.201016 1.833214 1.641669 1.354955 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.671152 1.643594 1.289430 2.114222 2.085516 1.746545 1.602717 1.370969 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.324506 1.671152 1.643594 1.289430 2.114222 2.085516 1.746545 1.602717 1.370969 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.128949 1.069454 0.956306 1.026025 1.018191 1.004393 1.006681 1.001382 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.176200 1.128949 1.069454 0.956306 1.026025 1.018191 1.004393 1.006681 1.001382 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
0.968219 0.992351 1.015837 1.015488 0.992672 0.972772 0.971215 0.987637 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
0.944718 0.968219 0.992351 1.015837 1.015488 0.992672 0.972772 0.971215 0.987637 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.277224 1.142982 0.929474 1.520159 1.484296 1.320501 1.295964 1.203814 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.266325 1.277224 1.142982 0.929474 1.520159 1.484296 1.320501 1.295964 1.203814 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.280339 1.145668 0.880023 1.379038 1.315139 1.237124 1.226842 1.187097 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.257314 1.280339 1.145668 0.880023 1.379038 1.315139 1.237124 1.226842 1.187097 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.287518 1.168534 1.015423 1.624791 1.620485 1.370792 1.334826 1.227797 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.180467 1.287518 1.168534 1.015423 1.624791 1.620485 1.370792 1.334826 1.227797 |
|
|
0.000 0.000 0.000 0.00 0.000 0.000 0.000 0.000 0.000 |
|
55
Subaccount |
Year | 2.50% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.463082 1.181307 0.894755 1.540180 1.557298 1.482349 1.394676 1.251541 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.430290 1.463082 1.181307 0.894755 1.540180 1.557298 1.482349 1.394676 1.251541 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.653173 1.306906 0.852831 1.487945 1.332880 1.313126 1.300592 1.330119 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.483177 1.653173 1.306906 0.852831 1.487945 1.332880 1.313126 1.300592 1.330119 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
56
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.398595 1.202573 0.942915 1.769136 1.541267 1.436101 1.248282 1.091940 0.842931 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.329149 1.398595 1.202573 0.942915 1.769136 1.541267 1.436101 1.248282 1.091940 0.842931 |
|
|
22,858.504 25,865.608 44,782.601 47,290.861 69,299.643 113,676.706 72,960.000 47,357.000 43,548.632 55,649.635 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.221521 1.075574 0.891412 1.284966 1.218288 1.061961 1.033187 0.998754 0.837329 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.311266 1.221521 1.075574 0.891412 1.284966 1.218288 1.061961 1.033187 0.998754 0.837329 |
|
|
1,216,310.458 1,457,887.151 1,812,757.421 2,167,202.449 2.407,320.669 2,695,398.530 3,041,573.000 3,211,030.000 3,442,054.087 1,152,464.949 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
0.977679 0.757075 0.609812 0.992750 1.133591 1.109241 1.064476 0.971085 0.748900 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
0.829461 0.977679 0.757075 0.609812 0.992750 1.133591 1.109241 1.064476 0.971085 0.748900 |
|
|
166,450.234 252,534.188 303,541.078 385,410.368 446,760.263 601,316.426 671,516.000 662,380.000 597,001.992 265,683.254 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.100052 0.942007 0.742957 1.265618 1.185061 1.050136 1.030669 0.973826 0.780676 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.053470 1.100052 0.942007 0.742957 1.265618 1.185061 1.050136 1.030669 0.973826 0.780676 |
|
|
351,441.550 392,846.224 461,651.396 570,086.410 605,783.934 451,803.920 566,172.000 576,194.000 666,792.985 480,758.647 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.665856 1.537756 1.247347 2.192161 1.900731 1.564621 1.384779 1.129519 0.802572 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.399254 1.665856 1.537756 1.247347 2.192161 1.900731 1.564621 1.384779 1.129519 0.802572 |
|
|
45,393.771 76,242.927 129,123.493 175,403.084 193,194.949 188,094.544 154,923.000 134,601.000 154,826.113 62,516.133 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.427103 1.387156 1.075498 1.742696 1.698797 1.406073 1.275222 1.078034 0.801301 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.144476 1.427103 1.387156 1.075498 1.742696 1.698797 1.406073 1.275222 1.078034 0.801301 |
|
|
222,516.127 237,592.163 273,493.440 406,686.599 411,957.056 386,132.186 403,033.000 392,995.000 432,606.442 197,462.003 |
|
57
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.323281 1.238867 1.094832 1.160859 1.138430 1.109887 1.099429 1.080807 1.044870 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.394951 1.323281 1.238867 1.094832 1.160859 1.138430 1.109887 1.099429 1.080807 1.044870 |
|
|
1,636,862.753 2,044,029.576 2,410,268.013 3,283,676.869 3,669,557.399 3,616,035.980 4,195,283.000 4,757,185.000 5,082,325.772 1,960,946.036 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.058682 1.072358 1.084873 1.071773 1.035356 1.0027640 0.989478 0.994396 1.000352 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.045205 1.058682 1.072358 1.084873 1.071773 1.035356 1.0027640 0.989478 0.994396 1.000352 |
|
|
1,145,568.311 1,429,428.138 1,738,166.819 2,710,390.000 3,512,649.911 758,300.759 523,734.000 518,366.000 818,219.148 385,823.081 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.179004 1.042741 0.838028 1.354472 1.306942 1.149142 1.114620 1.023219 0.809430 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.182755 1.179004 1.042741 0.838028 1.354472 1.306942 1.149142 1.114620 1.023219 0.809430 |
|
|
711,053.806 1,090,113.295 1,471,600.222 2,266,979.063 2,426,889.780 2,708,040.028 2,723,433.000 2,767,334.000 2,406,711.640 871,193.095 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.096162 0.969400 0.735914 1.139638 1.074032 0.998515 0.978656 0.935828 0.753859 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.089166 1.096162 0.969400 0.735914 1.139638 1.074032 0.998515 0.978656 0.935828 0.753859 |
|
|
100,448.225 102,838.896 104,640.477 156,392.518 153,322.816 159,276.298 157,734.000 232,538.000 215,521.606 95,486.763 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.148009 1.029738 0.884328 1.398348 1.378233 1.152258 1.108933 1.008051 0.796894 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.065003 1.148009 1.029738 0.884328 1.398348 1.378233 1.152258 1.108933 1.008051 0.796894 |
|
|
551,879.534 712,880.521 1,014,209.498 1,344,338.315 1,607,192.458 1,792,437.255 2,073,521.000 2,195,500.000 2,193,220.004 983,770.185 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.324376 1.056815 0.791082 1.345693 1.344626 1.264968 1.176271 1.043162 0.803700 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.310014 1.324376 1.056815 0.791082 1.345693 1.344626 1.264968 1.176271 1.043162 0.803700 |
|
|
412,191.915 494,721.508 668,775.315 771,042.170 844,573.886 873,328.659 992,114.000 1,028,138.000 912,997.391 535,717.020 |
|
58
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.414790 1.105381 0.712882 1.229139 1.088089 1.059442 1.037076 1.048150 0.704948 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.284316 1.414790 1.105381 0.712882 1.229139 1.088089 1.059442 1.037076 1.048150 0.704948 |
|
|
80,749.852 110,782.129 100,345.273 121,821.043 134,693.791 136,396.712 220,934.000 262,023.000 172,388.483 93,573.701 |
|
The TA AEGON Tactical Vanguard ETF - Balanced Fund, TA AEGON Tactical Vanguard ETF - Conservative Fund, TA AEGON Tactical Vanguard ETF - Growth Fund, TA Legg Mason Dynamic Allocation - Balanced Fund, TA Legg Mason Dynamic Allocation - Growth Fund, TA Vanguard ETF Index - Balanced Fund, TA Vanguard ETF Index - Conservative Fund and the TA Vanguard ETF Index - Growth Fund had not commenced operations as of December 31, 2011 therefore, comparable data is not available.
59
The dates shown below are the approximate first issue dates of the various versions of the contract. These dates will vary by state in many cases. This Appendix describes certain of the more significant differences in features of the various versions of the contract. There may be additional variations. Please see your actual contract and any attachments for determining your specific coverage.
Contract Form/Endorsement |
Approximate First Issue Date | |
GNC-33-194 (Contract Form) |
January 1993 | |
AV696 101 145 901 (Contract Form) |
May 1, 2002 | |
RGMI 16 1101 (GMIB Rider) |
May 1, 2002 | |
RTP 3 401 (Additional Death Benefit Rider) |
May 1, 2002 |
Product Feature |
GNC-33-194 |
AV696 101 145 901, RGMI 16 1101, RTP 3 401 | ||
Excess Interest Adjustment | Yes | Yes | ||
Guaranteed Minimum Death Benefit Option(s) | Greater of 5% Annually Compounding through age 85 Death Benefit or Annual Step-Up through age 85 Death Benefit (with a cap of 200%) | Greater of 6% Annually Compounding through age 80 Death Benefit or Monthly Step-Up through age 80 Death Benefit and Return of Premium | ||
Guaranteed Period Options (available in the fixed account) | 1, 3, 5 and seven guaranteed periods available. | 1, 3, 5 and seven guaranteed periods available. | ||
Minimum effective annual interest rate applicable to the fixed account | 3% | 2% | ||
Asset Rebalancing | Yes | Yes | ||
Death Proceeds | Greatest of (1) the account value; or (2) the guaranteed minimum death benefit, plus additional purchase payments received, less any partial withdrawals and any applicable premium taxes from the date of death to the date of payment of the death proceeds. | Greatest of (1) the account value; (2) cash value; or (3) guaranteed minimum death benefit, plus purchase payments, less gross partial surrenders from the date of death to the date the death benefit is paid. | ||
Distribution Financing Charge | N/A | N/A | ||
Is Mortality & Expense Risk Fee different after the annuity date? | No | Yes | ||
Dollar Cost Averaging Fixed Account Option | Yes | Yes | ||
Service Charge | Assessed at the end of each contract year before the annuity date and at the time of surrender; Waived if the account value exceeds $50,000 on the last business day of the contract year or at the time of surrender. This service charge is deducted pro-rate from each investment choice. | An annual service charge of $35 (but not more than 2% of the account value) is charged on each contract anniversary and at surrender. The service charge is waived if your account value or the sum of your purchase payments, less all partial surrenders, is at least $50,000. | ||
Nursing Care and Terminal Condition Withdrawal Option | Yes | Yes | ||
Unemployment Waiver | No | Yes | ||
Guaranteed Minimum Income Benefit | Yes | Yes | ||
Additional Death Benefit Rider | Yes | Yes | ||
Liquidity Rider | No | Yes | ||
Premium Accelerator | No | Yes |
60
ADDITIONAL DEATH BENEFIT RIDER ADDITIONAL INFORMATION
The following examples illustrate the Additional Death Benefit Rider additional death benefit payable by the rider as well as the effect of a partial surrender on the additional death benefit amount. The client is less than age 71 on the Rider Date:
Example 1
Account Value on the Rider Date: |
$ | 100,000 | ||
Purchase payments paid after the Rider Date before Surrender: |
$ | 25,000 | ||
Gross Partial Surrenders after the Rider Date: |
$ | 30,000 | ||
Account Value on date of Surrender |
$ | 150,000 | ||
Rider Earnings on Date of Surrender (Account Value on date of surrender Account Value on Rider Date Purchase payments paid after Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $150,000 - $100,000 - $25,000 + 0): |
$ | 25,000 | ||
Amount of Surrender that exceeds Rider Earnings ($30,000 - $25,000): |
$ | 5,000 | ||
Base Contract Death Benefit on the date of Death Benefit Calculation: |
$ | 200,000 | ||
Account Value on the date of Death Benefit Calculations |
$ | 175,000 | ||
Rider Earnings (= Account Value on date of death benefit calculations account value on Rider Date Purchase payments since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $175,000 - $100,000 - $25,000 + $5,000): |
$ | 55,000 | ||
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40% * $55,000): |
$ | 22,000 | ||
|
|
|||
Total Death Benefit paid (=Base contract death benefit plus Additional Death Benefit Amount): |
$ | 222,000 | ||
|
|
Example 2
Account Value on the Rider Date: |
$ | 100,000 | ||
Purchase payments paid after the Rider Date before Surrender: |
$ | 0 | ||
Gross Partial Surrenders after the Rider Date: |
$ | 0 | ||
Base Contract Death Benefit on the date of Death Benefit Calculation: |
$ | 100,000 | ||
Account Value on the date of Death Benefit Calculations |
$ | 75,000 | ||
Rider Earnings (= Account Value on date of death benefit calculations account value on Rider Date Purchase payments since Rider Date + Surrenders since Rider Date that exceeded Rider Earnings = $75,000 - $100,000 - $0 + $0): |
$ | 0 | ||
Additional Death Benefit Amount (= Additional Death Benefit Factor * Rider Earnings = 40% * $0): |
$ | 0 | ||
|
|
|||
Total Death Benefit paid (= Base contract death benefit plus Additional Death Benefit Amount): |
$ | 100,000 | ||
|
|
61
ADDITIONAL DEATH BENEFIT RIDER II ADDITIONAL INFORMATION
Assume the Additional Death Benefit Rider II is added to a new contract opened with $100,000 initial purchase payment. The client is less than age 71 on the Rider Date. On the first and second Rider Anniversaries, the Account Value is $110,000 and $95,000 respectively when the Rider Fees are deducted. The client adds $25,000 purchase payment in the 3rd Rider Year when the Account Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th Rider Year when the Account Value is equal to $145,000. After 5 years, the Account Value is equal to $130,000 and the death proceeds is $145,000.
EXAMPLE
Account Value on Rider Date (equals initial account value since new contract) |
$ | 100,000 | ||
Additional Death Benefit during first Rider Year |
$ | 0 | ||
Rider Fee on first Rider Anniversary (= Rider Fee * Account Value = 0.55% * $110,000) |
$ | 605 | ||
Additional Death Benefit during 2nd Rider Year (= sum of total Rider Fees paid) |
$ | 605 | ||
Rider Fee on second Rider Anniversary (= Rider Fee * Account Value = 0.55% * $95,000) |
$ | 522.50 | ||
Additional Death Benefit during 3rd Rider Year (= sum of total Rider Fees paid = $605 + $522.50) |
$ | 1,127.50 | ||
Rider Benefit Base in 3rd Rider Year prior to Purchase payment addition (= Account Value less purchase payments added since Rider Date = $115,000 $0) |
$ | 115,000 | ||
Rider Benefit Base in 3rd Rider Year after Purchase payment addition (= $140,000 - $25,000) |
$ | 115,000 | ||
Rider Benefit Base in 4th Rider Year prior to withdrawal (= Account Value less purchase payments added since Rider Date = $145,000 - $25,000) |
$ | 120,000 | ||
Rider Benefit Base in 4th Rider Year after withdrawal (Account Value less purchase payments added since Rider Date = $110,000 - $25,000) |
$ | 85,000 | ||
Rider Benefit Base in 5th Rider Year (= $130,000 - $25,000) |
$ | 105,000 | ||
Additional Death Benefit = Rider Benefit Percentage * Rider Benefit Base = 30% * $105,000 |
$ | 31,500 | ||
|
|
|||
Total Death Proceeds in 5th Rider Year (= base contract Death Proceeds + Additional Death Benefit Amount = $145,000 + $31,500) |
$ | 176,500 | ||
|
|
62
GUARANTEED MINIMUM INCOME BENEFIT NO LONGER AVAILABLE
The optional Guaranteed Minimum Income Benefit assures you of a minimum level of income in the future by guaranteeing a minimum annuitization value (discussed below) after seven years. You may elect to purchase this benefit, which provides a minimum amount you will have to apply to a Guaranteed Minimum Income Benefit payment option and which guarantees a minimum amount for those payments once you begin to receive them. By electing this benefit, you can participate in the gains of the underlying variable investment options you select while knowing that you are guaranteed a minimum level of income in the future, regardless of the performance of the underlying variable investment options. The Guaranteed Minimum Income Benefit rider will not be issued if you are 80 years old or older (earlier if required by state law).
You can annuitize under the rider (subject to the conditions described below) at the greater of the adjusted account value or the minimum annuitization value.
Minimum Annuitization Value. The minimum annuitization value on the rider date (the date the rider is added to your contract) is equal to the account value. After that, the minimum annuitization value is equal to the greater of the following:
1) | the largest account value on the rider date or on any rider anniversary prior to the annuitants 81st birthday, plus any subsequent purchase payments (less the sum of all subsequent withdrawals adjusted as below and any premium taxes after the date of the largest account value); or |
2) | the minimum annuitization value on the rider date plus the sum of all purchase payments received after the rider date, less withdrawals (adjusted as below) and premium taxes, plus interest thereon equal to the annual effective interest rate specified on page one of the rider up to: |
a) | the rider anniversary prior to the annuitants 81st birthday; |
b) | the date the sum of all purchase payments, (less the sum of all adjusted withdrawals and premium taxes), together with credited interest, has grown to two times the amount of all purchase payments (less all adjusted withdrawals and premium taxes) as a result of such interest accumulation, if earlier. |
You can annuitize under the Guaranteed Minimum Income Benefit (subject to the conditions described in this section) at the greater of the annuity purchase amount or the minimum annuitization value.
The annual effective interest rate is current 6% per year; we may, at our discretion, change the rate in the future, but the rate will never be less than 3% per year, and once the rider is added to your contract, the annual rate will not vary during the life of that rider. Withdrawals may reduce the minimum annuitization value on a basis greater than dollar-for-dollar.
The Guaranteed Minimum Income Benefit does not establish or guarantee account value or guarantee performance of any investment option.
The minimum annuitization value may only be used to annuitize using the Guaranteed Minimum Income Benefit payment options provided by the Guarantee Minimum Income Benefit and may not be used with any of the annuity payment options listed in Section 7 of this prospectus. The Guaranteed Minimum Income Benefit payment options are:
| Life IncomeAn election may be made for No Period Certain or 10 Years Certain. In the event of the death of the annuitant prior to the end of the chosen period certain, the remaining period certain payments will be continued to the beneficiary. |
63
| Joint and Full SurvivorAn election may be made for No Period Certain or 10 Years Certain. Payments will be made as long as either the annuitant or joint annuitant is living. In the event of the death of both the annuitant and joint annuitant prior to the end of the chosen period certain, the remaining period certain payments will be continued to the beneficiary. |
NOTE CAREFULLY:
IF:
| You choose Life Income with No Period Certain or Joint and Full Survivor with No Period Certain; and |
| The annuitant(s) dies before the due date of the second (third, fourth, etc.) annuity payment; |
THEN:
| We will make only one (two, three, etc.) annuity payments. |
The minimum annuitization value is used solely to calculate the Guaranteed Minimum Income Benefit annuity payments and does not establish or guarantee a account value or guarantee performance of any investment option. Because this benefit is based on conservative actuarial factors (such as the use of a 3.0% assumed investment return, to calculate the first annuity payment, which results in a lower dollar amount for that payment than would result from using the 5.0% assumed investment return that is used with the regular annuity payments described in Section 7 above), the level of lifetime income that it guarantees may be less than the level that would be provided by application of the adjusted account value at otherwise applicable annuity factors.
Therefore, the Guaranteed Minimum Income Benefit should be regarded as a safety net. The costs of annuitizing under the Guaranteed Minimum Income Benefit include the guaranteed payment fee, and also the lower payout levels inherent in the annuity tables used for those minimum payouts (which may include an annuity age factor adjustment). These costs should be balanced against the benefits of a minimum payout level.
Moreover, the Initial Payment Guarantee option described below also provides for a minimum payout level, and it uses actuarial factors (such as a 5.0% assumed investment return) that provide for higher payment levels for a given account value than the Guaranteed Minimum Income Benefit (which uses a 3.0% assumed investment return to calculate the first annuity payment and a 5.0% rate to calculate all subsequent payments). You should carefully consider these factors, since electing annuity payments under the Guaranteed Minimum Income Benefit will generally be advantageous only when the minimum annuitization value is sufficiently in excess of the adjusted account value to overcome these disadvantages.
In addition to the annual growth rate, other benefits and fees under the rider (the rider fee, the fee waiver threshold, the guaranteed payment fee, and the waiting period before the rider can be exercised) are also guaranteed not to change after the rider is added. However, all of these benefit specifications may change if you elect to upgrade the minimum annuitization value.
Minimum Annuitization Value Upgrade. You can upgrade your minimum annuitization value to the account value on a contract anniversary. This may be done within thirty days after any contract anniversary before your 88th birthday (earlier if required by state law). For your convenience, we will put the last date to upgrade on page one of the rider.
64
If you upgrade:
| the current rider will terminate and a new one will be issued with its own specified guaranteed benefits and fees (the new rider will be what is currently offered for new sales); |
| the new fees, thresholds and factors may be higher (or lower) than before; |
| the new annual growth rate may be lower (or higher) than before; and |
| you will have a new seven year waiting period before you can annuitize under the rider. |
It generally will not be to your advantage to upgrade unless your adjusted account value exceeds your minimum annuitization value at the time you elect to upgrade.
Conditions of Exercise of the Guaranteed Minimum Income Benefit. You can only annuitize using the Guaranteed Minimum Income Benefit within the 30 days after the seventh or later contract anniversary after the Guaranteed Minimum Income Benefit is elected or, in the case of an upgrade of the minimum annuitization value, the seventh or later contract anniversary following the upgrade. Transamerica may, at its discretion, change the waiting period before the Guaranteed Minimum Income Benefit can be exercised in the future. You cannot, however, annuitize using the Guaranteed Minimum Income Benefit after the contract anniversary after your 94th birthday (earlier if required by state law). For your convenience, we will put the first and last date to annuitize using the Guaranteed Minimum Income Benefit on page one of the rider.
NOTE CAREFULLY: If you annuitize at any time other than indicated above, you cannot use the Guaranteed Minimum Income Benefit.
Guaranteed Minimum Payment Option. If you elect the guaranteed minimum payment option at the time of annuitization, annuity payments under the rider are guaranteed to never be less than the initial payment. See the SAI for information concerning the calculation of the initial payment. The payments will also be stabilized or held constant during each contract year.
During the first contract year after annuitizing using the rider, each stabilized payment will equal the initial payment. On each contract anniversary thereafter, the stabilized payment will increase or decrease depending on the performance of the investment options you selected (but will never be less than the initial payment), and then be held constant at that amount for that contract year. The stabilized payment on each contract anniversary will equal the greater of the initial payment or the payment supportable by the annuity units in the selected investment options. See the SAI for additional information concerning stabilized payments.
If you elect not to receive guaranteed minimum payments, your payments:
| are not guaranteed and may be less than the initial payment; |
| will vary according to the investment performance of the investment options you select; and |
| will not be stabilized. |
Rider Fee. A rider fee, currently 0.45% of the minimum annuitization value on the contract anniversary, is charged annually prior to annuitization. We will also charge this fee if you take a complete surrender. The rider fee is deducted from each variable subaccount and the fixed account in proportion to the amount of account value in each variable subaccount and the fixed account. This fee is deducted even if the adjusted account value exceeds the minimum annuitization value.
65
Guaranteed Minimum Payment Fee. If you elect the guaranteed minimum payment option at the time of annuitization, a guaranteed minimum payment fee, currently equal to an effective annual rate of 1.25% of the daily net asset value in the variable account, is reflected in the amount of the variable payments you receive if you annuitize under the Guaranteed Minimum Income Benefit, in addition to the base product mortality and expense risk fee and administrative charge. The guaranteed minimum payment fee is included on page one of the rider. This option is irrevocable (you can not stop paying the fee once annuity payments begin).
Termination. The rider is irrevocable. You have the option not to use the benefit but you will not receive a refund of any fees you have paid. The rider will terminate upon the earliest of the following:
| annuitization (you will still get guaranteed minimum stabilized payments if you annuitize using the minimum annuitization value under the Guaranteed Minimum Income Benefit); |
| upgrade of the minimum annuitization value (although a new rider will be issued); |
| termination of your contract; or |
| 30 days after the contract anniversary after your 94th birthday (earlier if required by state law). |
The Guaranteed Minimum Income Benefit described in this prospectus uses a 3.0% assumed investment return to calculate the first payment. Therefore, for a given dollar amount of account value applied to an annuity payment, the initial payment will be lower with the Guaranteed Minimum Income Benefit than with the Initial Payment Guarantee.
The Guaranteed Minimum Income Benefit may vary by state and may not be available in all states.
66
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE® VARIABLE ANNUITY
Issued by
TRANSAMERICA LIFE INSURANCE COMPANY
Supplement Dated May 1, 2012
to the
Prospectus dated May 1, 2012
We will not accept any premium payment that is allocated to the fixed account or the dollar cost averaging fixed account in excess of $5,000. We also will not accept any premium payment or transfer which would result in the aggregate policy value in the fixed account and the dollar cost averaging fixed account exceeding $5,000.
This Prospectus Supplement must be accompanied or preceded
by the Prospectus for the
Dreyfus/Transamerica Triple Advantage® Variable Annuity dated May 1, 2012
STATEMENT OF ADDITIONAL INFORMATION
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE®
VARIABLE ANNUITY
Issued through
SEPARATE ACCOUNT VA-2L
Offered by
TRANSAMERICA LIFE INSURANCE COMPANY
This statement of additional information expands upon subjects discussed in the current prospectus for the Dreyfus/Transamerica Triple Advantage® Variable Annuity offered by Transamerica Life Insurance Company. You may obtain a copy of the prospectus dated May 1, 2012 by calling 1-800-525-6205, or by writing to Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road NE, Cedar Rapids, Iowa 52499-0001. The prospectus sets forth information that a prospective investor should know before investing in a contract. Terms used in the current prospectus for the contract are incorporated in this Statement of Additional Information. Transamerica Life Insurance Company will not accept purchase payments for new contracts.
This Statement of Additional Information (SAI) is not a prospectus and should be read only in conjunction with the prospectuses for the contract and the underlying fund portfolios.
Dated: May 1, 2012
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2
Account Value On or before the annuity date, the account value is equal to the owners:
| purchase payments; minus |
| partial surrenders (including the net effect any applicable excess interest adjustments and/or surrender charges on such surrenders); plus |
| interest credited in the fixed account; plus |
| accumulated gains in the variable account; minus |
| accumulated losses in the variable account; minus |
| service charges, premium taxes, rider fees, transfer fees, and any other charges, if any. |
Adjusted Account Value An amount equal to the account value increased or decreased by any excess interest adjustments.
Administrative and Service Office Transamerica Life Insurance Company, Attention: Customer Care Group, 4333 Edgewood Road N.E., Cedar Rapids, Iowa 52499-0001, (800) 525-6205.
Annuitant The person during whose life any annuity payments involving life contingencies will continue.
Annuity Date The date upon which annuity payments are to commence. This date may be any date at least thirty days after the contract date and may not be later than the last day of the contract month following the month after the annuitant attains age 85, except as expressly allowed by Transamerica. In no event will this date be later than the last day of the month following the month in which the annuitant attains age 95.
Annuity Payment An amount paid by Transamerica at regular intervals after the annuity date to the annuitant and/or any other payee specified by the owner. It may be on a variable or fixed basis.
Beneficiary The person who has the right to the death benefit as set forth in the contract.
Business Day A day when the New York Stock Exchange is open for business.
Cash Value The adjusted account value less any applicable surrender charge and any rider fees (imposed upon surrender).
Code The Internal Revenue Code of 1986, as amended.
Contract Year A contract year begins on the policy date and on each contract anniversary thereof.
Enrollment form A written application, order form, or any other information received electronically or otherwise upon which the contract is issued and/or is reflected on the data or specifications page.
Excess Interest Adjustment A positive or negative adjustment to amounts surrendered (both partial and full surrenders and transfers) applied to the annuity payment options from the fixed account guaranteed period options prior to the end of the guaranteed period. The adjustment reflects changes in the interest rates declared by Transamerica since the date any payment was received by (or an amount was transferred to) the guaranteed period option. The excess interest adjustment can either decrease or increase the amount to be received by the owner upon surrender (either full or partial) or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively.
Fixed Account One or more investment choices under the contract that are part of Transamericas general assets and which are not in the variable account.
3
Guaranteed Period Options The various guaranteed interest rate periods of the fixed account, which Transamerica may offer, into which purchase payments may be paid or amounts may be transferred.
Nonqualified Contract A contract other than a qualified contract.
Owner (You) The person who may exercise all rights and privileges under the contract. The owner during the lifetime of the annuitant and prior to the annuity date is the person designated as the owner or a successor owner in the information that we require to issue a contract.
Purchase Payment An amount paid to Transamerica by the owner or on the owners behalf as consideration for the benefits provided by the contract.
Qualified Contract A contract issued in connection with retirement plans that qualify for special federal income tax treatment under the Code.
Service Charge An annual charge on each contract anniversary (and a charge at the time of surrender during any contract year) for contract maintenance and related administrative expenses. This annual charge is $35, but will not exceed 2% of the account value.
Subaccount A subdivision within the variable account, the assets of which are invested in a specified underlying fund.
Supportable Payment The amount equal to the sum of the variable annuity unit values multiplied by the number of variable annuity units in each of the selected subaccounts.
Surrender Charge A percentage of each purchase payment depending upon the length of time from the date of each purchase payment. The surrender charge is assessed on full or partial surrenders from the contract. The surrender charge may also be referred to as a contingent deferred sales charge.
Variable Account Separate Account VA-2L, a separate account established and registered as a unit investment trust under the Investment Company Act of 1940 (the 1940 Act), as amended, to which purchase payments under the contracts may be allocated.
Variable Accumulation Unit An accounting unit of measure used to determine the account value in the variable account before the annuity date.
Variable Annuity Payments Payments made pursuant to an annuity payment option which fluctuate as to dollar amount or payment term in relation to the investment performance of the specified subaccounts within the variable account.
Variable Annuity Unit An accounting unit of measure used in the calculation of the amount of the second and each subsequent variable annuity payment.
Valuation Period The period of time from the close of business on a valuation day (typically 4:00 p.m. Eastern time) to the close of business on the next valuation day.
Written Notice Written notice, signed by the owner, that gives Transamerica the information it requires and is received at the administrative and service office. For some transactions, Transamerica may accept an electronic notice such as telephone instructions. Such electronic notice must meet the requirements Transamerica establishes for such notices.
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In order to supplement the description in the prospectus, the following provides additional information about Transamerica and the contract, which may be of interest to a prospective purchaser.
THE CONTRACT GENERAL PROVISIONS
The contract belongs to the owner upon issuance of the contract after completion of an enrollment form and delivery of the initial purchase payment. While the annuitant is living, the owner may: (1) assign the contract; (2) surrender the contract; (3) amend or modify the contract with Transamericas consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and enjoy every other right and benefit contained in the contract. The exercise of these rights may be subject to the consent of any assignee or irrevocable beneficiary; and of your spouse in a community or marital property state.
Unless Transamerica has been notified of a community or marital property interest in the contract, it will rely on its good faith belief that no such interest exists and will assume no responsibility for inquiry.
Note carefully. If the owner predeceases the annuitant and no joint owner, primary beneficiary or contingent beneficiary is alive or in existence on the date of death, the owners estate will become the new owner. If no probate estate is opened because the owner has precluded the opening of a probate estate by means of a trust or other instrument, that trust may not exercise ownership rights to the contract. It may be necessary to open a probate estate in order to exercise ownership rights to the contract.
The owner may change the ownership of the contract in a written notice. When this change takes effect, all rights of ownership in the contract will pass to the new owner. A change of ownership may have tax consequences.
When there is a change of owner or successor owner, the change will not be effective until it is recorded in our records. Once recorded, it will take effect as of the date the owner signs the written notice, subject to any payment Transamerica has made or action Transamerica has taken before recording the change. Changing the owner or naming a new successor owner cancels any prior choice of successor owner, but does not change the designation of the beneficiary or the annuitant.
If ownership is transferred (except to the owners spouse) because the owner dies before the annuitant, the cash value generally must be distributed to the successor owner within five years of the owners death, or payments must be made for a period certain or for the successor owners lifetime so long as any period certain does not exceed that successor owners life expectancy, if the first payment begins within one year of your death.
The contract, any endorsements or riders thereon, the enrollment form, or information provided in lieu thereof, constitute the entire contract between Transamerica and the owner. All statements in the enrollment form are representations and not warranties. No statement will cause the contract to be void or to be used in defense of a claim unless contained in the enrollment form or information provided in lieu thereof.
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If the age or gender of the annuitant or owner has been misstated, Transamerica will change the annuity benefit payable to that which the purchase payments would have purchased for the correct age or gender. The dollar amount of any underpayment made by Transamerica shall be paid in full with the next payment due such person or the beneficiary. The dollar amount of any overpayment made by Transamerica due to any misstatement shall be deducted from payments subsequently accruing to such person or beneficiary. Any underpayment or overpayment will include interest at 5% per year, from the date of the wrong payment to the date of the adjustment. The age of the annuitant or owner may be established at any time by the submission of proof satisfactory to Transamerica.
Money that you surrender, transfer out of, or apply to an annuity payment option, from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the guaranteed period option) may be subject to an excess interest adjustment. At the time you request a surrender, if interest rates set by Transamerica have risen since the date of the initial guarantee, the excess interest adjustment will result in a lower cash value. However, if interest rates have fallen since the date of the initial guarantee, the excess interest adjustment will result in a higher cash value.
Excess interest adjustments will not reduce the adjusted account value for a guaranteed period option below the purchase payments and transfers to that guaranteed period option, less any prior partial surrenders and transfers from the guaranteed period option, plus interest at the contracts minimum guaranteed effective annual interest rate. This is referred to as the excess interest adjustment floor.
The formula that will be used to determine the excess interest adjustment is:
S* (G-C)* (M/12)
S = |
Gross amount being surrendered that is subject to the excess interest adjustment | |
G = |
Guaranteed interest rate in effect for the contract | |
C = |
Current guaranteed interest rate then being offered on new purchase payments for the next longer option period than M. If this contract form or such an option period is no longer offered, C will be the U.S. Treasury rate for the next longer maturity (in whole years) than M on the 25th day of the previous calendar month, plus up to 2%. | |
M = |
Number of months remaining in the current option period, rounded up to the next higher whole number of months. | |
* = |
multiplication | |
^ = |
exponentiation |
[THIS SPACE INTENTIONALLY LEFT BLANK]
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Example 1 (Full Surrender, rates increase by 3%):
Single purchase payment: | $50,000.00 | |
Guarantee period: | 5 Years | |
Guarantee rate: | 5.50% per annum | |
Surrender: | Middle of annuity year 2 | |
Account value at middle of annuity year 2 | = 50,000.00 * (1.055) ^ 1.5 = 54,181.21 | |
Cumulative Earnings | = 54,181.21 50,000.00 = 4,181.21 | |
10% of Purchase Payments | = 50,000.00 * .10 = 5,000.00 | |
Surrender charge free amount at middle of annuity year 2 | = 5,000.00 | |
Excess interest adjustment free amount | = 4,181.21 | |
Amount subject to excess interest adjustment | = 54,181.21 4,181.21 = 50,000.00 | |
Excess interest adjustment floor | = 50,000.00 * (1.02) ^ 1.5 = 51,507.48 | |
Excess interest adjustment | ||
G = .055 | ||
C = .085 | ||
M = 42 | ||
Excess interest adjustment | = S* (G-C)* (M/12) | |
= 50,000.00 * (.055-.085) * (42/12) | ||
= -5,250.00, but excess interest adjustment cannot cause the adjusted account value to fall below the excess interest adjustment floor, so the adjustment is limited to 51,507.48 - 54,181.21 = -2,673.73 | ||
Adjusted account value | = account value + excess interest adjustment = 54,181.21 + (-2,673.73) = 51,507.48 | |
Portion of surrender charge-free amount which is deducted from cumulative earnings | = cumulative earnings = 4,181.21 | |
Portion of surrender charge-free amount which is deducted from purchase payments | = 5,000 4,181.21 = 818.79 | |
Surrender charges | = (50,000.00 818.79)* .07 = 3,442.68 | |
Net surrender value at middle of contract year 2 | = 51,507.48 3,442.68 = 48,064.80 | |
Net surrender value minimum | = 90% x 50,000 x 1.03 ^ (l.5) = 47,040.11 | |
The net surrender value of $48,064.80 is greater than the minimum of $47,040.11 |
[THIS SPACE INTENTIONALLY LEFT BLANK]
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Example 2 (Full Surrender, rates decrease by 1%):
Single purchase payment: | $50,000.00 | |
Guarantee period: | 5 Years | |
Guarantee rate: | 5.50% per annum | |
Surrender: | Middle of contract year 2 | |
Account value at middle of contract year 2 | ||
Cumulative Earnings | = 54,181.21 50,000.00 = 4,181.21 | |
10% of Purchase Payments | = 50,000.00 * .10 = 5,000.00 | |
Surrender charge free amount at middle of contract year 2 | = 5,000.00 | |
Excess interest adjustment free amount | = 4,181.21 | |
Amount subject to excess interest adjustment | = 54,181.21 4,181.21 = 50,000.00 | |
Excess interest adjustment floor | = 50,000.00 * (1.02) ^ 1.5 = 51,507.48 | |
Excess interest adjustment | ||
G = .055 | ||
C = .045 | ||
M = 42 | ||
Excess interest adjustment | = S* (G-C)* (M/12) | |
= 50,000.00 * (.055-.045) * (42/12) = 1,750.00 | ||
Adjusted account value | = 54,181.21 + 1,750.00 = 55,931.21 | |
Portion of surrender charge-free amount which is deducted from cumulative earnings | = cumulative earnings = 4,181.21 | |
Portion of surrender charge-free amount which is deducted from purchase payments | = 5,000.00 4,181.21 = 818.79 | |
Surrender charges | = (50,000.00 818.79) * .07 = 3,442.68 | |
Net surrender value at middle of contract year 2 | = 55,931.21 - 3,442.68 = 52,488.53 | |
Net surrender value minimum | = 90% x 50,000 x 1.03 ^ (l.5) = 47,040.11 | |
The net surrender value of 52,448.53 is greater than the minimum of 47,040.11 |
On a partial surrender, Transamerica will pay the owner the full amount of surrender requested (as long as the account value is sufficient). Amounts surrendered will reduce the account value by an amount equal to:
R - E + SC
R = |
the requested partial surrender; | |
E = |
the excess interest adjustment; and | |
SC = |
the surrender charges on (EPW - E); where | |
EPW = |
the excess partial surrender amount. |
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Example 3 (Partial Surrender, rates increase by 1%):
Single purchase payment: | $50,000.00 | |
Guarantee period: | 5 Years | |
Guarantee rate: | 5.50% per annum | |
Partial surrender: | $20,000 (requested withdrawal amount after penalties); middle of contract year 2 | |
Account value at middle of contract year 2 | = 50,000.00 * (1.055) ^ 1.5 = 54,181.21 | |
Cumulative Earnings | = 54,181.21 50,000.00 = 4,181.21 | |
10% of Purchase Payments | = 50,000.00 * .10 = 5,000.00 | |
Surrender charge free amount at middle of contract year 2 | = 5,000.00 | |
Excess interest adjustment free amount | = 4,181.21 | |
Excess interest adjustment/surrender charge | ||
S = 20,000 4,181.21 = 15,818.79 | ||
G = .055 | ||
C = .065 | ||
M = 42 | ||
E = 15,818.79 * (.055 - .065) * (42/12) = -553.66 | ||
EPW = 20,000.00 - 5,000.00 = 15,000.00 | ||
To receive the full $20,000 partial surrender amount, we must gross-up the EPW amount to account for the surrender charges to be deducted. This is done by dividing the EPW by (1 surrender charge), New EPW = 15,000/(1 .07) = 16,129.03 |
||
SC = .07 * (16,129.03 - (-553.66)) = 1,167.79 | ||
Remaining account value at middle of contract year 2 | = 54,181.21 - (R - E + surrender charge) | |
= 54,181.21 - (20,000.00 - (-553.66) + 1,167.79) = 32,459.76 |
Example 4 (Partial Surrender, rates decrease by 1%):
Single purchase payment: | $50,000.00 | |
Guarantee period: | 5 Years | |
Guarantee rate: | 5.50% per annum | |
Partial surrender: | $20,000; middle of contract year 2 | |
Account value at middle of contract year 2 | = 50,000.00 * (1.055) ^ 1.5 = 54,181.21 | |
Cumulative Earnings | = 54,181.21 50,000.00 = 4,181.21 | |
10% of Purchase Payments | = 50,000.00 * .10 = 5,000.00 | |
Surrender charge free amount at middle of contract year 2 | = 5,000.00 | |
Excess interest adjustment free amount | = 4,181.21 | |
Excess interest adjustment/surrender charge | ||
S = 20,000 4,181.21 = 15,818.79 | ||
G = .055 | ||
C = .045 | ||
M = 42 | ||
E = 15,818.79 * (.055 - .045)* (42/12) = 553.66 | ||
EPW = 20,000.00 - 5,000.00 = 15,000.00 | ||
To receive the full $20,000 partial surrender amount, we must gross-up the EPW amount to account for the surrender charges to be deducted. This is done by dividing the EPW by (1 surrender charge). New EPW = 15,000/(1 - .07) = 16,129.03 |
||
SC = .07 * (16,129.03 553.66) = 1,090.28 | ||
Remaining account value at middle of contract year 2 | = 54,181.21 - (R - E + surrender charge) | |
= 54,181.21 - (20,000.00 553.66 + 1,090.28) = 33,644.59 |
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Reallocation of Variable Annuity Units After the Annuity Date
After the annuity date, you may reallocate the value of a designated number of variable annuity units of a subaccount then credited to a contract into an equal value of variable annuity units of one or more other subaccounts or the fixed account. The reallocation shall be based on the relative value of the variable annuity units of the account(s) or subaccount(s) at the end of the business day on the next payment date. The minimum amount which may be reallocated is the lesser of (1) $10 of monthly income or (2) the entire monthly income of the variable annuity units in the account or subaccount from which the transfer is being made. If the monthly income of the variable annuity units remaining in an account or subaccount after a reallocation is less than $10, Transamerica reserves the right to include the value of those variable annuity units as part of the transfer. The request must be in writing to Transamericas administrative and service office. There is no charge assessed in connection with such reallocation. A reallocation of variable annuity units may be made up to four times in any given contract year.
After the annuity date, no transfers may be made from the fixed account to the variable account.
Note: Portions of the following discussion do not apply to annuity payments under the Initial Payment Guarantee. See the Stabilized Payments section of this SAI.
During the lifetime of the annuitant and prior to the annuity date, the owner may choose an annuity payment option or change the election, but notice of any election or change of election must be received by Transamerica in good orderat least thirty (30) days prior to the annuity date (elections less than 30 days require prior approval). If no election is made prior to the annuity date, annuity payments will be made using (i) life income with level fixed payments for 10 years certain, using the existing adjusted account value of the fixed account, or (ii) life income with variable payments for 10 years, certain using the existing account value of the variable account, or (iii) a combination of (i) and (ii).
The person who elects an annuity payment option can also name one or more successor payees to receive any unpaid amount Transamerica has at the death of a payee. Naming these payees cancels any prior choice of a successor payee.
A payee who did not elect the annuity payment option does not have the right to advance or assign payments, take the payments in one sum, or make any other change. However, the payee may be given the right to do one or more of these things if the person who elects the option tells Transamerica in writing and Transamerica agrees.
Variable Payment Options. The dollar amount of the first variable annuity payment will be determined in accordance with the annuity payment rates set forth in the applicable table contained in the contract. For annuity payments the tables are based on a 5% effective annual Assumed Investment Return and the 2000 Table, using an assumed annuity date of 2005 (static projection to this point) with dynamic projection using scale G from that point (100% of G for male, 50% of G for females). The dollar amount of additional variable annuity payments will vary based on the investment performance of the subaccount(s) of the variable account selected by the annuitant or beneficiary.
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Determination of the First Variable Payment. The amount of the first variable payment depends upon the gender (if consideration of gender is allowed under state law) and adjusted age of the annuitant. For regular annuity payments, the adjusted age is the annuitants actual age nearest birthday, on the annuity date, adjusted as follows:
Annuity Commencement Date |
Adjusted Age | |
Before 2010 |
Actual Age | |
2010-2019 |
Actual Age minus 1 | |
2020-2026 |
Actual Age minus 2 | |
2027-2033 |
Actual Age minus 3 | |
2034-2040 |
Actual Age minus 4 | |
After 2040 |
As determined by Transamerica |
This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.
Determination of Additional Variable Payments. All variable annuity payments other than the first are calculated using variable annuity units which are credited to the contract. The number of variable annuity units to be credited in respect of a particular subaccount is determined by dividing that portion of the first variable annuity payment attributable to that subaccount by the variable annuity unit value of that subaccount on the annuity date. The number of variable annuity units of each particular subaccount credited to the contract then remains fixed, assuming no transfers to or from that subaccount occur. The dollar value of variable annuity units in the chosen subaccount will increase or decrease reflecting the investment experience of the chosen subaccount. The dollar amount of each variable annuity payment after the first may increase, decrease or remain constant, and is equal to the sum of the amounts determined by multiplying the number of variable annuity units of each particular subaccount credited to the contract by the variable annuity unit value for the particular subaccount on the date the payment is made.
Adjusted Partial Surrender. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount called the adjusted partial surrender. The reduction amount depends on the relationship between your guaranteed minimum death proceeds and account value. The adjusted partial surrender is equal to (1) multiplied by (2), where:
(1) | is the amount of the gross partial surrender; |
(2) | is the adjustment factor = current death benefit prior to the surrender divided by the account value prior to the surrender. |
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The following examples describe the effect of a surrender on the guaranteed minimum death benefit and account value.
|
Example 1 (Assumed Facts for Example) | |||
$ | 75,000 | current guaranteed minimum death benefit before surrender | ||
$ | 50,000 | current account value before surrender | ||
$ | 75,000 | current death proceeds | ||
6% | current surrender charge percentage | |||
$ | 15,000 | Requested surrender | ||
$ | 5,000 | Surrender charge-free amount (assumes penalty free surrender is available) | ||
$ | 10,000 | excess partial surrender (amount subject to surrender charge) | ||
$ | 100 | excess interest adjustment (assumes interest rates have decreased since initial guarantee) | ||
$ | 594 | Surrender charge on (excess partial surrender less excess interest adjustment) = 0.06* (10,000 - 100) | ||
$ | 10,494 | Reduction in account value due to excess partial surrender = 10,000 - 100 + 594 | ||
$ | 15,494 | Total Gross Partial Surrender = 5,000 + 10,494 | ||
$ | 23,241 | adjusted partial surrender = 15,494 * (75,000/50,000) | ||
$ | 51,759 | New guaranteed minimum death benefit (after surrender) = 75,000 23,241 | ||
$ | 34,506 | New account value (after surrender) = 50,000 - 15,494 |
Summary: | ||||
Reduction in guaranteed minimum death benefit |
= $ | 23,241 | ||
Reduction in account value |
= $ | 15,494 |
Note, guaranteed minimum death benefit is reduced more than the account value because the guaranteed minimum death benefit was greater than the account value just prior to the surrender.
|
Example 2 (Assumed Facts for Example) | |||
$ | 50,000 | current guaranteed minimum death benefit before surrender | ||
$ | 75,000 | current account value before surrender | ||
$ | 75,000 | current death proceeds | ||
6% | current surrender charge percentage | |||
$ | 15,000 | requested surrender | ||
$ | 7,500 | surrender charge-free amount (assumes penalty free surrender is available) | ||
$ | 7,500 | excess partial surrender (amount subject to surrender charge) | ||
$ | -100 | excess interest adjustment (assumes interest rates have increased since initial guarantee) | ||
$ | 456 | surrender charge on (excess partial surrender less excess interest adjustment) = 0.06*[(7500 - (- 100)] | ||
$ | 8,056 | reduction in account value due to excess partial surrender = 7500 - (- 100) + 456 = 7500 + 100 + 456 | ||
$ | 15,556 | Total Gross Partial Surrender = 7,500 + 8,056 | ||
$ | 15,556 | adjusted partial surrender = 15,556 * (75,000/75,000) | ||
$ | 34,444 | New guaranteed minimum death benefit (after surrender) = 50,000 - 15,556 | ||
$ | 59,444 | New account value (after surrender) = 75,000 - 15,556 |
Summary: | ||||
Reduction in guaranteed minimum death benefit |
= $ | 15,556 | ||
Reduction in account value |
= $ | 15,556 |
Note, the guaranteed minimum death benefit and account value are reduced by the same amount because the account value was higher than the guaranteed minimum death benefit just prior to the surrender.
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Due proof of death of the annuitant is proof that the annuitant died prior to the commencement of annuity payments. A certified copy of a death certificate, a certified copy of a decree of a court of competent jurisdiction as to the finding of death, a written statement by the attending physician, or any other proof satisfactory to Transamerica will constitute due proof of death.
Upon receipt of this proof and an election of a method of settlement and return of the contract, the death benefit generally will be paid within seven days, or as soon thereafter as Transamerica has sufficient information about the beneficiary to make the payment. The beneficiary may receive the amount payable in a lump sum cash benefit, or, subject to any limitation under any state or federal law, rule, or regulation, under one of the annuity payment options described above, unless a settlement agreement is effective at the death of the owner preventing such election.
Distribution Requirements. If the annuitant dies prior to the annuity date, (1) the death benefit must be distributed within five years of the date of the deceaseds death, or (2) payments under an annuity payment option must begin no later than one year after the deceased annuitants death and must be made for the beneficiarys lifetime or for a period certain (so long as any period certain does not exceed the beneficiarys life expectancy). Death proceeds, which are not paid to or for the benefit of a natural person, must be distributed within five years of the date of the deceaseds death. If the sole beneficiary is the deceaseds surviving spouse, however, such spouse may elect to continue the contract as the new annuitant and owner instead of receiving the death benefit.
Beneficiary. The beneficiary designation in the enrollment form will remain in effect until changed. The owner may change the designated beneficiary by sending written notice to Transamerica. The beneficiarys consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as of the date the owner signs the written notice, whether or not the owner is living when the notice is received by Transamerica. Transamerica will not be liable for any payment made before the written notice is received. If more than one beneficiary is designated, and the owner fails to specify their interests, they will share equally. If upon the death of the annuitant there is a surviving owner(s), the surviving owner(s) automatically takes the place of any beneficiary designations.
Federal tax law requires that if any owner (including any joint owner or any successor owner who has become a current owner) dies before the annuity date, then the entire value of the contract must generally be distributed within five years of the date of death of such owner. Certain rules apply where (1) the spouse of the deceased owner is the sole beneficiary, (2) the owner is not a natural person and the primary annuitant dies or is changed, or (3) any owner dies after the annuity date. See Certain Federal Income Tax Consequences for more information about these rules. Other rules may apply to qualified contracts.
During the lifetime of the annuitant you may assign any rights or benefits provided by the contract if your contract is a nonqualified contract. An assignment will not be binding on Transamerica until a copy has been filed at its administrative and service office. Your rights and benefits and those of the beneficiary are subject to the rights of the assignee. Transamerica assumes no responsibility for the validity or effect of any assignment. Any claim made under an assignment shall be subject to proof of interest and the extent of the assignment. An assignment may have tax consequences.
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Unless you so direct by filing written notice with Transamerica, no beneficiary may assign any payments under the contract before they are due. To the extent permitted by law, no payments will be subject to the claims of any beneficiarys creditors.
Ownership under qualified contracts is restricted to comply with the Code.
Transamerica reserves the right to require satisfactory evidence that a person is alive if a payment is based on that person being alive. No payment will be made until Transamerica receives such evidence.
The contract will not share in Transamericas surplus earnings; no dividends will be paid.
No change in the contract is valid unless made in writing by Transamerica and approved by one of Transamericas officers. No registered representative has authority to change or waive any provision of the contract.
Transamerica reserves the right to amend the contracts to meet the requirements of the Code, regulations or published rulings. You can refuse such a change by giving written notice, but a refusal may result in adverse tax consequences.
The contract may be acquired by an employee or registered representative of any broker/dealer authorized to sell the contract or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of Transamerica or its affiliated companies or their immediate family. In such a case, Transamerica may credit an amount equal to a percentage of each purchase payment to the contract due to lower acquisition costs Transamerica experiences on those purchases. Transamerica may offer certain employer sponsored savings plans, in its discretion reduced fees and charges including, but not limited to, the annual service charge, the surrender charges, the mortality and expense risk fee and the administrative charge for certain sales under circumstances which may result in savings of certain costs and expenses. In addition, there may be other circumstances of which Transamerica is not presently aware which could result in reduced sales or distribution expenses. Credits to the contract or reductions in these fees and charges will not be unfairly discriminatory against any owner.
Present Value of Future Variable Payments
The present value of future period certain variable payments is calculated by taking (a) the supportable payment on the business day we receive the surrender request, multiplied by (b) the number of payments remaining, multiplied by a discounted rate (such as the assumed investment rate or AIR.
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If you have selected a payout feature that provides for stabilized payments (e.g., the Initial Payment Guarantee), please note that the stabilized payments remain level throughout each year and are adjusted on your annuitization anniversary. Without stabilized payments, each payment throughout the year would fluctuate based on the performance of your selected subaccounts. To reflect the difference in these payments we adjust (both increase and decrease as appropriate) the number of variable annuity units. The annuity units are adjusted when we calculate the supportable payment. Supportable payments are used in the calculation of surrender values, death benefits and transfers. On your annuitization anniversary we set the new stabilized payment equal to the current supportable payment. In the case of an increase in the number of variable annuity units, your participation in the future investment performance of the subaccounts will be increased since more variable annuity units are credited to you. Conversely, in the case of a reduction of the number of variable annuity units, your participation in the future investment performance of the subaccounts will be decreased because fewer variable annuity units are credited to you.
The following table demonstrates, on a purely hypothetical basis, the changes in the number of variable annuity units. The changes in the variable annuity unit values reflect the investment performance of the applicable subaccounts as well as the separate account charge.
Hypothetical Changes in Variable Annuity Units with Stabilized Payments
AIR |
5.00 | % | ||
Life & 10 Year Certain |
||||
Male aged 65 |
||||
First Variable Payment |
$ | 500 |
Beginning Annuity Units |
Annuity Unit Values |
Monthly Payment Without Stabilization |
Monthly Stabilized Payment |
Adjustments in Annuity Units |
Cumulative Adjusted Annuity Units |
|||||||||||||||||||||
At Issue: |
January 1 | 400.0000 | 1.250000 | $ | 500.00 | $ | 500.00 | 0.0000 | 400.0000 | |||||||||||||||||
February 1 | 400.0000 | 1.252005 | $ | 500.80 | $ | 500.00 | 0.0041 | 400.0041 | ||||||||||||||||||
March 1 | 400.0000 | 1.252915 | $ | 501.17 | $ | 500.00 | 0.0059 | 400.0100 | ||||||||||||||||||
April 1 | 400.0000 | 1.245595 | $ | 498.24 | $ | 500.00 | (0.0089 | ) | 400.0011 | |||||||||||||||||
May 1 | 400.0000 | 1.244616 | $ | 497.85 | $ | 500.00 | (0.0108 | ) | 399.9903 | |||||||||||||||||
June 1 | 400.0000 | 1.239469 | $ | 495.79 | $ | 500.00 | (0.0212 | ) | 399.9691 | |||||||||||||||||
July 1 | 400.0000 | 1.244217 | $ | 497.69 | $ | 500.00 | (0.0115 | ) | 399.9576 | |||||||||||||||||
August 1 | 400.0000 | 1.237483 | $ | 494.99 | $ | 500.00 | (0.0249 | ) | 399.9327 | |||||||||||||||||
September 1 | 400.0000 | 1.242382 | $ | 496.95 | $ | 500.00 | (0.0150 | ) | 399.9177 | |||||||||||||||||
October 1 | 400.0000 | 1.242382 | $ | 496.95 | $ | 500.00 | (0.0149 | ) | 399.9027 | |||||||||||||||||
November 1 | 400.0000 | 1.249210 | $ | 499.68 | $ | 500.00 | (0.0016 | ) | 399.9012 | |||||||||||||||||
December 1 | 400.0000 | 1.252106 | $ | 500.84 | $ | 500.00 | 0.0040 | 399.9052 | ||||||||||||||||||
January 1 | 399.9052 | 1.255106 | $ | 501.92 | $ | 501.92 | 0.0000 | 399.9052 |
* | The total separate account expenses included in the calculations is 2.25% (2.25% is a hypothetical figure). If higher expenses were charged, the numbers would be lower. |
CERTAIN FEDERAL INCOME TAX CONSEQUENCES
The following summary does not constitute tax advice. It is a general discussion of certain of the expected federal income tax consequences of investment in and distributions with respect to a contract, based on the Code, Regulations thereunder, judicial authority, and current administrative rulings and practice. This summary discusses only certain federal income tax consequences to United States Persons, and does not discuss federal gift, estate or any other state, local, or foreign tax consequences. United States Persons means citizens or residents of the United States, domestic corporations, domestic partnerships and trusts, or estates that are subject to United States federal income tax regardless of the source of their income.
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Diversification Requirements. Section 817(h) of the Code provides that in order for a non-qualified variable contract which is based on a segregated asset account to qualify as an annuity contract under the Code, the investments made by such account must be adequately diversified in accordance with Treasury Regulations. The Regulations issued under Section 817(h) (Treas. Reg. §1.817-5) apply a diversification requirement to each of the subaccounts. The separate account, through its underlying fund portfolios and their portfolios, intends to comply with the diversification requirements of the Regulations. We have entered into agreements with each underlying fund portfolio company that require the portfolios to be operated in compliance with the Regulations.
Owner Control. In some circumstances, owners of variable contracts who retain excessive control over the investment of the underlying separate account assets may be treated as the owners of those assets and may be subject to tax on income produced by those assets. Although there is little guidance in this area and published guidance does not address certain aspects of the contracts, we believe that the owner of a contract should not be treated as the owner of the underlying assets. We reserve the right to modify the contracts to bring them into conformity with applicable standards should such modification be necessary to prevent owners of the contracts from being treated as the owners of the underlying separate account assets.
Distribution Requirements. The Code requires that nonqualified contracts contain specific provisions for distribution of contract proceeds upon the death of any owner. In order to be treated as an annuity contract for federal income tax purposes, the Code requires that such contracts provide that if any owner dies on or after the annuity commencement date and before the entire interest in the contract has been distributed, the remaining portion must be distributed at least as rapidly as under the method in effect on such owners death. If any owner dies before the annuity commencement date, the entire interest in the contract must generally be distributed within 5 years after such owners date of death or be used to provide payments to a designated beneficiary beginning within one year of such owners death and will be made for the life of the beneficiary or for a period not extending beyond the life expectancy of the beneficiary. However, if upon such owners death prior to the annuity commencement date, such owners surviving spouse becomes the sole new owner under the contract, then the contract may be continued with the surviving spouse as the new owner. Under the contract, the beneficiary is the person(s) designated by an owner/annuitant and the surviving joint owner is the beneficiary of an owner who is not the annuitant. If any owner is not a natural person, then for purposes of these distribution requirements, the primary annuitant shall be treated as an owner and any death or change of such primary annuitant shall be treated as the death of an owner. The nonqualified contracts contain provisions intended to comply with these requirements of the Code. No regulations interpreting these requirements of the Code have yet been issued and thus no assurance can be given that the provisions contained in the contracts satisfy all such Code requirements. The provisions contained in the contracts will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.
The federal Defense of Marriage Act currently does not recognize same-sex marriages or civil unions, even those that are permitted under individual state laws. Therefore, exercise of spousal continuation provisions of this policy by persons who do not meet the definition of spouse under federal law e.g. civil union partners and same-sex marriages spouses may have adverse tax consequences. Consult a tax advisor for more information on this subject.
The following discussion is based on the assumption that the contract qualifies as an annuity contract for federal income tax purposes.
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In General. Code Section 72 governs taxation of annuities in general. We believe that an owner who is an individual will not be taxed on increases in the value of a contract until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the account value, and in the case of a qualified contract, any portion of an interest in the plan, generally will be treated as a distribution. The taxable portion of a distribution is taxable as ordinary income.
Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified contract held by a taxpayer other than a natural person generally will not be treated as an annuity contract under the Code; accordingly, an owner who is not a natural person will recognize as ordinary income for a taxable year the excess, if any, of the account value over the investment in the contract. There are some exceptions to this rule and a prospective purchaser of the contract that is not a natural person should discuss these with a competent tax adviser.
Withholding. The portion of any distribution under a contract that is includable in gross income will be subject to federal income tax withholding unless the recipient of such distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. For certain qualified contracts, the withholding rate varies according to the type of distribution and the owners tax status. For qualified contracts taxable, eligible rollover distributions from Section 401(a) plans, Section 403(a) annuities, Section 403(b) tax-sheltered annuities, and governmental 457 plans are subject to a mandatory federal income tax withholding of 20%. An eligible rollover distribution is the taxable portion of any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employees spouse or former spouse as beneficiary or alternate payee) chooses a direct rollover from the plan to a tax-qualified plan, IRA, Roth IRA or tax sheltered annuity or to a governmental 4567 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a direct rollover from the plan to an IRA established by the direct rollover.
Incidental Death Benefits. The contract may include optional death benefit features, the value of which may exceed the value of the contract or premium payments made under the contract. Federal tax laws limit the value of such incidental death benefit in tax-qualified pension, profit-sharing and 403(b) plans. Further, the Internal Revenue Service has not reviewed this contract for qualification as an IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the contract comport with qualification requirements. The actuarial present value of death benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a qualified tax adviser before purchasing an optional death benefit.
Qualified Contracts. The qualified contract is designed for use with several types of tax-qualified retirement plans. The tax rules applicable to participants and beneficiaries in tax-qualified retirement plans vary according to the type of plan and the terms and conditions of the plan. Special favorable tax treatment may be available for certain types of contributions and distributions. Adverse tax consequences may result from contributions in excess of specified limits, distributions prior to age 59 1/2 (subject to certain exceptions), distributions that do not conform to specified commencement and minimum distribution rules, and in other specified circumstances. Some retirement plans are subject to distribution and other requirements that are not incorporated into the contracts or our contract administration procedures. Owners, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the contracts comply with applicable law.
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For qualified plans under Section 401(a), 403(a), 403(b), and 457, the Code requires that distributions generally must commence no later than the later of April 1 of the calendar year following the calendar year in which the owner (or plan participant) (i) reaches age 70 1/2 or (ii) retires, and must be made in a specified form or manner. If a participant in a Section 401(a) plan is a 5 percent owner (as defined in the Code), or in the case of an IRA (other than a Roth IRA), distributions generally must begin no later than April 1 of the calendar year in which the owner (or plan participant) reaches age 70 1/2. Each owner is responsible for requesting distributions under the contract that satisfy applicable tax rules.
We do not attempt to provide more than general information about use of the contract with the various types of retirement plans. Purchasers of contracts for use with any retirement plan should consult their legal counsel and tax adviser regarding the suitability of the contract.
Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a contract must satisfy certain conditions: (i) the owner must be the annuitant; (ii) the contract generally is not transferable by the owner, e.g., the owner may not designate a new owner, designate a contingent owner or assign the contract as collateral security; (iii) subject to special rules, the total purchase payments for any calendar year may not exceed the amount specified in the Code for the year, except in the case of a rollover amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders must begin no later than April 1 of the calendar year following the calendar year in which the annuitant attains age 70 1/2; (v) an annuity payment option with a period certain that will guarantee annuity payments beyond the life expectancy of the annuitant and the beneficiary may not be selected; (vi) certain payments of death benefits must be made in the event the annuitant dies prior to the distribution of the account value; (vii) the entire interest of the owner is non-forfeitable; and (viii) the premiums must not be fixed. Contracts intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the IRA (other than nondeductible contributions) are taxed when distributed from the IRA. Distributions prior to age 59 1/2 (unless certain exceptions apply) are subject to a 10% penalty tax.
Roth Individual Retirement Annuities (Roth IRA). The Roth IRA, under Section 408A of the Code, contains many of the same provisions as a traditional IRA. However, there are some differences. First, the contributions are not deductible and must be made in cash or as a rollover or transfer from another Roth IRA or other IRA. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. A special rule permits taxation of Roth IRA conversions made during the 2010 tax year to be split between 2011 and 2012. The Roth IRA is available to individuals with earned income and whose modified adjusted gross income is under a specified dollar amount for the year. Subject to special rules, the amount per individual that may be contributed to all IRAs (Roth and traditional) is the deductible amount specified in the Code for the year. Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when made 5 tax years after the first contribution to any Roth IRA of the individual, and made after attaining age 59 1/2, to pay for qualified first time homebuyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when made from earnings and may be subject to a penalty tax unless an exception applies. Unlike the traditional IRA, there are no minimum required distributions during the owners lifetime; however, required distributions at death are generally the same as for traditional IRAs.
Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase contracts for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to FICA (Social Security) taxes. The contract includes a death benefit that in some cases may exceed the greater of the purchase payments or the account value. The death benefit could be characterized as an incidental benefit, the amount of which is limited in any tax-
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sheltered annuity under Section 403(b). Therefore, employers using the contract in connection with such plans should consult their tax adviser. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989. Distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59 1/2, severance from employment, disability, or financial hardship, except that income attributable to elective contributions may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed minimum withdrawal benefit prior to age 59 1/2.
Pursuant to new tax regulations, we generally are required to confirm, with your 403(b) plan sponsor or otherwise, that surrenders you request from a 403(b) contract comply with applicable tax requirements before we process your request. We will defer such payments you request until all information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the contract, and transactions under the contract and any other 403(b) contracts or accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or recordkeeper, and other product providers.
Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a) and 403(a) of the Code permit corporate employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the contracts to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the contract is assigned or transferred to any individual as a means to provide benefit payments.
Deferred Compensation Plans. Section 457 of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans with respect to service for state governments, local governments, political subdivisions, agencies, instrumentalities, and certain affiliates of such entities, and tax exempt organizations. The contracts can be used with such plans. Under such plans a participant may specify the form of investment in which his or her participation will be made. For non-governmental Section 457 plans, all such investments, however, are owned by, and are subject to, the claims of the general creditors of the sponsoring employer. Depending on the terms of the particular plan, a non-government employer may be entitled to draw on deferred amounts for purposes unrelated to its Section 457 plan obligations. In general, all amounts received under a non-governmental Section 457 plan are taxable and are subject to federal income tax withholding as wages.
The Company at present is taxed as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as part of the Company and, accordingly, will not be taxed separately as a regulated investment company under Subchapter M of the Code. We do not expect to incur any federal income tax liability with respect to investment income and net capital gains arising from the activities of the separate account retained as part of the reserves under the contract. Based on this expectation, it is anticipated that no charges will be made against the separate account for federal income taxes. If, in future years, any federal income taxes are incurred by us with respect to the separate account, we may make a charge to that account.
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A net investment factor is used to determine the value of variable accumulation units and variable annuity units, and to determine annuity payment rates.
Allocations of a purchase payment directed to a subaccount are credited in the form of variable accumulation units. Each subaccount has a distinct variable accumulation unit value. The number of units credited is determined by dividing the purchase payment or amount transferred to the subaccount by the variable accumulation unit value of the subaccount as of the end of the valuation period during which the allocation is made. For each subaccount, the variable accumulation unit value for a given business day is based on the net asset value of a share of the corresponding portfolio of the underlying fund portfolios less any applicable charges or fees. The investment performance of the portfolios, expenses, and deductions of certain charges affect the value of a variable accumulation unit.
Upon allocation to the selected subaccount, purchase payments are converted into variable accumulation units of the subaccount. The number of variable accumulation units to be credited is determined by dividing the dollar amount allocated to each subaccount by the value of a variable accumulation unit for that subaccount as next determined after the purchase payment is received at the administrative and service office or, in the case of the initial purchase payment, when the enrollment form is completed, whichever is later. The value of a variable accumulation unit for each subaccount was arbitrarily established at $1 at the inception of each subaccount. Thereafter, the value of a variable accumulation unit is determined as of the close of trading on each day the New York Stock Exchange is open for business.
An index (the net investment factor) which measures the investment performance of a subaccount during a valuation period, is used to determine the value of a variable accumulation unit for the next subsequent valuation period. The net investment factor may be greater or less than or equal to one; therefore, the value of a variable accumulation unit may increase, decrease, or remain the same from one valuation period to the next. You bear this investment risk. The net investment performance of a subaccount and deduction of certain charges affect the variable accumulation unit value.
The net investment factor for any subaccount for any valuation period is determined by dividing (a) by (b) and subtracting (c) from the result, where:
(a) | is the net result of: |
(1) | the net asset value per share of the shares held in the subaccount determined at the end of the current valuation period, plus |
(2) | the per share amount of any dividend or capital gain distribution made with respect to the shares held in the subaccount if the ex-dividend date occurs during the current valuation period, plus or minus |
(3) | a per share credit or charge for any taxes determined by Transamerica to have resulted during the valuation period from the investment operations of the subaccount; |
(b) | is the net asset value per share of the shares held in the subaccount determined as of the end of the immediately preceding valuation period; and |
(c) | is an amount representing the total variable account annual expenses and any optional benefit fees, if applicable. |
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Illustration of Variable Account Variable Accumulation Unit Value Calculations
(Assumes Double Enhanced Death Benefit)
Formula and Illustration for Determining the Net Investment Factor
Net Investment Factor = |
(A + B - C) |
- E | ||||
D |
Where: | ||||
A = |
The net asset value of an underlying fund portfolio share as of the end of the current valuation period. | |||
Assume | A = $11.57 |
B = |
The per share amount of any dividend or capital gains distribution since the end of the immediately preceding valuation period. | |||
Assume | B = 0 |
C = |
The per share charge or credit for any taxes reserved for at the end of the current valuation period. | |||
Assume | C = 0 |
D = |
The net asset value of an underlying fund portfolio share at the end of the immediately preceding valuation period. | |||
Assume | D = $11.40 | |||
E = |
The daily deduction for the mortality and expense risk fee and the administrative charge, and any optional benefit fees, if applicable. Assume E totals 1.45% on an annual basis; On a daily basis, this equals .000039442. |
Then, the net investment factor = |
(11.57 + 0 0) | - .000039442 = Z = 1.014872839 | ||
(11.40) |
Formula and Illustration for Determining Variable Accumulation Unit Value
Variable Accumulation Unit Value = A * B
Where: | ||
A = |
The variable accumulation unit value for the immediately preceding valuation period. | |
Assume = $X |
B = |
The net investment factor for the current valuation period. | |
Assume = Y |
Then, the variable accumulation unit value = $X * Y = $Z
Variable Annuity Unit Value and Annuity Payment Rates
The amount of variable annuity payments will vary with variable annuity unit values. Annuity unit values rise if the net investment performance of the subaccount exceeds the assumed investment return of 5% annually. Conversely, variable annuity unit values fall if the net investment performance of the subaccount is less than the assumed investment return. The value of a variable annuity unit in each subaccount was established at $1 on the date operations began for that subaccount. The value of a variable annuity unit on any subsequent business day is equal to (a) multiplied by (b) multiplied by (c), where:
(a) | is the variable annuity unit value for the subaccount on the immediately preceding business day; |
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(b) | is the net investment factor for that subaccount for the valuation period; and |
(c) | is the assumed investment return adjustment factor for the valuation period. |
The assumed investment return adjustment factor for the valuation period is the product of discount factors of .99986634 per day to recognize the 5% effective assumed investment return. The valuation period is the period from the close of the immediately preceding business day to the close of the current business day.
The net investment factor for the certificate used to calculate the value of a variable annuity unit in each subaccount for the valuation period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:
(i) | is the result of: |
(1) | the net asset value of a fund share held in that subaccount determined at the end of the current valuation period; plus |
(2) | the per share amount of any dividend or capital gain distributions made by the fund for shares held in that subaccount if the ex-dividend date occurs during the valuation period; plus or minus |
(3) | a per share charge or credit for any taxes reserved for, which Transamerica determines to have resulted from the investment operations of the subaccount. |
(ii) | is the net asset value of a fund share held in that subaccount determined as of the end of the immediately preceding valuation period. |
(iii) | is a factor representing the mortality and expense risk fee and administrative charge. This factor is equal, on an annual basis, to 1.25% of the daily net asset value of a fund share held in that subaccount. (For calculating Initial Payment Guarantee annuity payments, the factor is 1.25% higher). |
The dollar amount of subsequent variable annuity payments will depend upon changes in applicable variable annuity unit values.
The annuity payment rates generally vary according to the annuity option elected and the gender and adjusted age of the annuitant at the annuity date. The contract also contains a table for determining the adjusted age of the annuitant.
Illustration of Calculations for Variable Annuity Unit Value
and Variable Annuity Payments
Formula and Illustration for Determining Variable Annuity Unit Value
Variable Annuity Unit Value = A * B * C
Where: | ||||
A = |
variable annuity unit value for the immediately preceding valuation period. | |||
Assume = $X |
B = |
Net investment factor for the valuation period for which the variable annuity unit value is being calculated. | |
Assume = Y |
C = |
A factor to neutralize the assumed investment return of 5% built into the Annuity Tables used. | |
Assume = Z |
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Then, the variable annuity unit value is:
$X * Y * Z = $Q
Formula and Illustration for Determining Amount of
First Monthly Variable Annuity Payment
First monthly variable annuity payment = |
A * B |
|||
$1,000 |
Where: | ||||
A = |
The adjusted account value as of the annuity date. | |||
Assume = $X |
B = |
The Annuity purchase rate per $1,000 of adjusted account value based upon the option selected, the gender and adjusted age of the annuitant according to the tables contained in the contract. | |
Assume = $Y |
Then, the first monthly variable annuity payment = |
$X * $Y |
= $Z | ||
1,000 |
Formula and Illustration for Determining the Number of Variable Annuity Units
Represented by Each Monthly Variable Annuity Payment
Number of variable annuity units = |
A |
|||||
B |
Where: | ||
A = |
The dollar amount of the first monthly variable annuity payment. | |
Assume = $X |
B = |
The variable annuity unit value for the valuation date on which the first monthly payment is due. | |
Assume = $Y |
Then, the number of variable annuity units = |
$X |
= Z | ||||
$Y |
Transamerica may from time to time disclose the current annualized yield of the Money Market Subaccount, which invests in the Money Market Portfolio, for a 7-day period in a manner which does not take into consideration any realized or unrealized gains or losses on shares of the Money Market Portfolio or on its portfolio securities. This current annualized yield is computed by determining the net change (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) at the end of the 7-day period in the value of a hypothetical account having a balance of 1 unit of the Money Market Subaccount at the beginning of the 7-day period, dividing such net change in account value by the value of the account at the beginning of the period to determine the base period return, and annualizing this quotient on a 365-day basis. The net change in account value reflects (i) net income from the portfolio attributable to the hypothetical account; and (ii) charges and deductions imposed under a contract that are attributable to the hypothetical account. The charges and deductions
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include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula:
Current Yield = ((NCS * ES)/UV) * (365/7)
Where:
NCS | = | The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit. | ||
ES | = | Per unit expenses of the subaccount for the 7-day period. | ||
UV | = | The unit value on the first day of the 7-day period. |
Because of the charges and deductions imposed under a contract, the yield for the Money Market Subaccount will be lower than the yield for the Money Market Portfolio. The yield calculations do not reflect the effect of any premium taxes or surrender charges that may be applicable to a particular contract. Surrender charges range from 7% to 0% of the amount of purchase payments surrendered based on the number of years since the purchase payment was made. However, surrender charges will not be assessed after the seventh contract year.
Transamerica may also disclose the effective yield of the Money Market Subaccount for the same 7-day period, determined on a compounded basis. The effective yield is calculated by compounding the base period return according to the following formula:
Effective Yield = (1 + ((NCS ES)/UV))365/7 - 1
Where:
NCS | = | The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable to a hypothetical account having a balance of 1 subaccount unit. | ||
ES | = | Per unit expenses of the subaccount for the 7-day period. | ||
UV | = | The unit value on the first day of the 7-day period. |
The yield on amounts held in the Money Market Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed yield for any given past period is not an indication or representation of future yields or rates of return. The Money Market Subaccounts actual yield is affected by changes in interest rates on money market securities, average portfolio maturity of the Money Market Portfolio, the types and quality of portfolio securities held by the Money Market Portfolio and its operating expenses.
Transamerica may from time to time also advertise or disclose total returns for one or more of the subaccounts for various periods of time. One of the periods of time will include the period measured from the date the subaccount commenced operations. When a subaccount has been in operation for 1, 5 and 10 years, respectively, the total return for these periods will be provided. Total returns for other periods of time may from time to time also be disclosed. Total returns represent the average annual compounded rates of return that would equate an initial investment of $1,000 to the
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redemption value of that investment as of the last day of each of the periods. The ending date for each period for which total return quotations are provided will be for the most recent month end practicable, considering the type and media of the communication and will be stated in the communication.
Total returns will be calculated using subaccount unit values which Transamerica calculates on each business day based on the performance of the variable accounts underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. Total return calculations will reflect the effect of surrender charges that may be applicable to a particular period. The total return will then be calculated according to the following formula:
P (1 + T)N = ERV
Where:
T |
= | The average annual total return net of subaccount recurring charges. | ||
ERV |
= | The ending redeemable value of the hypothetical account at the end of the period. | ||
P |
= | A hypothetical initial payment of $1,000. | ||
N |
= | The number of years in the period. |
Transamerica may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above. The non-standard format will be identical to the standard format except that the surrender charge percentage will be assumed to be 0%.
Transamerica may from time to time also disclose cumulative total returns in conjunction with the standard format described above. The cumulative returns will be calculated using the following formula assuming that the surrender charge percentage will be 0%.
CTR = (ERV / P)-1
Where:
CTR |
= | The cumulative total return net of subaccount recurring charges for the period. | ||
ERV |
= | The ending redeemable value of the hypothetical investment at the end of the period. | ||
P |
= | A hypothetical initial payment of $1,000. |
All non-standard performance data will only be advertised if the standard performance data is also disclosed.
Adjusted Historical Performance Data
From time to time, sales literature or advertisements may quote average annual total returns for periods prior to the date a particular subaccount commenced operations. Such performance information for the subaccounts will be calculated based on the performance of the various portfolios and the assumption that the subaccounts were in existence for the same periods as those indicated for the portfolios, with the level of contract charges that are currently in effect.
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Transamerica may from time to time publish in advertisements, sales literature and reports to owners, the ratings and other information assigned to it by one or more independent rating organizations such as A.M. Best Company, Standard & Poors Insurance Ratings Services, Moodys Investors Service and Fitch Financial Ratings. The purpose of the ratings is to reflect the financial strength of Transamerica. The ratings should not be considered as bearing on or investment performance of assets held in the variable account or of the safety or riskiness of an investment in the variable account. Each year the A.M. Best Company reviews the financial status of thousands of insurers, culminating in the assignment of Bests Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance of an insurance company in comparison to the norms of the life/health insurance industry. In addition, these ratings may be referred to in advertisements or sales literature or in reports to owners. These ratings are opinions of an operating insurance companys financial capacity to meet the obligations of its insurance contracts in accordance with their terms.
STATE REGULATION OF TRANSAMERICA
Transamerica is subject to the laws of Iowa governing insurance companies and to regulation by the Iowa Division of Insurance. An annual statement in a prescribed form is filed with the Division of Insurance each year covering the operation of Transamerica for the preceding year and its financial condition as of the end of such year. Regulation by the Division of Insurance includes periodic examination to determine Transamericas contract liabilities and reserves so that the Division may determine the items are correct. Transamericas books and accounts are subject to review by the Division of Insurance at all times and a full examination of its operations is conducted periodically by the National Association of Insurance Commissioners. In addition, Transamerica is subject to regulation under the insurance laws of other jurisdictions in which it may operate.
Transamerica performs administrative services for the contracts. These services include issuance of the contracts, maintenance of records concerning the contracts, and certain valuation services.
All records and accounts relating to the variable account will be maintained by Transamerica. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, Transamerica will mail to all owners at their last known address of record, at least annually, reports containing such information as may be required under that Act or by any other applicable law or regulation. Owners will also receive confirmation of each financial transaction and any other reports required by law or regulation. However, for certain routine transactions (for example, regular monthly purchase payments deducted from your checking account, or regular annuity payments Transamerica sends to you) you may only receive quarterly confirmations.
The contracts are offered to the public through brokers licensed under the federal securities laws and state insurance laws. The offering of the contracts is continuous and Transamerica does not anticipate discontinuing the offering of the contracts, however, Transamerica reserves the right to do so.
Effective May 1, 2008 our affiliate Transamerica Capital, Inc. (TCI) replaced our affiliate AFSG Securities Corporation (AFSG) as the principal underwriter of the contracts and may enter into agreements with broker-dealers for the distribution of the contracts. During fiscal year 2007, $353,499 commissions were paid to AFSG; and for fiscal year 2011, 2010 and 2009, respectively, $370,286, $333,155, and $349,774 were paid to TCI, as underwriter of the contracts; no amounts were retained by AFSG Securities Corporation or TCI.
26
To the extent required by law, Transamerica will vote the underlying fund portfolios shares held by the variable account at regular and special shareholder meetings of the underlying fund portfolios in accordance with instructions received from persons having voting interests in the portfolios, although none of the underlying fund portfolios hold regular annual shareholder meetings. If, however, the 1940 Act or any regulation thereunder should be amended or if the present interpretation thereof should change, and as a result Transamerica determines that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.
Before the annuity date, you hold the voting interest in the selected portfolios. The number of votes that you have the right to instruct will be calculated separately for each subaccount. The number of votes that you have the right to instruct for a particular subaccount will be determined by dividing your account value in the subaccount by the net asset value per share of the corresponding portfolio in which the subaccount invests. Fractional shares will be counted.
After the annuity date, the person receiving annuity payments has the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the contract decrease. The persons number of votes will be determined by dividing the reserve for the contract allocated to the applicable subaccount by the net asset value per share of the corresponding portfolio. Fractional shares will be counted.
The number of votes that you or the person receiving income payments has the right to instruct will be determined as of the date established by the underlying fund portfolio for determining shareholders eligible to vote at the meeting of the underlying fund portfolio. Transamerica will solicit voting instructions by sending you, or other persons entitled to vote, written requests for instructions prior to that meeting in accordance with procedures established by the underlying fund portfolio. Portfolio shares as to which no timely instructions are received, and shares held by Transamerica in which you, or other persons entitled to vote have no beneficial interest, will be voted in proportion to the voting instructions that are received with respect to all contracts participating in the same subaccount.
Each person having a voting interest in a subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.
Transamerica makes other variable annuity contracts available that may also be funded through the variable account. These variable annuity contracts may have different features, such as different investment choices or charges.
Transamerica holds assets of each of the subaccounts. The assets of each of the subaccounts are segregated and held separate and apart from the assets of the other subaccounts and from Transamericas general account assets. Transamerica maintains records of all purchases and redemptions of shares of the underlying fund portfolios held by each of the subaccounts. Additional protection for the assets of the variable account is afforded by Transamericas fidelity bond, presently in the amount of $5,000,000, covering the acts of officers and employees of Transamerica.
27
Sutherland Asbill & Brennan LLP, of Washington D.C. has provided legal advice to Transamerica relating to certain matters under the federal securities laws applicable to the issue and sale of the contracts.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements of the Separate Account at December 31, 2011 and for the periods disclosed in the financial statements, and the statutory-basis financial statements and schedules of Transamerica at December 31, 2011 and 2010, and for each of the three years in the period ended December 31, 2011, appearing herein, have been audited by Ernst & Young LLP, 801 Grand Avenue, Suite 3000, Des Moines, Iowa 50309, Independent Registered Public Accounting Firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing.
A registration statement has been filed with the SEC, under the Securities Act of 1933 as amended, with respect to the contracts discussed in this SAI. Not all of the information set forth in the registration statement, amendments and exhibits thereto has been included in the prospectus or this SAI. Statements contained in the prospectus and this SAI concerning the content of the contracts and other legal instruments are intended to be summaries. For a complete statement of the terms of these documents, reference should be made to the instruments filed with the SEC.
The values of your interest in the variable account will be affected solely by the investment results of the selected subaccount(s). Financial statements of certain subaccounts of Separate Account VA-2L, which are available for investment by the Dreyfus/Transamerica Triple Advantage® Variable Annuity contract owners, are contained herein. The statutory-basis financial statements of Transamerica Life Insurance Company, which are included in this SAI, should be considered only as bearing on the ability of Transamerica to meet its obligations under the contracts. They should not be considered as bearing on the investment performance of the assets held in the variable account.
28
CONDENSED FINANCIAL INFORMATION
The variable accumulation unit values and the number of variable accumulation units outstanding for each subaccount from the date of inception are shown in the following tables.
Year | 2.50% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.422934 1.237108 0.981483 1.863447 1.642755 1.548751 1.362102 1.205665 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.335537 1.422934 1.237108 0.981483 1.863447 1.642755 1.548751 1.362102 1.205665 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.307255 1.164695 0.976695 1.424649 1.366806 1.205500 1.186683 1.160764 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.386915 1.307255 1.164695 0.976695 1.424649 1.366806 1.205500 1.186683 1.160764 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.174493 0.920236 0.750021 1.235564 1.427691 1.413529 1.372503 1.266961 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.984789 1.174493 0.920236 0.750021 1.235564 1.427691 1.413529 1.372503 1.266961 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.239478 1.073949 0.857056 1.477374 1.399814 1.255088 1.246372 1.191613 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.173120 1.239478 1.073949 0.857056 1.477374 1.399814 1.255088 1.246372 1.191613 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.840057 1.718665 1.410603 2.508614 2.201016 1.833214 1.641669 1.354955 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.527489 1.840057 1.718665 1.410603 2.508614 2.201016 1.833214 1.641669 1.354955 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.671152 1.643594 1.289430 2.114222 2.085516 1.746545 1.602717 1.370969 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.324506 1.671152 1.643594 1.289430 2.114222 2.085516 1.746545 1.602717 1.370969 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
29
Year | 2.50% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.128949 1.069454 0.956306 1.026025 1.018191 1.004393 1.006681 1.001382 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.176200 1.128949 1.069454 0.956306 1.026025 1.018191 1.004393 1.006681 1.001382 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
.968219 0.992351 1.015837 1.015488 0.992672 0.972772 0.971215 0.987637 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.944718 .968219 0.992351 1.015837 1.015488 0.992672 0.972772 0.971215 0.987637 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.277224 1.142982 0.929474 1.520159 1.484296 1.320501 1.295964 1.203814 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.266325 1.277224 1.142982 0.929474 1.520159 1.484296 1.320501 1.295964 1.203814 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.280339 1.145668 0.880023 1.379038 1.315139 1.237124 1.226842 1.187097 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.257314 1.280339 1.145668 0.880023 1.379038 1.315139 1.237124 1.226842 1.187097 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.287518 1.168534 1.015423 1.624791 1.620485 1.370792 1.334826 1.227797 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.180467 1.287518 1.168534 1.015423 1.624791 1.620485 1.370792 1.334826 1.227797 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.463082 1.181307 0.894755 1.540180 1.557298 1.482349 1.394676 1.251541 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.430290 1.463082 1.181307 0.894755 1.540180 1.557298 1.482349 1.394676 1.251541 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.653173 1.306906 0.852831 1.487945 1.332880 1.313126 1.300592 1.330119 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.483177 1.653173 1.306906 0.852831 1.487945 1.332880 1.313126 1.300592 1.330119 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
30
Year | 2.30% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.443374 1.253320 0.992414 1.880510 1.654554 1.556843 1.36552 1.207241 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.358312 1.443374 1.253320 0.992414 1.880510 1.654554 1.556843 1.36552 1.207241 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.326990 1.179968 0.987577 1.437700 1.376622 1.211799 1.190571 1.162282 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.410595 1.326990 1.179968 0.987577 1.437700 1.376622 1.211799 1.190571 1.162282 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.192238 0.932321 0.758381 1.246881 1.437931 1.420894 1.376971 1.268600 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.001620 1.192238 0.932321 0.758381 1.246881 1.437931 1.420894 1.376971 1.268600 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.258191 1.088052 0.866624 1.490939 1.409888 1.261655 1.250459 1.193173 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.193161 1.258191 1.088052 0.866624 1.490939 1.409888 1.261655 1.250459 1.193173 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.867834 1.741199 1.426325 2.531609 2.216829 1.842784 1.647027 1.356725 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.553588 1.867834 1.741199 1.426325 2.531609 2.216829 1.842784 1.647027 1.356725 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.696375 1.665148 1.303790 2.133570 2.100476 1.755651 1.607947 1.372760 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.347124 1.696375 1.665148 1.303790 2.133570 2.100476 1.755651 1.607947 1.372760 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.146000 1.083481 0.966965 1.035423 1.025499 1.009634 1.009963 1.002692 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.196297 1.146000 1.083481 0.966965 1.035423 1.025499 1.009634 1.009963 1.002692 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
31
Year | 2.30% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
.982868 1.005338 1.027131 1.024775 0.999780 0.977841 0.974387 0.988926 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.960898 .982868 1.005338 1.027131 1.024775 0.999780 0.977841 0.974387 0.988926 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.296518 1.157978 0.939835 1.534083 1.494948 1.327396 1.300188 1.205386 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.287957 1.296518 1.157978 0.939835 1.534083 1.494948 1.327396 1.300188 1.205386 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.299673 1.160716 0.889840 1.391685 1.324610 1.243603 1.230861 1.188647 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.278787 1.299673 1.160716 0.889840 1.391685 1.324610 1.243603 1.230861 1.188647 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.306977 1.183887 1.026749 1.639663 1.632105 1.377930 1.339173 1.016838 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.200650 1.306977 1.183887 1.026749 1.639663 1.632105 1.377930 1.339173 1.229392 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.485187 1.196818 0.904731 1.554302 1.568485 1.490090 1.399235 1.253178 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.454740 1.485187 1.196818 0.904731 1.554302 1.568485 1.490090 1.399235 1.253178 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.678114 1.324036 0.862326 1.501576 1.342459 1.319990 1.304581 1.331857 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.508494 1.678114 1.324036 0.862326 1.501576 1.342459 1.319990 1.304581 1.331857 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
32
Year | 2.10% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.465242 1.269820 1.003507 1.897776 1.666461 1.564987 1.371033 1.208820 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.381595 1.465242 1.269820 1.003507 1.897776 1.666461 1.564987 1.371033 1.208820 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.347053 1.195470 0.998590 1.450884 1.386521 1.218126 1.194458 1.163795 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.434719 1.347053 1.195470 0.998590 1.450884 1.386521 1.218126 1.194458 1.163795 |
|
|
0.000 0.000 20,698.991 21,073.694 18,751.122 19,554.377 20,273.000 20,811.000 35,513.7054 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.210263 0.944575 0.766852 1.258335 1.448285 1.428330 1.381479 1.270261 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.018748 1.210263 0.944575 0.766852 1.258335 1.448285 1.428330 1.381479 1.270261 |
|
|
0.000 0.000 14,036.335 14,862.220 10,843.655 9,299.996 8,846.000 8,792.000 9,179.2331 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.277233 1.102358 0.876295 1.504614 1.420027 1.254536 1.254536 1.194729 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.213586 1.277233 1.102358 0.876295 1.504614 1.420027 1.254536 1.254536 1.194729 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.896121 1.764124 1.442269 2.554864 2.232799 1.852440 1.652425 1.358506 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.580199 1.896121 1.764124 1.442269 2.554864 2.232799 1.852440 1.652425 1.358506 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.722046 1.687044 1.318349 2.153161 2.115603 1.764851 1.613213 1.374554 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.370188 1.722046 1.687044 1.318349 2.153161 2.115603 1.764851 1.613213 1.374554 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.163365 1.097752 0.977778 1.044956 1.032912 1.013293 1.013293 1.004010 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.216780 1.163365 1.097752 0.977778 1.044956 1.032912 1.013293 1.013293 1.004010 |
|
|
0.000 0.000 33,415.163 30,452.102 39,072.204 38,409.348 37,290.000 36,232.000 34,751.493 |
|
33
Year | 2.10% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
.997698 1.018560 1.038604 1.034183 1.006965 0.982963 0.977572 0.990215 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.977283 .997698 1.018560 1.038604 1.034183 1.006965 0.982963 0.977572 0.990215 |
|
|
0.000 0.000 12,092.574 9,328.489 13,256.719 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.316126 1.173202 0.950335 1.548179 1.505708 1.334334 1.304435 1.206951 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.310000 1.316126 1.173202 0.950335 1.548179 1.505708 1.334334 1.304435 1.206951 |
|
|
0.000 0.000 21,398.612 22,593.675 17,650.269 17,888.899 18,624.000 19,071.000 19,884.822 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.319345 1.175979 0.899783 1.404474 1.334148 1.250108 1.234886 1.190202 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.300679 1.319345 1.175979 0.899783 1.404474 1.334148 1.250108 1.234886 1.190202 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.326711 1.199415 1.038182 1.654667 1.643808 1.385118 1.347963 1.230996 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.221157 1.326711 1.199415 1.038182 1.654667 1.643808 1.385118 1.347963 1.230996 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 18,036.726 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.507665 1.212561 0.914827 1.568550 1.579753 1.497874 1.403803 1.254809 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.479652 1.507665 1.212561 0.914827 1.568550 1.579753 1.497874 1.403803 1.254809 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.703531 1.341475 0.871977 1.515386 1.352134 1.326904 1.309118 8,474.073 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.534331 1.703531 1.341475 0.871977 1.515386 1.352134 1.326904 1.309118 8,474.073 |
|
|
0.000 0.000 9,813.898 12,346.244 9,081.160 9,764.723 0.000 9,337.000 1.333591 |
|
34
Year | 1.90% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.487435 1.286537 1.014732 1.915237 1.678485 1.573198 1.375524 1.210396 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.405269 1.487435 1.286537 1.014732 1.915237 1.678485 1.573198 1.375524 1.210396 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.367467 1.211212 1.009766 1.464231 1.396514 1.224510 1.198366 1.165308 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.459314 1.367467 1.211212 1.009766 1.464231 1.396514 1.224510 1.198366 1.165308 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 22, 2001 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.228648 0.957047 0.775446 1.269919 1.458741 1.435829 1.386018 1.271926 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.036256 1.228648 0.957047 0.775446 1.269919 1.458741 1.435829 1.386018 1.271926 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception January 22, 2001 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.296587 1.116867 0.886096 1.518450 1.430274 1.274906 1.258666 1.196302 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.234388 1.296587 1.116867 0.886096 1.518450 1.430274 1.274906 1.258666 1.196302 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.924848 1.787338 1.458389 2.578338 2.248876 1.862141 1.657837 1.360279 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.607287 1.924848 1.787338 1.458389 2.578338 2.248876 1.862141 1.657837 1.360279 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.748178 1.709296 1.333124 2.172995 2.130878 1.774112 1.618509 1.376355 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.393710 1.748178 1.709296 1.333124 2.172995 2.130878 1.774112 1.618509 1.376355 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.180989 1.112198 0.988707 1.054571 1.040344 1.020255 1.016607 1.005320 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.237641 1.180989 1.112198 0.988707 1.054571 1.040344 1.020255 1.016607 1.005320 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
35
Year | 1.90% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.012897 1.032009 1.050259 1.043729 1.014273 0.988145 0.980802 0.991521 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.994118 1.012897 1.032009 1.050259 1.043729 1.014273 0.988145 0.980802 0.991521 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 22, 2001 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.336111 1.188683 0.960971 1.562417 1.516569 1.341336 1.308726 1.208543 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.332499 1.336111 1.188683 0.960971 1.562417 1.516569 1.341336 1.308726 1.208543 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.339340 1.191461 0.909843 1.417390 1.343760 1.256661 1.238934 1.191759 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.322974 1.339340 1.191461 0.909843 1.417390 1.343760 1.256661 1.238934 1.191759 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.346853 1.215236 1.049823 1.669925 1.655701 1.392408 1.347963 1.232613 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.242138 1.346853 1.215236 1.049823 1.669925 1.655701 1.392408 1.347963 1.232613 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.530503 1.228524 0.925061 1.582978 1.591143 1.505724 1.408405 1.256448 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.505001 1.530503 1.228524 0.925061 1.582978 1.591143 1.505724 1.408405 1.256448 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.729372 1.359161 0.881738 1.529336 1.361895 1.333871 1.313424 1.335341 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.560653 1.729372 1.359161 0.881738 1.529336 1.361895 1.333871 1.313424 1.335341 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
36
Year | 1.85% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.620193 1.400669 1.104201 2.083069 1.824664 1.709367 1.493861 1.313882 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.531443 1.620193 1.400669 1.104201 2.083069 1.824664 1.709367 1.493861 1.313882 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.370932 1.213679 1.011334 1.465780 1.397314 1.224601 1.204998 1.164242 0.981374 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.463721 1.370932 1.213679 1.011334 1.465780 1.397314 1.224601 1.204998 1.164242 0.981374 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.289408 1.003881 0.812987 1.330747 1.527850 1.503119 1.450263 1.330242 1.031439 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.088039 1.289408 1.003881 0.812987 1.330747 1.527850 1.503119 1.450263 1.330242 1.031439 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.342771 1.156091 0.916776 1.570253 1.478330 1.317097 1.299686 1.234690 0.995174 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.278981 1.342771 1.156091 0.916776 1.570253 1.478330 1.317097 1.299686 1.234690 0.995174 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
2.007130 1.862829 1.519240 2.684602 2.340402 1.936975 1.578705 1.413562 1.009855 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.676813 2.007130 1.862829 1.519240 2.684602 2.340402 1.936975 1.578705 1.413562 1.009855 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.710215 1.671358 1.302895 2.122673 2.080511 1.731335 1.578705 1.341858 1.002806 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.364113 1.710215 1.671358 1.302895 2.122673 2.080511 1.731335 1.578705 1.341858 1.002806 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
37
Year | 1.85% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.238054 1.165371 1.035471 1.103899 1.088476 1.066931 1.062592 1.050275 1.020865 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.298084 1.238054 1.165371 1.035471 1.103899 1.088476 1.066931 1.062592 1.050275 1.020865 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.012293 1.030925 1.048619 1.041587 1.011691 0.985157 0.977374 0.987580 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.994036 1.012293 1.030925 1.048619 1.041587 1.011691 0.985157 0.977374 0.987580 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.399781 1.244716 1.005793 1.634494 1.585757 1.401851 1.367104 1.261826 1.003599 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.396673 1.399781 1.244716 1.005793 1.634494 1.585757 1.401851 1.367104 1.261826 1.003599 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.370959 1.218984 0.930400 1.448686 1.372749 1.283144 1.264427 1.215676 0.984585 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.354880 1.370959 1.218984 0.930400 1.448686 1.372749 1.283144 1.264427 1.215676 0.984585 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.387368 1.251182 1.080340 1.717619 1.702143 1.430759 1.384409 1.265323 1.005712 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.280124 1.387368 1.251182 1.080340 1.717619 1.702143 1.430759 1.384409 1.265323 1.005712 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.627623 1.305835 0.982793 1.680930 1.688770 1.597324 1.493350 1.331565 1.031466 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.601291 1.627623 1.305835 0.982793 1.680930 1.688770 1.597324 1.493350 1.331565 1.031466 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
38
Year | 1.85% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.933930 1.519173 0.985063 1.707701 1.519971 1.487968 1.464455 1.488164 1.006302 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.746120 1.933930 1.519173 0.985063 1.707701 1.519971 1.487968 1.464455 1.488164 1.006302 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
39
Year | 1.80% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.626675 1.405581 1.107532 2.088323 1.828365 1.712013 1.495442 1.314625 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.538326 1.626675 1.405581 1.107532 2.088323 1.828365 1.712013 1.495442 1.314625 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.376400 1.217919 1.014361 1.469444 1.400111 1.226465 1.199111 1.164893 0.981440 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.470280 1.376400 1.217919 1.014361 1.469444 1.400111 1.226465 1.199111 1.164893 0.981440 |
|
|
0.000 0.000 52,299.662 141,814.560 154,365.984 154,609.583 153,649.000 163,693.000 154,874.746 100.0000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.294579 1.007413 0.815457 1.334120 1.530966 1.505448 1.451797 1.330986 1.031504 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.092935 1.294579 1.007413 0.815457 1.334120 1.530966 1.505448 1.451797 1.330986 1.031504 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.348194 1.160190 0.919553 1.574236 1.481347 1.319148 1.301064 1.235390 0.995239 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.284776 1.348194 1.160190 0.919553 1.574236 1.481347 1.319148 1.301064 1.235390 0.995239 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
2.015197 1.869406 1.523853 2.691402 2.345178 1.939982 1.725444 1.414355 1.009923 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.684382 2.015197 1.869406 1.523853 2.691402 2.345178 1.939982 1.725444 1.414355 1.009923 |
|
|
0.000 0.000 0.000 9,488.324 10,190.773 9,446.647 11,015.000 12,526.000 14,356.056 100.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.717053 1.677223 1.306827 2.128035 2.084724 1.733998 1.580366 1.342603 1.002874 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.370237 1.717053 1.677223 1.306827 2.128035 2.084724 1.733998 1.580366 1.342603 1.002874 |
|
|
0.000 0.000 0.000 10,981.402 11,794.385 10,973.832 11,998.000 13,070.000 15,140.429 100.000 |
|
40
Year | 1.80% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.243024 1.169470 1.038599 1.106686 1.090681 1.068577 1.063714 1.050868 1.020939 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.303932 1.243024 1.169470 1.038599 1.106686 1.090681 1.068577 1.063714 1.050868 1.020939 |
|
|
0.000 0.000 0.000 19,372.979 20,807.221 19,307.757 18,246.000 16,973.000 14,950.567 100.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.016382 1.034530 1.051803 1.044238 1.013760 0.986677 0.978394 0.988127 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
.998509 1.016382 1.034530 1.051803 1.044238 1.013760 0.986677 0.978394 0.988127 |
|
|
0.000 0.000 95,114.822 157,175.405 177,561.350 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.405409 1.249102 1.008832 1.638614 1.588964 1.403995 1.368526 1.262528 1.003666 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.402980 1.405409 1.249102 1.008832 1.638614 1.588964 1.403995 1.368526 1.262528 1.003666 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.376404 1.223245 0.933196 1.452325 1.375524 1.285100 1.265741 1.216341 0.984653 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.360933 1.376404 1.223245 0.933196 1.452325 1.375524 1.285100 1.265741 1.216341 0.984653 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.392914 1.255571 1.083601 1.721957 1.705606 1.432970 1.385876 1.266034 1.005778 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.285870 1.392914 1.255571 1.083601 1.721957 1.705606 1.432970 1.385876 1.266034 1.005778 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.634119 1.310406 0.985744 1.685145 1.692166 1.599759 1.494902 1.332293 1.031530 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.608473 1.634119 1.310406 0.985744 1.685145 1.692166 1.599759 1.494902 1.332293 1.031530 |
|
|
0.000 0.000 54,765.046 37,404.929 38,382.605 41,536.873 47,600.000 52,199.000 59,596.234 100.000 |
|
41
Year | 1.80% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.941660 1.524501 0.988039 1.712011 1.523057 1.490264 1.465997 1.489000 1.006373 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.753955 1.941660 1.524501 0.988039 1.712011 1.523057 1.490264 1.465997 1.489000 1.006373 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
42
Year | 1.70% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.639741 1.415484 1.114246 2.098894 1.835803 1.717288 1.498570 1.316080 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.552212 1.639741 1.415484 1.114246 2.098894 1.835803 1.717288 1.498570 1.316080 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.387455 1.226514 1.020513 1.476900 1.405827 1.230267 1.201648 1.166204 0.981572 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.483552 1.387455 1.226514 1.020513 1.476900 1.405827 1.230267 1.201648 1.166204 0.981572 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.304935 1.014474 0.820374 1.340847 1.537164 1.511006 1.454830 1.332452 1.031643 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.1027658 1.304935 1.014474 0.820374 1.340847 1.537164 1.511006 1.454830 1.332452 1.031643 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.359021 1.168355 0.925115 1.582195 1.487367 1.323199 1.303791 1.236770 0.995377 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.296365 1.359021 1.168355 0.925115 1.582195 1.487367 1.323199 1.303791 1.236770 0.995377 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
2.031378 1.882564 1.533068 2.705010 2.354710 1.945955 1.729064 1.415928 1.010061 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.699579 2.031378 1.882564 1.533068 2.705010 2.354710 1.945955 1.729064 1.415928 1.010061 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.730874 1.689055 1.314754 2.138828 2.093231 1.739364 1.583710 1.344107 1.003009 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.382634 1.730874 1.689055 1.314754 2.138828 2.093231 1.739364 1.583710 1.344107 1.003009 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
43
Year | 1.70% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.252979 1.177685 1.044876 1.112274 1.095114 1.071870 1.065953 1.052044 1.021072 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.315674 1.252979 1.177685 1.044876 1.112274 1.095114 1.071870 1.065953 1.052044 1.021072 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.024554 1.041848 1.058170 1.049530 1.017894 0.989733 0.980468 0.989235 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.007485 1.024554 1.041848 1.058170 1.049530 1.017894 0.989733 0.980468 0.989235 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.416723 1.257929 1.014971 1.646956 1.595466 1.408349 1.371412 1.263942 1.003800 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.415663 1.416723 1.257929 1.014971 1.646956 1.595466 1.408349 1.371412 1.263942 1.003800 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception January 22, 2001 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.387442 1.231833 0.938838 1.459673 1.381125 1.289073 1.268404 1.217703 0.984784 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.373183 1.387442 1.231833 0.938838 1.459673 1.381125 1.289073 1.268404 1.217703 0.984784 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.404114 1.264422 1.090166 1.730677 1.712550 1.437395 1.388793 1.267446 1.005913 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.297483 1.404114 1.264422 1.090166 1.730677 1.712550 1.437395 1.388793 1.267446 1.005913 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.647212 1.319618 0.991702 1.693656 1.699035 1.604676 1.498031 1.333778 1.031669 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.622949 1.647212 1.319618 0.991702 1.693656 1.699035 1.604676 1.498031 1.333778 1.031669 |
|
|
0.000 0.000 0.000 0.000 0.00 0.000 0.000 0.000 0.000 100.000 |
|
44
Year | 1.70% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.957258 1.535245 0.994020 1.720677 1.529264 1.494862 1.469064 1.490650 1.006508 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.769782 1.957258 1.535245 0.994020 1.720677 1.529264 1.494862 1.469064 1.490650 1.006508 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
45
Year | 1.65% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.646277 1.420437 1.117599 2.104177 1.839517 1.7199160 1.500132 1.316807 1.020031 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.559158 1.646277 1.420437 1.117599 2.104177 1.839517 1.7199160 1.500132 1.316807 1.020031 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.393054 1.230844 1.023622 1.480675 1.408715 1.232176 1.202921 1.166849 0.981639 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.490260 1.393054 1.230844 1.023622 1.480675 1.408715 1.232176 1.202921 1.166849 0.981639 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.310194 1.018060 0.822861 1.344242 1.540287 1.512386 1.456356 1.333202 1.031713 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.107748 1.310194 1.018060 0.822861 1.344242 1.540287 1.512386 1.456356 1.333202 1.031713 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.364465 1.172458 0.927916 1.586196 1.490397 1.325245 1.305162 1.237454 0.995441 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.302196 1.364465 1.172458 0.927916 1.586196 1.490397 1.325245 1.305162 1.237454 0.995441 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 22,137.969 3,540.553 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
2.039536 1.889202 1.537718 2.711871 2.359503 1.948966 1.730892 1.416724 1.010125 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.707240 2.039536 1.889202 1.537718 2.711871 2.359503 1.948966 1.730892 1.416724 1.010125 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.737814 1.694996 1.318722 2.144206 2.097468 1.742036 1.585358 1.344852 1.003075 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.388863 1.737814 1.694996 1.318722 2.144206 2.097468 1.742036 1.585358 1.344852 1.003075 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
46
Year | 1.65% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.258022 1.181834 1.048038 1.115095 1.097349 1.073519 1.067065 1.052625 1.021145 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.321604 1.258022 1.181834 1.048038 1.115095 1.097349 1.073519 1.067065 1.052625 1.021145 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.028645 1.045507 1.061361 1.052176 1.019962 0.991250 0.981486 0.989783 0.999153 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.012057 1.028645 1.045507 1.061361 1.052176 1.019962 0.991250 0.981486 0.989783 0.999153 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.422419 1.262357 1.018036 1.651111 1.598712 1.410528 1.372873 1.264655 1.003871 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.422044 1.422419 1.262357 1.018036 1.651111 1.598712 1.410528 1.372873 1.264655 1.003871 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 21,848.148 3,536.894 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.393041 1.236209 0.941703 1.463387 1.383940 1.291059 1.269731 1.218374 0.984848 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.379402 1.393041 1.236209 0.941703 1.463387 1.383940 1.291059 1.269731 1.218374 0.984848 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.409749 1.268871 1.093462 1.735055 1.716029 1.439609 1.390256 1.268159 1.005982 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.303328 1.409749 1.268871 1.093462 1.735055 1.716029 1.439609 1.390256 1.268159 1.005982 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.653853 1.324821 0.994724 1.697974 1.702520 1.607185 1.499628 1.334534 1.031740 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.630295 1.653853 1.324821 0.994724 1.697974 1.702520 1.607185 1.499628 1.334534 1.031740 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 21,561.245 3,490.318 |
|
47
Year | 1.65% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.965100 1.540639 0.997021 1.725023 1.532367 1.497167 1.470618 1.491485 1.006573 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.777749 1.965100 1.540639 0.997021 1.725023 1.532367 1.497167 1.470618 1.491485 1.006573 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 100.000 |
|
48
Year | 1.50% | |||||||||||||||
Subaccount |
Beginning AUV | Ending AUV | # Units | |||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.533038 1.320771 1.037642 1.950729 1.702838 1.589777 1.384583 1.213582 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.454049 1.533038 1.320771 1.037642 1.950729 1.702838 1.589777 1.384583 1.213582 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.409392 1.243453 1.032574 1.491400 1.416816 1.237448 1.206280 1.168378 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.509954 1.409392 1.243453 1.032574 1.491400 1.416816 1.237448 1.206280 1.168378 |
|
|
0.000 0.000 0.000 0.000 7,942.783 7,949.155 7,956.000 7,963.000 6,650.915 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.266328 0.982520 0.792957 1.293463 1.479906 1.450956 1.395136 1.275264 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.072241 1.266328 0.982520 0.792957 1.293463 1.479906 1.450956 1.395136 1.275264 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.336307 1.146576 0.906084 1.546568 1.451013 1.288331 1.266944 1.199436 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.277204 1.336307 1.146576 0.906084 1.546568 1.451013 1.288331 1.266944 1.199436 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.983843 1.834912 1.491328 2.626148 2.281539 1.881790 1.668769 1.363860 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.663075 1.983843 1.834912 1.491328 2.626148 2.281539 1.881790 1.668769 1.363860 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.801725 1.754738 1.363187 2.213240 2.161778 1.792804 1.629166 1.379972 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.442060 1.801725 1.754738 1.363187 2.213240 2.161778 1.792804 1.629166 1.379972 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.217165 1.141773 1.011027 1.074124 1.055454 1.031021 1.023317 1.007968 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.280567 1.217165 1.141773 1.011027 1.074124 1.055454 1.031021 1.023317 1.007968 |
|
|
0.000 13,733.115 14,453.251 15,236.215 28,245.498 28,947.901 29,713.000 30,524.000 29,228.144 |
|
49
Subaccount |
Year | 1.50% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.043901 1.059440 1.073928 1.063052 1.028971 0.998548 0.987257 0.994129 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.028573 1.043901 1.059440 1.073928 1.063052 1.028971 0.998548 0.987257 0.994129 |
|
|
0.000 17,048.180 17,942.150 18,914.143 26,658.720 0.000 0.000 0.000 0.000 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.376984 1.220246 0.982625 1.591330 1.538544 1.355452 1.317332 1.211705 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.378657 1.376984 1.220246 0.982625 1.591330 1.538544 1.355452 1.317332 1.211705 |
|
|
0.000 9,580.267 10,082.613 10,628.820 18,797.718 19,286.981 19,820.000 20,385.000 19,730.830 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.380375 1.223153 0.930379 1.443649 1.363264 1.269909 1.247105 1.194894 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.368877 1.380375 1.223153 0.930379 1.443649 1.363264 1.269909 1.247105 1.194894 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.388132 1.247570 1.073519 1.700878 1.679723 1.407081 1.356839 1.235847 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.285247 1.388132 1.247570 1.073519 1.700878 1.679723 1.407081 1.356839 1.235847 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.577421 1.261216 0.945957 1.612334 1.614251 1.521609 1.417690 1.259751 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.557242 1.577421 1.261216 0.945957 1.612334 1.614251 1.521609 1.417690 1.259751 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 |
|
$ $ $ $ $ $ $ $ $ |
1.782349 1.395301 0.901642 1.557678 1.381654 1.347928 1.322071 1.338854 1.000000 |
|
$ $ $ $ $ $ $ $ $ |
1.614797 1.782349 1.395301 0.901642 1.557678 1.381654 1.347928 1.322071 1.338854 |
|
|
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 |
|
50
Subaccount |
Year | 1.45% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.380722 1.188963 0.933628 1.754316 1.530621 1.428284 1.243330 1.089233 0.842088 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.310233 1.380722 1.188963 0.933628 1.754316 1.530621 1.428284 1.243330 1.089233 0.842088 |
|
|
83,546.593 82,592.498 76,119.394 108,045.201 83,284.344 66,801.248 85,107.000 81,161.000 87,834.487 25,426.568 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.205969 1.063449 0.882662 1.274242 1.209918 1.056224 1.029121 0.996304 0.836505 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.292660 1.205969 1.063449 0.882662 1.274242 1.209918 1.056224 1.029121 0.996304 0.836505 |
|
|
1,302,969.784 1,677,501.290 2,029,790.364 2,535,890.763 2,851,753.008 3,434,030.061 3,955,556.000 4,493,384.000 5,096,031.028 2,343,816.217 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
0.965205 0.748519 0.603818 0.984456 1.125799 1.103236 1.090274 0.968686 0.748154 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
.817665 0.965205 0.748519 0.603818 0.984456 1.125799 1.103236 1.090274 0.968686 0.748154 |
|
|
429,259.871 471,919.344 559,978.796 594,958.516 643,780.412 622,742.195 721,936.000 765,068.000 972,325.464 469,631.102 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.086021 0.931360 0.735653 1.255043 1.176916 1.044440 1.026593 0.971411 0.779892 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.038502 1.086021 0.931360 0.735653 1.255043 1.176916 1.044440 1.026593 0.971411 0.779892 |
|
|
542,517.716 671,829.311 748,472.028 831,736.409 1,109,382.144 1,241,898.670 1,188,180.000 1,279,084.000 1,196,807.938 775,032.170 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.644585 1.520365 1.235067 2.173818 1.887627 1.556126 1.379292 1.126730 0.801779 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.379347 1.644585 1.520365 1.235067 2.173818 1.887627 1.556126 1.379292 1.126730 0.801779 |
|
|
256,013.785 295,400.969 374,227.881 431,088.782 427,112.833 329,639.367 239,869.000 227,167.000 457,894.273 231,505.748 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.408911 1.371494 1.064934 1.728144 1.687119 1.398470 1.270199 1.075381 0.800507 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.128216 1.408911 1.371494 1.064934 1.728144 1.687119 1.398470 1.270199 1.075381 0.800507 |
|
|
412,705.162 434,224.617 539,834.265 588,904.565 633,907.236 558,867.086 478,504.000 480,389.000 593,336.141 277,264.703 |
|
51
Subaccount |
Year | 1.45% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.306433 1.224894 1.084087 1.151170 1.130604 1.103888 1.095092 1.078138 1.043839 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.375157 1.306433 1.224894 1.084087 1.151170 1.130604 1.103888 1.095092 1.078138 1.043839 |
|
|
2,025,809.754 2,150,926.851 2,452,231.441 2,810,198.473 2,995,330.527 2,824,960.719 3,133,273.000 3,355,387.000 3,712,795.332 2,231,989.027 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.045217 1.060254 1.074234 1.062833 1.028248 0.997350 0.985577 0.991945 0.999366 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.030346 1.045217 1.060254 1.074234 1.062833 1.028248 0.997350 0.985577 0.991945 0.999366 |
|
|
2,167,246.948 2,498,062.404 3,900,836.605 4,655,205.245 4,877,228.676 439,314.977 541,274.000 574,496.000 827,783.466 395,266.354 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.163959 1.030960 0.829791 1.343140 1.297948 1.142925 1.110229 1.020708 0.808638 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.165944 1.163959 1.030960 0.829791 1.343140 1.297948 1.142925 1.110229 1.020708 0.808638 |
|
|
984,971.666 1,091,717.814 1,452,137.117 1,621,793.280 2,014,618.361 2,151,271.493 2,434,092.000 2,658,462.000 2,679,945.470 1,319,378.010 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.082161 0.958433 0.728667 1.130107 1.066649 0.993117 0.0974799 0.933524 0.753110 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.073682 1.082161 0.958433 0.728667 1.130107 1.066649 0.993117 0.0974799 0.933524 0.753110 |
|
|
102,992.378 124,157.449 142,072.539 154,432.358 159,915.041 143,182.391 140,126.000 142,197.000 146,367.909 97,137.681 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.133372 1.018107 0.875632 1.386653 1.368734 1.146008 1.104555 1.005558 0.796103 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.049880 1.133372 1.018107 0.875632 1.386653 1.368734 1.146008 1.104555 1.005558 0.796103 |
|
|
1,691,733.403 1,879,849.739 2,085,506.871 2,636,863.949 2,950,643.951 3,010,425.780 3,198,004.000 3,431,452.000 3,918,930.027 1,902,726.726 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.307496 1.044890 0.783316 1.334454 1.335380 1.258126 1.171625 1.040589 0.802907 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.291406 1.307496 1.044890 0.783316 1.334454 1.335380 1.258126 1.171625 1.040589 0.802907 |
|
|
684,918.044 779,687.321 1,098,819.075 1,269,795.818 1,347,582.506 1,379,284.323 1,535,223.000 1,471,094.000 1,575,596.686 857,601.259 |
|
52
Subaccount |
Year | 1.45% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.396741 1.092884 0.705872 1.218857 1.080591 1.053691 1.032968 1.045556 0.704242 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.266058 1.396741 1.092884 0.705872 1.218857 1.080591 1.053691 1.032968 1.045556 0.704242 |
|
|
171,297.557 196,536.501 261,106.974 370,471.989 334,244.916 411,102.698 499,041.000 484,458.000 535,884.349 226,689.487 |
|
53
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
40.253890 35.479401 29.433395 42.470068 40.306158 35.168825 34.249546 33.140811 27.812 33.933 37.729 |
|
$ $ $ $ $ $ $ $ $ $ $ |
43.168679 40.253890 35.479401 29.433395 42.470068 40.306158 35.168825 34.249546 33.140811 27.812 33.933 |
|
|
302,278.964 377,961.953 445,173.472 528,806.748 709,007.637 788,575.077 946,178.000 1,078,182.000 1,203,718.062 1,287,152.473 731,798.395 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
83.122829 64.430450 51.948583 84.654356 96.760742 94.774944 91.039643 83.135053 64.177 80.652 86.109 |
|
$ $ $ $ $ $ $ $ $ $ $ |
70.452281 83.122829 64.430450 51.948583 84.654356 96.760742 94.774944 91.039643 83.135053 64.177 80.652 |
|
|
39,750.634 43,217.253 49,905.335 53,459.812 62,247.149 66,611.595 76,936.000 89,304.000 102,665.847 118,808.669 57,268.440 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
30.415222 26.071071 20.582516 35.096982 32.895597 29.178756 28.666082 27.111778 21.756 29.595 32.284 |
|
$ $ $ $ $ $ $ $ $ $ $ |
29.098660 30.415222 26.071071 20.582516 35.096982 32.895597 29.178756 28.666082 27.111778 21.756 29.595 |
|
|
207,601.330 247,021.716 299,246.619 384,507.512 482,532.287 484,707.551 586,839.000 706,302.000 771,900.341 833,823.358 503,479.557 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
24.475076 22.615282 18.362436 32.303332 28.036634 23.101628 20.466423 16.710433 11.885 14.381 20.866 |
|
$ $ $ $ $ $ $ $ $ $ $ |
20.537874 24.475076 22.615282 18.362436 32.303332 28.036634 23.101628 20.466423 16.710433 11.885 14.381 |
|
|
104,295.079 119,026.844 148,073.996 176,050.880 252,231.146 201,039.327 190,530.000 158,242.000 142,361.331 138,700.796 110,400.612 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
18.483083 17.983369 13.956824 22.637498 22.089225 18.300986 16.614190 14.059011 10.460 12.088 13.994 |
|
$ $ $ $ $ $ $ $ $ $ $ |
14.808050 18.483083 17.983369 13.956824 22.637498 22.089225 18.300986 16.614190 14.059011 10.460 12.088 |
|
|
209,929.199 231,294.076 258,557.118 299,833.690 393,280.565 320,774.821 359,670.000 370,544.000 355,239.803 353,503.947 170,087.266 |
|
54
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
24.027250 22.516700 19.918508 21.140604 20.752654 20.25229 20.081126 19.760442 19.122 18.042 17.410 |
|
$ $ $ $ $ $ $ $ $ $ $ |
25.303693 24.027250 22.516700 19.918508 21.140604 20.752654 20.25229 20.081126 19.760442 19.122 18.042 |
|
|
564,336.084 606,964.387 720,802.839 918,221.609 1,198,899.915 1,115,399.767 1,361,676.000 1,719,663.000 1,951,639.872 2,265,254.374 1,074,818.006 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
45.031550 39.866339 32.071532 51.886998 50.115920 44.108437 42.825485 39.352722 31.161 40.797 48.054 |
|
$ $ $ $ $ $ $ $ $ $ $ |
45.130686 45.031550 39.866339 32.071532 51.886998 50.115920 44.108437 42.825485 39.352722 31.161 40.797 |
|
|
238,373.512 273,332.768 322,849.189 419,015.501 532,668.805 597,574.721 735,083.000 851,824.000 938,076.588 995,839.139 553,642.667 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
29.606617 26.208705 19.915761 30.872354 29.124184 27.103038 26.590087 25.451736 20.523 29.367 40.334 |
|
$ $ $ $ $ $ $ $ $ $ $ |
29.388865 29.606617 26.208705 19.915761 30.872354 29.124184 27.103038 26.590087 25.451736 20.523 29.367 |
|
|
62,013.661 71,146.210 87,970.974 103,531.451 129,171.181 153,854.662 204,055.000 266,754.000 296,580.120 323,312.675 247,846.709 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
12.650901 11.358706 9.764400 15.455384 15.248072 12.760567 12.292854 11.185612 8.851 11.703 11.989 |
|
$ $ $ $ $ $ $ $ $ $ $ |
11.724710 12.650901 11.358706 9.764400 15.455384 15.248072 12.760567 12.292854 11.185612 8.851 11.703 |
|
|
776,804.145 954,113.358 1,122,183.381 1,376,461.630 1,741.007.141 1,913,691.367 2,262,553.000 2,610,969.000 2,961,976.471 3,170,761.237 1,644,988.805 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
15.091228 12.054245 9.032163 15.379636 15.382701 14.485637 13.483092 11.969158 9.231 10.715 10.832 |
|
$ $ $ $ $ $ $ $ $ $ $ |
14.912862 15.091228 12.054245 9.032163 15.379636 15.382701 14.485637 13.483092 11.969158 9.231 10.715 |
|
|
447,634.238 526,771.443 594,438.275 703,687.373 898,116.093 984.212.009 1,135,340.000 1,272,820.000 1,559,798.923 1,593,930.290 837,658.891 |
| ||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 |
|
$ $ $ $ $ $ $ $ $ $ $ |
8.630650 6.749803 4.357392 7.520377 6.663957 6.494902 6.364074 6.438464 4.335 7.274 12.401 |
|
$ $ $ $ $ $ $ $ $ $ $ |
7.826996 8.630650 6.749803 4.357392 7.520377 6.663957 6.494902 6.364074 6.438464 4.335 7.274 |
|
|
245,313.347 283,632.099 331,452.797 402,817.341 509,777.732 589,483.687 725,916.000 947,014.000 1,011,216.368 1,080,609.769 967,986.322 |
|
55
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
14.084089 12.122085 9.514146 17.868537 15.582415 14.533536 12.645276 11.072522 8.556 11.157 13.736 15.422 11.35 10.00 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
13.371588 14.084089 12.122085 9.514146 17.868537 15.582415 14.533536 12.645276 11.072522 8.556 11.157 13.736 15.422 11.35 |
|
|
766,807.294 829,433.388 911,145.971 1,016,376.630 1,191,380.144 1,418,734.009 1,706,680.000 1,944,521.000 2,279,895.239 2,689,539.614 3,352,423.693 3,644,221.142 2,963,758.863 1,634,054.907 |
| ||||
Appreciation Portfolio Initial Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
41.304761 36.319470 30.049175 43.253484 40.942145 35.641053 34.622873 33.422396 27.969 34.053 38.077 38.862 35.36 27.532 21.802 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
44.406829 41.304761 36.319470 30.049175 43.253484 40.942145 35.641053 34.622873 33.422396 27.969 34.053 38.077 38.862 35.36 27.532 |
|
|
1,205,243.214 1,311,865.696 1,504,536.765 1,722,711.179 2,123,526.288 2,719,350.369 3,470,665.000 4,340,754.000 5,195,190.333 6,064,087.558 7,366,868.292 8,193,471.439 8,513,807.354 8,121,246.029 6,447,159.634 |
| ||||
Opportunistic Small Cap Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
85.320344 65.965689 53.071075 86.236431 98.325236 96.076039 92.075988 83.858469 64.569 80.956 87.446 78.255 64.44 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
72.493648 85.320344 65.965689 53.071075 86.236431 98.325236 96.076039 92.075988 83.858469 64.569 80.956 87.446 78.255 |
|
|
293,686.209 325,419.363 359,247.029 416,440.736 495,096.316 665,893.583 820,661.000 1,053,370.000 1,256,012.232 1,495,667.076 1,755,966.852 2,018,390.168 2,096,729.991 |
| ||||
Growth and Income Portfolio Initial Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
31.078753 26.569722 20.919753 35.600677 33.290226 29.477130 28.919251 27.287406 21.861 29.686 31.974 33.694 29.23 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
29.794109 31.078753 26.569722 20.919753 35.600677 33.290226 29.477130 28.919251 27.287406 21.861 29.686 31.974 33.694 |
|
|
953,161.505 1,056,891.136 1,178,151.680 1,352,960.167 1,652,549.563 2,007,269.480 2,501,194.000 3,208,623.000 3,953,385.811 4,679,209.677 5,926,304.581 6,432,258.706 6,548,394.692 |
|
56
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
International Equity Portfolio Initial Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
25.17446 23.147124 18.737202 32.885347 28.474959 23.415907 20.689400 16.840959 11.951 14.416 20.643 25.038 15.89 15.422 14.267 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
21.134050 25.17446 23.147124 18.737202 32.885347 28.474959 23.415907 20.689400 16.840959 11.951 14.416 20.643 25.038 15.89 15.422 |
|
|
509,930.273 573,945.094 654,031.304 736,893.047 920,168.013 1,039,764.625 1,171,431.000 1,341,234.000 1,528,041.258 1,803,441.127 2,253,497.876 2,629,168.557 2,296,712.753 2,456,885.911 2,176,230.247 |
| ||||
International Value Portfolio Initial Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
18.737000 18.188838 14.081857 22.782630 22.181979 18.346912 16.625294 14.046184 10.445 12.067 14.101 14.846 11.78 10.982 10.244 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
15.063618 18.737000 18.188838 14.081857 22.782630 22.181979 18.346912 16.625294 14.046184 10.445 12.067 14.101 14.846 11.78 10.982 |
|
|
441,931.086 512,528.072 554,069.713 606,563.844 801,713.510 810,624.991 927,170.000 972,539.000 983,345.859 1,135,394.813 1,164,395.489 1,377,476.194 1,432,408.023 1,380,692.935 1,047,389.002 |
| ||||
Quality Bond Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
24.643048 23.056812 20.337536 21.522.606 21.078909 20.505219 20.288656 19.903122 19.231 18.095 17.199 15.683 15.88 15.260 14.142 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
26.012697 24.643048 23.056812 20.337536 21.522.606 21.078909 20.505219 20.288656 19.903122 19.231 18.095 17.199 15.683 15.88 15.260 |
|
|
1,176,366.380 1,397,680.744 1,523,774.555 1,614,734.586 1,846,588.028 1,928,763.709 2,466,082.000 3,046,514.000 3,890,535.749 4,901,782.851 4,966,205.213 4,333,498.116 5,010,813.856 5,030,446.431 4,020,220.452 |
| ||||
Money Market Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
1.417193 1.436867 1.455100 1.438946 1.391426 1.348960 1.332390 1.340330 1.3497 1.349 1.316 1.258 1.22 1.175 1.132 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
1.397759 1.417193 1.436867 1.455100 1.438946 1.391426 1.348960 1.332390 1.340330 1.3497 1.349 1.316 1.258 1.22 1.175 |
|
|
50,427,638.489 59,256,596.524 73,742,355.997 98,490,663.865 126,221,534.582 32,839,018.722 35,907,831.000 40,261,346.000 53,137,961.912 77,153,614.929 81,225,135.541 59,855,370.259 64,761,299.670 53,939,642.196 42,660,950.364 |
|
57
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Dreyfus Stock Index Fund, Inc. Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
46.215710 40.807235 32.753237 52.839247 50.907734 44.692069 43.285226 39.671542 31.34 40.930 47.264 52.828 44.42 35.128 26.791 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
46.434698 46.215710 40.807235 32.753237 52.839247 50.907734 44.692069 43.285226 39.671542 31.34 40.930 47.264 52.828 44.42 35.128 |
|
|
921,432.618 1,027,290.312 1,135,235.790 1,284,939.623 1,629,949.922 2,061,312.563 2,516,402.000 3,149,253.000 3,648,176.310 4,126,592.432 5,101,627.890 5,610,267.635 5,113,716.960 4,443,711.383 3,357,236.245 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Initial Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
30.368746 26.820037 20.332233 31.441964 29.581501 27.467342 26.878966 25.662502 20.651 29.472 38.602 43.996 34.30 26.879 21.221 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ |
30.220215 30.368746 26.820037 20.332233 31.441964 29.581501 27.467342 26.878966 25.662502 20.651 29.472 38.602 43.996 34.30 26.879 |
|
|
382,515.375 425,307.233 476,595.565 535,988.424 660,378.026 909,845.859 1,125,864.000 1,388,317.000 1,679,623.544 2,085,657.987 2,795,959.566 3,085,982.201 2,399,067.265 1,744,708.001 1,335,814.063 |
| ||||
Core Value Portfolio Initial Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
12.821784 11.484012 9.853790 15.591518 15.350987 12.831642 12.340986 11.213553 8.854 11.703 12.120 10.967 9.29 10.00 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
11.909565 12.821784 11.484012 9.853790 15.591518 15.350987 12.831642 12.340986 11.213553 8.854 11.703 12.120 10.967 9.29 |
|
|
788,719.684 902,879.903 999,486.098 1,273,607.269 1,619,592.985 1,668,932.256 2,014,296.000 2,409,688.000 2,399,640.235 2,611,095.265 2,768,228.725 1,671,632.569 618,554.557 95,759.521 |
| ||||
MidCap Stock Portfolio Initial Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
15.398411 12.205179 9.133016 15.544555 15.530866 14.615194 13.574236 12.024296 9.256 10.726 11.244 10.529 9.63 10.00 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ $ |
15.147146 15.398411 12.205179 9.133016 15.544555 15.530866 14.615194 13.574236 12.024296 9.256 10.726 11.244 10.529 9.63 |
|
|
788,737.507 909,686.364 1,004,334.417 1,069,976.541 1,305,589.291 1,788,353.701 2,244,785.000 2,549,132.000 2,733,761.281 2,754,004.474 2,863,076.333 2,352,335.934 677,575.571 467,292.833 |
|
58
Subaccount |
Year | 1.40% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Technology Growth Portfolio Initial Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
8.862844 6.916586 4.448190 7.669115 6.778873 6.590565 6.437911 6.498373 4.365 7.305 11.078 15.383 10.00 |
|
$ $ $ $ $ $ $ $ $ $ $ $ $ |
8.060566 8.862844 6.916586 4.448190 7.669115 6.778873 6.590565 6.437911 6.498373 4.365 7.305 11.078 15.383 |
|
|
1,613,520.343 1,776,156.774 1,937,555.827 2,004,358.631 2,361,039.682 3,161,588.743 3,927,283.000 5,095,148.000 6,009,063.878 6,505,016.042 8,574,826.108 9,024,925.748 2,898,342.133 |
|
59
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
TA WMC Diversified Growth Initial Class Sub-Account inception May 4, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.398595 1.202573 0.942915 1.769136 1.541267 1.436101 1.248282 1.091940 0.842931 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.329149 1.398595 1.202573 0.942915 1.769136 1.541267 1.436101 1.248282 1.091940 0.842931 |
|
|
22,858.504 25,865.608 44,782.601 47,290.861 69,299.643 113,676.706 72,960.000 47,357.000 43,548.632 55,649.635 |
| ||||
Appreciation Portfolio Service Class Sub-Account inception April 5, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.221521 1.075574 0.891412 1.284966 1.218288 1.061961 1.033187 0.998754 0.837329 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.311266 1.221521 1.075574 0.891412 1.284966 1.218288 1.061961 1.033187 0.998754 0.837329 |
|
|
1,216,310.458 1,457,887.151 1,812,757.421 2,167,202.449 2.407,320.669 2,695,398.530 3,041,573.000 3,211,030.000 3,442,054.087 1,152,464.949 |
| ||||
Opportunistic Small Cap Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
0.977679 0.757075 0.609812 0.992750 1.133591 1.109241 1.064476 0.971085 0.748900 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
.829461 0.977679 0.757075 0.609812 0.992750 1.133591 1.109241 1.064476 0.971085 0.748900 |
|
|
166,450.234 252,534.188 303,541.078 385,410.368 446,760.263 601,316.426 671,516.000 662,380.000 597,001.992 265,683.254 |
| ||||
Growth and Income Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.100052 0.942007 0.742957 1.265618 1.185061 1.050136 1.030669 0.973826 0.780676 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.053470 1.100052 0.942007 0.742957 1.265618 1.185061 1.050136 1.030669 0.973826 0.780676 |
|
|
351,441.550 392,846.224 461,651.396 570,086.410 605,783.934 451,803.920 566,172.000 576,194.000 666,792.985 480,758.647 |
| ||||
International Equity Portfolio Service Class Sub-Account inception December 15, 1994 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.665856 1.537756 1.247347 2.192161 1.900731 1.564621 1.384779 1.129519 0.802572 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.399254 1.665856 1.537756 1.247347 2.192161 1.900731 1.564621 1.384779 1.129519 0.802572 |
|
|
45,393.771 76,242.927 129,123.493 175,403.084 193,194.949 188,094.544 154,923.000 134,601.000 154,826.113 62,516.133 |
| ||||
International Value Portfolio Service Class Sub-Account inception May 1, 1996 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.427103 1.387156 1.075498 1.742696 1.698797 1.406073 1.275222 1.078034 0.801301 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.144476 1.427103 1.387156 1.075498 1.742696 1.698797 1.406073 1.275222 1.078034 0.801301 |
|
|
222,516.127 237,592.163 273,493.440 406,686.599 411,957.056 386,132.186 403,033.000 392,995.000 432,606.442 197,462.003 |
|
60
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Quality Bond Portfolio Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.323281 1.238867 1.094832 1.160859 1.138430 1.109887 1.099429 1.080807 1.044870 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.394951 1.323281 1.238867 1.094832 1.160859 1.138430 1.109887 1.099429 1.080807 1.044870 |
|
|
1,636,862.753 2,044,029.576 2,410,268.013 3,283,676.869 3,669,557.399 3,616,035.980 4,195,283.000 4,757,185.000 5,082,325.772 1,960,946.036 |
| ||||
Money Market Portfolio Initial Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.058682 1.072358 1.084873 1.071773 1.035356 1.0027640 0.989478 0.994396 1.000352 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.045205 1.058682 1.072358 1.084873 1.071773 1.035356 1.0027640 0.989478 0.994396 1.000352 |
|
|
1,145,568.311 1,429,428.138 1,738,166.819 2,710,390.000 3,512,649.911 758,300.759 523,734.000 518,366.000 818,219.148 385,823.081 |
| ||||
Dreyfus Stock Index Fund, Inc. Service Class Sub-Account inception January 4, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.179004 1.042741 0.838028 1.354472 1.306942 1.149142 1.114620 1.023219 0.809430 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.182755 1.179004 1.042741 0.838028 1.354472 1.306942 1.149142 1.114620 1.023219 0.809430 |
|
|
711,053.806 1,090,113.295 1,471,600.222 2,266,979.063 2,426,889.780 2,708,040.028 2,723,433.000 2,767,334.000 2,406,711.640 871,193.095 |
| ||||
The Dreyfus Socially Responsible Growth Fund, Inc. Service Class Sub-Account inception October 7, 1993 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.096162 0.969400 0.735914 1.139638 1.074032 0.998515 0.978656 0.935828 0.753859 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.089166 1.096162 0.969400 0.735914 1.139638 1.074032 0.998515 0.978656 0.935828 0.753859 |
|
|
100,448.225 102,838.896 104,640.477 156,392.518 153,322.816 159,276.298 157,734.000 232,538.000 215,521.606 95,486.763 |
| ||||
Core Value Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.148009 1.029738 0.884328 1.398348 1.378233 1.152258 1.108933 1.008051 0.796894 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.065003 1.148009 1.029738 0.884328 1.398348 1.378233 1.152258 1.108933 1.008051 0.796894 |
|
|
551,879.534 712,880.521 1,014,209.498 1,344,338.315 1,607,192.458 1,792,437.255 2,073,521.000 2,195,500.000 2,193,220.004 983,770.185 |
| ||||
MidCap Stock Portfolio Service Class Sub-Account inception May 1, 1998 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.324376 1.056815 0.791082 1.345693 1.344626 1.264968 1.176271 1.043162 0.803700 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.310014 1.324376 1.056815 0.791082 1.345693 1.344626 1.264968 1.176271 1.043162 0.803700 |
|
|
412,191.915 494,721.508 668,775.315 771,042.170 844,573.886 873,328.659 992,114.000 1,028,138.000 912,997.391 535,717.020 |
|
61
Subaccount |
Year | 1.30% | ||||||||||||||
Beginning AUV | Ending AUV | # Units | ||||||||||||||
Technology Growth Portfolio Service Class Sub-Account inception October 1, 1999 |
|
2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 |
|
$ $ $ $ $ $ $ $ $ $ |
1.414790 1.105381 0.712882 1.229139 1.088089 1.059442 1.037076 1.048150 0.704948 1.000000 |
|
$ $ $ $ $ $ $ $ $ $ |
1.284316 1.414790 1.105381 0.712882 1.229139 1.088089 1.059442 1.037076 1.048150 0.704948 |
|
|
80,749.852 110,782.129 100,345.273 121,821.043 134,693.791 136,396.712 220,934.000 262,023.000 172,388.483 93,573.701 |
|
The TA AEGON Tactical Vanguard ETF Balanced Fund, TA AEGON Tactical Vanguard ETF Conservative Fund, TA AEGON Tactical Vanguard ETF Growth Fund, TA Legg Mason Dynamic Allocation Balanced Fund, TA Legg Mason Dynamic Allocation Growth Fund, TA Vanguard ETF Index Balanced Fund, TA Vanguard ETF Index Conservative Fund and the TA Vanguard ETF Index Growth Fund had not commenced operations as of December 31, 2011 therefore, comparable data is not available.
62
GUARANTEED MINIMUM INCOME BENEFIT ADDITIONAL INFORMATION
The amounts shown below are hypothetical guaranteed minimum monthly payment amounts under the Guaranteed Minimum Income Benefit for a $100,000 purchase payment when annuity payments do not begin until the contract anniversary indicated in the left-hand column. These figures assume the following:
| there were no subsequent purchase payments or surrenders; |
| there were no premium taxes; |
| the $100,000 premium is subject to the Guaranteed Minimum Income Benefit; |
| the annuitant is (or both annuitants are) 60 years old when the rider is issued; |
| the annual growth rate is 6.0% (once established, an annual growth rate will not change during the life of the Guaranteed Minimum Income Benefit rider up until the minimum annuitization value reaches 200% of the purchase payments (less withdrawals)); |
| there was no upgrade of the minimum annuitization value; and |
| the account value did not grow higher than an annual growth rate of 6% (no annual step-ups are factored in). |
Six different annuity payment options are illustrated: a male annuitant, a female annuitant and a joint and survivor annuity, each on a Life Only and a Life with 10-Year Certain basis. The figures below, which are the amount of the first monthly payment, are based on an assumed investment return of 3%. If the guaranteed minimum payment option is also elected at the time of annuitization, subsequent payments will never be less than the amount of the first payment (although subsequent payments are calculated using a 5% assumed investment return). If the guaranteed minimum payment option is not elected, subsequent payments may fluctuate and may be less than the initial payment.
Life Only = Life Annuity with No Period Certain | Life 10 = Life Annuity with 10 Years Certain |
Rider Anniversary at Exercise Date |
Male | Female | Joint & Survivor | |||||||||||||||||||||
Life Only | Life 10 | Life Only | Life 10 | Life Only | Life 10 | |||||||||||||||||||
7 (age 67) |
$ | 846 | $ | 813 | $ | 792 | $ | 774 | $ | 680 | $ | 679 | ||||||||||||
15 |
1,492 | 1,341 | 1,388 | 1,291 | 1,140 | 1,125 | ||||||||||||||||||
20 (age 80) |
1,846 | 1,523 | 1,733 | 1,492 | 1,373 | 1,320 |
This hypothetical illustration should not be deemed representative of past or future performance of any underlying variable investment option.
Surrenders will affect the minimum annuitization value as follows: Each contract year, surrenders will reduce the minimum annuitization value on a pro rata basis by an amount equal to the minimum annuitization value immediately prior to the surrender multiplied by the percentage reduction in the account value resulting from the surrender.
Examples of the effect of surrenders on the minimum annuitization value are as follows:
EXAMPLE 1
Assumptions
minimum annuitization value at time of distribution: |
$10,500 | |
account value at time of distribution: |
$15,000 | |
distribution amount: |
$1,500 |
Calculations
account value after distribution: |
$15,000 - $1,500 = $13,500 | |
(since the account value is reduced 10% ($1,500/$15,000), the minimum annuitization value is also reduced 10%) | ||
minimum annuitization value after distribution: |
$10,500 - (10% x $10,500) = $9,450 |
63
EXAMPLE 2
Assumptions
minimum annuitization value at time of distribution: |
$10,500 | |
account value at time of distribution: |
$7,500 | |
distribution amount: |
$1,500 |
Calculations
account value after distribution: |
$7,500 - $1,500 = $6,000 | |
(since the account value is reduced 20% ($1,500/$7,500), the minimum annuitization value is also reduced 20%) | ||
minimum annuitization value after distribution: |
$10,500 - (20% x $10,500) = $8,400 |
The amount of the first payment provided by the Guaranteed Minimum Income Benefit will be determined by multiplying each $1,000 of minimum annuitization value by the applicable annuity factor shown on Schedule I of the Guaranteed Minimum Income Benefit. The applicable annuity factor depends upon the annuitants (and joint annuitants, if any) sex (or without regard to gender if required by law), age, and the Guaranteed Minimum Income Benefit payment option selected and is based on a guaranteed interest rate of 3% and the 2000 Table, using an assumed annuity date of 2005 (static projection to this point) with dynamic projection using scale G from that point (100% of G for male, 50% of G for females). Subsequent payments will be calculated as described in the rider using a 5% assumed investment return. Subsequent payments may fluctuate annually in accordance with the investment performance of the annuity subaccounts if the guaranteed minimum payment option is elected at annuitization. However, subsequent payments are guaranteed to never be less than the initial payment.
If you elect the guaranteed minimum payment option, the stabilized payment on each subsequent contract anniversary after annuitization using the rider will equal the greater of the initial payment or the payment supportable by the variable annuity units in the selected subaccounts. The supportable payment is equal to the number of variable annuity units in the selected subaccounts multiplied by the variable annuity unit values in those subaccounts on the date the payment is made. The variable annuity unit values used to calculate the supportable payment will assume a 5% assumed investment return. If the supportable payment at any payment date during a contract year is greater than the stabilized payment for that contract year, the excess will be used to purchase additional variable annuity units. Conversely, if the supportable payment at any payment date during a contract year is less than the stabilized payment for that contract year, there will be a reduction in the number of variable annuity units credited to the contract to fund the deficiency. In the case of a reduction, you will not participate as fully in the future investment performance of the subaccounts you selected since fewer variable annuity units are credited to your contract. Purchases and reductions will be allocated to each subaccount on a proportionate basis.
Transamerica bears the risk that it will need to make payments if all variable annuity units have been used in an attempt to maintain the stabilized payment at the initial payment level. In such an event, Transamerica will make all future payments equal to the initial payment. Once all the variable annuity units have been used, the amount of your payment will not increase or decrease and will not depend upon the performance of any subaccounts. To compensate Transamerica for this risk, a guaranteed minimum payment fee will be deducted.
64
FINANCIAL STATEMENTS AND SCHEDULESSTATUTORY BASIS
Transamerica Life Insurance Company
Years Ended December 31, 2011, 2010 and 2009
Transamerica Life Insurance Company
Financial Statements and SchedulesStatutory Basis
Years Ended December 31, 2011, 2010 and 2009
1 | ||||
Audited Financial Statements | ||||
3 | ||||
5 | ||||
Statements of Changes in Capital and Surplus Statutory Basis |
7 | |||
10 | ||||
12 | ||||
Statutory-Basis Financial Statement Schedules | ||||
Summary of Investments Other Than Investments in Related Parties |
115 | |||
116 | ||||
117 |
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Ernst & Young LLP Suite 3000 801 Grand Avenue Des Moines, Iowa 50309-2767
Tel: 515 243 2727 www.ey.com |
Report of Independent Registered Public Accounting Firm
The Board of Directors
Transamerica Life Insurance Company
We have audited the accompanying statutory-basis balance sheets of Transamerica Life Insurance Company (the Company) as of December 31, 2011 and 2010, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2011. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7. These financial statements and schedules are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Companys internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles also are described in Note 1. The effects on the financial statements of these variances are not reasonably determinable but are presumed to be material.
In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Transamerica Life Insurance Company at December 31, 2011 and 2010, or the results of its operations or its cash flow for each of the three years in the period ended December 31, 2011.
A member firm of Ernst & Young Global Limited
However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Transamerica Life Insurance Company at December 31, 2011 and 2010, and the results of its operations and its cash flow for each of the three years in the period ended December 31, 2011, in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole, present fairly in all material respects the information set forth therein.
As discussed in Note 1 to the financial statements, in 2010 and 2009 in response to new accounting standards, the Company changed its method of accounting for collateral received related to certain financial transactions, deferred income taxes, and investments in loan-backed and structured securities.
April 13, 2012
2
Transamerica Life Insurance Company
Balance SheetsStatutory Basis
(Dollars in Thousands, Except per Share Amounts)
December 31 | ||||||||
2011 | 2010 | |||||||
Admitted assets |
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Cash and invested assets: |
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Cash, cash equivalents and short-term investments |
$ | 3,116,452 | $ | 1,573,081 | ||||
Bonds: |
||||||||
Affiliated entities |
62,919 | 70,527 | ||||||
Unaffiliated |
39,722,288 | 46,921,343 | ||||||
Preferred stocks: |
||||||||
Affiliated entities |
7,162 | 7,162 | ||||||
Unaffiliated |
138,596 | 123,925 | ||||||
Common stocks: |
||||||||
Affiliated entities (cost: 2011$921,343; 2010$666,018) |
1,429,294 | 714,092 | ||||||
Unaffiliated (cost: 2011$198,433; 2010$307,132) |
229,973 | 358,631 | ||||||
Mortgage loans on real estate |
6,830,030 | 8,107,498 | ||||||
Real estate, at cost less accumulated depreciation (2011$51,050; 2010$55,396) |
||||||||
Home office properties |
68,830 | 79,699 | ||||||
Investment properties |
20,514 | 34,776 | ||||||
Properties held for sale |
6,405 | 6,490 | ||||||
Policy loans |
727,684 | 746,677 | ||||||
Receivables for securities |
3,593 | 20,071 | ||||||
Securities lending reinvested collateral assets |
3,520,304 | 3,956,880 | ||||||
Derivatives |
248,484 | 107,125 | ||||||
Collateral balance |
6,213 | 4,142 | ||||||
Other invested assets |
2,460,085 | 2,460,490 | ||||||
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Total cash and invested assets |
58,598,826 | 65,292,609 | ||||||
Accrued investment income |
475,813 | 542,992 | ||||||
Cash surrender value of life insurance policies |
309,919 | 300,248 | ||||||
Premiums deferred and uncollected |
131,183 | 223,886 | ||||||
Current federal income tax recoverable |
120,549 | 222,917 | ||||||
Net deferred income tax asset |
716,608 | 792,408 | ||||||
Reinsurance receivable |
230,426 | 255,184 | ||||||
Receivable from parent, subsidiaries and affiliates |
154,163 | 248,839 | ||||||
Accounts receivable |
191,268 | 264,844 | ||||||
General agents pension fund |
42,282 | 43,422 | ||||||
Reinsurance deposit receivable |
156,620 | 146,715 | ||||||
Amounts incurred under modified coinsurance agreement |
46,520 | 61,400 | ||||||
Goodwill |
35,736 | 94,551 | ||||||
Other assets |
34,909 | 25,709 | ||||||
Separate account assets |
41,473,473 | 38,370,952 | ||||||
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Total admitted assets |
$ | 102,718,295 | $ | 106,886,676 | ||||
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3
December 31 | ||||||||
2011 | 2010 | |||||||
Liabilities and capital and surplus |
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Liabilities: |
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Aggregate reserves for policies and contracts: |
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Life |
$ | 14,826,292 | $ | 15,035,676 | ||||
Annuity |
16,637,184 | 17,990,509 | ||||||
Accident and health |
3,507,297 | 3,418,734 | ||||||
Policy and contract claim reserves: |
||||||||
Life |
220,281 | 306,384 | ||||||
Accident and health |
176,338 | 210,969 | ||||||
Liability for deposit-type contracts |
5,995,687 | 6,496,776 | ||||||
Other policyholders funds |
19,333 | 20,473 | ||||||
Municipal reverse repurchase agreements |
88,828 | 200,977 | ||||||
Remittances and items not allocated |
267,061 | 417,545 | ||||||
Case level liability |
4,981 | 7,415 | ||||||
Payable for derivative cash collateral |
1,094,942 | 240,374 | ||||||
Asset valuation reserve |
879,479 | 896,004 | ||||||
Interest maintenance reserve |
854,620 | 1,045,860 | ||||||
Funds held under reinsurance treaties |
7,837,637 | 13,184,805 | ||||||
Reinsurance in unauthorized reinsurers |
9,600 | 7,055 | ||||||
Commissions and expense allowances payable on reinsurance assumed |
62,277 | 62,485 | ||||||
Payable to affiliates |
243,112 | 476,976 | ||||||
Payable for securities |
12,030 | 4,366 | ||||||
Payable for securities lending |
3,520,304 | 3,956,880 | ||||||
Transfers from separate accounts due or accrued (including $(743,562) and $(547,780) accrued for expense allowances recognized in reserves, net of reinsurance allowances at December 31, 2011 and 2010, respectively) |
(726,356 | ) | (512,837 | ) | ||||
Amounts withheld or retained |
149,180 | 169,393 | ||||||
Derivatives |
107,235 | 221,171 | ||||||
Other liabilities |
403,202 | 430,488 | ||||||
Separate account liabilities |
41,406,109 | 38,300,074 | ||||||
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Total liabilities |
97,596,653 | 102,588,552 | ||||||
Capital and surplus: |
||||||||
Common stock, $10 per share par value, 1,000,000 shares authorized, 676,190 issued and outstanding at December 31, 2011 and 2010 |
6,762 | 6,762 | ||||||
Preferred stock, Series A, $10 per share par value, 42,500 shares authorized and issued (total liquidation value$58,000) at December 31, 2011 and 2010; Series B, $10 per share par value, 250,000 shares authorized, 117,154 shares issued and 117,154 shares outstanding (total liquidation value -$1,171,540) at December 31, 2011 and 2010. |
1,597 | 1,597 | ||||||
Treasury stock, Series A Preferred, $10 per share par value, 42,500 shares as of December 31, 2011 and 2010 |
(58,000 | ) | (58,000 | ) | ||||
Aggregate write-ins for other than special surplus funds |
432,568 | 554,923 | ||||||
Surplus notes |
150,000 | 150,000 | ||||||
Paid-in surplus |
3,326,311 | 3,117,153 | ||||||
Unassigned surplus |
1,262,404 | 525,689 | ||||||
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Total capital and surplus |
5,121,642 | 4,298,124 | ||||||
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Total liabilities and capital and surplus |
$ | 102,718,295 | $ | 106,886,676 | ||||
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See accompanying notes.
4
Transamerica Life Insurance Company
Statements of OperationsStatutory Basis
(Dollars in Thousands)
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Revenues: |
||||||||||||
Premiums and other considerations, net of reinsurance: |
||||||||||||
Life |
$ | 337,360 | $ | 1,523,920 | $ | 1,409,443 | ||||||
Annuity |
8,845,105 | 6,931,132 | 5,997,868 | |||||||||
Accident and health |
681,591 | 710,067 | 692,821 | |||||||||
Net investment income |
2,615,858 | 2,919,171 | 3,073,157 | |||||||||
Amortization of interest maintenance reserve |
71,742 | 3,906 | (11,138 | ) | ||||||||
Commissions and expense allowances on reinsurance ceded |
(1,597,611 | ) | 892,482 | 844,831 | ||||||||
Income from fees associated with investment management, administration and contract guarantees for separate accounts |
494,516 | 380,170 | 376,545 | |||||||||
Reserve adjustment on reinsurance ceded |
(159,096 | ) | (351,287 | ) | (479,868 | ) | ||||||
IMR adjustment due to reinsurance |
307,904 | | 15,469 | |||||||||
Income from administrative service agreement with affilate |
60,237 | 51,177 | 40,040 | |||||||||
Other income |
85,154 | 85,480 | 76,810 | |||||||||
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11,742,760 | 13,146,218 | 12,035,978 | ||||||||||
Benefits and expenses: |
||||||||||||
Benefits paid or provided for: |
||||||||||||
Life benefits |
993,834 | 1,133,801 | 1,077,203 | |||||||||
Accident and health benefits |
473,566 | 496,368 | 436,567 | |||||||||
Annuity benefits |
1,082,923 | 1,084,962 | 1,304,213 | |||||||||
Surrender benefits |
6,511,118 | 6,208,241 | 4,979,209 | |||||||||
Other benefits |
199,349 | 215,848 | 142,045 | |||||||||
Increase (decrease) in aggregate reserves for policies and contracts: |
||||||||||||
Life |
(201,230 | ) | 51,172 | (236,536 | ) | |||||||
Annuity |
(1,353,277 | ) | (1,017,181 | ) | (4,337,005 | ) | ||||||
Accident and health |
88,562 | 100,880 | 129,917 | |||||||||
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7,794,845 | 8,274,091 | 3,495,613 | ||||||||||
Insurance expenses: |
||||||||||||
Commissions |
1,132,581 | 1,440,391 | 1,315,400 | |||||||||
General insurance expenses |
687,102 | 764,037 | 636,705 | |||||||||
Taxes, licenses and fees |
83,034 | 72,666 | 102,602 | |||||||||
Net transfers to separate accounts |
4,359,684 | 1,664,131 | 2,009,163 | |||||||||
Change in case level liability |
(2,434 | ) | (5,821 | ) | (525 | ) | ||||||
Consideration paid on reinsurance transactions |
352,463 | | 3,476,743 | |||||||||
Other expenses |
383,708 | 722,360 | 400,113 | |||||||||
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6,996,138 | 4,657,764 | 7,940,201 | ||||||||||
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Total benefits and expenses |
14,790,983 | 12,931,855 | 11,435,814 | |||||||||
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Gain (loss) from operations before dividends to policyholders, federal income tax benefit and net realized capital gains (losses) on investments |
$ | (3,048,223 | ) | $ | 214,363 | $ | 600,164 |
5
Transamerica Life Insurance Company
Statements of OperationsStatutory Basis (continued)
(Dollars in Thousands)
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Dividends to policyholders |
$ | 9,496 | $ | 10,074 | $ | 11,010 | ||||||
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Gain (loss) from operations before federal income tax benefit and net realized capital gains (losses) on investments |
(3,057,719 | ) | 204,289 | 589,154 | ||||||||
Federal income tax benefit |
(174,917 | ) | (270,228 | ) | (104,942 | ) | ||||||
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Gain (loss) from operations before net realized capital gains (losses) on investments |
(2,882,802 | ) | 474,517 | 694,096 | ||||||||
Net realized capital gains (losses) on investments (net of related federal income taxes and amounts transferred to/from interest maintenance reserve) |
423,536 | (56,838 | ) | (700,521 | ) | |||||||
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Net income (loss) |
$ | (2,459,266 | ) | $ | 417,679 | $ | (6,425 | ) | ||||
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See accompanying notes.
6
Transamerica Life Insurance Company
Statements of Changes in Capital and SurplusStatutory Basis
(Dollars in Thousands)
Common Stock |
Preferred Stock |
Treasury Stock |
Aggregate Write-ins for Other than Special Surplus Funds |
Participating Shareholders Surplus |
Surplus Notes |
Paid-in Surplus |
Unassigned Surplus |
Total Capital and Surplus |
||||||||||||||||||||||||||||
Balance at January 1, 2009 |
$ | 6,764 | $ | 2,170 | $ | (631,400 | ) | $ | 380,358 | $ | 378 | $ | 150,000 | $ | 3,186,991 | $ | 1,744,873 | $ | 4,840,134 | |||||||||||||||||
Cumulative effect of change in accounting principle |
| | | | | | | (9,707 | ) | (9,707 | ) | |||||||||||||||||||||||||
Net loss |
| | | | | | | (6,425 | ) | (6,425 | ) | |||||||||||||||||||||||||
Change in net unrealized capital gains/losses, net of tax |
| | | | | | | (381,912 | ) | (381,912 | ) | |||||||||||||||||||||||||
Change in net unrealized foreign exchange gains/losses, net of tax |
| | | | | | | 11,139 | 11,139 | |||||||||||||||||||||||||||
Change in net deferred income tax asset |
| | | | | | | (169,940 | ) | (169,940 | ) | |||||||||||||||||||||||||
Change in other nonadmitted assets |
| | | | | | | (170,812 | ) | (170,812 | ) | |||||||||||||||||||||||||
Change in provision for reinsurance in unauthorized companies |
| | | | | | | 34,966 | 34,966 | |||||||||||||||||||||||||||
Change in reserve on account of change in valuation basis |
| | | | | | | (31,058 | ) | (31,058 | ) | |||||||||||||||||||||||||
Change in asset valuation reserve |
| | | | | | | 398,394 | 398,394 | |||||||||||||||||||||||||||
Change in surplus in separate accounts |
| | | | | | | 13,315 | 13,315 | |||||||||||||||||||||||||||
Change in surplus as a result of reinsurance |
| | | | | | | 71,455 | 71,455 | |||||||||||||||||||||||||||
Decrease in admitted deferred tax attributable to expiration of permitted practice |
| | | (380,358 | ) | | | | | (380,358 | ) | |||||||||||||||||||||||||
Increase in admitted deferred tax asset to SSAP No. 10R |
| | | 295,260 | | | | | 295,260 | |||||||||||||||||||||||||||
Corrections of errors |
| (573 | ) | 573,400 | | | | (572,827 | ) | (898 | ) | (898 | ) | |||||||||||||||||||||||
Dividends to stockholders |
| | | | | | | (10,031 | ) | (10,031 | ) | |||||||||||||||||||||||||
Return of capital related to stock rights plan of indirect parent |
| | | | | | (214 | ) | | (214 | ) | |||||||||||||||||||||||||
Dissolution of affiliate into the Company |
| | | | | | | 23,938 | 23,938 | |||||||||||||||||||||||||||
Capital contribution |
| | | | | | 500,000 | | 500,000 | |||||||||||||||||||||||||||
Redemption of participating common stock |
(2 | ) | | | | (417 | ) | | (2 | ) | | (421 | ) | |||||||||||||||||||||||
Participating shareholder activity |
| | | | 39 | | | (39 | ) | | ||||||||||||||||||||||||||
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Balance at December 31, 2009 |
$ | 6,762 | $ | 1,597 | $ | (58,000 | ) | $ | 295,260 | $ | | $ | 150,000 | $ | 3,113,948 | $ | 1,517,258 | $ | 5,026,825 | |||||||||||||||||
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7
Transamerica Life Insurance Company
Statements of Changes in Capital and SurplusStatutory Basis (continued)
(Dollars in Thousands)
Common Stock |
Preferred Stock |
Treasury Stock |
Aggregate Write-ins for Other than Special Surplus Funds |
Surplus Notes |
Paid-in Surplus |
Unassigned Surplus |
Total Capital and Surplus |
|||||||||||||||||||||||||
Balance at December 31, 2009 |
$ | 6,762 | $ | 1,597 | $ | (58,000 | ) | $ | 295,260 | $ | 150,000 | $ | 3,113,948 | $ | 1,517,258 | $ | 5,026,825 | |||||||||||||||
Cumulative effect of change in accounting principle |
| | | | | | 6,403 | 6,403 | ||||||||||||||||||||||||
Net income |
| | | | | | 417,679 | 417,679 | ||||||||||||||||||||||||
Change in net unrealized capital gains/losses, net of tax |
| | | | | | 153,857 | 153,857 | ||||||||||||||||||||||||
Change in net unrealized foreign exchange gains/losses, net of tax |
| | | | | | 7,912 | 7,912 | ||||||||||||||||||||||||
Change in net deferred income tax asset |
| | | | | | (207,877 | ) | (207,877 | ) | ||||||||||||||||||||||
Change in other nonadmitted assets |
| | | | | | 109,110 | 109,110 | ||||||||||||||||||||||||
Change in provision for reinsurance in unauthorized companies |
| | | | | | 4,914 | 4,914 | ||||||||||||||||||||||||
Change in reserve on account of change in valuation basis |
| | | | | | 119 | 119 | ||||||||||||||||||||||||
Change in asset valuation reserve |
| | | | | | (27,316 | ) | (27,316 | ) | ||||||||||||||||||||||
Change in surplus in separate accounts |
| | | | | | 10,366 | 10,366 | ||||||||||||||||||||||||
Long-term incentive compensation |
| | | | | 3,205 | | 3,205 | ||||||||||||||||||||||||
Change in surplus as a result of reinsurance |
| | | | | | (64,348 | ) | (64,348 | ) | ||||||||||||||||||||||
Increase in admitted deferred tax asset to SSAP No. 10R |
| | | 259,663 | | | | 259,663 | ||||||||||||||||||||||||
Dividends to stockholders |
| | | | | | (1,400,000 | ) | (1,400,000 | ) | ||||||||||||||||||||||
Change in deferred premium due to valuation adjustment |
| | | | | | (2,388 | ) | (2,388 | ) | ||||||||||||||||||||||
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Balance at December 31, 2010 |
$ | 6,762 | $ | 1,597 | $ | (58,000 | ) | $ | 554,923 | $ | 150,000 | $ | 3,117,153 | $ | 525,689 | $ | 4,298,124 | |||||||||||||||
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8
Transamerica Life Insurance Company
Statements of Changes in Capital and SurplusStatutory Basis (continued)
(Dollars in Thousands)
Common Stock |
Preferred Stock |
Treasury Stock |
Aggregate Write-ins for Other than Special Surplus Funds |
Surplus Notes |
Paid-in Surplus |
Unassigned Surplus |
Total Capital and Surplus |
|||||||||||||||||||||||||
Balance at December 31, 2010 |
$ | 6,762 | $ | 1,597 | $ | (58,000 | ) | $ | 554,923 | $ | 150,000 | $ | 3,117,153 | $ | 525,689 | 4,298,124 | ||||||||||||||||
Net loss |
| | | | | | (2,459,266 | ) | (2,459,266 | ) | ||||||||||||||||||||||
Change in net unrealized capital gains/losses, net of tax |
| | | | | | 583,550 | 583,550 | ||||||||||||||||||||||||
Change in net unrealized foreign exchange capital gains/losses, net of tax |
| | | | | | (6,120 | ) | (6,120 | ) | ||||||||||||||||||||||
Change in net deferred income tax asset |
| | | | | | 136,907 | 136,907 | ||||||||||||||||||||||||
Change in other nonadmitted assets |
| | | | | | (2,392 | ) | (2,392 | ) | ||||||||||||||||||||||
Change in provision for reinsurance in unauthorized companies |
| | | | | | (2,546 | ) | (2,546 | ) | ||||||||||||||||||||||
Change in asset valuation reserve |
| | | | | | 16,524 | 16,524 | ||||||||||||||||||||||||
Change in surplus in separate accounts |
| | | | | | (2,863 | ) | (2,863 | ) | ||||||||||||||||||||||
Change in surplus as a result of reinsurance |
| | | | | | 2,474,106 | 2,474,106 | ||||||||||||||||||||||||
Change in admitted deferred tax asset pursuant to SSAP No. 10R |
| | | (122,355 | ) | | | | (122,355 | ) | ||||||||||||||||||||||
Capital contribution |
| | | | | 200,000 | | 200,000 | ||||||||||||||||||||||||
Dissolution of NEF Investment Company |
| | | | | | (1,185 | ) | (1,185 | ) | ||||||||||||||||||||||
Long-term incentive compensation |
| | | | | 9,158 | | 9,158 | ||||||||||||||||||||||||
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Balance at December 31, 2011 |
$ | 6,762 | $ | 1,597 | $ | (58,000 | ) | $ | 432,568 | $ | 150,000 | $ | 3,326,311 | $ | 1,262,404 | $ | 5,121,642 | |||||||||||||||
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See accompanying notes.
9
Transamerica Life Insurance Company
Statements of Cash FlowStatutory Basis
(Dollars in Thousands)
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Operating activities |
||||||||||||
Premiums collected, net of reinsurance |
$ | 9,977,873 | $ | 9,222,197 | $ | 7,981,888 | ||||||
Net investment income received |
2,807,544 | 2,985,106 | 3,266,446 | |||||||||
Miscellaneous income (expense) |
1,162,966 | 569,910 | (127,792 | ) | ||||||||
Benefit and loss related payments |
(9,577,187 | ) | (9,022,576 | ) | (8,847,466 | ) | ||||||
Net transfers to separate accounts |
(4,563,220 | ) | (1,709,930 | ) | (1,776,576 | ) | ||||||
Commissions, expenses paid and aggregate write-ins for deductions |
(332,606 | ) | (2,756,812 | ) | (5,957,821 | ) | ||||||
Dividends paid to policyholders |
(9,884 | ) | (10,559 | ) | (11,386 | ) | ||||||
Federal and foreign income taxes recovered (paid) |
92,471 | (113,355 | ) | 391,699 | ||||||||
|
|
|
|
|
|
|||||||
Net cash used in operating activities |
(442,043 | ) | (836,019 | ) | (5,081,008 | ) | ||||||
Investing activities |
||||||||||||
Proceeds from investments sold, matured or repaid: |
||||||||||||
Bonds |
16,891,112 | 24,609,623 | 16,975,896 | |||||||||
Common stocks |
168,476 | 167,903 | 141,360 | |||||||||
Preferred stocks |
63,880 | 143,250 | 100,705 | |||||||||
Mortgage loans |
1,466,463 | 1,270,379 | 1,682,140 | |||||||||
Real estate and properties held for sale |
26,978 | 1,316 | 24,100 | |||||||||
Other invested assets |
528,027 | 693,425 | 560,339 | |||||||||
Receivable for securities |
13,693 | (66,950 | ) | 78,827 | ||||||||
Securities lending reinvested collateral assets |
436,576 | | | |||||||||
Miscellaneous proceeds |
321,467 | 112,803 | 266,646 | |||||||||
|
|
|
|
|
|
|||||||
Total investment proceeds |
19,916,672 | 26,931,749 | 19,830,013 | |||||||||
Costs of investments acquired: |
||||||||||||
Bonds |
(9,541,749 | ) | (23,107,917 | ) | (11,629,415 | ) | ||||||
Common stocks |
(292,401 | ) | (96,764 | ) | (92,767 | ) | ||||||
Preferred stocks |
(60,610 | ) | (112,885 | ) | (115,980 | ) | ||||||
Mortgage loans |
(191,262 | ) | (38,062 | ) | (231,832 | ) | ||||||
Real estate and properties held for sale |
(1,343 | ) | (350 | ) | (1,100 | ) | ||||||
Securities lending reinvested collateral assets |
| (3,956,880 | ) | | ||||||||
Other invested assets |
(382,939 | ) | (480,709 | ) | (296,564 | ) | ||||||
Miscellaneous applications |
(2,145 | ) | (227,105 | ) | (451,760 | ) | ||||||
|
|
|
|
|
|
|||||||
Total cost of investments acquired |
(10,472,449 | ) | (28,020,672 | ) | (12,819,418 | ) | ||||||
Net decrease (increase) in policy loans |
18,994 | 13,279 | (27,369 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net cost of investments acquired |
(10,453,455 | ) | (28,007,393 | ) | (12,846,787 | ) | ||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investing activities |
9,463,217 | (1,075,644 | ) | 6,983,226 |
10
Transamerica Life Insurance Company
Statements of Cash FlowStatutory Basis (continued)
(Dollars in Thousands)
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Financing and miscellaneous activities |
||||||||||||
Net withdrawals on deposit-type contract funds and other liabilities without life or disability contingencies |
$ | (1,726,008 | ) | $ | (1,839,672 | ) | $ | (5,137,903 | ) | |||
Funds held under reinsurance treaties with unauthorized reinsurers |
(5,531,199 | ) | (892,010 | ) | 1,942,945 | |||||||
Dividends paid to stockholders |
| (1,400,000 | ) | (10,031 | ) | |||||||
Redemption of participating shareholders |
| | (421 | ) | ||||||||
Capital contribution received |
200,000 | | 500,000 | |||||||||
Receivable from parent, subsidiaries and affiliates |
94,676 | (61,088 | ) | 29,728 | ||||||||
Payable to parent, subsidiaries and affiliates |
(233,864 | ) | 206,555 | 25,557 | ||||||||
Payable for securities lending |
(436,576 | ) | 3,956,880 | | ||||||||
Other cash provided (used) |
155,168 | (398,230 | ) | 1,301,648 | ||||||||
|
|
|
|
|
|
|||||||
Net cash used in financing and miscellaneous activities |
(7,477,803 | ) | (427,565 | ) | (1,348,477 | ) | ||||||
|
|
|
|
|
|
|||||||
Net increase (decrease) in cash, cash equivalents and short-term investments |
1,543,371 | (2,339,228 | ) | 553,741 | ||||||||
Cash, cash equivalents and short-term investments: |
||||||||||||
Beginning of year |
1,573,081 | 3,912,309 | 3,358,568 | |||||||||
|
|
|
|
|
|
|||||||
End of year |
$ | 3,116,452 | $ | 1,573,081 | $ | 3,912,309 | ||||||
|
|
|
|
|
|
See accompanying notes.
11
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2011
1. Organization and Summary of Significant Accounting Policies
Transamerica Life Insurance Company (the Company) is a stock life insurance company owned by Transamerica Corporation (74.01% of preferred shares), AEGON USA, LLC (25.99% of preferred shares) and Transamerica International Holdings, Inc. (100% of common shares).
On October 1, 2009, the Company completed a merger with Iowa Fidelity Life Insurance Company (IFLIC), which was wholly owned by AEGON. Prior to the merger, IFLIC was partially owned by external shareholders holding 1,500 shares of participating common stock. All shares of participating common stock were redeemed prior to the merger in exchange for cash in the amount of $421. The merger was accounted for in accordance with Statement of Statutory Accounting Principles (SSAP) No. 68, Business Combinations and Goodwill, as a statutory merger. As such, financial statements for periods prior to the merger were combined and the recorded assets, liabilities and surplus of IFLIC were carried forward to the merged company. As a result of the merger, IFLICs common stock was deemed cancelled by operation of law and the outstanding common shares of IFLIC, on the date of the merger, were retired and considered authorized but unissued stock of the merged entity.
In exchange for its agreement to merge IFLIC into the Company, AEGON received 149 shares of the Companys Series B preferred shares which are equal in value to the common stock of IFLIC deemed cancelled by the merger.
Nature of Business
The Company sells individual non-participating whole life, endowment and term contracts, structured settlements, pension products and reinsurance, as well as a broad line of single fixed and flexible premium annuity products, guaranteed interest contracts and funding agreements. In addition, the Company offers group life, universal life, credit life, and individual and specialty health coverages. The Company is licensed in 49 states and the District of Columbia, Guam, Puerto Rico and US Virgin Islands. Sales of the Companys products are primarily through a network of agents, brokers and financial institutions.
Basis of Presentation
The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements
12
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:
Investments: Investments in bonds and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on their National Association of Insurance Commissioners (NAIC) rating; for GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale. Fair value for GAAP is based on indexes, third party pricing services, brokers, external fund managers and internal models. For statutory reporting, the NAIC allows insurance companies to report the fair value determined by the Securities Valuation Office of the NAIC (SVO) or determine the fair value by using a permitted valuation method.
All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.
If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.
13
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount representing the credit loss, which is recognized in earnings, and b) the amount related to all other factors, which is recognized in OCI, net of applicable taxes.
Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability. Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.
Derivative instruments are also used in replication transactions. In these transactions, the derivative is valued in a manner consistent with the cash investment and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.
Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Companys 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.
14
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
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 loans effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.
The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.
Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. That net deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the statement of operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.
The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.
Subsidiaries: The accounts and operations of the Companys subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.
Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance and certain long duration accident and health insurance, to the extent recoverable from future policy revenues, would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.
15
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Separate Accounts with Guarantees: Some of the Companys separate accounts provide policyholders with a guaranteed return. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. These separate accounts are included in the general account for GAAP due to the nature of the guaranteed return.
Nonadmitted Assets: Certain assets designated as nonadmitted, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual (NAIC SAP), are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet to the extent that they are not impaired.
Universal Life and Annuity Policies: Revenues for universal life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Premiums received and benefits incurred for annuity policies without mortality or morbidity risk and guaranteed interest in group annuity contracts are recorded directly to a policy reserve account using deposit accounting, without recognizing premium income or benefits expense. Interest on these policies is reflected in other benefits. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability.
Benefit Reserves: Certain policy reserves are calculated based on statutorily required interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.
Reinsurance: Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.
16
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.
Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.
Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.
Deferred Income Taxes: The Company computes deferred income taxes in accordance with SSAP No. 10R, Income Taxes Revised, A Temporary Replacement of SSAP No. 10. Under SSAP 10R, deferred income tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the lesser of the remaining gross deferred income tax assets expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any net positive goodwill, plus 3) the amount of remaining gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities after considering the character (i.e., ordinary versus capital) of the deferred tax assets and liabilities. The remaining deferred income tax assets are nonadmitted.
Deferred income taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in all future years, and a valuation allowance is established for deferred income tax assets not realizable.
Goodwill: Goodwill is admitted subject to an aggregate limitation of ten percent of the capital and surplus in the most recently filed annual statement excluding electronic data processing equipment, operating system software, net deferred income tax assets and net positive goodwill. Excess goodwill is nonadmitted. Goodwill is amortized over ten years. Under GAAP, goodwill is measured as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date as compared to the fair values of the identifiable net assets acquired. Goodwill is not amortized but is assessed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred.
17
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.
Surplus Notes: Surplus notes are reported as surplus rather than as liabilities as would be required under GAAP.
Statements of Cash Flow: Cash, cash equivalents and short-term investments in the statements of cash flow represent cash balances and investments with initial maturities of one year or less. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.
Securities Lending Assets and Liabilities: For securities lending programs, cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Collateral received which may not be sold or repledged is not recorded on the Companys balance sheet. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).
The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material.
Other significant accounting policies are as follows:
Investments
Investments in bonds, except those to which the SVO has ascribed an NAIC designation of 6, are reported at amortized cost using the interest method.
Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuers senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at amortized cost or fair value based upon their NAIC rating.
Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer surveys or internal
18
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.
The Company closely monitors below investment grade holdings and those investment grade issuers where the Company has concerns. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Companys decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Companys ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. For structured securities, cash flow trends and underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are subsequently determined to be other-than-temporarily impaired.
Investments in both affiliated and unaffiliated preferred stocks in good standing are reported at cost or amortized cost. Investments in preferred stocks not in good standing are reported at the lower of cost or fair value, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.
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 unassigned surplus along with any adjustment for federal income taxes.
If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.
19
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Common stocks of affiliated insurance subsidiaries are reported based on underlying statutory equity plus the admitted portion of goodwill. Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries equity is included in the change in net unrealized capital gains or losses, reported in unassigned surplus along with any adjustment for federal income taxes.
The Company is restricted to trading Primus Guaranty, Ltd (Primus) a common stock holding, due to its ownership interest, which would require special securities filings prior to executing any purchase or sale transactions in regard to these securities. The Companys interest in Primus does not meet the definition of an affiliate, and is therefore accounted for as an unaffiliated common stock investment. The carrying amount in Primus, which is carried at fair value, as of December 31, 2011 and 2010 was $27,673 and $28,657, respectively.
Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.
Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost.
Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines that the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized.
Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate held for the production of income is reported at depreciated cost net of related obligations. Real estate that the Company classifies as held for sale is measured at lower of carrying amount or fair value less cost to sell. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties. The Company recognizes an impairment loss if the Company determines that the carrying amount of the real estate is not recoverable and exceeds its fair value. The Company deems that the carrying amount of the asset is not recoverable if the carrying amount exceeds the sum of undiscounted cash flows expected to result from the use and disposition. The impairment loss is measured as the amount by which the assets carrying value exceeds its fair value.
Policy loans are reported at unpaid principal balances.
20
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Company has minority ownership interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying audited GAAP equity of the investee. For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.
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.
Other admitted assets are valued principally at cost, as required or permitted by Iowa Insurance Laws.
Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.
Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. In addition, accrued interest is excluded from interest income when payment exceeds 90 days past due. At December 31, 2011 and 2010, the Company excluded investment income due and accrued of $562 and $314, respectively, with respect to such practices.
For dollar repurchase agreements, the Company receives cash collateral in an amount at least equal to the fair value of the securities transferred by the Company in the transaction as of the transaction date. Cash received as collateral will be invested as needed or used for general corporate purposes of the Company.
Derivative Instruments
Overview: The Company may use various derivative instruments (options, caps, floors, swaps, foreign currency forwards and futures) to manage risks related to its ongoing
21
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
business operations. On the transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions or net investment in a foreign operation), (B) replication, (C) income generation or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86, Accounting for Derivative Instruments and Hedging Activities (SSAP No. 86).
Derivative instruments used in hedging relationships are accounted for on a basis that is consistent with the hedged item (amortized cost or fair value). Derivative instruments used in replication relationships are accounted for on a basis that is consistent with the cash instrument and the replicated asset (amortized cost or fair value). Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative indicates (amortized cost or fair value). Derivative instruments held for other investment/risk management activities receive fair value accounting.
Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the derivative changes, the value of a corresponding hedged asset or liability will move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.
The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of A or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Companys behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets.
Instruments: Interest rate swaps are the primary derivative financial instruments used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an
22
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
Interest rate basis swaps are used in the overall asset/liability management process to modify the interest rate characteristics of the underlying liability to mitigate the basis risk of assets and liabilities resetting on different indices. These interest rate swaps generally provide for the exchange of the difference between a floating rate on one index to a floating rate of another index, based upon an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged at each due date. Swaps meeting hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
Cross currency swaps are utilized to mitigate risks when the Company holds foreign denominated assets or liabilities therefore converting the asset or liability to a US dollar (USD) denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in unassigned surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus. If a swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment.
Total return swaps are used in the asset/liability management process to mitigate the risk created when the company has issued minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference
23
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
between fixed leg (tied to an equity or interest rate index) and floating leg (tied to LIBOR) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If the swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
Variance swaps are used in the asset/liability management process to mitigate the risk created when the Company has issued minimum guarantee insurance contracts linked to an index. These variance swaps are similar to volatility options where the underlying index provides for the market value movements. Variance swaps do not accrue interest. Typically, no cash is exchanged at the outset of initiating the variance swap, and a single receipt or payment occurs at the maturity or termination of the contract. The variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
Futures contracts are used to hedge the liability risk associated when the Company issues products providing the customer a return based on various global equity market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.
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.
24
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Company invests in domestic corporate debt securities denominated in U.S. dollars. If the issuers of these debt obligations fail to make timely payments, the value of the investment declines materially. The Company manages credit default risk through the purchase of credit default swaps. As the buyer of credit default protection, the Company will pay a premium to an approved counterparty in exchange for a contingent payment should a defined credit event occur with respect to the underlying reference entity or asset. Typically, the periodic premium or fee is expressed in basis points per notional. Generally, the premium payment for default protection is made periodically, although it may be paid as an up-front fee for short dated transactions. Should a credit event occur, the Company may be required to deliver the reference asset to the counterparty for par. Alternatively, settlement may be in cash. These credit default swaps are carried on the balance sheet at amortized cost. Premium payments made by the Company are recognized as investment expense. If the Company is unable to prove hedge effectiveness, the credit default swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds by combining a AAA rated security as a cash component with a credit default swap which, in effect, converts the high quality asset into a lower rated investment grade asset. 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.
The Company replicates hybrid fixed to floating treasuries by combining a U.S. Treasury cash component with a forward starting swap which, in effect converts a fixed U.S. Treasury into hybrid fixed to floating treasury. The purpose of these replications is to aid duration matching between the treasuries and the supported liabilities. Generally these swaps are carried at amortized cost with periodic interest payments beginning at a future date. Any early terminations are recognized as capital gains or losses. The Company complies with the specific rules established in AVR for replication transactions.
The Company holds some credit default swaps linked to a collateralized debt obligation (CDO) structure. The Company entered into these swaps as a result of market events on a liquidity facility it had entered and doesnt intend to enter similar transactions in this current form. Under this transaction the Company receives a fee in exchange for providing credit protection if the underlying CDO structure incurs losses greater than its
25
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
supporting collateral. The fee will be recorded in investment income. These swaps are marked to fair value in the balance sheet and the fair value adjustment is recorded in unassigned surplus.
Separate Accounts
The majority of the 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.
Assets held in trust for purchases of variable universal life and annuity contracts and the Companys 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. The Company received variable contract premiums of $9,381,447, $6,368,599 and $4,279,394 in 2011, 2010 and 2009, respectively. In addition, the Company received $494,516, $380,170 and $376,545 in 2011, 2010 and 2009, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.
Aggregate Reserves for Policies and Contracts
Life, annuity and accident and health benefit reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law.
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.
26
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioners Standard Ordinary Mortality and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 6.00 percent and are computed principally on the Net Level Premium Valuation and the Commissioners Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioners Reserve Valuation Method.
Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioners Reserve Valuation Method for universal life policies and recognizing any substandard ratings.
Deferred annuity reserves are calculated according to the Commissioners Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 2.00 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.
Annuity reserves also include guaranteed investment contracts (GICs) and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications and Definitions of Insurance or Managed Care Contracts In Force. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement options, on a change in fund basis, according to the Commissioners Annuity Reserve Valuation Method.
Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.
Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined primarily by formula.
27
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
During 2010, the Company reported a decrease in reserves on account of changes in valuation bases of $3,642 due to continued conversion from the spreadsheet-based balance roll forward method of valuation of single premium group annuity (SPGA) products to a seriatim valuation. In addition, the Company continued to make enhancements to existing valuation platforms and converted from client based reserves to in-house seriatim calculations during 2010. These changes resulted in an increase in reserves of $3,523. The net change in reserves of $119 due to the conversions has been credited directly to unassigned surplus. Related to this change was a corresponding decrease in the deferred premium asset of $2,388. This amount was also charged directly to unassigned surplus.
During 2009, the Company implemented an improved valuation method for SPGA products. The prior method approximated the reserve using a spreadsheet-based balance roll forward. The current method is a seriatim valuation using a software package capable of making these calculations. The change in valuation process resulted in an increase in reserves in the amount of $3,053. The change in reserves has been charged directly to unassigned surplus.
During 2009, the Company reversed a change in reserve methodology implemented in 2008 pertaining to the change in valuation interest rates from those required under California insurance law to those allowed under Iowa insurance law due to the merger of Transamerica Occidental Life Insurance Company (TOLIC) into TLIC, effective October 1, 2008. The Company changed back to valuation interest rates required under California insurance law during 2009 to meet the minimum aggregate reserve requirement for California and to preserve consistency in valuation rates and methods used for TOLICs California issued policies. This change in valuation process resulted in an increase in reserves in the amount of $28,005 which has been charged directly to unassigned surplus.
Policy and Contract Claim Reserves
Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the balance sheet date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.
Liability for Deposit-Type Contracts
Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include GICs, funding agreements and other
28
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums, benefits or changes in reserves in the statement of operations.
The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.
Municipal Reverse Repurchase Agreements
Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest on the contract.
These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.
Premiums and Annuity Considerations
Revenues for policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Consideration received and benefits paid for annuity policies without mortality or morbidity risk are recorded using deposit accounting and recorded directly to an appropriate policy reserve account, without recognizing premium revenue.
Claims and Claim Adjustment Expense
Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2011 and 2010 was $26,608 and $25,247, respectively.
The Company incurred $10,918 and paid $9,557 of claim adjustment expenses during 2011, of which $6,748 of the paid amount was attributable to insured or covered events
29
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
of prior years. The Company incurred $12,350 and paid $10,131 of claim adjustment expenses during 2010, of which $6,838 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the provision for insured events of prior years during 2011 or 2010.
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.
Stock Option Plan, Long-Term Incentive Compensation and Stock Appreciation Rights Plans
The Companys employees participate in various stock appreciation rights (SAR) plans issued by the Companys indirect parent. In accordance with SSAP No. 13, Stock Options and Stock Purchase Plans, the expense related to these plans for the Companys employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. No benefit or expense relating to these plans was recorded by the Company for the year ended December 31, 2011 and 2010. The Company recorded a benefit of $214 for the year ended December 31, 2009. In addition, the Company records an adjustment to paid-in surplus for the income tax benefit related to these plans. The Company did not record an adjustment to paid-in surplus for the income tax effect related to these plans for the years ended December 31, 2011, 2010 or 2009.
Certain management employees of the Company participate in a stock-based long-term incentive compensation plan issued by the Companys indirect parent. In accordance with SSAP No. 13, the expense or benefit related to this plan for the Companys management employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. The Company recorded an accrued expense in the amount of $9,158 and $3,205 for the years ended December 31, 2011 and 2010, respectively. The Company did not record an accrued expense related to stock-based long-term incentive compensation for the year ended December 31, 2009.
30
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Recent Accounting Pronouncements
Effective December 31, 2011, the Company adopted SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets Revised. The revisions require the Company to recognize a liability equal to the greater of (a) the fair value of the guarantee at its inception, even if the likelihood of payment under the guarantee is remote or (b) the contingent liability amount required to be recognized if it is probable that a liability has been incurred at the financial statement date and the amount of loss can reasonably be determined. While this guidance does not exclude guarantees issued as intercompany transactions or between related parties from the initial liability recognition requirement, there are a couple exceptions. Guarantees made to/or on behalf of a wholly-owned subsidiary and related party guarantees that are considered unlimited (for example, in response to a rating agencys requirement to provide a commitment to support) are exempt from the initial liability recognition. Additional disclosures are also required under this new guidance for all guarantees, whether or not they meet the criteria for initial liability recognition. The adoption of this new accounting principle had no material impact to the Companys results of operations or financial position, but did require additional disclosures regarding these guarantees. See Note 13 on Commitments and Contingencies for further details.
Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100, Fair Value Measurements, to incorporate the provisions of ASU 2010-06, Improving Disclosures about Fair Value Measurements. This revision requires, for annual statutory financial statements only, a new disclosure for assets and liabilities for which fair value is not measured and reported in the statement of financial position but is otherwise disclosed. The adoption of these revisions had no impact to the Companys results of operations or financial position. See Note 4 for further details.
Effective January 1, 2012, the Company will adopt revisions to SSAP No. 100. These revisions require new disclosures of fair value hierarchy and the method used to obtain the fair value measurement, a new footnote that summarizes hierarchy levels by type of financial instrument, and gross presentation of purchases, sales, issues and settlements within the reconciliation for fair value measurements categorized within Level 3 of the hierarchy.
Effective December 31, 2011, the Company adopted non-substantive changes to SSAP No. 32, Investments in Preferred Stock (including investments in preferred stock of subsidiary, controlled, or affiliated entities). The amendment was made to clarify the definition of preferred stock. Under the revised SSAP No. 32, a preferred stock is defined as any class or series of shares the holders of which have any preference, either as to the payment of dividends or distribution of assets on liquidation, over the holder of
31
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
common stock [as defined in SSAP No. 30, Investments in Common Stock (excluding investments in common stock of subsidiary, controlled, or affiliated entities)] issued by an entity. This revised definition had no impact to the Company.
Effective January 1, 2011, the Company adopted SSAP No. 35R, Guaranty Fund and Other Assessments Revised. This statement modified the conditions required for recognizing a liability for insurance-related assessments and required additional disclosures. See Note 13 for disclosures related to guaranty fund assessments. The adoption of this accounting principle had no financial impact to the Company.
Effective January 1, 2011, the Company adopted revisions to certain paragraphs of SSAP No. 43R Loan-backed and Structured Securities to clarify the accounting for gains and losses between AVR and IMR. The revisions clarify that an AVR/IMR bifurcation analysis should be preformed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes were applied on a prospective basis and had no financial impact to the Company upon adoption.
Effective January 1, 2011, the Company adopted revisions to SSAP No. 43R to clarify the definitions of loan-backed and structured securities. The clarified guidance was applied prospectively and had no financial impact to the Company upon adoption.
Effective January 1, 2012, the Company will begin computing current and deferred income taxes in accordance with SSAP No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10, Income Taxes. This statement establishes statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The effect of this statement is not expected to be material to the financial statements.
Effective December 31, 2010, the Company adopted modifications made to SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. As a result of these modifications, for securities lending programs, collateral received by the Companys agent that can be sold or re-pledged is reported on the balance sheet. Collateral received and reinvestment of that collateral by the Company are reflected as a one-line entry on the balance sheet (securities lending reinvested collateral assets). A separate liability is also established to record the obligation to return the cash collateral (payable for securities lending). This change in accounting principle increased assets and liabilities by $3,956,880 with no impact to surplus. See Note 10 for further details.
In addition, the amendments to SSAP No. 91R resulted in cash collateral received from counterparties to derivatives contracts also being reported on the Companys balance
32
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
sheet in the respective asset class in which the cash was reinvested (short-term investments and bonds). A separate liability was established to record the obligation to return the cash collateral (Payable for derivative cash collateral). These balances were recorded on the Companys balance sheet effective January 1, 2010 and resulted in an increase to assets of $220,439, an increase to liabilities of $215,069 and a net increase to surplus of $5,370. The net increase to surplus is comprised of $6,403 of accumulated earnings offset by unrealized losses associated with securities that were reported at lower of cost or market at the time of adoption of $1,033.
Effective December 31, 2010, the Company adopted SSAP No. 100, including recent modifications and clarifications made to the standard. This statement defines fair value, establishes a framework for measuring fair value and establishes disclosure requirements about fair value, and it applies under other statutory accounting pronouncements that require or permit fair value measurements. The adoption of this new accounting principle had no impact to the Companys results of operations or financial position. See Note 4 for further details.
Effective December 31, 2009, the Company began computing deferred income taxes in accordance with SSAP No. 10R. This statement establishes statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. This statement temporarily replaces SSAP No. 10. Under SSAP No. 10R, gross deferred tax assets (DTAs) shall be admitted in an amount equal to the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year and the lesser of the amount of adjusted gross DTAs, expected to be realized within one year of the balance sheet date or 10% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating system software and any net positive goodwill that can be offset against existing gross deferred income tax liabilities (DTLs) after considering the character. If the Companys risk-based capital level (RBC) is above 250% where an action level could occur as a result of a trend test, the Company may elect to admit a higher amount of adjusted gross DTAs. When elected, additional DTAs are admitted for taxes paid in prior years that can be recovered through loss carryback provisions for existing temporary differences that reverse within three years of the balance sheet date and the lesser of the remaining gross DTAs expected to be realized within three years of the balance sheet date or 15% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any positive net goodwill plus the amount of remaining gross DTAs that can be offset against DTLs after considering the character (i.e., ordinary versus capital) of the DTAs and DTLs. The effect of the election of this statement is the difference between the calculation of the admitted DTA per SSAP No. 10R and the SSAP No. 10 methodology at December 31, 2011, 2010 and 2009. As a result of this election,
33
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
surplus increased by $432,568, $554,923 and $295,260 at December 31, 2011, 2010 and 2009, respectively, which has been reflected as an aggregate write-in for other than special surplus funds on the 2011 financial statements.
Reclassifications
Certain reclassifications have been made to the 2010 and 2009 financial statements to conform to the 2011 presentation.
2. Prescribed and Permitted Statutory Accounting Practices
The financial statements of the Company are presented on the basis of accounting principles prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. The Insurance Division, Department of Commerce, of the State of Iowa recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Iowa Insurance Law.
The State of Iowa has adopted a prescribed practice that differs from that found in the NAIC SAP related to the admission of a parental guarantee in the equity value calculation of TLIC Riverwood Reinsurance, Inc. (TRRI), a wholly owned subsidiary of the Company. As prescribed by Iowa Administrative Code 191-99.11(5), the Company is entitled to value its ownership in TRRI at a value equal to the audited statutory surplus of TRRI, which includes the parental guarantee provided by AEGON USA, LLC as an admissible asset, whereas SSAP No. 97 Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 88 would not allow the admissibility of such an asset.
The NAIC SAP has been adopted as a component of prescribed or permitted practices by the State of Iowa. The State of Iowa has adopted a prescribed accounting practice that differs from that found in the NAIC SAP related to reserve credits and secondary guarantee reinsurance treaties. As prescribed by Iowa Administrative Code 191-17.3(2), the Commissioner found that the Company is entitled to take reserve credit for such a reinsurance contract in the amount equal to the portion of total reserves attributable to the secondary guarantee, whereas this type of reinsurance does not meet the specific requirements of SSAP No. 61, Life, Deposit-Type and Accident and Health Reinsurance and Appendix A-791 of the NAIC SAP.
The Company, with the permission of the Commissioner of Insurance of the State of Iowa, records the value of its wholly owned foreign life insurance subsidiary,
34
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Transamerica Life (Bermuda), Ltd. (TLB), based upon audited statutory equity rather than audited foreign statutory equity, utilizing adjustments as outlined in SSAP No. 97.
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 Companys 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 Companys income or surplus as a result of utilizing this prescribed practice.
A reconciliation of the Companys net income and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:
2011 | 2010 | 2009 | ||||||||||
Net income (loss), State of Iowa basis |
$ | (2,459,266 | ) | $ | 417,679 | $ | (6,425 | ) | ||||
State prescribed practice for parental guarantee |
| | | |||||||||
State prescribed practice for secondary guarantee reinsurance |
| | | |||||||||
State permitted practice for valuation of wholly-owned foreign life subsidiary |
| | | |||||||||
|
|
|
|
|
|
|||||||
Net income (loss), NAIC SAP |
$ | (2,459,266 | ) | $ | 417,679 | $ | (6,425 | ) | ||||
|
|
|
|
|
|
|||||||
Statutory surplus, State of Iowa basis |
$ | 5,121,642 | $ | 4,298,124 | $ | 5,026,825 | ||||||
State prescribed practice for parental guarantee |
(675,044 | ) | | | ||||||||
State prescribed practice for secondary guarantee reinsurance |
(3,149,987 | ) | (2,926,627 | ) | (2,593,154 | ) | ||||||
State permitted practice for valuation of wholly-owned foreign life subsidiary |
19,129 | 19,656 | (20,745 | ) | ||||||||
|
|
|
|
|
|
|||||||
Statutory surplus, NAIC SAP |
$ | 1,315,740 | $ | 1,391,153 | $ | 2,412,926 | ||||||
|
|
|
|
|
|
The Company entered into a retrocession reinsurance contract and subsequent novation agreements with respect to each of the unaffiliated retroceded reinsurance contracts. The retrocession reinsurance contract transferred the Companys liabilities to SCOR SE (SCOR), a Societas Europaea organized under the laws of France, and subsequently
35
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
facilitated the ultimate novation of third party retrocession reinsurance contracts in support of the exiting of the reinsurance operations. No additional net consideration was contemplated upon execution of the novation agreements. Therefore, the Company had the same net retained risk of zero both prior to and subsequent to the execution of the novations.
SSAP No. 61 defines novation agreements as one which extinguishes one entitys liability and moves it to another entity, which is applicable under this situation. The retrocession agreement had all references to the Company removed and replaced with SCOR upon completion of the novations. SSAP No. 61 does not specifically address novation and releases related to retrocession agreements, however as both cedents and retrocessionaires in this situation are a party to the agreement. Therefore, the intent of the novation and release is consistent with the application for direct, cedents application of the standard; thus, the Company reported the novation and release similar to a novation, as outlined in paragraphs 53-56 of SSAP No. 61, with direct adjustments to the balance sheet.
3. Accounting Changes and Correction of Errors
During 2009, the Company corrected the financial statement presentation of the preferred treasury stock. On December 19, 2007, the Company repurchased 57,340 shares of its Series B preferred shares for $573,400. The par value of the Series B preferred shares is $10 per share and the liquidation value is also $10 per share. At December 31, 2007, the financial statement of the Company appropriately presented the $573,400 as preferred treasury stock. Due to the merger of Life Investors Insurance Company of America (LIICA) and TOLIC into the Company on October 2, and October 1, 2008, respectively, Transamerica Corporation (TA Corp) was issued 86,590 shares of Series B preferred stock. Rather than reflecting the Series B preferred stock issued as first a reduction of treasury stock, with the remaining shares issued to TA Corp presented as additional shares issued and outstanding, the Company incorrectly presented the entire amount of the 86,590 shares issued to TA Corp as newly issued and outstanding shares. During 2009, the Company corrected the presentation of the Series B preferred shares, which resulted in a reduction of $573,400 to treasury stock and a reduction in the preferred capital stock line of $573, with an offset to gross paid-in capital. There was no net surplus impact to the Company due to this correction.
4. Fair Values of Financial Instruments
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
36
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Cash, Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair values.
Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.
For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from independent pricing services, or, in the case of private placements, estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.
Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.
Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.
Policy Loans: The fair value of policy loans is assumed to equal their carrying amount.
Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash, Cash Equivalents and Short-Term Investments and Bonds and Stocks.
Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance companies and fixed or variable rate investments with underlying characteristics of bonds were determined primarily by using indexes, third party pricing services and internal models.
Derivative Financial Instruments: The estimated fair values of interest rate caps and options are based upon the latest quoted market price at the balance sheet date. The estimated fair values of swaps, including interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of
37
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
credit default swaps are based upon the pricing differential as of the balance sheet date for similar swap agreements.
Investment Contract Liabilities: Fair values for the Companys liabilities under investment contracts, which include GICs and funding agreements, are estimated using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.
Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate their fair values.
Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices. The fair value of separate account annuity liabilities approximate the fair value of the separate account assets less a provision for the present value of future profits related to the underlying contracts.
Surplus Notes: Fair values for surplus notes are estimated using a discounted cash flow analysis based on the Companys current incremental borrowing rate for similar types of borrowing arrangements.
Receivable From/Payable to Parents, Subsidiaries and Affiliates: The carrying amount of receivable from/payable to affiliates approximates their fair value.
Fair values for the Companys 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 Companys overall management of interest rate risk, such that the Companys exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.
38
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The following sets forth a comparison of the fair values and carrying amounts of the Companys financial instruments:
December 31 | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Carrying Amount |
Estimated Fair Value |
Carrying Amount |
Estimated Fair Value |
|||||||||||||
Admitted assets |
||||||||||||||||
Cash, cash equivalents and short-term investments, other than affiliates |
$ | 2,931,352 | $ | 2,931,352 | $ | 1,303,081 | $ | 1,303,081 | ||||||||
Short-term notes receivable from affiliates |
185,100 | 185,100 | 270,000 | 270,000 | ||||||||||||
Bonds, other than affiliates |
39,722,288 | 41,859,958 | 46,921,343 | 46,976,603 | ||||||||||||
Preferred stocks, other than affiliates |
138,596 | 149,539 | 123,925 | 121,878 | ||||||||||||
Common stocks, other than affiliates |
229,973 | 229,973 | 358,631 | 358,631 | ||||||||||||
Mortgage loans on real estate, other than affiliates |
6,758,752 | 7,294,113 | 8,027,115 | 8,325,341 | ||||||||||||
Other invested assets |
159,011 | 165,273 | 181,095 | 177,761 | ||||||||||||
Options |
| | 1,462 | 1,462 | ||||||||||||
Interest rate swaps |
233,642 | 1,950,058 | 93,428 | 738,394 | ||||||||||||
Currency swaps |
8,239 | 59,431 | 7,425 | 75,889 | ||||||||||||
Credit default swaps |
6,603 | 5,389 | 4,687 | 6,402 | ||||||||||||
Foreign currency forward |
| | 123 | 123 | ||||||||||||
Policy loans |
727,684 | 727,684 | 746,677 | 746,677 | ||||||||||||
Securities lending reinvested collateral |
3,520,304 | 3,517,849 | 3,956,880 | 3,954,149 | ||||||||||||
Receivable from parent, subsidiaries and affiliates |
154,163 | 154,163 | 248,839 | 248,839 | ||||||||||||
Separate account assets |
41,473,473 | 41,473,473 | 38,370,952 | 38,370,952 | ||||||||||||
Liabilities |
||||||||||||||||
Investment contract liabilities |
16,415,861 | 17,090,179 | 19,741,412 | 20,176,069 | ||||||||||||
Options |
| | 462 | 462 | ||||||||||||
Interest rate swaps |
46,960 | 456,325 | 90,380 | 406,262 | ||||||||||||
Currency swaps |
40,536 | 75,759 | 118,187 | 138,305 | ||||||||||||
Credit default swaps |
19,739 | 27,931 | 11,988 | 10,000 | ||||||||||||
Foreign currency forward |
| | 154 | 154 | ||||||||||||
Payable to parent, subsidiaries and affiliates |
243,112 | 243,112 | 476,976 | 476,976 | ||||||||||||
Separate account annuity liabilities |
33,308,199 | 33,311,319 | 30,301,261 | 30,299,758 | ||||||||||||
Surplus notes |
150,000 | 153,819 | 150,000 | 151,932 |
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.
39
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
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 Companys valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.
To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure that the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.
40
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Fair value hierarchy
The Companys financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An assets or a liabilitys classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:
Level 1 |
Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date. | |||
Level 2 | Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: | |||
a) Quoted prices for similar assets or liabilities in active markets
b) Quoted prices for identical or similar assets or liabilities in non-active markets
c) Inputs other than quoted market prices that are observable
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means | ||||
Level 3 |
Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Companys own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
The Company accounts for its investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures as they are not carried at fair value on the balance sheet.
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 and therefore is not carried at fair value on the balance sheet.
41
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The following tables provide information about the Companys financial assets and liabilities measured at fair value as of December 31, 2011 and 2010:
2011 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Bonds |
||||||||||||||||
Government |
$ | | $ | 63 | $ | | $ | 63 | ||||||||
Industrial and miscellaneous |
| 193,110 | 32,248 | 225,358 | ||||||||||||
Hybrid securities |
| 3,570 | | 3,570 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total bonds |
| 196,743 | 32,248 | 228,991 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Preferred stock |
||||||||||||||||
Industrial and miscellaneous |
| 13,486 | 1,236 | 14,722 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total preferred stock |
| 13,486 | 1,236 | 14,722 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Common stock |
||||||||||||||||
Mutual funds |
357 | 68 | | 425 | ||||||||||||
Industrial and miscellaneous |
51,646 | 334 | 177,568 | 229,548 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total common stock |
52,003 | 402 | 177,568 | 229,973 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Short-term investments |
||||||||||||||||
Government |
| 33,156 | | 33,156 | ||||||||||||
Industrial and miscellaneous |
| 1,736,611 | | 1,736,611 | ||||||||||||
Mutual funds |
| 615,179 | | 615,179 | ||||||||||||
Sweep accounts |
| 42,256 | | 42,256 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments |
| 2,427,202 | | 2,427,202 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative assets |
| 170,617 | 2,153 | 172,770 | ||||||||||||
Separate account assets |
35,108,598 | 5,006,378 | 746,827 | 40,861,803 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 35,160,601 | $ | 7,814,828 | $ | 960,032 | $ | 43,935,461 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities |
$ | | $ | 19,648 | $ | 11,786 | $ | 31,434 | ||||||||
Separate account liabilities |
9,723 | 4,406 | | 14,129 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | 9,723 | $ | 24,054 | $ | 11,786 | $ | 45,563 | ||||||||
|
|
|
|
|
|
|
|
42
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
2010 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Bonds |
||||||||||||||||
Industrial and miscellaneous |
$ | | $ | 143,201 | $ | 59,357 | $ | 202,558 | ||||||||
Hybrid securities |
| 7,069 | | 7,069 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total bonds |
| 150,270 | 59,357 | 209,627 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Preferred stock |
||||||||||||||||
Industrial and miscellaneous |
| | 1,236 | 1,236 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total preferred stock |
| | 1,236 | 1,236 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Common stock |
||||||||||||||||
Mutual funds |
40,951 | 68 | | 41,019 | ||||||||||||
Industrial and miscellaneous |
90,568 | 160 | 226,884 | 317,612 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total common stock |
131,518 | 228 | 226,884 | 358,631 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Short-term investments |
||||||||||||||||
Government |
| 65,069 | | 65,069 | ||||||||||||
Industrial and miscellaneous |
| 768,270 | | 768,270 | ||||||||||||
Mutual funds |
| 465,525 | | 465,525 | ||||||||||||
Sweep accounts |
| 64,484 | | 64,484 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total short-term investments |
| 1,363,348 | | 1,363,348 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Derivative assets |
| 3,469 | | 3,469 | ||||||||||||
Separate account assets |
31,597,665 | 5,398,091 | 793,212 | 37,788,968 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
$ | 31,729,183 | $ | 6,915,406 | $ | 1,080,689 | $ | 39,725,279 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities: |
||||||||||||||||
Derivative liabilities |
$ | | $ | 24,705 | $ | 4,600 | $ | 29,305 | ||||||||
Separate account liabilities |
7,302 | 5,405 | | 12,707 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total liabilities |
$ | 7,302 | $ | 30,110 | $ | 4,600 | $ | 42,012 | ||||||||
|
|
|
|
|
|
|
|
Bonds classified in Level 2 are valued using inputs from third party pricing services or broker quotes. Level 3 measurements for bonds are primarily those valued using broker quotes or internal modeling which utilize inputs that are not market observable.
Preferred stock in Level 3 is being internally calculated.
Common stock in Level 3 is comprised primarily of shares in the Federal Home Loan Bank (FHLB) of Des Moines, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB. In addition, the Company owns common stock being carried at book value and some warrants that are valued using broker quotes.
43
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Short-term investments are classified as Level 2 as they are carried at amortized cost, which approximates fair value.
Derivatives classified as Level 2 represent over-the-counter (OTC) contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other OTC trades or external pricing services. The Level 3 derivative liability is a credit swap calculated by simulation using a series of market-consistent inputs to model the dynamics of the swap. The inputs are taken from market instruments to the extent that they exist.
Separate account assets are valued and classified in the same way as general account assets (described above). For example, separate account assets in Level 3 are those valued using broker quotes or internal modeling which utilize unobservable inputs.
The following tables summarize the changes in assets and liabilities classified in Level 3 for 2011 and 2010:
Total Gains | Total Gains | Purchases, | ||||||||||||||||||||||||||
Balance at January 1, 2011 |
Transfers into Level 3 |
Transfers out of Level 3 |
and (Losses) Included in Net income |
and (Losses) Included in Surplus |
Issuances, Sales and Settlements |
Balance at December 31, 2011 |
||||||||||||||||||||||
Bonds |
||||||||||||||||||||||||||||
RMBS |
$ | 51,719 | $ | 16,364 | $ | 24,461 | (4,042 | ) | $ | 3,757 | $ | (16,616 | ) | $ | 26,721 | |||||||||||||
Other |
7,638 | 1 | 870 | (232 | ) | 355 | (1,365 | ) | 5,527 | |||||||||||||||||||
Preferred stock |
1,236 | | | | | | 1,236 | |||||||||||||||||||||
Common stock |
226,884 | 644 | 1,619 | (206 | ) | (345 | ) | (47,790 | ) | 177,568 | ||||||||||||||||||
Derivative liabilities |
(4,600 | ) | | | | (7,209 | ) | 2,176 | (9,633 | ) | ||||||||||||||||||
Separate account assets |
793,212 | 33,755 | 26,894 | (58,033 | ) | (538 | ) | 5,325 | 746,827 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | 1,076,089 | $ | 50,764 | $ | 53,844 | $ | (62,513 | ) | $ | (3,980 | ) | $ | (58,270 | ) | $ | 948,246 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gains | Total Gains | Purchases, | ||||||||||||||||||||||||||
Balance at January 1, 2010 |
Transfers into Level 3 |
Transfers out of Level 3 |
and (Losses) Included in Net income |
and (Losses) Included in Surplus |
Issuances, Sales and Settlements |
Balance at December 31, 2010 |
||||||||||||||||||||||
Bonds |
||||||||||||||||||||||||||||
RMBS |
$ | 19,291 | $ | 30,955 | $ | 5,802 | $ | (21,711 | ) | $ | 14,201 | $ | 14,785 | $ | 51,719 | |||||||||||||
Other |
144,501 | 10,365 | 60,223 | (7,297 | ) | (1,407 | ) | (78,301 | ) | 7,638 | ||||||||||||||||||
Preferred stock |
6,162 | 1,236 | 6,162 | | (36 | ) | 36 | 1,236 | ||||||||||||||||||||
Common stock |
278,111 | 4,251 | | 5,664 | 1,663 | (62,805 | ) | 226,884 | ||||||||||||||||||||
Other long term |
32,660 | | | 130 | 27 | (32,817 | ) | | ||||||||||||||||||||
Derivative liabilities |
| | | | | (4,600 | ) | (4,600 | ) | |||||||||||||||||||
Separate account assets |
936,012 | | 4,382 | (102,331 | ) | 273 | (36,360 | ) | 793,212 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ | 1,416,737 | $ | 46,807 | $ | 76,569 | $ | (125,545 | ) | $ | 14,721 | $ | (200,062 | ) | $ | 1,076,089 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Companys policy is to recognize transfers in and out of Level 3 as of the beginning of the reporting period.
44
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Transfers in for bonds were partly attributable to securities being valued using third party vendor inputs at December 31, 2010 and 2009, subsequently changing to being valued using broker quotes which utilize unobservable inputs, thus causing the transfer into Level 3 during 2011 and 2010, respectively. Transfers in for bonds were also the result of securities not carried at fair value as of December 31, 2010 and 2009, subsequently changing to being carried at fair value during 2011 and 2010, respectively.
Transfers out for bonds were partly attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2010, subsequently changing to being valued using third party vendor inputs during 2011. In addition, transfers out for bonds were attributed to securities being carried at fair value as of December 31, 2010 and 2009, subsequently changing to being carried at amortized cost during 2011 and 2010, respectively. Additionally, there were some securities that were valued using internal modeling at December 31, 2009. Those securities were valued using third party vendor inputs at December 31, 2010.
Transfers in for preferred stock were the result of securities not carried at fair value as of December 31, 2009 subsequently changing to being carried at fair value as of December 31, 2010. Such changes were the result of a change in the price source, change in NAIC rating and impairment.
Transfers out for preferred stock were attributable to securities being carried at fair value as of December 31, 2009, subsequently changing to being carried at amortized cost as of December 31, 2010. Such changes were the result of a change in the price source, change in NAIC rating and impairment.
Transfers in for common stock were the result of securities being valued using index pricing at December 31, 2010, subsequently being valued using unobservable inputs during 2011. Transfers in for common stock were the result of warrants being valued using third party vendor inputs at December 31, 2009. The valuation of those warrants changed at December 31, 2010 to using broker quotes which utilize unobservable inputs.
Transfers out for common stock were the result of securities being valued using unobservable inputs at December 31, 2010, subsequently being valued using index pricing during 2011.
Transfers in for separate account assets were attributable to bonds being valued using third party vendor inputs at December 31, 2010, subsequently changing to being valued using broker quotes which utilize unobservable inputs during 2011.
45
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Transfers out for separate account assets were attributable to bonds being valued using broker quotes which utilize unobservable inputs at December 31, 2010 and 2009, subsequently changing to being valued using third party vendor inputs during 2011 and 2010, respectively.
5. Investments
The carrying amounts and estimated fair value of investments in bonds and preferred stock are as follows:
Carrying Amount |
Gross Unrealized Gains |
Gross Unrealized Losses 12 Months or More |
Gross Unrealized Losses less Than 12 Months |
Estimated Fair Value |
||||||||||||||||
December 31, 2011 |
||||||||||||||||||||
Unaffiliated bonds: |
||||||||||||||||||||
United States Government and agencies |
$ | 3,035,812 | $ | 815,740 | $ | 21 | $ | 82 | $ | 3,851,449 | ||||||||||
State, municipal and other government |
631,483 | 38,206 | 15,565 | 9,534 | 644,590 | |||||||||||||||
Hybrid securities |
498,708 | 3,619 | 130,821 | 11,266 | 360,240 | |||||||||||||||
Industrial and miscellaneous |
22,834,539 | 2,481,536 | 94,765 | 94,052 | 25,127,258 | |||||||||||||||
Mortgage and other asset-backed securities |
12,721,746 | 372,752 | 1,151,251 | 66,826 | 11,876,421 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
39,722,288 | 3,711,853 | 1,392,423 | 181,760 | 41,859,958 | ||||||||||||||||
Unaffiliated preferred stocks |
138,596 | 23,703 | 6,745 | 6,015 | 149,539 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 39,860,884 | $ | 3,735,556 | $ | 1,399,168 | $ | 187,775 | $ | 42,009,497 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Carrying Amount |
Gross Unrealized Gains |
Gross Unrealized Losses 12 Months or More |
Gross Unrealized Losses less Than 12 Months |
Estimated Fair Value |
||||||||||||||||
December 31, 2010 |
||||||||||||||||||||
Unaffiliated bonds: |
||||||||||||||||||||
United States Government and agencies |
$ | 3,160,171 | $ | 77,718 | $ | 4,518 | $ | 75,826 | $ | 3,157,545 | ||||||||||
State, municipal and other government |
836,397 | 49,894 | 19,517 | 6,180 | 860,594 | |||||||||||||||
Hybrid securities |
1,557,055 | 17,968 | 226,807 | 1,009 | 1,347,207 | |||||||||||||||
Industrial and miscellaneous |
27,657,173 | 1,553,520 | 106,995 | 230,233 | 28,873,465 | |||||||||||||||
Mortgage and other asset-backed securities |
13,710,547 | 296,594 | 1,227,663 | 41,686 | 12,737,792 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
46,921,343 | 1,995,694 | 1,585,500 | 354,934 | 46,976,603 | ||||||||||||||||
Unaffiliated preferred stocks |
123,925 | 9,783 | 10,723 | 1,107 | 121,878 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 47,045,268 | $ | 2,005,477 | $ | 1,596,223 | $ | 356,041 | $ | 47,098,481 | |||||||||||
|
|
|
|
|
|
|
|
|
|
At December 31, 2011 and 2010, 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 593 and 784 securities with a carrying amount of $6,503,336 and
46
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
$9,237,482 and an unrealized loss of $1,399,168 and $1,596,223 with an average price of 78.5 and 82.7 (fair value/amortized cost). Of this portfolio, 58.7% and 67.8% were investment grade with associated unrealized losses of $544,964 and $750,760, respectively.
At December 31, 2011 and 2010, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 568 and 1,224 securities with a carrying amount of $3,644,457 and $10,099,730 and an unrealized loss of $187,775 and $356,041 with an average price of 94.9 and 96.5 (fair value/amortized cost). Of this portfolio, 84.8% and 97.3% were investment grade with associated unrealized losses of $146,947 and $345,226, respectively.
At December 31, 2011 and 2010, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 2 and 2 securities with a cost of $2 and $15 and an unrealized loss of $1 and $9 with an average price of 50.6 and 38.2 (fair value/cost).
At December 31, 2011 and 2010, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 19 and 25 securities with a cost of $2,748 and $23,086 and an unrealized loss of $429 and $1,002 with an average price of 84.4 and 95.7 (fair value/cost).
The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2011 and 2010 is as follows:
Losses 12 Months or More |
Losses Less Than 12 Months |
Total | ||||||||||
December 31, 2011 |
||||||||||||
Unaffiliated bonds: |
||||||||||||
United States Government and agencies |
$ | 646 | $ | 20,862 | $ | 21,508 | ||||||
State, municipal and other government |
68,172 | 100,616 | 168,788 | |||||||||
Hybrid securities |
208,545 | 98,932 | 307,477 | |||||||||
Industrial and miscellaneous |
874,324 | 2,083,289 | 2,957,613 | |||||||||
Mortgage and other asset-backed securities |
3,943,571 | 1,114,649 | 5,058,220 | |||||||||
|
|
|
|
|
|
|||||||
5,095,258 | 3,418,348 | 8,513,606 | ||||||||||
Unaffiliated preferred stocks |
8,909 | 38,333 | 47,242 | |||||||||
Unaffiliated common stocks |
1 | 2,318 | 2,319 | |||||||||
|
|
|
|
|
|
|||||||
$ | 5,104,168 | $ | 3,458,999 | $ | 8,563,167 | |||||||
|
|
|
|
|
|
47
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Losses 12 Months or More |
Losses Less Than 12 Months |
Total | ||||||||||
December 31, 2010 |
||||||||||||
Unaffiliated bonds: |
||||||||||||
United States Government and agencies |
$ | 237,897 | $ | 1,386,362 | $ | 1,624,259 | ||||||
State, municipal and other government |
97,950 | 169,282 | 267,232 | |||||||||
Hybrid securities |
1,043,259 | 37,791 | 1,081,050 | |||||||||
Industrial and miscellaneous |
1,036,864 | 6,796,934 | 7,833,798 | |||||||||
Mortgage and other asset-backed securities |
5,180,283 | 1,342,227 | 6,522,510 | |||||||||
|
|
|
|
|
|
|||||||
7,596,253 | 9,732,596 | 17,328,849 | ||||||||||
Unaffiliated preferred stocks |
45,006 | 11,093 | 56,099 | |||||||||
Unaffiliated common stocks |
6 | 22,084 | 22,090 | |||||||||
|
|
|
|
|
|
|||||||
$ | 7,641,265 | $ | 9,765,773 | $ | 17,407,038 | |||||||
|
|
|
|
|
|
The carrying amount and estimated fair value of bonds at December 31, 2011, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
Carrying Amount |
Estimated Fair Value |
|||||||
Due in one year or less |
$ | 1,070,689 | $ | 1,089,075 | ||||
Due after one year through five years |
7,435,637 | 7,844,830 | ||||||
Due after five years through ten years |
7,024,770 | 7,551,601 | ||||||
Due after ten years |
11,469,446 | 13,498,031 | ||||||
|
|
|
|
|||||
27,000,542 | 29,983,537 | |||||||
Mortgage and other asset-backed securities |
12,721,746 | 11,876,421 | ||||||
|
|
|
|
|||||
$ | 39,722,288 | $ | 41,859,958 | |||||
|
|
|
|
For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.
Banking
At December 31, 2011 the Companys banking sector portfolio had investments in an unrealized loss position which had a fair value of $1,295,175 and a carrying value of $1,575,241, resulting in a gross unrealized loss of $280,066. The banking sub-sector in the Companys portfolio is large, diverse and of high quality. The unrealized losses in the banking sub-sector primarily reflect the size of the Companys holdings, low floating rate
48
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
coupons on some securities and credit spread widening in the sector due to the European Sovereign debt crisis as well as residual impact from the U.S. financial crisis.
As a whole, the sub-sector remained volatile in 2011 as financial bail-outs in Greece, Ireland and Portugal led to fears that Italy and Spain may require similar International bail-outs. European banks hold a significant amount of sovereign debt on their balance sheets. Subordinated securities, specifically, have become a target for liability management exercises by some European banks as they attempt to raise core Tier 1 ratios to 9% by June 2012, as required by the European Banking Authority. Deeply subordinated securities became more volatile following successful attempts by the European Commission to impose burden sharing on the subordinated securities of those banks receiving significant state-aid as a result of the 2008 financial crisis. Furthermore, proposed legislation in the U.S. and Europe could give governments wide discretion to impose burden sharing on both senior and subordinated bondholders in order to quickly stabilize or wind-up troubled banks. While these measures have made existing subordinated securities more volatile in the near-term, new, more stringent global legislation on bank capital and liquidity requirements is intended to reduce overall risk in the sector going forward. Furthermore, central banks appear committed to providing liquidity to the market and, as a result, asset write-downs and credit losses have diminished substantially in all but the most troubled countries. The value of the Companys investments in deeply subordinated securities in the financial services sector may be significantly impacted if issuers of certain securities with optional deferral features exercise the option to defer coupon payments or are required to defer as a condition of receiving government aid. The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the unrealized loss and does not consider those investments to be impaired as of December 31, 2011.
Subprime Mortgages
At December 31, 2011, the Companys asset-backed securities (ABS) subprime mortgages portfolio had investments in an unrealized loss position which had a fair value of $782,802 and a carrying value of $957,131, resulting in a gross unrealized loss of $174,329. The unrealized loss in the sector is primarily a result of the housing downturn the United States has experienced since 2007. Even with the stabilization over the past two years, fundamentals in ABS subprime mortgages continue to be weak, which impacts the magnitude of the unrealized loss. Delinquencies and severities in property liquidations remain at an elevated level, while prepayments remain at historically low levels. Due to the weak fundamental situation, reduced liquidity and the requirement for higher yields due to market uncertainty, credit spreads remain elevated across the asset class.
49
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Company does not currently invest in or originate whole loan residential mortgages. The Company categorizes ABS issued by a securitization trust as having subprime mortgage exposure when the average credit score of the underlying mortgage borrowers in a securitization trust is below 660 at issuance. The Company also categorizes ABS issued by a securitization trust with second lien mortgages as subprime mortgage exposure, even though a significant percentage of second lien mortgage borrowers may not necessarily have credit scores below 660 at issuance. The Company does not have any direct residential mortgages to subprime borrowers outside of the ABS structures.
All ABS subprime mortgage securities are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are reviewed quarterly. Model output is generated under base and stress-case scenarios. The Companys internal ABS-housing asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific securitys collateral attributes and historical performance.
Loss severity assumptions were determined by observing historical rates from broader market data and by adjusting those rates for vintage specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Companys internal asset specialist to determine whether or not the particular tranche or holding is at risk for not collecting all contractual cash flows, taking into account the seniority and other terms of the tranches held.
If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows. As the remaining unrealized losses in the ABS subprime mortgage portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2011.
50
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Residential Mortgage-Backed Securities (RMBS) Sector
At December 31, 2011, the Companys RMBS sector portfolio had investments in an unrealized loss position which had a fair value of $1,639,555 and a carrying value of $2,295,503, resulting in a gross unrealized loss of $655,948. RMBS are securitizations of underlying pools of residential mortgages on real estate. The underlying residential mortgages have varying credit ratings and are pooled together and sold in tranches. The Companys RMBS includes prime jumbo pass-throughs and collateralized mortgage obligations (CMOs), Alt-A RMBS, negative amortization RMBS, government sponsored enterprise (GSE) guaranteed pass-throughs and reverse mortgage RMBS. The unrealized loss in the sector is primarily a result of the housing downturn the United States has experienced since 2007. Even with the stabilization over the past two years, fundamentals in RMBS continue to be weak, which impacts the magnitude of the unrealized loss. Delinquencies and severities in property liquidations remain at an elevated level, while prepayments remain at historically low levels. Due to the weak fundamental situation, reduced liquidity and the requirement for higher yields due to market uncertainty, credit spreads remain elevated across the asset class.
All RMBS securities of the Company are monitored and reviewed on a monthly basis. Detailed cash flow models using the current collateral pool and capital structure on the portfolio are updated and reviewed quarterly. Model output is generated under base and stress-case scenarios. The Companys internal RMBS asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size and borrower credit history are some of the key characteristics used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on delinquent loans are dependent on the specific securitys collateral attributes and historical performance.
Loss severity assumptions were determined by obtaining historical rates from broader market data and by adjusting those rates for vintage, specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Companys internal asset specialists to determine whether or not the particular tranche or holding is at risk for not collecting all contractual cash flows, taking into account the seniority and other terms of the tranches held.
51
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
If cash flow models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows. As the remaining unrealized losses in the RMBS portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31, 2011.
The following tables provide the aggregate totals for loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold, in which the security is written down to fair value.
Amortized Cost | OTTI Recognized in Loss | |||||||||||||||
Basis Before OTTI | Interest | Non-interest | Fair Value | |||||||||||||
Year Ended December 31, 2011 |
||||||||||||||||
OTTI recognized 1st quarter: |
||||||||||||||||
Intent to sell |
$ | 4,977 | $ | 660 | $ | | $ | 4,317 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 1st quarter OTTI on loan-backed securities |
4,977 | 660 | | 4,317 | ||||||||||||
OTTI recognized 3rd quarter: |
||||||||||||||||
Intent to sell |
160,578 | 5,973 | | 154,605 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 3rd quarter OTTI on loan-backed securities |
160,578 | 5,973 | | 154,605 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Aggregate total |
$ | 165,555 | $ | 6,633 | $ | | $ | 158,922 | ||||||||
|
|
|
|
|
|
|
|
Amortized Cost | OTTI Recognized in Loss | |||||||||||||||
Basis Before OTTI | Interest | Non-interest | Fair Value | |||||||||||||
Year Ended December 31, 2010 |
||||||||||||||||
OTTI recognized 1st quarter: |
||||||||||||||||
Intent to sell |
$ | 4,379 | $ | 973 | $ | | $ | 3,406 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 1st quarter OTTI on loan-backed securities |
4,379 | 973 | | 3,406 | ||||||||||||
OTTI recognized 2nd quarter: |
||||||||||||||||
Intent to sell |
17,316 | 301 | | 17,015 | ||||||||||||
Inability or lack of intent to retain the investment in the security for a period of time sufficient to recover the amortized cost basis |
6 | | 6 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 2nd quarter OTTI on loan-backed securities |
17,322 | 301 | 6 | 17,015 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Aggregate total |
$ | 21,701 | $ | 1,274 | $ | 6 | $ | 20,421 | ||||||||
|
|
|
|
|
|
|
|
52
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Amortized Cost | OTTI Recognized in Loss | |||||||||||||||
Basis Before OTTI | Interest | Non-interest | Fair Value | |||||||||||||
Year Ended December 31, 2009 |
||||||||||||||||
OTTI recognized 3rd quarter: |
||||||||||||||||
Intent to sell |
$ | 21,033 | $ | | $ | 5,508 | $ | 15,525 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 3rd quarter OTTI on loan-backed securities |
21,033 | | 5,508 | 15,525 | ||||||||||||
OTTI recognized 4th quarter: |
||||||||||||||||
Intent to sell |
179,064 | | 66,154 | 112,910 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total 4th quarter OTTI on loan-backed securities |
179,064 | | 66,154 | 112,910 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Aggregate total |
$ | 200,097 | $ | | $ | 71,662 | $ | 128,435 | ||||||||
|
|
|
|
|
|
|
|
The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Companys cash flow analysis, in which the security is written down to estimated future cash flows discounted at the securitys effective yield.
53
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Amortized Cost before Current Period OTTI |
Recognized OTTI | Amortized Cost After OTTI |
Fair Value | |||||||||||||
Year ended December 31, 2011 |
||||||||||||||||
1st quarter present value of cash flows expected to be less than the amortized cost basis |
$ | 350,420 | $ | 11,851 | $ | 338,569 | $ | 224,716 | ||||||||
2nd quarter present value of cash flows expected to be less than the amortized cost basis |
483,217 | 23,151 | 460,066 | 303,615 | ||||||||||||
3rd quarter present value of cash flows expected to be less than the amortized cost basis |
483,427 | 12,763 | 470,664 | 287,099 | ||||||||||||
4th quarter present value of cash flows expected to be less than the amortized cost basis |
583,778 | 29,379 | 554,399 | 398,138 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Aggregate total |
$ | 1,900,842 | $ | 77,144 | $ | 1,823,698 | $ | 1,213,568 | ||||||||
|
|
|
|
|
|
|
|
Amortized Cost before Current Period OTTI |
Recognized OTTI | Amortized Cost After OTTI |
Fair Value | |||||||||||||
Year ended December 31, 2010 |
||||||||||||||||
1st quarter present value of cash flows expected to be less than the amortized cost basis |
$ | 578,055 | $ | 55,253 | $ | 522,802 | $ | 330,810 | ||||||||
2nd quarter present value of cash flows expected to be less than the amortized cost basis |
343,146 | 24,294 | 318,852 | 217,741 | ||||||||||||
3rd quarter present value of cash flows expected to be less than the amortized cost basis |
648,299 | 44,545 | 603,754 | 489,879 | ||||||||||||
4th quarter present value of cash flows expected to be less than the amortized cost basis |
744,823 | 29,278 | 715,545 | 563,667 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Aggregate total |
$ | 2,314,323 | $ | 153,370 | $ | 2,160,953 | $ | 1,602,097 | ||||||||
|
|
|
|
|
|
|
|
54
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The following loan-backed and structured securities were held at December 31, 2011, for which an OTTI had been previously recognized:
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
000759BP4 |
$ | 636 | $ | 575 | $ | 61 | $ | 575 | $ | 596 | 1Q 2011 | |||||||||||||
02146QAB9 |
70,359 | 68,745 | 1,614 | 68,745 | 38,728 | 1Q 2011 | ||||||||||||||||||
02146QAD5 |
39,209 | 38,422 | 787 | 38,422 | 23,134 | 1Q 2011 | ||||||||||||||||||
05951VAV1 |
50,127 | 49,693 | 434 | 49,693 | 36,948 | 1Q 2011 | ||||||||||||||||||
12667GXW8 |
20,351 | 20,185 | 166 | 20,185 | 17,916 | 1Q 2011 | ||||||||||||||||||
12668WAC1 |
12,000 | 11,713 | 287 | 11,713 | 6,354 | 1Q 2011 | ||||||||||||||||||
12669GTS0 |
43,618 | 42,859 | 759 | 42,859 | 23,303 | 1Q 2011 | ||||||||||||||||||
14984WAA8 |
7,559 | 7,446 | 113 | 7,446 | 6,053 | 1Q 2011 | ||||||||||||||||||
45661EAE4 |
2,499 | 1,726 | 773 | 1,726 | 1,584 | 1Q 2011 | ||||||||||||||||||
525221GR2 |
1,281 | 935 | 346 | 935 | 823 | 1Q 2011 | ||||||||||||||||||
525221HE0 |
3,197 | 2,782 | 415 | 2,782 | 4,994 | 1Q 2011 | ||||||||||||||||||
70557RAB6 |
31,956 | 31,770 | 186 | 31,770 | 22,910 | 1Q 2011 | ||||||||||||||||||
75970JAJ5 |
4,756 | 4,657 | 99 | 4,657 | 3,022 | 1Q 2011 | ||||||||||||||||||
75971EAF3 |
6,002 | 5,832 | 170 | 5,832 | 3,548 | 1Q 2011 | ||||||||||||||||||
76110G3H2 |
2,794 | 957 | 1,837 | 957 | 1,715 | 1Q 2011 | ||||||||||||||||||
76110WPD2 |
2,513 | 2,396 | 117 | 2,396 | 2,421 | 1Q 2011 | ||||||||||||||||||
761118VY1 |
20,054 | 19,668 | 386 | 19,668 | 10,670 | 1Q 2011 | ||||||||||||||||||
81379EAD4 |
3,256 | 2,091 | 1,165 | 2,091 | 338 | 1Q 2011 | ||||||||||||||||||
83611XAE4 |
1,051 | 333 | 718 | 333 | 280 | 1Q 2011 | ||||||||||||||||||
86358EZU3 |
5,921 | 4,980 | 941 | 4,980 | 2,029 | 1Q 2011 | ||||||||||||||||||
871928AX5 |
4,227 | 3,582 | 645 | 3,582 | 3,582 | 1Q 2011 | ||||||||||||||||||
749248AG5 |
14,227 | 14,034 | 193 | 14,034 | 12,482 | 1Q 2011 | ||||||||||||||||||
75970QAD2 |
7,057 | 6,770 | 287 | 6,770 | 4,870 | 1Q 2011 | ||||||||||||||||||
045427AE1 |
1,865 | 1,490 | 375 | 1,490 | 893 | 2Q 2011 | ||||||||||||||||||
12638DAA4 |
86,532 | 83,834 | 2,698 | 83,834 | 74,622 | 2Q 2011 | ||||||||||||||||||
12640PAA3 |
6,639 | 6,345 | 294 | 6,345 | 6,562 | 2Q 2011 | ||||||||||||||||||
126670ZN1 |
21,165 | 19,024 | 2,141 | 19,024 | 4,055 | 2Q 2011 | ||||||||||||||||||
12668WAC1 |
20,241 | 20,000 | 241 | 20,000 | 10,222 | 2Q 2011 | ||||||||||||||||||
126694A32 |
14,807 | 14,701 | 106 | 14,701 | 8,458 | 2Q 2011 | ||||||||||||||||||
12669GTS0 |
41,692 | 36,985 | 4,707 | 36,985 | 19,529 | 2Q 2011 | ||||||||||||||||||
225470T94 |
5,822 | 5,751 | 71 | 5,751 | 5,035 | 2Q 2011 | ||||||||||||||||||
22942KCA6 |
17,023 | 15,111 | 1,912 | 15,111 | 12,886 | 2Q 2011 | ||||||||||||||||||
3622NAAE0 |
56,897 | 54,879 | 2,018 | 54,879 | 33,811 | 2Q 2011 | ||||||||||||||||||
36245CAC6 |
791 | 737 | 54 | 737 | 220 | 2Q 2011 | ||||||||||||||||||
41161MAC4 |
50,636 | 49,540 | 1,096 | 49,540 | 30,482 | 2Q 2011 | ||||||||||||||||||
46628SAJ2 |
8,682 | 8,522 | 160 | 8,522 | 5,898 | 2Q 2011 | ||||||||||||||||||
52524MAW9 |
9,284 | 8,219 | 1,065 | 8,219 | 4,938 | 2Q 2011 | ||||||||||||||||||
550279BA0 |
25,520 | 24,577 | 943 | 24,577 | 15,391 | 2Q 2011 | ||||||||||||||||||
61754HAB8 |
2,086 | 2,056 | 30 | 2,056 | 1,317 | 2Q 2011 | ||||||||||||||||||
65536PAA8 |
1,661 | 1,630 | 31 | 1,630 | 915 | 2Q 2011 | ||||||||||||||||||
75970JAJ5 |
4,580 | 4,532 | 48 | 4,532 | 2,831 | 2Q 2011 | ||||||||||||||||||
75970QAH3 |
6,059 | 5,852 | 207 | 5,852 | 3,694 | 2Q 2011 | ||||||||||||||||||
75971EAF3 |
11,519 | 11,413 | 106 | 11,413 | 6,260 | 2Q 2011 | ||||||||||||||||||
76110G3H2 |
1,601 | 870 | 731 | 870 | 889 | 2Q 2011 | ||||||||||||||||||
761118RM2 |
2,770 | 2,728 | 42 | 2,728 | 1,567 | 2Q 2011 | ||||||||||||||||||
761118VY1 |
18,605 | 17,970 | 635 | 17,970 | 9,203 | 2Q 2011 | ||||||||||||||||||
81379EAD4 |
1,740 | 1,414 | 326 | 1,414 | 97 | 2Q 2011 | ||||||||||||||||||
83611XAE4 |
329 | 118 | 211 | 118 | 157 | 2Q 2011 | ||||||||||||||||||
86358EZU3 |
4,946 | 4,370 | 576 | 4,370 | 689 | 2Q 2011 | ||||||||||||||||||
93934FHC9 |
34,880 | 33,497 | 1,383 | 33,497 | 22,366 | 2Q 2011 | ||||||||||||||||||
93936NBC6 |
863 | 407 | 456 | 407 | 389 | 2Q 2011 | ||||||||||||||||||
749248AG5 |
17,308 | 17,277 | 31 | 17,277 | 15,674 | 2Q 2011 |
55
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
75970QAD2 |
$ | 6,672 | $ | 6,218 | $ | 454 | $ | 6,218 | $ | 4,565 | 2Q 2011 | |||||||||||||
02146QAB9 |
66,595 | 63,475 | 3,120 | 63,475 | 35,341 | 3Q 2011 | ||||||||||||||||||
02146QAD5 |
36,649 | 35,735 | 914 | 35,735 | 19,535 | 3Q 2011 | ||||||||||||||||||
026936AA2 |
154,988 | 149,463 | 5,525 | 149,463 | 77,940 | 3Q 2011 | ||||||||||||||||||
05948KV63 |
11,652 | 11,491 | 161 | 11,491 | 9,696 | 3Q 2011 | ||||||||||||||||||
12638DAA4 |
54,787 | 56,934 | (2,147 | ) | 56,934 | 51,075 | 3Q 2011 | |||||||||||||||||
12666UAC7 |
18,561 | 18,558 | 3 | 18,558 | 11,605 | 3Q 2011 | ||||||||||||||||||
12668WAC1 |
11,129 | 11,075 | 54 | 11,075 | 5,017 | 3Q 2011 | ||||||||||||||||||
126694A32 |
9,401 | 9,090 | 311 | 9,090 | 4,986 | 3Q 2011 | ||||||||||||||||||
12669GTS0 |
35,892 | 34,078 | 1,814 | 34,078 | 16,984 | 3Q 2011 | ||||||||||||||||||
14984WAA8 |
6,939 | 6,757 | 182 | 6,757 | 5,293 | 3Q 2011 | ||||||||||||||||||
225470FJ7 |
4,294 | 4,257 | 37 | 4,257 | 3,730 | 3Q 2011 | ||||||||||||||||||
225470U27 |
4,713 | 4,667 | 46 | 4,667 | 3,692 | 3Q 2011 | ||||||||||||||||||
36244SAE8 |
672 | 669 | 3 | 669 | 488 | 3Q 2011 | ||||||||||||||||||
45661EAE4 |
1,621 | 1,190 | 431 | 1,190 | 763 | 3Q 2011 | ||||||||||||||||||
65536PAA8 |
1,265 | 1,232 | 33 | 1,232 | 604 | 3Q 2011 | ||||||||||||||||||
75970JAJ5 |
4,448 | 4,387 | 61 | 4,387 | 2,509 | 3Q 2011 | ||||||||||||||||||
75970QAH3 |
5,736 | 5,668 | 68 | 5,668 | 3,292 | 3Q 2011 | ||||||||||||||||||
75971EAF3 |
5,552 | 5,473 | 79 | 5,473 | 2,623 | 3Q 2011 | ||||||||||||||||||
761118RM2 |
2,637 | 2,568 | 69 | 2,568 | 1,387 | 3Q 2011 | ||||||||||||||||||
761118VY1 |
17,391 | 17,101 | 290 | 17,101 | 8,517 | 3Q 2011 | ||||||||||||||||||
81379EAD4 |
1,743 | 669 | 1,074 | 669 | 66 | 3Q 2011 | ||||||||||||||||||
92922FZ27 |
20,331 | 20,154 | 177 | 20,154 | 18,067 | 3Q 2011 | ||||||||||||||||||
93936NBC6 |
323 | 97 | 226 | 97 | 77 | 3Q 2011 | ||||||||||||||||||
75970QAD2 |
6,107 | 5,878 | 229 | 5,878 | 3,811 | 3Q 2011 | ||||||||||||||||||
17311QAA8 |
23,608 | 21,769 | 1,839 | 21,769 | 21,769 | 3Q 2011 | ||||||||||||||||||
002927AA9 |
1,207 | 930 | 277 | 930 | 930 | 3Q 2011 | ||||||||||||||||||
02146QAC7 |
33,428 | 32,478 | 950 | 32,478 | 14,430 | 4Q 2011 | ||||||||||||||||||
05948KL31 |
14,784 | 14,778 | 6 | 14,778 | 11,547 | 4Q 2011 | ||||||||||||||||||
059494AA2 |
32,494 | 31,969 | 525 | 31,969 | 24,787 | 4Q 2011 | ||||||||||||||||||
12638DAA4 |
55,461 | 53,176 | 2,285 | 53,176 | 49,194 | 4Q 2011 | ||||||||||||||||||
12640PAA3 |
6,122 | 5,942 | 180 | 5,942 | 6,115 | 4Q 2011 | ||||||||||||||||||
12667G5G4 |
15,321 | 14,995 | 326 | 14,995 | 14,377 | 4Q 2011 | ||||||||||||||||||
12668RAA6 |
24,029 | 23,537 | 492 | 23,537 | 11,676 | 4Q 2011 | ||||||||||||||||||
12668WAC1 |
10,903 | 10,666 | 237 | 10,666 | 4,723 | 4Q 2011 | ||||||||||||||||||
126694A32 |
37,195 | 36,657 | 538 | 36,657 | 19,337 | 4Q 2011 | ||||||||||||||||||
12669GTS0 |
33,195 | 31,654 | 1,541 | 31,654 | 13,920 | 4Q 2011 | ||||||||||||||||||
225470FJ7 |
4,254 | 3,968 | 286 | 3,968 | 3,712 | 4Q 2011 | ||||||||||||||||||
225470YD9 |
44,143 | 41,031 | 3,112 | 41,031 | 39,881 | 4Q 2011 | ||||||||||||||||||
32027LAG0 |
57 | 1 | 56 | 1 | | 4Q 2011 | ||||||||||||||||||
35729PPC8 |
629 | 478 | 151 | 478 | 235 | 4Q 2011 | ||||||||||||||||||
3622NAAE0 |
54,725 | 53,750 | 975 | 53,750 | 33,707 | 4Q 2011 | ||||||||||||||||||
41161MAC4 |
47,897 | 45,318 | 2,579 | 45,318 | 25,821 | 4Q 2011 | ||||||||||||||||||
525170CG9 |
87 | 84 | 3 | 84 | 66 | 4Q 2011 | ||||||||||||||||||
52522QAM4 |
92,552 | 86,587 | 5,965 | 86,587 | 68,719 | 4Q 2011 | ||||||||||||||||||
65536PAA8 |
1,209 | 1,196 | 13 | 1,196 | 494 | 4Q 2011 | ||||||||||||||||||
74925FAA1 |
12,139 | 11,693 | 446 | 11,693 | 11,226 | 4Q 2011 | ||||||||||||||||||
75970QAH3 |
5,559 | 5,520 | 39 | 5,520 | 3,160 | 4Q 2011 | ||||||||||||||||||
75971EAF3 |
5,387 | 5,294 | 93 | 5,294 | 2,461 | 4Q 2011 | ||||||||||||||||||
761118AH1 |
25,892 | 25,531 | 361 | 25,531 | 24,066 | 4Q 2011 | ||||||||||||||||||
81378KAC3 |
11,316 | 5,016 | 6,300 | 5,016 | 6,463 | 4Q 2011 | ||||||||||||||||||
81379EAD4 |
655 | 57 | 598 | 57 | 44 | 4Q 2011 |
56
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
83611XAE4 |
$ | 107 | $ | 36 | $ | 71 | $ | 36 | $ | 18 | 4Q 2011 | |||||||||||||
12669F2J1 |
6,472 | 5,885 | 587 | 5,885 | 3,699 | 4Q 2011 | ||||||||||||||||||
75970QAD2 |
5,774 | 5,550 | 224 | 5,550 | 3,679 | 4Q 2011 | ||||||||||||||||||
48123HAA1 |
1,991 | 1,551 | 440 | 1,551 | 580 | 4Q 2011 | ||||||||||||||||||
000759BP4 |
788 | 785 | 3 | 785 | 625 | 1Q 2010 | ||||||||||||||||||
02148AAA4 |
51,172 | 50,652 | 520 | 50,652 | 33,152 | 1Q 2010 | ||||||||||||||||||
02148YAJ3 |
8,309 | 8,128 | 181 | 8,128 | 6,809 | 1Q 2010 | ||||||||||||||||||
045427AE1 |
3,371 | 1,805 | 1,566 | 1,805 | 610 | 1Q 2010 | ||||||||||||||||||
12640PAA3 |
9,684 | 9,480 | 204 | 9,480 | 8,902 | 1Q 2010 | ||||||||||||||||||
126670ZN1 |
26,523 | 21,352 | 5,171 | 21,352 | 3,899 | 1Q 2010 | ||||||||||||||||||
12667G5G4 |
20,112 | 19,900 | 212 | 19,900 | 17,911 | 1Q 2010 | ||||||||||||||||||
126685DZ6 |
6,759 | 6,287 | 472 | 6,287 | 5,438 | 1Q 2010 | ||||||||||||||||||
225470FJ7 |
6,264 | 6,146 | 118 | 6,146 | 5,130 | 1Q 2010 | ||||||||||||||||||
225470YD9 |
60,770 | 59,922 | 848 | 59,922 | 37,312 | 1Q 2010 | ||||||||||||||||||
22942KCA6 |
22,560 | 22,305 | 255 | 22,305 | 16,542 | 1Q 2010 | ||||||||||||||||||
23245CAF7 |
256 | 246 | 10 | 246 | 586 | 1Q 2010 | ||||||||||||||||||
32027LAG0 |
110 | 94 | 16 | 94 | 57 | 1Q 2010 | ||||||||||||||||||
32028TAF4 |
171 | 85 | 86 | 85 | 100 | 1Q 2010 | ||||||||||||||||||
35729PPZ7 |
17,077 | 14,880 | 2,197 | 14,880 | 248 | 1Q 2010 | ||||||||||||||||||
361856EC7 |
25,782 | 25,461 | 321 | 25,461 | 16,478 | 1Q 2010 | ||||||||||||||||||
3622MAAF8 |
205 | 134 | 71 | 134 | 52 | 1Q 2010 | ||||||||||||||||||
38011AAC8 |
2,581 | 2,563 | 18 | 2,563 | 2,023 | 1Q 2010 | ||||||||||||||||||
43710LAF1 |
82 | 8 | 74 | 8 | 34 | 1Q 2010 | ||||||||||||||||||
45661EAE4 |
27,998 | 20,271 | 7,727 | 20,271 | 9,966 | 1Q 2010 | ||||||||||||||||||
46628SAJ2 |
10,507 | 10,154 | 353 | 10,154 | 6,420 | 1Q 2010 | ||||||||||||||||||
525170CG9 |
1,722 | 1,657 | 65 | 1,657 | 1,404 | 1Q 2010 | ||||||||||||||||||
525221GR2 |
6,622 | 3,934 | 2,688 | 3,934 | 1,875 | 1Q 2010 | ||||||||||||||||||
525221HE0 |
15,734 | 11,848 | 3,886 | 11,848 | 4,671 | 1Q 2010 | ||||||||||||||||||
52524MAW9 |
10,557 | 9,991 | 566 | 9,991 | 3,594 | 1Q 2010 | ||||||||||||||||||
52524YAA1 |
42,308 | 42,286 | 22 | 42,286 | 33,282 | 1Q 2010 | ||||||||||||||||||
655374AA4 |
2,702 | 2,353 | 349 | 2,353 | 1,117 | 1Q 2010 | ||||||||||||||||||
68400DAG9 |
2,794 | 1,924 | 870 | 1,924 | 106 | 1Q 2010 | ||||||||||||||||||
70557RAB6 |
37,812 | 32,192 | 5,620 | 32,192 | 18,685 | 1Q 2010 | ||||||||||||||||||
74925FAA1 |
17,548 | 16,761 | 787 | 16,761 | 15,542 | 1Q 2010 | ||||||||||||||||||
76110WPD2 |
3,676 | 3,388 | 288 | 3,388 | 2,855 | 1Q 2010 | ||||||||||||||||||
76110WQB5 |
15,198 | 14,267 | 931 | 14,267 | 12,048 | 1Q 2010 | ||||||||||||||||||
761118RM2 |
3,297 | 3,186 | 111 | 3,186 | 1,587 | 1Q 2010 | ||||||||||||||||||
761118VY1 |
28,164 | 25,601 | 2,563 | 25,601 | 11,604 | 1Q 2010 | ||||||||||||||||||
81379EAD4 |
5,191 | 3,589 | 1,602 | 3,589 | 99 | 1Q 2010 | ||||||||||||||||||
86357UAA9 |
23,809 | 21,484 | 2,325 | 21,484 | 16,973 | 1Q 2010 | ||||||||||||||||||
86357UBM2 |
4,156 | 3,750 | 406 | 3,750 | 3,020 | 1Q 2010 | ||||||||||||||||||
86358EZU3 |
8,992 | 7,205 | 1,787 | 7,205 | 2,672 | 1Q 2010 | ||||||||||||||||||
86365EAA5 |
12,138 | 10,952 | 1,186 | 10,952 | 8,530 | 1Q 2010 | ||||||||||||||||||
86365EAC1 |
5,116 | 4,617 | 499 | 4,617 | 3,718 | 1Q 2010 | ||||||||||||||||||
86365KAA1 |
4,184 | 3,775 | 409 | 3,775 | 2,989 | 1Q 2010 | ||||||||||||||||||
93935FAA9 |
5,241 | 5,003 | 238 | 5,003 | 2,472 | 1Q 2010 | ||||||||||||||||||
000759BP4 |
757 | 700 | 57 | 700 | 589 | 2Q 2010 | ||||||||||||||||||
02148AAA4 |
48,811 | 46,735 | 2,076 | 46,735 | 33,688 | 2Q 2010 | ||||||||||||||||||
02148YAJ3 |
7,973 | 7,794 | 179 | 7,794 | 6,567 | 2Q 2010 | ||||||||||||||||||
05948KL31 |
18,007 | 17,283 | 724 | 17,283 | 11,108 | 2Q 2010 | ||||||||||||||||||
059494AA2 |
41,693 | 41,000 | 693 | 41,000 | 31,082 | 2Q 2010 | ||||||||||||||||||
05953LAH2 |
1,318 | 888 | 430 | 888 | 319 | 2Q 2010 |
57
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
12668VAF6 |
$ | 8,391 | $ | 8,232 | $ | 159 | $ | 8,232 | $ | 4,535 | 2Q 2010 | |||||||||||||
225470FJ7 |
5,503 | 5,230 | 273 | 5,230 | 4,981 | 2Q 2010 | ||||||||||||||||||
225470U27 |
6,062 | 5,459 | 603 | 5,459 | 4,457 | 2Q 2010 | ||||||||||||||||||
22942KCA6 |
21,269 | 21,106 | 163 | 21,106 | 15,188 | 2Q 2010 | ||||||||||||||||||
32054YAD5 |
353 | 160 | 193 | 160 | 104 | 2Q 2010 | ||||||||||||||||||
35729PPZ7 |
14,854 | 13,466 | 1,388 | 13,466 | 920 | 2Q 2010 | ||||||||||||||||||
36244SAE8 |
901 | 881 | 20 | 881 | 508 | 2Q 2010 | ||||||||||||||||||
525170CG9 |
1,584 | 1,293 | 291 | 1,293 | 1,635 | 2Q 2010 | ||||||||||||||||||
525221HE0 |
11,185 | 6,764 | 4,421 | 6,764 | 5,228 | 2Q 2010 | ||||||||||||||||||
52522QAM4 |
121,936 | 116,652 | 5,284 | 116,652 | 83,155 | 2Q 2010 | ||||||||||||||||||
65536PAA8 |
3,451 | 3,224 | 227 | 3,224 | 2,937 | 2Q 2010 | ||||||||||||||||||
761118RM2 |
3,103 | 3,049 | 54 | 3,049 | 1,563 | 2Q 2010 | ||||||||||||||||||
86358EZU3 |
7,161 | 6,018 | 1,143 | 6,018 | 1,603 | 2Q 2010 | ||||||||||||||||||
000759BP4 |
674 | 657 | 17 | 657 | 572 | 3Q 2010 | ||||||||||||||||||
02148AAA4 |
44,694 | 41,915 | 2,779 | 41,915 | 35,127 | 3Q 2010 | ||||||||||||||||||
02148YAJ3 |
7,636 | 7,630 | 6 | 7,630 | 5,659 | 3Q 2010 | ||||||||||||||||||
05948KV63 |
13,694 | 13,656 | 38 | 13,656 | 12,859 | 3Q 2010 | ||||||||||||||||||
059494AA2 |
39,536 | 39,315 | 221 | 39,315 | 30,326 | 3Q 2010 | ||||||||||||||||||
05953LAH2 |
832 | 708 | 124 | 708 | 304 | 3Q 2010 | ||||||||||||||||||
12638DAA4 |
72,351 | 64,487 | 7,864 | 64,487 | 58,004 | 3Q 2010 | ||||||||||||||||||
12640PAA3 |
7,475 | 7,142 | 333 | 7,142 | 7,293 | 3Q 2010 | ||||||||||||||||||
12667G5G4 |
20,892 | 20,806 | 86 | 20,806 | 20,536 | 3Q 2010 | ||||||||||||||||||
126685DZ6 |
5,919 | 5,602 | 317 | 5,602 | 4,887 | 3Q 2010 | ||||||||||||||||||
12669GTS0 |
50,815 | 47,578 | 3,237 | 47,578 | 25,003 | 3Q 2010 | ||||||||||||||||||
225470FJ7 |
5,065 | 5,060 | 5 | 5,060 | 5,188 | 3Q 2010 | ||||||||||||||||||
225470T94 |
6,996 | 6,650 | 346 | 6,650 | 5,183 | 3Q 2010 | ||||||||||||||||||
225470YD9 |
56,415 | 53,591 | 2,824 | 53,591 | 39,237 | 3Q 2010 | ||||||||||||||||||
225492AE7 |
21,757 | 21,547 | 210 | 21,547 | 18,885 | 3Q 2010 | ||||||||||||||||||
22942KCA6 |
20,247 | 20,203 | 44 | 20,203 | 15,799 | 3Q 2010 | ||||||||||||||||||
3622EEAA0 |
29,835 | 28,729 | 1,106 | 28,729 | 27,151 | 3Q 2010 | ||||||||||||||||||
36244SAE8 |
847 | 820 | 27 | 820 | 542 | 3Q 2010 | ||||||||||||||||||
38011AAC8 |
2,513 | 2,451 | 62 | 2,451 | 1,914 | 3Q 2010 | ||||||||||||||||||
525170CG9 |
1,202 | 1,082 | 120 | 1,082 | 1,185 | 3Q 2010 | ||||||||||||||||||
52519LAA6 |
110,126 | 101,397 | 8,729 | 101,397 | 87,934 | 3Q 2010 | ||||||||||||||||||
525221HE0 |
6,238 | 5,615 | 623 | 5,615 | 4,141 | 3Q 2010 | ||||||||||||||||||
65536PAA8 |
1,894 | 1,747 | 147 | 1,747 | 1,641 | 3Q 2010 | ||||||||||||||||||
75970JAJ5 |
5,448 | 4,933 | 515 | 4,933 | 2,733 | 3Q 2010 | ||||||||||||||||||
75970QAH3 |
7,000 | 6,369 | 631 | 6,369 | 3,783 | 3Q 2010 | ||||||||||||||||||
761118AH1 |
31,985 | 31,648 | 337 | 31,648 | 26,663 | 3Q 2010 | ||||||||||||||||||
761118VY1 |
23,715 | 22,571 | 1,144 | 22,571 | 11,123 | 3Q 2010 | ||||||||||||||||||
92922FZ27 |
23,995 | 23,692 | 303 | 23,692 | 21,808 | 3Q 2010 | ||||||||||||||||||
939336Q55 |
604 | 596 | 8 | 596 | 279 | 3Q 2010 | ||||||||||||||||||
05535DAM6 |
476 | 415 | 61 | 415 | 318 | 3Q 2010 | ||||||||||||||||||
05953YAG6 |
1,788 | 1,788 | | 1,788 | 1,619 | 4Q 2010 | ||||||||||||||||||
059515AC0 |
8,952 | 8,942 | 10 | 8,942 | 5,480 | 4Q 2010 | ||||||||||||||||||
36245CAC6 |
2,589 | 1,121 | 1,468 | 1,121 | 257 | 4Q 2010 | ||||||||||||||||||
52524YAA1 |
3,033 | 3,012 | 21 | 3,012 | 2,837 | 4Q 2010 | ||||||||||||||||||
61754HAB8 |
2,987 | 2,790 | 197 | 2,790 | 1,467 | 4Q 2010 | ||||||||||||||||||
02148YAJ3 |
7,480 | 7,334 | 146 | 7,334 | 5,783 | 4Q 2010 | ||||||||||||||||||
05530PAA0 |
2,460 | 2,395 | 65 | 2,395 | 2,046 | 4Q 2010 | ||||||||||||||||||
059494AA2 |
37,667 | 37,657 | 10 | 37,657 | 30,418 | 4Q 2010 | ||||||||||||||||||
059515AC0 |
8,939 | 7,602 | 1,337 | 7,602 | 5,504 | 4Q 2010 |
58
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
05953LAH2 |
$ | 626 | $ | 432 | $ | 194 | $ | 432 | $ | 273 | 4Q 2010 | |||||||||||||
05953YAG6 |
1,732 | 1,553 | 179 | 1,553 | 1,575 | 4Q 2010 | ||||||||||||||||||
12638DAA4 |
61,724 | 61,571 | 153 | 61,571 | 56,681 | 4Q 2010 | ||||||||||||||||||
12667G5G4 |
8,708 | 8,607 | 101 | 8,607 | 8,394 | 4Q 2010 | ||||||||||||||||||
12668RAA6 |
27,353 | 25,747 | 1,606 | 25,747 | 16,167 | 4Q 2010 | ||||||||||||||||||
12669GTS0 |
46,681 | 44,524 | 2,157 | 44,524 | 24,463 | 4Q 2010 | ||||||||||||||||||
14984WAA8 |
7,942 | 7,730 | 212 | 7,730 | 6,113 | 4Q 2010 | ||||||||||||||||||
225470U27 |
5,279 | 5,139 | 140 | 5,139 | 4,314 | 4Q 2010 | ||||||||||||||||||
225470YD9 |
51,189 | 50,912 | 277 | 50,912 | 37,621 | 4Q 2010 | ||||||||||||||||||
22942KCA6 |
19,399 | 18,120 | 1,279 | 18,120 | 14,757 | 4Q 2010 | ||||||||||||||||||
36245CAC6 |
1,112 | 833 | 279 | 833 | 258 | 4Q 2010 | ||||||||||||||||||
36245RAA7 |
3,756 | 3,495 | 261 | 3,495 | 2,677 | 4Q 2010 | ||||||||||||||||||
39539KAF0 |
10,205 | 9,957 | 248 | 9,957 | 8,804 | 4Q 2010 | ||||||||||||||||||
41161MAC4 |
54,375 | 52,192 | 2,183 | 52,192 | 33,461 | 4Q 2010 | ||||||||||||||||||
45661EAE4 |
8,907 | 2,644 | 6,263 | 2,644 | 2,517 | 4Q 2010 | ||||||||||||||||||
52519LAA6 |
97,842 | 97,267 | 575 | 97,267 | 84,903 | 4Q 2010 | ||||||||||||||||||
525221GR2 |
3,510 | 1,336 | 2,174 | 1,336 | 1,054 | 4Q 2010 | ||||||||||||||||||
525221HE0 |
5,322 | 3,506 | 1,816 | 3,506 | 3,634 | 4Q 2010 | ||||||||||||||||||
52522QAM4 |
106,741 | 105,722 | 1,019 | 105,722 | 81,409 | 4Q 2010 | ||||||||||||||||||
52524YAA1 |
32,722 | 31,200 | 1,522 | 31,200 | 30,754 | 4Q 2010 | ||||||||||||||||||
61754HAB8 |
2,771 | 2,281 | 490 | 2,281 | 1,448 | 4Q 2010 | ||||||||||||||||||
74925FAA1 |
14,656 | 14,038 | 618 | 14,038 | 13,792 | 4Q 2010 | ||||||||||||||||||
759676AJ8 |
6,794 | 6,391 | 403 | 6,391 | 4,825 | 4Q 2010 | ||||||||||||||||||
75971EAF3 |
6,200 | 6,088 | 112 | 6,088 | 3,542 | 4Q 2010 | ||||||||||||||||||
761118VY1 |
21,814 | 20,938 | 876 | 20,938 | 11,309 | 4Q 2010 | ||||||||||||||||||
81379EAD4 |
3,583 | 3,258 | 325 | 3,258 | 348 | 4Q 2010 | ||||||||||||||||||
863592AP6 |
21,292 | 21,076 | 216 | 21,076 | 19,735 | 4Q 2010 | ||||||||||||||||||
863592AQ4 |
9,443 | 9,303 | 140 | 9,303 | 8,654 | 4Q 2010 | ||||||||||||||||||
92922FZ27 |
22,761 | 22,760 | 1 | 22,760 | 20,920 | 4Q 2010 | ||||||||||||||||||
939336Q55 |
576 | 558 | 18 | 558 | 302 | 4Q 2010 | ||||||||||||||||||
02148AAA4 |
56,623 | 55,412 | 1,211 | 55,412 | 27,639 | 3Q 2009 | ||||||||||||||||||
02148YAJ3 |
10,038 | 9,635 | 403 | 9,635 | 5,095 | 3Q 2009 | ||||||||||||||||||
045427AE1 |
5,981 | 4,341 | 1,640 | 4,341 | 388 | 3Q 2009 | ||||||||||||||||||
126670ZN1 |
32,849 | 28,835 | 4,014 | 28,835 | 2,148 | 3Q 2009 | ||||||||||||||||||
12668VAF6 |
14,078 | 9,775 | 4,303 | 9,775 | 3,695 | 3Q 2009 | ||||||||||||||||||
225470FJ7 |
7,621 | 7,494 | 127 | 7,494 | 4,321 | 3Q 2009 | ||||||||||||||||||
225470T94 |
9,057 | 8,721 | 336 | 8,721 | 4,335 | 3Q 2009 | ||||||||||||||||||
22942KCA6 |
27,233 | 25,136 | 2,097 | 25,136 | 14,065 | 3Q 2009 | ||||||||||||||||||
32027LAG0 |
156 | 153 | 3 | 153 | 55 | 3Q 2009 | ||||||||||||||||||
32028TAF4 |
214 | 210 | 4 | 210 | 167 | 3Q 2009 | ||||||||||||||||||
35729PPC8 |
3,943 | 727 | 3,216 | 727 | 169 | 3Q 2009 | ||||||||||||||||||
3622MAAF8 |
300 | 294 | 6 | 294 | 73 | 3Q 2009 | ||||||||||||||||||
40430FAF9 |
2,814 | 591 | 2,223 | 591 | 93 | 3Q 2009 | ||||||||||||||||||
43710LAF1 |
152 | 150 | 2 | 150 | 94 | 3Q 2009 | ||||||||||||||||||
46628SAJ2 |
11,798 | 11,254 | 544 | 11,254 | 4,475 | 3Q 2009 | ||||||||||||||||||
576435AT8 |
494 | 484 | 10 | 484 | 303 | 3Q 2009 | ||||||||||||||||||
655374AA4 |
3,374 | 3,252 | 122 | 3,252 | 1,663 | 3Q 2009 | ||||||||||||||||||
86358EZU3 |
20,660 | 10,929 | 9,731 | 10,929 | 3,505 | 3Q 2009 | ||||||||||||||||||
939336Q55 |
725 | 687 | 38 | 687 | 255 | 3Q 2009 | ||||||||||||||||||
02148AAA4 |
55,412 | 54,674 | 738 | 54,674 | 30,484 | 3Q 2009 | ||||||||||||||||||
12668VAF6 |
9,775 | 9,187 | 588 | 9,187 | 4,470 | 3Q 2009 | ||||||||||||||||||
225470FJ7 |
7,370 | 7,107 | 263 | 7,107 | 4,748 | 3Q 2009 |
59
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
CUSIP |
Amortized Cost Before Current Period OTTI |
Present Value of Projected Cash Flows |
Recognized OTTI |
Amortized Cost After OTTI |
Fair Value at Time of OTTI |
Quarter in which Impairment Occurred |
||||||||||||||||||
22942KCA6 |
$ | 25,136 | $ | 24,544 | $ | 592 | $ | 24,544 | $ | 14,572 | 3Q 2009 | |||||||||||||
23245CAF7 |
440 | 317 | 123 | 317 | 90 | 3Q 2009 | ||||||||||||||||||
3622MAAF8 |
294 | 248 | 46 | 248 | 48 | 3Q 2009 | ||||||||||||||||||
36244SAE8 |
1,000 | 949 | 51 | 949 | 481 | 3Q 2009 | ||||||||||||||||||
43710LAF1 |
150 | 107 | 43 | 107 | 113 | 3Q 2009 | ||||||||||||||||||
52524MAW9 |
11,476 | 11,109 | 367 | 11,109 | 3,902 | 3Q 2009 | ||||||||||||||||||
68400DAG9 |
4,806 | 3,554 | 1,252 | 3,554 | 193 | 3Q 2009 | ||||||||||||||||||
70557RAB6 |
41,797 | 37,940 | 3,857 | 37,940 | 20,360 | 3Q 2009 | ||||||||||||||||||
86358EZU3 |
10,929 | 9,287 | 1,642 | 9,287 | 1,747 | 3Q 2009 | ||||||||||||||||||
939336Q55 |
687 | 680 | 7 | 680 | 260 | 3Q 2009 | ||||||||||||||||||
059494AA2 |
45,467 | 44,726 | 741 | 44,726 | 30,478 | 4Q 2009 | ||||||||||||||||||
05951VAV1 |
60,026 | 59,859 | 167 | 59,859 | 34,196 | 4Q 2009 | ||||||||||||||||||
05948KV63 |
15,678 | 15,283 | 395 | 15,283 | 11,397 | 4Q 2009 | ||||||||||||||||||
126670ZN1 |
28,832 | 26,567 | 2,265 | 26,567 | 3,802 | 4Q 2009 | ||||||||||||||||||
126685DZ6 |
8,557 | 6,962 | 1,595 | 6,962 | 5,593 | 4Q 2009 | ||||||||||||||||||
23245CAF7 |
304 | 267 | 37 | 267 | 214 | 4Q 2009 | ||||||||||||||||||
12667G5G4 |
25,000 | 23,949 | 1,051 | 23,949 | 21,479 | 4Q 2009 | ||||||||||||||||||
02148AAA4 |
53,080 | 52,679 | 401 | 52,679 | 32,386 | 4Q 2009 | ||||||||||||||||||
02148YAJ3 |
9,305 | 8,787 | 518 | 8,787 | 6,122 | 4Q 2009 | ||||||||||||||||||
045427AE1 |
4,341 | 3,378 | 963 | 3,378 | 517 | 4Q 2009 | ||||||||||||||||||
12640PAA3 |
11,545 | 10,987 | 558 | 10,987 | 9,882 | 4Q 2009 | ||||||||||||||||||
225470FJ7 |
6,755 | 6,727 | 28 | 6,727 | 4,955 | 4Q 2009 | ||||||||||||||||||
32027LAG0 |
147 | 116 | 31 | 116 | 46 | 4Q 2009 | ||||||||||||||||||
32028TAF4 |
198 | 182 | 16 | 182 | 125 | 4Q 2009 | ||||||||||||||||||
38011AAC8 |
2,961 | 2,627 | 334 | 2,627 | 1,992 | 4Q 2009 | ||||||||||||||||||
361856EC7 |
31,354 | 26,889 | 4,465 | 26,889 | 14,755 | 4Q 2009 | ||||||||||||||||||
3622MAAF8 |
234 | 218 | 16 | 218 | 55 | 4Q 2009 | ||||||||||||||||||
43710LAF1 |
96 | 91 | 5 | 91 | 80 | 4Q 2009 | ||||||||||||||||||
52524YAA1 |
46,921 | 46,677 | 244 | 46,677 | 35,812 | 4Q 2009 | ||||||||||||||||||
52524MAW9 |
10,923 | 10,743 | 180 | 10,743 | 4,023 | 4Q 2009 | ||||||||||||||||||
576435AT8 |
467 | 397 | 70 | 397 | 284 | 4Q 2009 | ||||||||||||||||||
655374AA4 |
3,144 | 2,723 | 421 | 2,723 | 1,573 | 4Q 2009 | ||||||||||||||||||
68400DAG9 |
3,535 | 2,809 | 726 | 2,809 | 180 | 4Q 2009 | ||||||||||||||||||
761118VY1 |
30,381 | 29,354 | 1,027 | 29,354 | 12,445 | 4Q 2009 | ||||||||||||||||||
86358EZU3 |
9,243 | 9,032 | 211 | 9,032 | 222 | 4Q 2009 | ||||||||||||||||||
225470T94 |
8,516 | 7,425 | 1,091 | 7,425 | 5,324 | 4Q 2009 | ||||||||||||||||||
225470U27 |
7,991 | 6,431 | 1,560 | 6,431 | 4,577 | 4Q 2009 | ||||||||||||||||||
933637AJ9 |
3,783 | 3,505 | 278 | 3,505 | 2,574 | 4Q 2009 |
60
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, 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, 2011 and 2010 is as follows:
Losses 12 Months or More |
Losses Less Than 12 Months |
|||||||
Year ended December 31, 2011 |
||||||||
The aggregate amount of unrealized losses |
$ | 1,414,929 | $ | 67,845 | ||||
The aggregate related fair value of securities with unrealized losses |
4,176,581 | 1,125,357 |
Losses 12 Months or More |
Losses Less Than 12 Months |
|||||||
Year ended December 31, 2010 |
||||||||
The aggregate amount of unrealized losses |
$ | 1,458,666 | $ | 46,087 | ||||
The aggregate related fair value of securities with unrealized losses |
5,640,930 | 1,393,078 |
Detail of net investment income (loss) is presented below:
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Income (loss): |
||||||||||||
Bonds |
$ | 2,147,304 | $ | 2,476,783 | $ | 2,581,437 | ||||||
Preferred stocks |
9,136 | 10,296 | 10,395 | |||||||||
Common stocks |
48,828 | 36,266 | 8,444 | |||||||||
Mortgage loans on real estate |
469,635 | 534,467 | 609,836 | |||||||||
Real estate |
19,488 | 20,816 | 20,748 | |||||||||
Policy loans |
46,677 | 50,210 | 50,065 | |||||||||
Cash, cash equivalents and short-term investments |
5,010 | 11,008 | 38,804 | |||||||||
Derivatives |
(29,303 | ) | (147,236 | ) | (134,716 | ) | ||||||
Other invested assets |
6,183 | 50,078 | 17,276 | |||||||||
Other |
11,912 | 14,525 | 9,242 | |||||||||
|
|
|
|
|
|
|||||||
Gross investment income |
2,734,870 | 3,057,213 | 3,211,531 | |||||||||
Less investment expenses |
119,012 | 138,042 | 138,374 | |||||||||
|
|
|
|
|
|
|||||||
Net investment income |
$ | 2,615,858 | $ | 2,919,171 | $ | 3,073,157 | ||||||
|
|
|
|
|
|
61
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Proceeds from sales and other disposals (excluding maturities) of bonds and preferred stock and related gross realized capital gains and losses were as follows:
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Proceeds |
$ | 16,303,347 | $ | 23,903,441 | $ | 17,547,590 | ||||||
|
|
|
|
|
|
|||||||
Gross realized gains |
$ | 581,820 | $ | 1,624,135 | $ | 365,788 | ||||||
Gross realized losses |
(85,014 | ) | (142,953 | ) | (394,368 | ) | ||||||
|
|
|
|
|
|
|||||||
Net realized capital gains (losses) |
$ | 496,806 | $ | 1,481,182 | $ | (28,580 | ) | |||||
|
|
|
|
|
|
The Company had gross realized losses for the years ended December 31, 2011, 2010 and 2009 of $127,005, $192,541 and $618,554, respectively, which relate to losses recognized on other-than-temporary declines in the fair values of bonds and preferred stocks.
Net realized capital gains (losses) on investments are summarized below:
Realized | ||||||||||||
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Bonds |
$ | 370,867 | $ | 1,290,685 | $ | (612,760 | ) | |||||
Preferred stocks |
5,557 | (75 | ) | 6,697 | ||||||||
Common stocks |
22,701 | 2,949 | (4,947 | ) | ||||||||
Mortgage loans on real estate |
(2,171 | ) | (18,451 | ) | (55,349 | ) | ||||||
Real estate |
4,287 | (235 | ) | (1,051 | ) | |||||||
Cash, cash equivalents and short-term investments |
13 | 12 | 80 | |||||||||
Derivatives |
304,713 | (160,155 | ) | (437,350 | ) | |||||||
Other invested assets |
91,017 | 124,712 | (8,392 | ) | ||||||||
|
|
|
|
|
|
|||||||
796,984 | 1,239,442 | (1,113,072 | ) | |||||||||
Federal income tax effect |
(185,043 | ) | (450,184 | ) | 235,951 | |||||||
Transfer to interest maintenance reserve |
(188,405 | ) | (846,096 | ) | 176,600 | |||||||
|
|
|
|
|
|
|||||||
Net realized capital gains (losses) on investments |
$ | 423,536 | $ | (56,838 | ) | $ | (700,521 | ) | ||||
|
|
|
|
|
|
At December 31, 2011 and 2010, the Company had recorded investments in restructured securities of $10,272 and $46,209, respectively. The capital (losses) gains taken as a direct result of restructures in 2011, 2010 and 2009 were $(4,361), $16,745 and $(84,752), respectively. The Company often has impaired a security prior to the restructure date. These impairments are not included in the calculation of restructure related losses and are accounted for as a realized loss, reducing the cost basis of the security involved.
62
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The changes in net unrealized capital gains and losses on investments were as follows:
Change in Unrealized | ||||||||||||
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Bonds |
$ | (143,599 | ) | $ | (53,819 | ) | $ | 16,818 | ||||
Preferred stocks |
(3,816 | ) | (35 | ) | (46,613 | ) | ||||||
Common stocks |
(19,959 | ) | 22,057 | 36,097 | ||||||||
Affiliated entities |
461,477 | 70,914 | 37,287 | |||||||||
Mortgage loans on real estate |
(2,196 | ) | 1,826 | (8,024 | ) | |||||||
Cash, cash equivalents and short-term investments |
| | 284 | |||||||||
Derivatives |
239,967 | 113,051 | (410,982 | ) | ||||||||
Other invested assets |
103,189 | 25,289 | (211,719 | ) | ||||||||
|
|
|
|
|
|
|||||||
Change in unrealized capital gains (losses) |
$ | 635,063 | $ | 179,283 | $ | (586,852 | ) | |||||
|
|
|
|
|
|
During 2011, the Company issued mortgage loans with interest rates of 6.16% for commercial loans. The maximum percentage of any one mortgage loan to the value of the underlying real estate originated during the year ending December 31, 2011 at the time of origination was 70%. The Company did not issue any new mortgage loans during 2010. During 2011, the Company did not reduce interest rates on any outstanding mortgages. During 2010, the Company reduced interest rates on mortgages by 3% for one loan in the amount of $1,986, by 2% for one loan in the amount of $1,269 and by 1% for two loans in the amount of $61,000. At December 31, 2011, there were no loans that were non-income producing for the previous 180 days. At December 31, 2010, mortgage loans with a carrying amount of $6 were non-income producing for the previous 180 days. Accrued interest of $1 and $3 related to these mortgage loans was excluded from investment income at December 31, 2010 and 2009, respectively. 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, 2011 and 2010 there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.
At December 31, 2011 and 2010, respectively, the Company held $44,738 and $89,765 in impaired loans with related allowance for credit losses of $8,394 and $6,198. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2011 and 2010, respectively. The average recorded investment in impaired loans during 2011 and 2010 was $ 53,714 and $137,077, respectively.
63
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, 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 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Balance at beginning of period |
$ | 6,198 | $ | 8,024 | $ | 11,924 | ||||||
Additions, net charged to operations |
6,599 | 16,645 | 20,940 | |||||||||
Recoveries in amounts previously charged off |
(4,403 | ) | (18,471 | ) | (24,840 | ) | ||||||
|
|
|
|
|
|
|||||||
Balance at end of period |
$ | 8,394 | $ | 6,198 | $ | 8,024 | ||||||
|
|
|
|
|
|
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, 2011, 2010 and 2009, respectively, the Company recognized $3,701, $8,500 and $1,993 of interest income on impaired loans. Interest income of $3,610, $8,568 and $509, respectively, was recognized on a cash basis for the years ended December 31, 2011, 2010 and 2009.
At December 31, 2011 and 2010, the Company held a mortgage loan loss reserve in the AVR of $65,017 and $77,736, respectively.
The Companys mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:
Geographic Distribution |
Property Type Distribution |
|||||||||||||||||
December 31 | December 31 | |||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||
South Atlantic |
25 | % | 24 | % | Office | 28 | % | 31 | % | |||||||||
Pacific |
23 | 22 | Retail | 23 | 21 | |||||||||||||
Middle Atlantic |
15 | 17 | Apartment | 21 | 21 | |||||||||||||
Mountain |
14 | 13 | Industrial | 18 | 17 | |||||||||||||
E. North Central |
10 | 10 | Other | 4 | 5 | |||||||||||||
W. North Central |
6 | 6 | Agricultural | 4 | 3 | |||||||||||||
W. South Central |
3 | 4 | Medical | 2 | 2 | |||||||||||||
E. South Central |
2 | 2 | ||||||||||||||||
New England |
2 | 2 |
At December 31, 2011, 2010 and 2009, the Company had mortgage loans with a total net admitted asset value of $2,416, $13,125 and $13,454, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were
64
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
no realized losses during the years ended December 31, 2011, 2010 and 2009 related to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2011, 2010 or 2009.
A write down of carrying value is required when an investors intent to retain the investment in the issuer has changed at the reporting date and there is not a sufficient period of time to allow for any anticipated recovery in value to occur. At December 31, 2009, the Company recorded an impairment of $15,287 for its investment in Zero Beta Fund, LLC. The impairment was taken because there is an intent to sell some of the underlying investments of the fund before any anticipated recovery in value would occur.
During 2011, the Company recorded an impairment of $5,770 for its investment in William Blair Mezzanine Capital Fund III, L.P., an impairment of $8,799 for its investment in Harbour Group Investments IV, L.P. and an impairment of $1,697 for its investment in e-Financial Ventures I, L.P. The impairments were taken because the decline in fair value of the funds was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds was not anticipated. These write-downs are included in net realized capital gains (losses) within the statements of operations.
During 2010, the Company recorded an impairment of $3,276 for its investment in Stonington Capital Appreciation 1994 Fund, L.P. and an impairment of $272 for its investment in Yield Strategies Fund I, L.P. The impairments were taken because the decline in fair value of the funds was deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds was not anticipated. These write-downs are included in net realized capital gains (losses) within the statements of operations.
During 2009, the Company recorded impairments of $40,688 and $10,030 for its investment in Real Estate Alternatives Portfolio 2, LLC and Real Estate Alternatives Portfolio 3, LLC, respectively. The impairment was taken because the declines in fair value of underlying investments of the fund were deemed to be other-than-temporary.
During 2009, the Company recorded an impairment of $2,120 for its investment in Yucaipa Equity Partners, L.P., an impairment of $2,884 for its investment in BCI Growth IV, L.P., an impairment of $296 for its investment in Allsop Venture Partners III, L.P., an impairment of $1,548 for its investment in B III Capital Partners, L.P., an impairment of $551 for its investment in Cahill, Warnock Strategic Partners Fund, L.P., an impairment of $49 for its investment in CM Equity Partners, L.P., an impairment of $133 for its investment in Conning Insurance Capital Limited Partnership III, an impairment of $706 for its investment in FS Equity Partners III, L.P. and an impairment of $5,133 for its
65
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
investment in Harbour Group Investments III, L.P. These impairments were taken because the declines in fair value of underlying investments of the funds were deemed to be other-than-temporary.
At December 31, 2011, the Company had ownership interests in sixty-five LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven, and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from one to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2012 to 2026 is $53,963. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.
At December 31, 2010, the Company had ownership interests in sixty-two LIHTC investments. The remaining years of unexpired tax credits ranged from one to eleven. One property was the subject of a review by the South Dakota Housing Development Authority in which the Company responded with corrective actions. The length of time remaining for holding periods ranged from one to sixteen years. The amount of contingent equity commitments expected to be paid during the years 2011 to 2019 is $29,934. There were no impairment losses, write-downs or reclassifications during 2010 related to any of these credits.
The following table provides the carrying value of state transferable tax credits gross of any related tax liabilities and total unused transferable tax credits by state and in total as of December 31, 2011 and 2010:
December 31, 2011 | ||||||||||||
Description of State Transferable Tax Credits |
State | Carrying Value | Unused Amount* | |||||||||
Low-Income Housing Tax Credits |
MA | $ | 4,446 | $ | 6,696 | |||||||
|
|
|
|
|||||||||
Total |
$ | 4,446 | $ | 6,696 | ||||||||
|
|
|
|
December 31, 2010 | ||||||||||||
Description of State Transferable Tax Credits |
State | Carrying Value | Unused Amount | |||||||||
Low-Income Housing Tax Credits |
MA | $ | 5,135 | $ | 8,370 | |||||||
Low-Income Housing Tax Credits |
MO | 1,461 | 1,642 | |||||||||
|
|
|
|
|||||||||
Total |
$ | 6,596 | $ | 10,012 | ||||||||
|
|
|
|
* | The unused amount reflects credits that the Company deems will be realizable in the period from 2012 to 2015. |
The Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium, tax rates and tax credits and
66
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
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.
On December 31, 2010, the Company sold two real estate related limited liability company interests (Transamerica Pyramid Properties, LLC and Transamerica Realty Properties, LLC) to Monumental Life Insurance Company (MLIC), an affiliate, for a combined sale price of $252,975. The sale price was based predominantly on the valuations of the properties within each of the entities. This transaction resulted in a realized gain of $24,296.
Derivatives
The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Companys behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities).
At December 31, 2011 and 2010, the fair value of all derivative contracts, aggregated at a counterparty level, with a positive fair value amounted to $2,014,879 and $822,271, respectively.
At December 31, 2011 and 2010, the fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $560,015 and $555,186, respectively.
For the years ended December 31, 2011 and 2010, the Company has recorded $142,076, and $(22,972), respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain (loss).
The Company did not recognize any unrealized gains or losses during 2011 and 2010 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.
The Company did not recognize any income from options contracts for the years ended December 31, 2011 and 2010. The Company recognized income from options contracts in the amount of $1,534 for the year ended December 31, 2009.
67
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 21 years for forecasted hedge transactions.
At December 31, 2011 and 2010, none of the Companys 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, 2011 and 2010, the Company has accumulated deferred gains in the amount of $78,051 and $89,357, 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 2026.
At December 31, 2011 and 2010, the Company had replicated assets with a fair value of $2,965,038 and $1,422,102 and credit default and forward starting interest rate swaps with a fair value of $(195,744) and $29,383, respectively. For the years ended December 31, 2011 and 2009, the Company recognized $408, and $3,088 in capital losses related to replication transactions. For the year ended December 31, 2010, the Company did not recognize any capital losses related to replication transactions.
68
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
As stated in Note 1, the Company replicates investment grade corporate bonds by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, the Company has recourse provisions from the proceeds of the bankruptcy settlement of the underlying entity or by the sale of the underlying bond. As of December 31, 2011, credit default swaps, used in replicating corporate bonds are as follows:
Deal, Receive (Pay), Underlying |
Maturity Date |
Maximum Future Payout (Estimate) |
Current Fair Value |
|||||||||
3815,SWAP, USD 0.6 / (USD 0), :31359MEL3 |
12/20/2012 | $ | 3,000 | $ | 5 | |||||||
3817,SWAP, USD 0.6 / (USD 0), :31359MEL3 |
12/20/2012 | 1,000 | 2 | |||||||||
3818,SWAP, USD 0.6 / (USD 0), :76116FAG2 |
12/20/2012 | 1,000 | 2 | |||||||||
3820,SWAP, USD 0.6 / (USD 0), :31359MEL3 |
12/20/2012 | 1,000 | 2 | |||||||||
3823,SWAP, USD 0.43 / (USD 0), :31359MEL3 |
12/20/2012 | 2,000 | (5 | ) | ||||||||
3936,SWAP, USD 0.49 / (USD 0), :31359MEL3 |
6/20/2013 | 15,000 | 75 | |||||||||
3937,SWAP, USD 0.85 / (USD 0), :31359MEL3 |
6/20/2013 | 15,000 | 110 | |||||||||
3938,SWAP, USD 1.52 / (USD 0), :31359MEL3 |
6/20/2013 | 12,000 | 70 | |||||||||
4199,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4201,SWAP, USD 1 / (USD 0), :912828JR2 |
12/20/2015 | 10,000 | (501 | ) | ||||||||
4200,SWAP, USD 1 / (USD 0), :912810QK7 |
12/20/2015 | 10,000 | (751 | ) | ||||||||
4203,SWAP, USD 1 / (USD 0), :912810PX0 |
12/20/2015 | 10,000 | (816 | ) | ||||||||
4208,SWAP, USD 1 / (USD 0), :912810QK7 |
12/20/2015 | 20,000 | (1,003 | ) | ||||||||
4233,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4234,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | 12 | |||||||||
4235,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | (1,003 | ) | ||||||||
4236,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | 38 | |||||||||
4237,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4238,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | 312 | |||||||||
4239,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | 58 | |||||||||
4240,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4241,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | 38 | |||||||||
4244,SWAP, USD 1 / (USD 0), :912810QK7 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4248,SWAP, USD 1 / (USD 0), :912803CH4,912803BM4 |
12/20/2015 | 20,000 | (92 | ) | ||||||||
4250,SWAP, USD 1 / (USD 0), :912803BV4 |
12/20/2015 | 20,000 | 60 | |||||||||
4251,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 20,000 | 60 | |||||||||
4252,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 10,000 | (413 | ) |
69
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Deal, Receive (Pay), Underlying |
Maturity Date |
Maximum Future Payout (Estimate) |
Current Fair Value |
|||||||||
4253,SWAP, USD 1 / (USD 0), :912803BM4 |
12/20/2015 | $ | 20,000 | $ | (150 | ) | ||||||
4254,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | (1,502 | ) | ||||||||
4255,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 20,000 | 12 | |||||||||
4256,SWAP, USD 1 / (USD 0), :912803DM2 |
12/20/2015 | 20,000 | 60 | |||||||||
4257,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | (461 | ) | ||||||||
4258,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 20,000 | (22 | ) | ||||||||
4267,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 20,000 | (825 | ) | ||||||||
4268,SWAP, USD 1 / (USD 0), :912803BF9 |
12/20/2015 | 20,000 | 38 | |||||||||
4261,SWAP, USD 1 / (USD 0), :912803CH4 |
12/20/2015 | 20,000 | (445 | ) | ||||||||
4262,SWAP, USD 1 / (USD 0), :912803BJ1 |
12/20/2015 | 20,000 | (1,502 | ) | ||||||||
4263,SWAP, USD 1 / (USD 0), :912803BF9 |
12/20/2015 | 20,000 | (170 | ) | ||||||||
4264,SWAP, USD 1 / (USD 0), :912803BJ1 |
12/20/2015 | 20,000 | 256 | |||||||||
4265,SWAP, USD 1 / (USD 0), :912810QK7 |
12/20/2015 | 20,000 | 312 | |||||||||
4266,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | 73 | |||||||||
4269,SWAP, USD 1 / (USD 0), :912803CH4 |
12/20/2015 | 20,000 | 506 | |||||||||
4270,SWAP, USD 1 / (USD 0), :912810QK7 |
12/20/2015 | 20,000 | 173 | |||||||||
4271,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | 256 | |||||||||
4272,SWAP, USD 1 / (USD 0), :912803DK6 |
12/20/2015 | 20,000 | 8 | |||||||||
4273,SWAP, USD 1 / (USD 0), :91280DJ9 |
12/20/2015 | 20,000 | 266 | |||||||||
4278,SWAP, USD 1 / (USD 0), :912803DM2 |
3/20/2016 | 20,000 | (1,712 | ) | ||||||||
4279,SWAP, USD 1 / (USD 0), :912803DJ9 |
12/20/2015 | 20,000 | (93 | ) | ||||||||
4280,SWAP, USD 1 / (USD 0), :912803DJ9 |
3/20/2016 | 10,000 | (137 | ) | ||||||||
4281,SWAP, USD 1 / (USD 0), :912803DM2 |
3/20/2016 | 20,000 | 245 | |||||||||
4282,SWAP, USD 1 / (USD 0), :912803DM2 |
3/20/2016 | 20,000 | (214 | ) | ||||||||
4283,SWAP, USD 1 / (USD 0), :912803DJ9 |
3/20/2016 | 20,000 | 332 | |||||||||
4284,SWAP, USD 1 / (USD 0), :912803DM2 |
3/20/2016 | 20,000 | 248 | |||||||||
4293,SWAP, USD 1 / (USD 0), :US134429AS81 |
3/20/2016 | 20,000 | 462 |
70
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Deal, Receive (Pay), Underlying |
Maturity Date |
Maximum Future Payout (Estimate) |
Current Fair Value |
|||||||||
4295,SWAP, USD 1 / (USD 0), :US057224AK30 |
3/20/2016 | $ | 20,000 | $ | 195 | |||||||
4296,SWAP, USD 1 / (USD 0), :US037411AN57 |
3/20/2016 | 20,000 | 268 | |||||||||
4297,SWAP, USD 1 / (USD 0), :US674599BV68 |
3/20/2016 | 11,000 | 196 | |||||||||
4298,SWAP, USD 1 / (USD 0), :US674599BV68 |
3/20/2016 | 9,000 | 160 | |||||||||
4299,SWAP, USD 1 / (USD 0), :US670346AE56 |
3/20/2016 | 10,000 | (13 | ) | ||||||||
4311,SWAP, USD 1 / (USD 0), :US35671DAS45 |
6/20/2016 | 20,000 | (624 | ) | ||||||||
4313,SWAP, USD 1 / (USD 0), :CDXIG16 |
6/20/2016 | 20,000 | (151 | ) | ||||||||
4347,SWAP, USD 1 / (USD 0), :31359MEL3 |
6/20/2016 | 20,000 | (151 | ) | ||||||||
4350,SWAP, USD 1 / (USD 0), :US020002AH4 |
9/20/2016 | 10,000 | (3 | ) | ||||||||
4351,SWAP, USD 1 / (USD 0), :US89417EAF60 |
9/20/2016 | 10,000 | (9 | ) | ||||||||
4381,SWAP, USD 1 / (USD 0), :912803DP5 |
6/20/2016 | 20,000 | (151 | ) | ||||||||
4382,SWAP, USD 1 / (USD 0), :912803DP5 |
6/20/2016 | 20,000 | (151 | ) | ||||||||
4387,SWAP, USD 1 / (USD 0), :912803DP5 |
6/20/2016 | 26,000 | (196 | ) | ||||||||
4401,SWAP, USD 1 / (USD 0), :CDX IG 17 |
12/20/2016 | 20,000 | (189 | ) | ||||||||
4402,SWAP, USD 1 / (USD 0), :CDX IG 17 |
12/20/2016 | 20,000 | (189 | ) | ||||||||
4404,SWAP, USD 1 / (USD 0), :CDX IG 17 |
12/20/2016 | 20,000 | (189 | ) | ||||||||
4414,SWAP, USD 1 / (USD 0), :US149123BM26 |
12/20/2016 | 20,000 | (424 | ) | ||||||||
4421,SWAP, USD 1 / (USD 0), :US80605AE11 |
12/20/2016 | 20,000 | 279 | |||||||||
3066,SWAP, USD 0.41 / (USD 0), :459200BA8 |
6/18/2014 | 40,000 | 171 | |||||||||
3249,SWAP, USD 0.39 / (USD 0), :539830AE9 |
3/20/2012 | 17,000 | (0 | ) | ||||||||
3251,SWAP, USD 0.38 / (USD 0), :666807AT9 |
3/20/2012 | 13,000 | 4 | |||||||||
|
|
|
|
|||||||||
$ | 1,306,000 | $ | (9,354 | ) | ||||||||
|
|
|
|
At December 31, 2011, the Company had written options with a fair value of $0 and average fair value for the year of $(32). At December 31, 2010, the Company had written options with a fair value of $(462) and average fair value for the year of $(425). The Company had no realized gains or losses for the years ended December 31, 2011 and 2010 related to these options.
At December 31, 2011, the Company had credit default swaps linked to collateralized debt obligations with a fair value of $(11,786) and average fair value for the year of $(10,682). At December 31, 2010, the Company had credit default swaps linked to collateralized debt obligations with a fair value of $(4,600) and average fair value for the year of $(4,600). The Company had no realized gains or losses for the years ended December 31, 2011 and 2010 related to these credit default swaps.
71
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
At December 31, 2011 and 2010, the Companys outstanding financial instruments with on and off balance sheet risks, shown in notional amounts, are summarized as follows:
Notional Amount | ||||||||
2011 | 2010 | |||||||
Interest rate and currency swaps: |
||||||||
Receive floatingpay floating |
$ | 1,592,865 | $ | 2,038,837 | ||||
Receive fixedpay floating |
12,082,972 | 12,288,402 | ||||||
Receive floatingpay fixed |
4,052,254 | 4,848,678 | ||||||
Receive fixedpay fixed |
732,548 | 129,098 |
The Company recognized net realized gains (losses) from futures contracts in the amount of $147,183, $(120,396) and $(180,328) for the years ended December 31, 2011, 2010 and 2009, respectively.
Open futures contracts at December 31, 2011 and 2010, were as follows:
Long/Short |
Number of Contracts |
Contract Type |
Opening Fair Value |
Year-End Fair Value |
||||||||||
December 31, 2011 |
||||||||||||||
Short |
(2,073 | ) | S&P 500 March 2012 Futures | $ | (639,474 | ) | $ | (649,159 | ) | |||||
Long |
13,040 | US Ultra Bond March 2012 Futures | 2,055,916 | 2,085,177 |
Long/Short |
Number of Contracts |
Contract Type |
Opening Fair Value |
Year-End Fair Value |
||||||||||
December 31, 2010 |
||||||||||||||
Short |
(1,190 | ) | S&P 500 March 2011 Futures | $ | (366,683 | ) | $ | (372,767 | ) | |||||
Long |
4,950 | US Ultra Bond March 2011 Futures | 646,816 | 629,095 |
At December 31, 2011 and 2010, investments with an aggregate carrying value of $38,140,830 and $44,885,204, respectively, were on deposit with regulatory authorities or were restrictively held in bank custodial accounts for the benefit of such regulatory authorities, as required by statute.
72
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
6. Reinsurance
Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and this would become an actual liability in the event that the assuming insurance company became unable to meet its obligation under the reinsurance treaty.
Premiums earned reflect the following reinsurance amounts:
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Direct premiums |
$ | 13,297,032 | $ | 10,763,441 | $ | 12,709,931 | ||||||
Reinsurance assumednon affiliates |
1,710,756 | 1,652,588 | 1,612,150 | |||||||||
Reinsurance assumedaffiliates |
222,283 | 427,231 | 196,638 | |||||||||
Reinsurance cedednon affiliates |
(6,259,014 | ) | (1,042,739 | ) | (1,130,902 | ) | ||||||
Reinsurance cededaffiliates |
892,999 | (2,635,402 | ) | (5,287,685 | ) | |||||||
|
|
|
|
|
|
|||||||
Net premiums earned |
$ | 9,864,056 | $ | 9,165,119 | $ | 8,100,132 | ||||||
|
|
|
|
|
|
The Company received reinsurance recoveries in the amount of $2,756,316, $2,580,994 and $2,360,201 during 2011, 2010 and 2009, respectively. At December 31, 2011 and 2010, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $705,476 and $429,355, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2011 and 2010 of $40,233,402 and $38,345,117, respectively.
The net amount of the reduction in surplus at December 31, 2011 and 2010, if all reinsurance agreements were cancelled, is $231,604 and $18,827, respectively.
On April 26, 2011, AEGON N.V. announced the disposition of its life reinsurance operations, Transamerica Reinsurance, to SCOR, which was effective August 9, 2011. The life reinsurance business conducted by Transamerica Reinsurance was written through several of AEGON N.V.s U.S. and international affiliates, all of which remain AEGON N.V. affiliates following the closing, except for Transamerica International
73
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Reinsurance Ireland, Limited (TIRI), an Irish reinsurance company. As a result of this transaction, the Company entered into a series of recapture and reinsurance agreements during the second, third and fourth quarters of 2011 which directly resulted in a pre-tax loss of $3,337,294 which was included in the statement of operations, and a net of tax gain of $2,694,506 which has been credited directly to unassigned surplus. These amounts include current year amortization of previously deferred gains, as well as releases of previously deferred gains from unassigned surplus into earnings. Additional information surrounding these transactions is outlined below.
During the second quarter of 2011, the Company recaptured business that was previously reinsured on various bases to affiliates. The Company paid recapture consideration of $320,103, released the associated funds withheld liability of $13,808,943, recaptured reserves of $15,167,234, recaptured other net assets of $26,634 and released a prior deferred gain related to the initial transactions in the amount of $295,083, resulting in a pre-tax loss of $1,356,677, which has been included the statement of operations. The Company amortized $10,044 prior to the recaptures in 2011 and $4,978 in 2010 of the original gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. Additionally, another affiliate recaptured certain business that had been previously reinsured by the Company on a coinsurance basis. The Company received recapture consideration of $14,200, released assets of $16,678 and released reserves of $16,685, resulting in a pre-tax gain of $14,207, which has been included in the statement of operations.
Subsequently, also effective during the second quarter of 2011, the Company ceded a portion of the recaptured business above to an affiliate on a coinsurance and coinsurance funds withheld bases. The Company received an initial ceding commission of $40,097, established a funds withheld liability of $11,674,680, released reserves of $12,982,528, transferred other net assets of $364,305 and released an after-tax IMR liability in the amount of $146,227, resulting in a net of tax gain on the transactions in the amount of $785,593, which has been credited directly to unassigned surplus. During 2011, the Company has amortized $27,742 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. Also effective during the second quarter of 2011, the Company ceded a portion of the recaptured business above to a non-affiliate on a coinsurance basis. The Company paid an initial reinsurance premium of $1,486,693 and ceding commission of $21,270, released reserves and other liabilities of $1,486,692 and released an after-tax IMR liability associated with the block of business in the amount of $50,453, resulting in a net of tax gain on the transaction in the amount of $36,627, which has been credited directly to unassigned surplus. During 2011, the Company has amortized $1,888 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
74
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
During the last half of 2011, the Company recaptured business that was associated with the divestiture of the Transamerica Reinsurance operations which was previously retroceded on a coinsurance basis to two affiliates. The Company received recapture consideration of $243,415, recaptured reserves of $2,168,882, recaptured other assets of $72,124 and released a prior deferred gain related to the initial transactions in the amount of $861,479, resulting in a pre-tax loss of $991,864, which has been included in the statement of operations. The Company also recaptured business from a non-affiliate in a similar transaction. The Company paid recapture consideration of $734,171, recaptured reserves of $335,286 and recaptured other net assets of $51,045, resulting in a pre-tax loss of $1,018,412, which has been included in the statement of operations.
Subsequently, during the last half of 2011, the Company ceded business that was associated with the divestiture of the Transamerica Reinsurance operations on a coinsurance basis to a non-affiliate. The Company paid a reinsurance premium of $273,178, received an initial ceding commission of $79,841, released reserves of $3,146,859, transferred other assets in the amount of $76,768 and released an after-tax IMR liability associated with the block of business in the amount of $33,567, resulting in a net of tax gain on the transaction of $1,903,457, which has been credited directly to unassigned surplus. The Company has amortized $1,541 of the deferred gains related to the divestiture of the Transamerica Reinsurance operations to a non-affiliate into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
During the last half of 2011, the Company recaptured the business that was associated with the divesture of the Transamerica Reinsurance operations from several AEGON N.V. affiliates. This business was subsequently ceded to SCOR entities and in addition, retrocession reinsurance treaties were executed. The Company assigned certain third party retrocession agreements to SCOR entities as a component of the divesture of the Transamerica Reinsurance operations and the associated Master Retrocession Agreement. As a result, the unaffiliated retrocession reinsurance treaties were assigned from the Company to a SCOR entity, resulting in this risk being ceded to SCOR and subsequently to the unaffiliated third parties. The reserves and assets associated with these assignments were $80,301, where the counterpartys net reserves ceded exchanged counterparties with no consideration exchanged, resulting in no net income or surplus impact to the Company.
Effective September 30, 2011, the Company recaptured business previously coinsured to an affiliate. The Company received recapture consideration of $180,000, recaptured reserves of $1,681,459 and released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $710,014, resulting in a pre-tax loss of $791,445, which has been included in the statement of operations. Subsequently, the Company reinsured this business, along with additional business, to a new affiliate on
75
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
a coinsurance funds withheld basis. The Company established a funds withheld liability of $165,918 and released reserves of $1,714,045, resulting in a net of tax gain of $1,006,283, which has been credited directly to unassigned surplus. During 2011, the Company amortized $146 into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
Effective December 31, 2011, the Company recaptured business that was previously reinsured on a coinsurance funds withheld basis to a non-affiliate. The Company released the associated funds withheld liability of $6,689 and recaptured reserves of $13,812, resulting in a pre-tax loss of $7,123 which has been included in the statement of operations. Subsequently, the Company ceded that business, as well as additional in force business written and assumed by the Company and all new policies issued thereafter, on a coinsurance funds withheld basis to an affiliate. The Company established a funds withheld liability of $19,899 and released reserves of $34,659, resulting in a net of tax gain of $9,594, which has been credited directly to unassigned surplus.
Effective December 1, 2011, the Company recaptured a portion of a block of business that was previously reinsured on a coinsurance funds withheld basis to an affiliate. The Company received recapture consideration of $5,885, released the associated funds withheld liability of $2,518,729 and recaptured reserves of $2,511,973, resulting in a pre-tax gain of $12,641, which has been included in the statement of operations. In addition, the Company released into income a previously deferred unamortized gain resulting from the original transaction in the amount of $32,190, which included the recapture of IMR gains in the amount of $46,156 on an after-tax basis. Subsequently, on December 16, 2011, the Company ceded a portion of this business to a non-affiliate on a coinsurance basis. The Company paid a ceding commission of $19,537, transferred other assets in the amount of $2,497,844, released reserves of $2,497,844 and released an after-tax IMR liability associated with the block of business in the amount of $115,729, resulting in a net of tax gain in the amount of $103,030, which has been credited directly to unassigned surplus. During 2011, the Company has amortized $309 (net of tax) of this gain into earnings with a corresponding charge to unassigned surplus.
Effective December 16, 2011, the Company reinsured medium term notes to a non-affiliate on a coinsurance basis. The Company paid a ceding commission of $8,000, transferred other assets in the amount of $600,594 and released reserves of the same amount, resulting in a pre-tax loss of $8,000, which has been included in the statement of operations.
Effective December 31, 2010, the Company entered into a reinsurance agreement with an affiliate to assume on a 100% quota share basis a block of variable universal life business
76
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
on a modified coinsurance basis. Reserves on the block were $1,013,110, with assets backing the block comprised of $853,669 of separate account assets and $159,441 of general account assets. The Company paid consideration of $193,000, resulting in a pre-tax loss of $193,000 which was included in the statement of operations.
During 2010, the Company entered into assumption reinsurance agreements in which the Company ceded group annuity and accident and health policies to an affiliate. Reserves of $71,040 were ceded, net assets in the amount of $83,170 were transferred and $12,118 consideration was paid. This transaction resulted in a net pre-tax loss to the Company of $24,248, which has been reflected in the statement of operations, as this transaction was deemed economic.
During 2010, the Company entered into assumption reinsurance agreements in which the Company assumed term life policies from an affiliate. Life and claim reserves of $56,845 and $8,004, respectively, and other assets of $5,539 were assumed by the Company. The Company received consideration of $5,897. This transaction resulted in a net pre-tax loss to the Company of $53,413, which was reclassified to the balance sheet and presented as goodwill, as this transaction was deemed economic. The goodwill was to be amortized into operations over the period in which the Company benefits economically, not to exceed 10 years. Amortization of goodwill for the year ended December 31, 2010 was $2,651. This business was a component of the business that was moved as a result of the divesture of the Transamerica Reinsurance operations to SCOR, effective August 9, 2011. As a result, the goodwill associated with this business was fully written off in 2011.
Effective December 31, 2008, the Company ceded certain term life business to an affiliate on a funds withheld basis. Life and claim reserves of $505,004 and $6,874, respectively were released and the Company established other reserves of $28,680. The net of tax gain of $314,079 resulting from this transaction was credited directly to unassigned surplus. During the first quarter of 2010 and during 2009, the Company amortized $6,969 and $11,425, respectively, on a net of tax basis of this gain back into earnings. Effective April 1, 2010, the Company recaptured these term life insurance policies from the affiliate. Life and claim reserves of $484,646 and $3,108, respectively, were assumed along with other net assets of $24,933, resulting in a pre-tax loss of $462,821 which was recognized in the statement of operations. With the recapture of this business, the previously deferred gain associated with the original July 1, 2009 cession to the affiliate was released into the statement of operations in the amount of $454,900 ($295,685 after-tax).
Subsequent to the recapture and also effective April 1, 2010, the Company entered into an indemnity reinsurance agreement to cede the same block of term life insurance
77
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
policies to another affiliate on a coinsurance basis. The Company released life and claim reserves of $484,646 and $3,108, respectively, and other net assets of $24,933, resulting in a net of tax gain of $300,833, which was deferred directly into unassigned surplus. During 2010, the Company amortized $11,200 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
Effective July 1, 2009, and concurrent with the merger of CGC into TPIC, the Company recaptured universal life business secondary guarantee reserves previously ceded to CGC, an affiliate. As a result, a pre-tax loss of $129,005 was included in the statement of operations. The remaining unamortized gain on a pre-tax basis that resulted from the initial ceding transaction to CGC that had been credited directly to unassigned surplus was released into earnings in the amount of $82,288.
Subsequently, effective July 1, 2009, the Company ceded the same block of universal life business plus additional universal life policies (2009 new issues) to TPIC under a coinsurance agreement. The pre-tax gain of $184,918 resulting from this transaction was credited directly to unassigned surplus.
Also effective July 1, 2009, the Company ceded certain term life business to TPIC on a coinsurance basis. The net pre-tax gain of approximately $36,489 resulting from this transaction was credited directly to unassigned surplus.
Also effective July 1, 2009, the Company amended a reinsurance agreement with TPIC to change a term agreement from a coinsurance funds withheld treaty to a straight coinsurance treaty. Assets of $58,394 were transferred to TPIC, and the Company released the funds withheld liability of a like amount. There was no earnings impact of this treaty amendment.
The Company entered into an indemnity reinsurance agreement with MLIC, an affiliate, effective July 1, 2009 in which the Company agreed to cede on a coinsurance basis fixed deferred annuities issued under selected plans. The initial consideration paid was $3,474,331, the initial ceding allowance received was $13,677 and reserves ceded were $3,474,331. In addition, an interest maintenance reserve of $15,469 was transferred to MLIC, resulting in a pre-tax gain of $29,146 on the transaction, which was credited directly to unassigned surplus. During 2010 and 2009, the Company amortized $3,765 and $1,895, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
Effective June 30, 2009, the Company entered into an indemnity reinsurance agreement with Global Preferred Re Limited, an affiliate, to cede on a 90% quota share basis the net
78
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
liabilities associated with certain of the Companys deferred fixed annuity products issued on or after April 1, 2009 on a coinsurance funds withheld basis.
Effective January 1, 2009, the Company terminated and recaptured a block of US credit life and credit disability business that had been reinsured from LIICA, which merged into the Company effective October 2, 2008, to an affiliate, Canadian Premier Life insurance Company (CPLIC). The Company paid CPLIC a recapture fee of $2,564. In addition, the unamortized pre-tax gain held by the Company in unassigned surplus resulting from the original insurance transaction was released into income in the amount of $2,910 ($1,892 on a net of tax basis).
The Company entered into an assumption reinsurance agreement with MLIC effective September 30, 2008. The Company was the issuer of a series of corporate-owned life insurance policies issued to LIICA. The assumption reinsurance transaction resulted in the Company novating all liabilities arising under these policies to MLIC. The Company ceded reserves of $138,025 and paid consideration of $125,828. The Company recorded a liability of $12,197 within the remittances line related to this transaction. The Company amortized $1,073, $1,019 and $1,201 of the liability in 2011, 2010 and 2009, respectively.
During 2011, 2010 and 2009, the Company amortized deferred gains from reinsurance transactions occurring prior to 2009 of $24,955, $54,531 and $34,132, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
TLB acquired the direct liability to the policyholder through a court order from the Hong Kong Special Administrative Region Court, effective December 31, 2006, for most of the business issued from TOLICs branch in Hong Kong. TLB also acquired the direct liability to the policyholder through a court order from the High Court of the Republic of Singapore, effective December 31, 2006 for all business issued from TOLICs branch in Singapore. The novation of the contracts was approved by the Iowa Insurance Department and all policyholder liabilities were transferred to TLB. All balances assumed by TLB were reflected as direct adjustments to the balance sheet. As the transfer occurred between affiliated companies no gain or loss was recognized, and the difference between the assets transferred and the statutory liabilities assumed in the amount of $78,993 was recorded as goodwill and will be amortized into operations over the life of the business, not to exceed ten years. Goodwill in the amount of $8,053, $8,335 and $8,642 was amortized during 2011, 2010 and 2009, respectively, related to this transaction. TLB is valued on a U.S. statutory basis and includes a deferred gain liability of a similar amount to the goodwill reflected in the financials of the Company.
79
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
During 2001, TOLIC novated certain traditional life insurance contracts to TFLIC, an affiliate of the Company, via an assumption reinsurance transaction. Under the terms of this agreement, a significant portion of the future statutory-basis profits from the contracts assumed by TFLIC will be passed through to the Company as an experience rated refund. TOLIC recorded a deferred liability of $14,334 as a result of this transaction, which has been fully amortized at December 31, 2010. The accretion of the deferred liability was $1,433 for 2010 and 2009.
The Company reports a reinsurance deposit receivable of $156,620 and $146,715 as of December 31, 2011 and 2010, respectively. In 1996, TOLIC entered into a reinsurance agreement with an unaffiliated company where, for a net consideration of $59,716, TOLIC ceded certain portions of future obligations under single premium annuity contracts originally written by the Company in 1993. Consistent with the requirements of SSAP No. 75, Reinsurance Deposit Accounting, the Company reports the net consideration paid as a deposit. The amount reported is the present value of the future payment streams discounted at the effective yield rate determined at inception.
During 2011, 2010 and 2009, the Company obtained letters of credit of $841,411, $804,032 and $727,996, respectively, for the benefit of affiliated and nonaffiliated companies that have reinsured business to the Company where the ceding companys state of domicile does not recognize the Company as an authorized reinsurer.
7. Income Taxes
The net deferred income tax asset at December 31, 2011 and 2010 and the change from the prior year are comprised of the following components:
December 31, 2011 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Gross Deferred Tax Assets |
$ | 1,195,054 | $ | 426,364 | $ | 1,621,418 | ||||||
Statutory Valuation Allowance Adjustment |
| | | |||||||||
|
|
|
|
|
|
|||||||
Adjusted Gross Deferred Tax Assets |
1,195,054 | 426,364 | 1,621,418 | |||||||||
Deferred Tax Liabilities |
329,726 | 162,421 | 492,147 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal (Net Deferred Tax Assets) |
865,328 | 263,943 | 1,129,271 | |||||||||
Deferred Tax Assets Nonadmitted |
412,663 | | 412,663 | |||||||||
|
|
|
|
|
|
|||||||
Net Admitted Deferred Tax Assets |
$ | 452,665 | $ | 263,943 | $ | 716,608 | ||||||
|
|
|
|
|
|
80
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2010 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Gross Deferred Tax Assets |
$ | 1,092,703 | $ | 450,875 | $ | 1,543,578 | ||||||
Statutory Valuation Allowance Adjustment |
| | | |||||||||
|
|
|
|
|
|
|||||||
Adjusted Gross Deferred Tax Assets |
1,092,703 | 450,875 | 1,543,578 | |||||||||
Deferred Tax Liabilities |
340,498 | 153,083 | 493,581 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal (Net Deferred Tax Assets) |
752,205 | 297,792 | 1,049,997 | |||||||||
Deferred Tax Assets Nonadmitted |
257,589 | | 257,589 | |||||||||
|
|
|
|
|
|
|||||||
Net Admitted Deferred Tax Assets |
$ | 494,616 | $ | 297,792 | $ | 792,408 | ||||||
|
|
|
|
|
|
Change |
||||||||||||
Ordinary | Capital | Total | ||||||||||
Gross Deferred Tax Assets |
$ | 102,351 | $ | (24,511 | ) | $ | 77,840 | |||||
Statutory Valuation Allowance Adjustment |
| | | |||||||||
|
|
|
|
|
|
|||||||
Adjusted Gross Deferred Tax Assets |
102,351 | (24,511 | ) | 77,840 | ||||||||
Deferred Tax Liabilities |
(10,772 | ) | 9,338 | (1,434 | ) | |||||||
|
|
|
|
|
|
|||||||
Subtotal (Net Deferred Tax Assets) |
113,123 | (33,849 | ) | 79,274 | ||||||||
Deferred Tax Assets Nonadmitted |
155,074 | | 155,074 | |||||||||
|
|
|
|
|
|
|||||||
Net Admitted Deferred Tax Assets |
$ | (41,951 | ) | $ | (33,849 | ) | $ | (75,800 | ) | |||
|
|
|
|
|
|
81
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The main components of deferred income tax amounts are as follows:
Year Ended December 31 | ||||||||||||
2011 | 2010 | Change | ||||||||||
Ordinary |
||||||||||||
Discounting of unpaid losses |
$ | 3,007 | $ | 2,515 | $ | 492 | ||||||
Policyholder reserves |
455,136 | 300,047 | 155,089 | |||||||||
Investments |
89,412 | 71,214 | 18,198 | |||||||||
Deferred acquisition costs |
532,831 | 578,542 | (45,711 | ) | ||||||||
Compensation and benefits accrual |
24,149 | 28,548 | (4,399 | ) | ||||||||
Receivablesnonadmitted |
23,090 | 26,307 | (3,217 | ) | ||||||||
Corporate provision |
2,295 | 44,634 | (42,339 | ) | ||||||||
Assumption reinsurance |
18,968 | | 18,968 | |||||||||
Other (including items <5% of ordinary tax assets) |
46,166 | 40,896 | 5,270 | |||||||||
|
|
|
|
|
|
|||||||
Subtotal |
1,195,054 | 1,092,703 | 102,351 | |||||||||
|
|
|
|
|
|
|||||||
Statutory valuation allowance adjustment |
| | | |||||||||
Nonadmitted |
412,663 | 257,589 | 155,074 | |||||||||
|
|
|
|
|
|
|||||||
Admitted ordinary deferred tax assets |
782,391 | 835,114 | (52,723 | ) | ||||||||
|
|
|
|
|
|
|||||||
Capital: |
||||||||||||
Investments |
426,364 | 450,875 | (24,511 | ) | ||||||||
|
|
|
|
|
|
|||||||
Subtotal |
426,364 | 450,875 | (24,511 | ) | ||||||||
|
|
|
|
|
|
|||||||
Admitted deferred tax assets |
$ | 1,208,755 | $ | 1,285,989 | $ | (77,234 | ) | |||||
|
|
|
|
|
|
Year Ended December 31 | ||||||||||||
2011 | 2010 | Change | ||||||||||
Deferred Tax Liabilities: |
||||||||||||
Ordinary |
||||||||||||
Investments |
$ | 144,993 | $ | 118,738 | $ | 26,255 | ||||||
§807(f) adjustment |
61,737 | 71,810 | (10,073 | ) | ||||||||
Excess capital to offset ordinary |
104,004 | | 104,004 | |||||||||
Separate account adjustments |
17,572 | | 17,572 | |||||||||
Other (including items <5% of total ordinary tax liabilities) |
1,420 | 10,171 | (8,751 | ) | ||||||||
|
|
|
|
|
|
|||||||
Subtotal |
329,726 | 200,719 | 129,007 | |||||||||
Capital |
||||||||||||
Investments |
265,968 | 278,967 | (12,999 | ) | ||||||||
Excess capital to offset ordinary |
(104,003 | ) | | (104,003 | ) | |||||||
Other (including items <5% of total capital tax liabilities) |
456 | 13,895 | (13,439 | ) | ||||||||
|
|
|
|
|
|
|||||||
Subtotal |
162,421 | 292,862 | (130,441 | ) | ||||||||
|
|
|
|
|
|
|||||||
Deferred tax liabilities |
492,147 | 493,581 | (1,434 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net deferred tax assets/liabilities |
$ | 716,608 | $ | 792,408 | $ | (75,800 | ) | |||||
|
|
|
|
|
|
82
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Company did not report a valuation allowance for deferred income taxes as of December 31, 2011 or 2010.
As discussed in Note 1, the Company has elected to admit deferred tax assets pursuant to SSAP No. 10R, paragraph 10.e. for the 2011 and 2010 reporting periods. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 10R is as follows:
December 31, 2011 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
SSAP No. 10R, Paragraph 10.a. |
$ | 129,055 | $ | 75,788 | $ | 204,843 | ||||||
SSAP No. 10R, Paragraph 10.b. |
||||||||||||
(the lesser of paragraph 10.b.i. and |
||||||||||||
10.b.ii. below) |
36,215 | 42,981 | 79,196 | |||||||||
SSAP No. 10R, Paragraph 10.b.i. |
36,215 | 42,981 | 79,196 | |||||||||
SSAP No. 10R, Paragraph 10.b.ii. |
213,465 | 253,349 | 466,814 | |||||||||
SSAP No. 10R, Paragraph 10.c. |
226,178 | 265,969 | 492,147 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 391,448 | $ | 384,738 | $ | 776,186 | ||||||
|
|
|
|
|
|
|||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
SSAP No. 10R, Paragraph 10.e.i. |
$ | 141,807 | $ | 154,653 | $ | 296,460 | ||||||
SSAP No. 10R, Paragraph 10.e.ii. |
||||||||||||
(the lesser of paragraph 10.e.ii.a and |
||||||||||||
10.e.ii.b. below) |
310,858 | 109,291 | 420,149 | |||||||||
SSAP No. 10R, Paragraph 10.e.ii.a. |
310,858 | 109,291 | 420,149 | |||||||||
SSAP No. 10R, Paragraph 10.e.ii.b. |
518,077 | 182,144 | 700,221 | |||||||||
SSAP No. 10R, Paragraph 10.e.iii. |
329,726 | 162,420 | 492,146 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 782,391 | $ | 426,364 | $ | 1,208,755 | ||||||
|
|
|
|
|
|
83
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2010 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
SSAP No. 10R, Paragraph 10.a. |
$ | 140,068 | $ | 95,031 | $ | 235,099 | ||||||
SSAP No. 10R, Paragraph 10.b. |
||||||||||||
(the lesser of paragraph 10.b.i. and 10.b.ii. below) |
| 2,386 | 2,386 | |||||||||
SSAP No. 10R, Paragraph 10.b.i. |
| 2,386 | 2,386 | |||||||||
SSAP No. 10R, Paragraph 10.b.ii. |
| 457,414 | 457,414 | |||||||||
SSAP No. 10R, Paragraph 10.c. |
200,719 | 292,862 | 493,581 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 340,787 | $ | 390,279 | $ | 731,066 | ||||||
|
|
|
|
|
|
|||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
SSAP No. 10R, Paragraph 10.e.i. |
$ | 52,010 | $ | 196,472 | $ | 248,482 | ||||||
SSAP No. 10R, Paragraph 10.e.ii. |
||||||||||||
(the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below) |
442,606 | 101,320 | 543,926 | |||||||||
SSAP No. 10R, Paragraph 10.e.ii.a. |
442,606 | 101,320 | 543,926 | |||||||||
SSAP No. 10R, Paragraph 10.e.ii.b. |
558,314 | 127,807 | 686,121 | |||||||||
SSAP No. 10R, Paragraph 10.e.iii. |
340,498 | 153,083 | 493,581 | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 835,114 | $ | 450,875 | $ | 1,285,989 | ||||||
|
|
|
|
|
|
84
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Change | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
SSAP No. 10R, Paragraph 10.a. |
$ | (11,013 | ) | $ | (19,243 | ) | $ | (30,256 | ) | |||
SSAP No. 10R, Paragraph 10.b. |
||||||||||||
(the lesser of paragraph 10.b.i. and 10.b.ii. below) |
36,215 | 40,595 | 76,810 | |||||||||
SSAP No. 10R, Paragraph 10.b.i. |
36,215 | 40,595 | 76,810 | |||||||||
SSAP No. 10R, Paragraph 10.b.ii. |
213,465 | (204,065 | ) | 9,400 | ||||||||
SSAP No. 10R, Paragraph 10.c. |
25,459 | (26,893 | ) | (1,434 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | 50,661 | $ | (5,541 | ) | $ | 45,120 | |||||
|
|
|
|
|
|
|||||||
Admission Calculation Components |
||||||||||||
SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
SSAP No. 10R, Paragraph 10.e.i. |
$ | 89,797 | $ | (41,819 | ) | $ | 47,978 | |||||
SSAP No. 10R, Paragraph 10.e.ii. |
||||||||||||
(the lesser of paragraph 10.e.ii.a and 10.e.ii.b. below) |
(131,748 | ) | 7,971 | (123,777 | ) | |||||||
SSAP No. 10R, Paragraph 10.e.ii.a. |
(131,748 | ) | 7,971 | (123,777 | ) | |||||||
SSAP No. 10R, Paragraph 10.e.ii.b. |
(40,237 | ) | 54,337 | 14,100 | ||||||||
SSAP No. 10R, Paragraph 10.e.iii. |
(10,772 | ) | 9,337 | (1,435 | ) | |||||||
|
|
|
|
|
|
|||||||
Total |
$ | (52,723 | ) | $ | (24,511 | ) | $ | (77,234 | ) | |||
|
|
|
|
|
|
| 10.a. Federal income taxes paid in prior year that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year |
| 10.b.i. Adjusted gross DTAs, after the application of 10.a., expected to be realized within one year |
| 10.b.ii. 10% of adjusted statutory capital and surplus as shown on most recently filed statement |
| 10.c. Adjusted gross DTAs, after the application of 10.a. and 10.b., that can be offset against gross DTLs after considering the character of the DTAs and DTLs |
| 10.d. If the reporting entitys financial statements and risk-based capital (RBC) calculated using an admitted adjusted gross DTA as the sum of 10.a., 10.b. and 10.c. results in the Companys RBC level being above the maximum RBC level where an action level could occur as a result of the trend test (i.e., 250%); then the Company may elect to admit a higher amount of adjusted gross DTAs as calculated in paragraph 10.e. |
| 10.e.i. Federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with IRS tax loss carryback provisions, not to exceed three years |
| 10.e.ii.(a) Adjusted gross DTAs, after the application of 10.e.i, expected to be realized within three years |
| 10.e.ii.(b) 15% of adjusted statutory capital and surplus as shown on most recently filed statement |
| 10.e.iii. Adjusted gross DTAs, after the application of 10.e.i. and 10.e.ii., that can be offset against DTLs after considering the character of the DTAs and DTLs |
85
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Total increased admitted adjusted gross DTAs as the result of the application of paragraph 10.e. SSAP No. 10R:
December 31, 2011 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total increased admitted deferred tax asset |
$ | 390,942 | $ | 41,626 | $ | 432,568 | ||||||
|
|
|
|
|
|
|||||||
December 31, 2010 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total increased admitted deferred tax asset |
$ | 494,327 | $ | 60,596 | $ | 554,923 | ||||||
|
|
|
|
|
|
|||||||
Change | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total increased admitted deferred tax asset |
$ | (103,385 | ) | $ | (18,970 | ) | $ | (122,355 | ) | |||
|
|
|
|
|
|
Used in SSAP No. 10R, paragraph 10.d.:
December 31, 2011 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total Adjusted Capital |
XXX | XXX | $ | 5,601,584 | ||||||||
Authorized Control Level |
XXX | XXX | 649,246 | |||||||||
December 31, 2010 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total Adjusted Capital |
XXX | XXX | $ | 4,667,170 | ||||||||
Authorized Control Level |
XXX | XXX | 636,411 | |||||||||
Change | ||||||||||||
Ordinary | Capital | Total | ||||||||||
Total Adjusted Capital |
XXX | XXX | $ | 934,414 | ||||||||
Authorized Control Level |
XXX | XXX | 12,835 |
86
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2011 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | 391,448 | $ | 384,738 | $ | 776,186 | ||||||
Admitted Assets |
XXX | XXX | 102,285,727 | |||||||||
Adjusted Statutory Surplus* |
XXX | XXX | 4,689,074 | |||||||||
Total Adjusted Capital from DTAs |
XXX | XXX | 5,601,584 | |||||||||
Increases due to SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | 390,942 | $ | 41,626 | $ | 432,568 | ||||||
Admitted Assets |
390,942 | 41,626 | 432,568 | |||||||||
Statutory Surplus |
390,942 | 41,626 | 432,568 | |||||||||
December 31, 2010 | ||||||||||||
Ordinary | Capital | Total | ||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | 340,787 | $ | 390,279 | $ | 731,066 | ||||||
Admitted Assets |
XXX | XXX | 106,331,752 | |||||||||
Adjusted Statutory Surplus* |
XXX | XXX | 3,743,200 | |||||||||
Total Adjusted Capital from DTAs |
XXX | XXX | 4,667,170 | |||||||||
Increases due to SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | 494,327 | $ | 60,596 | $ | 554,923 | ||||||
Admitted Assets |
494,327 | 60,596 | 554,923 | |||||||||
Statutory Surplus |
494,327 | 60,596 | 554,923 | |||||||||
Change | ||||||||||||
Ordinary | Capital | Total | ||||||||||
SSAP No. 10R, Paragraphs 10.a., 10.b. and 10.c.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | 50,661 | $ | (5,541 | ) | $ | 45,120 | |||||
Admitted Assets |
XXX | XXX | (4,046,025 | ) | ||||||||
Adjusted Statutory Surplus* |
XXX | XXX | 945,874 | |||||||||
Total Adjusted Capital from DTAs |
XXX | XXX | 934,414 | |||||||||
Increases due to SSAP No. 10R, Paragraph 10.e.: |
||||||||||||
Admitted Deferred Tax Assets |
$ | (103,385 | ) | $ | (18,970 | ) | $ | (122,355 | ) | |||
Admitted Assets |
(103,385 | ) | (18,970 | ) | (122,355 | ) | ||||||
Statutory Surplus |
(103,385 | ) | (18,970 | ) | (122,355 | ) |
* | As reported on the statutory balance sheet for the most recently filed statement with the domiciliary state commissioner adjusted in accordance with SSAP No. 10R, paragraph 10.b.ii. |
| XXX denotes breakout between ordinary and capital is not applicable to this information. |
87
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The impact of tax planning strategies at December 31, 2011 and 2010 was as follows:
December 31, 2011 | ||||||||||||
Ordinary | Capital | |||||||||||
Percent | Percent | Total Percent | ||||||||||
Impact of Tax Planning Strategies: |
||||||||||||
Adjusted Gross DTAs |
||||||||||||
(% of Total Adjusted Gross DTAs) |
7 | % | 19 | % | 26 | % | ||||||
|
|
|
|
|
|
|||||||
Net Admitted Adjusted Gross DTAs |
||||||||||||
(% of Total Net Admitted Adjusted Gross DTAs) |
15 | % | 44 | % | 59 | % | ||||||
|
|
|
|
|
|
|||||||
December 31, 2010 | ||||||||||||
Ordinary | Capital | |||||||||||
Percent | Percent | Total Percent | ||||||||||
Impact of Tax Planning Strategies: |
||||||||||||
Adjusted Gross DTAs |
||||||||||||
(% of Total Adjusted Gross DTAs) |
7 | % | 7 | % | 14 | % | ||||||
|
|
|
|
|
|
|||||||
Net Admitted Adjusted Gross DTAs |
||||||||||||
(% of Total Net Admitted Adjusted Gross DTAs) |
14 | % | 13 | % | 27 | % | ||||||
|
|
|
|
|
|
|||||||
Change | ||||||||||||
Ordinary | Capital | |||||||||||
Percent | Percent | Total Percent | ||||||||||
Impact of Tax Planning Strategies: |
||||||||||||
Adjusted Gross DTAs |
||||||||||||
(% of Total Adjusted Gross DTAs) |
0 | % | 12 | % | 12 | % | ||||||
|
|
|
|
|
|
|||||||
Net Admitted Adjusted Gross DTAs |
||||||||||||
(% of Total Net Admitted Adjusted Gross DTAs) |
1 | % | 31 | % | 32 | % | ||||||
|
|
|
|
|
|
88
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Current income taxes incurred consist of the following major components:
Year Ended December 31 | ||||||||||||
2011 | 2010 | Change | ||||||||||
Federal |
$ | (174,039 | ) | $ | (268,109 | ) | $ | 94,070 | ||||
Foreign |
(879 | ) | (2,119 | ) | 1,240 | |||||||
|
|
|
|
|
|
|||||||
Subtotal |
(174,918 | ) | (270,228 | ) | 95,310 | |||||||
|
|
|
|
|
|
|||||||
Federal income tax on net capital gains |
185,043 | 450,184 | (265,141 | ) | ||||||||
|
|
|
|
|
|
|||||||
Federal and foreign income taxes incurred |
$ | 10,125 | $ | 179,956 | $ | (169,831 | ) | |||||
|
|
|
|
|
|
|||||||
Year Ended December 31 | ||||||||||||
2010 | 2009 | Change | ||||||||||
Federal |
$ | (268,109 | ) | $ | (104,925 | ) | $ | (163,184 | ) | |||
Foreign |
(2,119 | ) | (17 | ) | (2,102 | ) | ||||||
|
|
|
|
|
|
|||||||
Subtotal |
(270,228 | ) | (104,942 | ) | (165,286 | ) | ||||||
|
|
|
|
|
|
|||||||
Federal income tax on net capital gains |
450,184 | (235,951 | ) | 686,135 | ||||||||
|
|
|
|
|
|
|||||||
Federal and foreign income taxes incurred |
$ | 179,956 | $ | (340,893 | ) | $ | 520,849 | |||||
|
|
|
|
|
|
89
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Companys current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate of 35% to income before tax as follows:
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Current income taxes incurred |
$ | 10,125 | $ | 179,956 | $ | (340,893 | ) | |||||
Change in deferred income taxes |
(136,907 | ) | 126,689 | 251,128 | ||||||||
(without tax on unrealized gains and losses) |
||||||||||||
|
|
|
|
|
|
|||||||
Total income tax reported |
$ | (126,782 | ) | $ | 306,645 | $ | (89,765 | ) | ||||
|
|
|
|
|
|
|||||||
Income before taxes |
$ | (2,260,735 | ) | $ | 1,443,732 | $ | (523,918 | ) | ||||
35.00 | % | 35.00 | % | 35.00 | % | |||||||
|
|
|
|
|
|
|||||||
Expected income tax (benefit) expense at 35% statutory rate |
$ | (791,257 | ) | $ | 505,306 | $ | (183,371 | ) | ||||
Increase (decrease) in actual tax reported resulting from: |
||||||||||||
Dividends received deduction |
(31,014 | ) | (27,413 | ) | (23,617 | ) | ||||||
Tax credits |
(62,184 | ) | (57,815 | ) | (61,814 | ) | ||||||
Tax-exempt income |
(276 | ) | (90 | ) | (605 | ) | ||||||
Tax adjustment for IMR |
(133,408 | ) | (1,513 | ) | (1,213 | ) | ||||||
Surplus adjustment for in force ceded |
863,606 | (22,522 | ) | 25,009 | ||||||||
Nondeductible expenses |
8,166 | 3,213 | 3,626 | |||||||||
Deferred tax benefit on other items in surplus |
(15,569 | ) | 35,989 | 14,424 | ||||||||
Provision to return |
1,525 | (5,730 | ) | (25,350 | ) | |||||||
Life-owned life insurance |
(3,786 | ) | (3,741 | ) | (4,051 | ) | ||||||
Dividends from certain foreign corporations |
331 | 374 | 448 | |||||||||
Statutory valuation allowance |
| (81,188 | ) | 81,188 | ||||||||
Prior period adjustment |
(26,684 | ) | (57,775 | ) | 68,049 | |||||||
Pre-tax income of Single Member Limited Liability Companies (SMLLC's) |
25,763 | 32,281 | 16,027 | |||||||||
Intercompany dividends |
(11,653 | ) | (11,620 | ) | (256 | ) | ||||||
Partnership permanent adjustment |
2,290 | 2,402 | 2,526 | |||||||||
Transfer of basis |
51,597 | | | |||||||||
Other |
(4,229 | ) | (3,513 | ) | (785 | ) | ||||||
|
|
|
|
|
|
|||||||
Total income tax reported |
$ | (126,782 | ) | $ | 306,645 | $ | (89,765 | ) | ||||
|
|
|
|
|
|
For federal income tax purposes, the Company joins in a consolidated income tax return filing with its parent and other affiliated companies. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Companys separately computed income tax
90
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
liability or the consolidated groups 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 Companys separately computed income tax liability or the consolidated groups income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not yet been filed for 2011.
As of December 31, 2011 and 2010, the Company had no tax credit carryforwards. As of December 31, 2011 and 2010, the Company had no operating loss or capital loss carryforwards available for tax purposes.
The Company incurred income taxes of $71,382 and $225,077 during 2011 and 2010, respectively, which will be available for recoupment in the event of future net losses. The Company did not incur income taxes during 2009 which will be available for recoupment in the event of future net losses.
The amount of tax contingencies calculated for the Company as of December 31, 2011 and 2010 is $1,178 and $44,265, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $1,178. The Company classifies interest and penalties related to income taxes as interest expense and penalty expense, respectively. The Companys interest (benefit) expense related to income taxes for the years ending December 31, 2011, 2010 and 2009 is ($3,883), ($12,048) and $5,088, respectively. The total interest payable balance as of December 31, 2011 and 2010 is $1,197 and $9,830, respectively. The Company recorded no liability for penalties. It is not anticipated that the total amounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.
The Companys federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2004. The examination for the years 2005 through 2006 have been completed and resulted in tax return adjustments that are currently undergoing final calculation at appeal. The examination for the years 2007 through 2008 has been completed and resulted in tax return adjustments that are currently being appealed. An examination is already in progress for the years 2009 and 2010. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax positions.
91
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
8. Policy and Contract Attributes
Participating life insurance policies were issued by the Company which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted approximately 0.06% of ordinary life insurance in force at December 31, 2011 and 2010.
For the years ended December 31, 2011, 2010 and 2009, premiums for life participating policies were $17,183, $18,274 and $21,721, respectively. The Company accounts for its policyholder dividends based on dividend scales and experience of the policies. The Company paid dividends in the amount of $9,496, $10,074 and $11,010 to policyholders during 2011, 2010 and 2009, respectively, and did not allocate any additional income to such policyholders.
A portion of the Companys policy reserves and other policyholders funds (including separate account liabilities) relates to liabilities established on a variety of the Companys annuity and deposit fund products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:
December 31 2011 | ||||||||||||||||||||
General Account |
Separate Account with Guarantees |
Separate Account Non- Guaranteed |
Total | Percent | ||||||||||||||||
Subject to discretionary withdrawal |
||||||||||||||||||||
With fair value adjustment |
$ | 1,756,726 | $ | 82,332 | $ | | $ | 1,839,058 | 2 | % | ||||||||||
At book value less surrender charge of 5% or more |
3,561,563 | | | 3,561,563 | 5 | |||||||||||||||
At fair value |
77,738 | | 33,124,204 | 33,201,942 | 44 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total with adjustment or at fair value |
5,396,027 | 82,332 | 33,124,204 | 38,602,563 | 51 | |||||||||||||||
At book value without adjustment (minimal or no charge or adjustment) |
19,838,059 | | | 19,838,059 | 26 | |||||||||||||||
Not subject to discretionary withdrawal provision |
17,057,943 | 66,860 | 34,803 | 17,159,606 | 23 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total annuity reserves and deposit liabilities |
42,292,029 | 149,192 | 33,159,007 | 75,600,228 | 100 | % | ||||||||||||||
|
|
|||||||||||||||||||
Less reinsurance ceded |
19,243,486 | | | 19,243,486 | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Net annuity reserves and deposit liabilities |
$ | 23,048,543 | $ | 149,192 | $ | 33,159,007 | $ | 56,356,742 | ||||||||||||
|
|
|
|
|
|
|
|
92
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31 2010 |
||||||||
Amount | Percent | |||||||
Subject to discretionary withdrawal |
||||||||
With fair value adjustment |
$ | 2,074,251 | 3 | % | ||||
At book value less surrender charge of 5% or more |
11,051,155 | 15 | ||||||
At fair value |
30,171,132 | 41 | ||||||
|
|
|
|
|||||
Total with adjustment or at fair value |
43,296,538 | 59 | ||||||
At book value without adjustment (minimal or no charge or adjustment) |
13,913,541 | 19 | ||||||
Not subject to discretionary withdrawal provision |
16,081,041 | 22 | ||||||
|
|
|
|
|||||
Total annuity reserves and deposit liabilities |
73,291,120 | 100 | % | |||||
|
|
|||||||
Less reinsurance ceded |
18,062,445 | |||||||
|
|
|||||||
Net annuity reserves and deposit liabilities |
$ | 55,228,675 | ||||||
|
|
Included in the liability for deposit-type contracts at December 31, 2011 and 2010 are $287,687 and $413,274, respectively, of funding agreements issued by an affiliate 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 an affiliated Company which secures that particular series of notes. The funding agreement is reinsured to the Company. In general, the payment terms of the note series match the payment terms of the funding agreement that secures that series. Claims for principal and interest for these funding agreements are afforded equal priority as other policyholders.
At December 31, 2011, the contractual maturities were as follows:
Year |
Amount | |||
2012 |
$ | 54,310 | ||
2013 |
| |||
2014 |
233,377 | |||
2015 |
| |||
2016 |
| |||
Thereafter |
|
93
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Companys liability for deposit-type contracts includes GICs and funding agreements assumed from MLIC. The liabilities assumed are $1,721,235 and $1,896,737 at December 31, 2011 and 2010, respectively.
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.
94
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Information regarding the separate accounts of the Company as of and for the years ended December 31, 2011, 2010 and 2009 is as follows:
Guaranteed Indexed |
Nonindexed Guarantee Less Than or Equal to 4% |
Nonindexed Guarantee Greater Than 4% |
Nonguaranteed Separate Accounts |
Total | ||||||||||||||||
Premiums, deposits and other considerations for the year ended December 31, 2011 |
$ | $ | 226 | $ | 9,994 | $ | 9,381,447 | $ | 9,391,667 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts as of December 31, 2011 with assets at: |
||||||||||||||||||||
Fair value |
$ | | $ | 20,144 | $ | 46,716 | $ | 38,480,821 | $ | 38,547,681 | ||||||||||
Amortized cost |
| 610,951 | | | 610,951 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total as of December 31, 2011 |
$ | | $ | 631,095 | $ | 46,716 | $ | 38,480,821 | $ | 39,158,632 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts by withdrawal characteristics as of December 31, 2011: |
||||||||||||||||||||
Subject to discretionary withdrawal: |
||||||||||||||||||||
With fair value adjustment |
$ | | $ | 82,332 | $ | | $ | | $ | 82,332 | ||||||||||
At fair value |
| | | 38,446,018 | 38,446,018 | |||||||||||||||
At book value without fair value adjustment and with current surrender charge of less than 5% |
| 528,619 | | | 528,619 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal |
| 610,951 | | 38,446,018 | 39,056,969 | |||||||||||||||
Not subject to discretionary withdrawal |
| 20,144 | 46,716 | 34,803 | 101,663 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total separate account liabilities at December 31, 2011 |
$ | | $ | 631,095 | $ | 46,716 | $ | 38,480,821 | $ | 39,158,632 | ||||||||||
|
|
|
|
|
|
|
|
|
|
95
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Guaranteed Indexed |
Nonindexed Guarantee Less Than or Equal to 4% |
Nonindexed Guarantee Greater Than 4% |
Nonguaranteed Separate Accounts |
Total | ||||||||||||||||
Premiums, deposits and other considerations for the year ended December 31, 2010 |
$ | | $ | 14,373 | $ | 12,735 | $ | 6,368,599 | $ | 6,395,707 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts as of December 31, 2010 with assets at: |
||||||||||||||||||||
Fair value |
$ | | $ | 18,416 | $ | 45,818 | $ | 35,632,948 | $ | 35,697,182 | ||||||||||
Amortized cost |
| 589,789 | | | 589,789 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total as of December 31, 2010 |
$ | | $ | 608,205 | $ | 45,818 | $ | 35,632,948 | $ | 36,286,971 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts by withdrawal characteristics as of December 31, 2010: |
||||||||||||||||||||
Subject to discretionary withdrawal: |
||||||||||||||||||||
With fair value adjustment |
$ | | $ | 80,801 | $ | | $ | | $ | 80,801 | ||||||||||
At fair value |
| | | 35,595,332 | 35,595,332 | |||||||||||||||
At book value without fair value adjustment and with current surrender charge of less than 5% |
| 508,989 | | | 508,989 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal |
| 589,790 | | 35,595,332 | 36,185,122 | |||||||||||||||
Not subject to discretionary withdrawal |
| 18,415 | 45,818 | 37,616 | 101,849 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total separate account liabilities at December 31, 2010 |
$ | | $ | 608,205 | $ | 45,818 | $ | 35,632,948 | $ | 36,286,971 | ||||||||||
|
|
|
|
|
|
|
|
|
|
96
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Guaranteed Indexed |
Nonindexed Guarantee Less Than or Equal to 4% |
Nonindexed Guarantee Greater Than 4% |
Nonguaranteed Separate Accounts |
Total | ||||||||||||||||
Premiums, deposits and other considerations for the year ended December 31, 2009 |
$ | | $ | 25,111 | $ | 11,535 | $ | 4,277,875 | $ | 4,314,521 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts as of December 31, 2009 with assets at: |
||||||||||||||||||||
Fair value |
$ | | $ | 23,701 | $ | 43,846 | $ | 30,630,714 | $ | 30,698,261 | ||||||||||
Amortized cost |
| 564,835 | | | 564,835 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total as of December 31, 2009 |
$ | | $ | 588,536 | $ | 43,846 | $ | 30,630,714 | $ | 31,263,096 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reserves for separate accounts by withdrawal characteristics as of December 31, 2009: |
||||||||||||||||||||
Subject to discretionary withdrawal: |
||||||||||||||||||||
With fair value adjustment |
$ | | $ | 76,570 | $ | | $ | | $ | 76,570 | ||||||||||
At fair value |
| | | 30,630,714 | 30,630,714 | |||||||||||||||
At book value without fair value adjustment and with current surrender charge of less than 5% |
| 488,265 | | | 488,265 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Subtotal |
| 564,835 | | 30,630,714 | 31,195,549 | |||||||||||||||
Not subject to discretionary withdrawal |
| 23,701 | 43,846 | | 67,547 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total separate account liabilities at December 31, 2009 |
$ | | $ | 588,536 | $ | 43,846 | $ | 30,630,714 | $ | 31,263,096 | ||||||||||
|
|
|
|
|
|
|
|
|
|
97
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
A reconciliation of the amounts transferred to and from the Companys separate accounts is presented below:
Year Ended December 31 | ||||||||||||
2011 | 2010 | 2009 | ||||||||||
Transfer as reported in the summary of operations of the separate accounts statement: |
||||||||||||
Transfers to separate accounts |
$ | 9,383,003 | $ | 6,369,429 | $ | 4,414,472 | ||||||
Transfers from separate accounts |
(4,988,224 | ) | (4,622,672 | ) | (2,297,193 | ) | ||||||
|
|
|
|
|
|
|||||||
Net transfers to separate accounts |
4,394,779 | 1,746,757 | 2,117,279 | |||||||||
Miscellaneous reconciling adjustments |
(35,095 | ) | (82,626 | ) | (108,116 | ) | ||||||
|
|
|
|
|
|
|||||||
Net transfers as reported in the statements of operations of the life, accident and health annual statement |
$ | 4,359,684 | $ | 1,664,131 | $ | 2,009,163 | ||||||
|
|
|
|
|
|
The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. At December 31, 2011 and 2010, the Companys separate account statement included legally insulated assets of $41,472,571 and $38,370,952, respectively. The assets legally insulated from general account claims at December 31, 2011 and 2010 are attributed to the following products:
2011 | 2010 | |||||||
Group annuities |
$ | 13,431,208 | $ | 12,233,633 | ||||
Variable annuities |
21,175,176 | 18,848,339 | ||||||
Fixed universal life |
593,065 | 555,267 | ||||||
Variable universal life |
6,019,780 | 6,472,224 | ||||||
Variable life |
158,187 | 173,383 | ||||||
Modified separate accounts |
95,155 | 88,106 | ||||||
|
|
|
|
|||||
Total separate account assets |
$ | 41,472,571 | $ | 38,370,952 | ||||
|
|
|
|
Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. As of December 31, 2011 and 2010, the general account of the Company had a maximum guarantee for separate account liabilities of $2,870,835 and $1,954,169, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $124,016 and $107,662 to the general account in 2011 and 2010, respectively. As of December 31, 2011 and 2010, the general account of
98
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
the Company had paid $28,556 and $76,405, respectively, toward separate account guarantees.
At December 31, 2011 and 2010, the Company reported guaranteed separate account assets at amortized cost in the amount of $76,385 and $68,840, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $78,032 and $71,653 at December 31, 2011 and 2010, respectively, which would have resulted in an unrealized gain of $1,647 and $2,813, respectively, had these assets been reported at fair value.
At December 31, 2011 and 2010, the Company reported additional separate account assets at amortized cost in the amount of $539,980 and $505,926, respectively, due to a practice prescribed by the State of Iowa, as discussed in Note 2. These assets had a fair value of $580,896 and $528,910 at December 31, 2011 and 2010, respectively, which would have resulted in an unrealized gain of $40,916 and $22,984, respectively, had these assets been reported at fair value.
The Company does not participate in securities lending transactions within the separate account.
Effective December 31, 2009, the Company adopted Actuarial Guideline XLIII (AG 43), which replaces Actuarial Guidelines 34 and 39. AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43 reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of AG 43 is equal to the conditional tail expectation (CTE) amount, but not less than the standard scenario amount (SSA). The Company reported an increase in reserves and a decrease in net income of $17,571 at December 31, 2009, related to the adoption of AG 43 and changes in the underlying assumptions.
To determine the CTE Amount, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) produced in October 2005 and prudent estimate assumptions based on Company experience. The SSA was determined using the assumptions and methodology prescribed in AG 43 for determining the SSA.
99
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
At December 31, 2011 and 2010, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:
Benefit and Type of Risk |
Subjected Account Value |
Amount
of Reserve Held |
Reinsurance Reserve Credit |
|||||||||
December 31, 2011 |
||||||||||||
Minimum guaranteed death benefit |
$ | 8,216,929 | $ | 699,903 | $ | 620,534 | ||||||
Minimum guaranteed income benefit |
5,564,562 | 2,886,163 | 2,364,909 | |||||||||
Guaranteed premium accumulation fund |
151,702 | 13,223 | | |||||||||
Minimum guaranteed withdrawal benefit |
12,501,566 | 43,089 | 3,445 | |||||||||
December 31, 2010 |
||||||||||||
Minimum guaranteed death benefit |
$ | 9,490,182 | $ | 1,177,396 | $ | 864,478 | ||||||
Minimum guaranteed income benefit |
5,577,295 | 849,211 | 800,705 | |||||||||
Guaranteed premium accumulation fund |
136,292 | 10,717 | | |||||||||
Minimum guaranteed withdrawal benefit |
9,433,267 | 960 | 960 |
Reserves on the Companys traditional life insurance products are computed using mean reserving methodologies. These methodologies result in the establishment of assets for the amount of the net valuation premiums that are anticipated to be received between the policys paid-through date to the policys next anniversary date. At December 31, 2011 and 2010, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:
Gross | Loading | Net | ||||||||||
December 31, 2011 |
||||||||||||
Life and annuity: |
||||||||||||
Ordinary first-year business |
$ | 5,227 | $ | 244 | $ | 4,983 | ||||||
Ordinary renewal business |
586,196 | 4,737 | 581,459 | |||||||||
Group life business |
17,545 | 2,251 | 15,294 | |||||||||
Credit life business |
1,175 | | 1,175 | |||||||||
Reinsurance ceded |
(492,439 | ) | | (492,439 | ) | |||||||
|
|
|
|
|
|
|||||||
117,704 | 7,232 | 110,472 | ||||||||||
Accident and health |
20,711 | | 20,711 | |||||||||
|
|
|
|
|
|
|||||||
$ | 138,415 | $ | 7,232 | $ | 131,183 | |||||||
|
|
|
|
|
|
100
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Gross | Loading | Net | ||||||||||
December 31, 2010 |
||||||||||||
Life and annuity: |
||||||||||||
Ordinary first-year business |
$ | 14,252 | $ | 479 | $ | 13,773 | ||||||
Ordinary renewal business |
482,857 | 7,405 | 475,452 | |||||||||
Group life business |
9,163 | 2,132 | 7,031 | |||||||||
Credit life business |
(8,524 | ) | | (8,524 | ) | |||||||
Reinsurance ceded |
(288,150 | ) | | (288,150 | ) | |||||||
|
|
|
|
|
|
|||||||
209,598 | 10,016 | 199,582 | ||||||||||
Accident and health |
24,304 | | 24,304 | |||||||||
|
|
|
|
|
|
|||||||
$ | 233,902 | $ | 10,016 | $ | 223,886 | |||||||
|
|
|
|
|
|
The Company anticipates investment income as a factor in the premium deficiency calculation, in accordance with SSAP No. 54, Individual and Group Accident and Health Contracts. At December 31, 2011 and 2010, the Company had insurance in force aggregating $119,164,169 and $465,525,557, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Insurance Division, Department of Commerce, of the State of Iowa. The Company established policy reserves of $817,479 and $907,228 to cover these deficiencies at December 31, 2011 and 2010, respectively.
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.
9. Capital and Surplus
The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends to its shareholders. 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 Companys statutory surplus as of the preceding December 31, or (b) the Companys 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 2012, without the prior approval of insurance regulatory authorities, is $512,164.
101
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
Prior to merging into the Company during 2009, IFLIC was partially owned by unaffiliated participating common shareholders. At December 31, 2008, IFLIC had 3,000 participating common shares authorized and 1,500 shares issued and outstanding. Participating shareholders surplus is segregated from unassigned surplus on the balance sheet to disclose the surplus required by mandatory participating voting common stock redemption provisions of the Company bylaws. At December 31, 2008, IFLIC had Participating shareholders surplus of $378. Participating common shareholders were redeemed for cash consideration of $421 during 2009 prior to the merger of IFLIC into the Company, resulting in a reduction of common stock and additional paid-in capital of $2 each and a reduction of unassigned surplus of $417.
The Company received a return of capital of $59 from its subsidiary, Life Investors Alliance, on September 30, 2011. The Company made an initial capital contribution of $255,000 to its subsidiary, TRRI, on September 27, 2011. This amount consisted of a $252,500 cash capital contribution and $2,500 in consideration for TRRIs stock.
The Company received a capital contribution of $200,000 from its parent company, Transamerica International Holdings, Inc., on May 27, 2011. On December 30, 2009, the Company received a capital contribution of $500,000 from its parent company.
The Company did not pay any dividends in 2011. The Company paid a common stock dividend of $1,260,830 to its common stock shareholder, TIHI, on December 23, 2010. The Company paid preferred stock dividends of $36,260 and $102,910 to its preferred stock shareholders, AEGON and Transamerica, respectively, on December 23, 2010. The Company paid a dividend to its parent company of $10,031 in the form of 1,000 shares of stock of TPIC on June 25, 2009.
The Company received preferred and common stock dividends of $430 and $37,370, respectively, from TFLIC on December 21, 2011.
Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on the various risk factors related to it. At December 31, 2011, the Company meets the minimum RBC requirements.
On September 30, 2002, LIICA, which merged in to the Company effective October 2, 2008, received $150,000 from AEGON in exchange for surplus notes. These notes are due 20 years from the date of issuance at an interest rate of 6%, and are subordinate and junior in right of payment to all obligations and liabilities of the Company. In the event of liquidation of the Company, the holders of the issued and outstanding preferred stock
102
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
shall be entitled to priority only with respect to accumulated but unpaid dividends before the holder of the surplus notes and full payment of the surplus notes shall be made before the holders of common stock become entitled to any distribution of the remaining assets of the Company. The Company received approval from the Insurance Division, Department of Commerce, of the State of Iowa prior to paying quarterly interest payments.
Additional information related to the outstanding surplus notes at December 31, 2011 and 2010 is as follows:
For Ending |
Balance Outstanding |
Interest Paid Current Year |
Cumulative Interest Paid |
Accrued Interest |
||||||||||||
2011 |
$ | 150,000 | $ | 9,000 | $ | 81,000 | $ | 2,250 | ||||||||
2010 |
150,000 | 9,000 | 72,000 | 2,250 |
10. Securities Lending
The Company participates in an agent-managed securities lending program. The Company receives collateral equal to 102% of the fair value of the loaned domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government or other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.
At December 31, 2011 and 2010, respectively, securities in the amount of $3,425,216 and $3,841,442 were on loan under securities lending agreements as a part of this program. At December 31, 2011, the collateral the Company received from securities lending activities was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes. The reinvested cash collateral has a fair value of $3,517,849 and $3,954,149 at December 31, 2011 and 2010, respectively.
103
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The contractual maturities of the securities lending collateral positions are as follows:
Fair Value | ||||
Open |
$ | 3,521,430 | ||
30 days or less |
| |||
31 to 60 days |
| |||
61 to 90 days |
| |||
Greater than 90 days |
| |||
|
|
|||
Total |
3,521,430 | |||
Securities received |
| |||
|
|
|||
Total collateral received |
$ | 3,521,430 | ||
|
|
The maturity dates of the reinvested securities lending collateral are as follows:
Amortized Cost | Fair Value | |||||||
Open |
$ | 142,887 | $ | 142,886 | ||||
30 days or less |
2,237,923 | 2,237,835 | ||||||
31 to 60 days |
686,008 | 685,980 | ||||||
61 to 90 days |
230,111 | 229,886 | ||||||
121 to 180 days |
168,240 | 168,240 | ||||||
181 to 365 days |
13,137 | 13,137 | ||||||
1 to 2 years |
41,998 | 39,885 | ||||||
|
|
|
|
|||||
Total |
3,520,304 | 3,517,849 | ||||||
Securities received |
| | ||||||
|
|
|
|
|||||
Total collateral reinvested |
$ | 3,520,304 | $ | 3,517,849 | ||||
|
|
|
|
For securities lending, the Companys sources of cash that it uses to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $3,520,672 (fair value of $3,517,849) that are currently tradable securities that could be sold and used to pay for the $3,521,430 in collateral calls that could come due under a worst-case scenario.
104
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
11. Retirement and Compensation Plans
The Companys employees participate in a qualified defined benefit pension plan sponsored by AEGON. The Company has no legal obligation for the plan. The Company recognizes pension expense equal to its allocation from AEGON. The pension expense is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits and based upon actuarial participant benefit calculations. The benefits are based on years of service and the employees eligible annual compensation. Pension expenses were $20,647, $18,324 and $17,949 for the years ended December 31, 2011, 2010 and 2009, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.
The Companys employees also participate in a defined contribution plan sponsored by AEGON which is qualified under Section 401(k) of the Internal Revenue Service Code. Employees of the Company who customarily work at least 1,000 hours during each calendar year and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to twenty-five percent of their salary to the plan. The Company will match an amount up to three percent of the participants salary. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement and Income Security Act of 1974. Expense related to this plan was $10,237, $10,390 and $9,654 for the years ended December 31, 2011, 2010 and 2009, respectively.
AEGON sponsors supplemental retirement plans to provide the Companys senior management with benefits in excess of normal pension benefits. The plans are noncontributory, and benefits are based on years of service and the employees compensation level. The plans are unfunded and nonqualified under the Internal Revenue Service Code. In addition, AEGON has established incentive deferred compensation plans for certain key employees of the Company. The Companys allocation of expense for these plans for each of the years ended December 31, 2011, 2010 and 2009 was negligible. AEGON also sponsors an employee stock option plan/stock appreciation rights for employees of the Company and a stock purchase plan for its producers, with the participating affiliated companies establishing their own eligibility criteria, producer contribution limits and company matching formula. These plans have been accrued or funded as deemed appropriate by management of AEGON and the Company.
In addition to pension benefits, the Company participates in plans sponsored by AEGON that provide postretirement medical, dental and life insurance benefits to employees meeting certain eligibility requirements. Portions of the medical and dental plans are
105
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
contributory. The postretirement plan expenses are charged to affiliates in accordance with an intercompany cost sharing arrangement. The Company expensed $3,951, $4,609 and $4,254 related to these plans for the years ended December 31, 2011, 2010 and 2009, respectively.
12. Related Party Transactions
The Company shares certain officers, employees and general expenses with affiliated companies.
The Company is party to a common cost allocation service agreement between AEGON companies, in which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company is also party to two additional service agreements with Transamerica Advisors Life Insurance Company of New York (TALICNY) and TFLIC, in which the Company provides services, including accounting, data processing and other professional services, in consideration of reimbursement of the actual costs of services rendered. The Company is also a party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors, Inc. whereby the advisor serves as the administrator and advisor for the Companys mortgage loan operations. AEGON USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The net amount received by the Company as a result of being a party to these agreements was $75,124, $46,373 and $32,580 during 2011, 2010 and 2009, respectively. Fees charged between affiliates approximate their cost. The Company has an administration service agreement with Transamerica Asset Management, Inc. to provide administrative services to the AEGON/Transamerica Series Trust. The Company received $60,237, $51,177 and $40,040 for these services during 2011, 2010 and 2009, respectively.
Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $79,375, $67,790 and $73,721 for the years ended December 31, 2011, 2010 and 2009, respectively.
At December 31, 2011 and 2010, respectively, the Company reported a net amount of payables to affiliates of $88,949 and $228,137. Terms of settlement require that these amounts be settled within 90 days. Receivables from and payables to affiliates bear interest at the thirty-day commercial paper rate.
106
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
At December 31, 2011, the Company had short-term intercompany notes receivable of $185,100 as follows. In accordance with SSAP No. 25, Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties, these notes are reported as short-term investments.
Receivable from |
Amount | Due By | Interest Rate | |||||||||
AEGON |
$ | 185,100 | December 28, 2012 | 0.12 | % |
At December 31, 2010, the Company had short-term intercompany notes receivable of $270,000 as follows. All of these notes were repaid prior to their due date.
Receivable from |
Amount | Due By | Interest Rate | |||||||||
Transamerica Corporation |
$ | 75,500 | July 19, 2011 | 0.35 | % | |||||||
AEGON |
69,500 | December 22, 2011 | 0.25 | |||||||||
AEGON |
18,000 | December 24, 2011 | 0.25 | |||||||||
AEGON |
76,000 | December 27, 2011 | 0.25 | |||||||||
AEGON |
31,000 | December 29, 2011 | 0.25 |
During 2011, 2010 and 2009, the Company paid (received) net interest of $252, $142 and $(1,193), respectively, to affiliates.
During 1998, the Company issued life insurance policies to two affiliated companies, covering the lives of certain employees of those affiliates. Aggregate reserves for policies and contracts related to these policies are $148,230 and $143,563 at December 31, 2011 and 2010, respectively.
In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2011 and 2010, the cash surrender value of these policies was $153,701 and $148,756, respectively.
13. Commitments and Contingencies
At December 31, 2011 and 2010, the Company has mortgage loan commitments of $65,654 and $37,624, respectively. The Company has contingent commitments for $ 384,572 and $457,326 as of December 31, 2011 and 2010, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $53,963 and $29,934, respectively.
There were no private placement commitments outstanding as of December 31, 2011 and 2010.
107
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
At December 31, 2011, the net amount of securities being acquired on a to be announced (TBA) basis was $10,206. There were no securities being acquired on a TBA basis as of December 31, 2010.
The Company may pledge assets as collateral for derivative transactions. At December 31, 2011 and 2010, the Company has pledged invested assets with a carrying value of $161,542 and $210,686, respectively, and fair value of $184,431 and $208,328, respectively, in conjunction with these transactions.
As mentioned in Note 1, amendments to SSAP No. 91R during 2010 resulted in the cash collateral received from derivative counterparties as well as the obligation to return the collateral being recorded on the Companys balance sheet. The amount of cash collateral posted as of December 31, 2011 and 2010, respectively, was $1,094,873 and $240,335. In addition, securities in the amount of $382,069 and $104,186 were also posted to the Company as of December 31, 2011 and 2010, respectively, which were not included on the balance sheet of the Company as the Company does not have the ability to sell or repledge the collateral.
The Company may pledge assets as collateral for transactions involving funding agreements. At December 31, 2011 and 2010, the Company has pledged invested assets with a carrying amount of $138,841 and $182,365, respectively, and fair value of $138,667 and $190,511, respectively, in conjunction with these transactions.
The Company has provided back-stop guarantees for the performance of non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-21 years. The Company did not recognize a liability for the low income housing tax credit guarantees due to the adoption of SSAP No. 5R at December 31, 2011, as the maximum potential amount of future payments the Company could be required to make is immaterial to the Companys financial results. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Companys financial statements as a decrease in net investment income. The maximum potential amount of future payments (undiscounted) that the Company could be required to make under these guarantees is $309. No payments are required as of December 31, 2011. The current assessment of risk of making payments under these guarantees is remote.
108
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
The Company has guaranteed to the Monetary Authority of Singapore (MAS) that it will provide adequate funds to make up for any liquidity shortfall in its wholly-owned foreign life insurance subsidiary, TLB (Singapore Branch), and continue to meet, pay and settle all present and future obligations of TLB. As of December 31, 2011, there is no payment or performance risk because TLB has adequate liquidity as of this date.
The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLBs solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLBs 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, 2011, 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 & Poors 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. TLIC can terminate this agreement upon thirty days written notice, but not until TLB attains a rating from Standard & Poors 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 TLICs then current rating or AA, whichever is lower. As of December 31, 2011, 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 three guarantees as they are considered to be unlimited under the provisions of SSAP No. 5R.
The Company has provided a guarantee to TLBs (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, 2011, TLB holds related statutory-basis policy and claim reserves of $267,940, 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,
109
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
the payment would be reflected in the Companys financial statements as an increase to incurred claims. As of December 31, 2011, 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 at December 31, 2011, as a liability is not required for guarantees to or on behalf of a wholly-owned subsidiary. Management monitors TLBs 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 has provided guarantees for the obligations of noninsurance affiliates who have accepted assignments of structured settlement payment obligations from other insurers and purchase structured settlement insurance policies from subsidiaries of the Company that match those obligations. The guarantees made by the Company are specific to each structured settlement contract and vary in date and duration of the obligation. These are numerous and are backed by the reserves established by the Company to represent the present value of the future payments for those contracts. The statutory reserve established at December 31, 2011 for the total payout block is $3,770,907. As this reserve is already recorded on the balance sheet of the Company, there was no additional liability recorded due to the adoption of SSAP No. 5R.
The following table provides an aggregate compilation of guarantee obligations as of December 31, 2011:
December 31 2011 |
||||
Aggregate maximum potential of future payments of all guarantees (undiscounted) |
$ | 268,249 | ||
|
|
|||
Current liability recognized in financial statements: |
||||
Noncontingent liabilities |
| |||
|
|
|||
Contingent liabilities |
| |||
|
|
|||
Ultimate financial statement impact if action required: |
||||
Incurred claims |
267,940 | |||
Other |
309 | |||
|
|
|||
Total impact if action required |
$ | 268,249 | ||
|
|
The Company had outstanding funding agreements totaling $4,054,848 and $4,500,724 at December 31, 2011 and 2010, respectively, to the FHLB, and the funds received are reported as deposit-type liabilities per SSAP No. 52, Deposit-Type Contracts. Total
110
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
reserves are equal to the funding agreements balance. These funding agreements are used for investment spread management purposes and are subject to the same asset/liability management practices as other deposit-type business. All of the funding agreements issued to the FHLB are classified in the general account as it is a general obligation of the Company.
Collateral is required by the FHLB to support repayment of the funding agreements. The amount of pledged collateral at December 31, 2011 and 2010 was $5,859,852 and $6,607,053, respectively. In addition, the FHLB requires their common stock to be purchased. The Company owns FHLB common stock with a par value of $160,188 and $210,250 at December 31, 2011 and 2010, respectively. The FHLB has set funding capacity limits on the Company which are significantly higher than the current funding agreement level; however, the FHLB is under no obligation to extend additional capacity.
The Company has issued synthetic GIC contracts to benefit plan sponsors on assets totaling $1,848,101 and $2,034,558 as of December 31, 2011 and 2010, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans. The plan sponsor retains ownership and control of the related plan assets. The Company provides book value benefit responsiveness in the event that qualified plan benefit requests exceed plan cash flows. In certain contracts, the Company agrees to make advances to meet benefit payment needs and earns a market interest rate on these advances. The periodically adjusted contract-crediting rate is the means by which investment and benefit responsive experience is passed through to participants. In return for the book value benefit responsive guarantee, the Company receives a premium that varies based on such elements as benefit responsive exposure and contract size. The Company underwrites the plans for the possibility of having to make benefit payments and also must agree to the investment guidelines to ensure appropriate credit quality and cash flow. A contract reserve of $3,000 has been established for the possibility of unexpected benefit payments at below market interest rates at December 31, 2011 and 2010.
As of December 31, 2011 and 2010, the Company had entered into a credit enhancement and a standby liquidity asset purchase agreement on a municipal variable rate demand note facility with commitment amounts of $490 and $535, respectively, for which it was paid a fee. Prior to a change in the remarketing agent, this agreement was drawn upon and repaid during 2009. The Company does not believe there will be an additional draw under this agreement. However, if there were, any such draws would be purchases of municipal bonds, which would be repaid with interest.
The Company is a party to legal proceedings involving a variety of issues incidental to its business, including class actions. Lawsuits may be brought in nearly any federal or state
111
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
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 Companys legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is managements opinion that damages arising from such demands will not be material to the Companys financial position.
During 2010, the Company recorded a one-time provision to general insurance expenses of $140,000 for settlement of a dispute related to a Bank Owned Life Insurance (BOLI) policy in the United States. Subsequent to the disruption in the credit market, which affected the investment value of the policys underlying assets, a suit was filed alleging that the policy terms were not sufficiently fulfilled by AEGON.
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 Companys balance sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $33,490 and $37,041 and an offsetting premium tax benefit of $4,744 and $3,550 at December 31, 2011 and 2010, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $(3,645), $2,465 and $460, for the years ended December 31, 2011, 2010 and 2009, respectively.
14. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities
The Company has recorded liabilities of $88,828 and $200,977 for municipal repurchase agreements as of December 31, 2011 and 2010, respectively. The repurchase agreements are primarily collateralized by investment-grade corporate bonds with book values of $94,288 and $235,220, respectively, and fair values of $99,880 and $244,933, respectively, as of December 31, 2011 and 2010. These securities have maturity dates that range from 2013 to 2025.
112
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
For repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Companys 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 seven days to sixteen 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.
The Company did not participate in dollar repurchase agreements at December 31, 2011 or 2010.
In the course of the Companys asset management, securities are sold and reacquired within 30 days of the sale date to enhance the Companys yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2011 and reacquired within 30 days of the sale date are:
Number of Transactions |
Book Value of Securities Sold |
Cost of Securities Repurchased |
Gain/(Loss) | |||||||||||||
Bonds: |
||||||||||||||||
NAIC 3 |
2 | $ | 2,275 | $ | 2,410 | $ | 205 | |||||||||
NAIC 4 |
2 | 555 | 586 | 26 | ||||||||||||
NAIC 5 |
10 | 5,848 | 5,982 | 335 | ||||||||||||
NAIC 6 |
3 | 1,415 | 1,423 | (12 | ) |
15. Reconciliation to Statutory Statement
The 2008 Annual Statement did not include the appropriate tax effect on the mark to market income on a derivative as of December 31, 2008. This item was adjusted for in the 2008 financial statements, and was corrected through federal income tax expense in the 2009 Annual Statement. There were no reconciling items at December 31, 2011 and 2010 or for the years then ended. The following is a reconciliation of amounts previously reported to the Insurance Division, Department of Commerce, of the State of Iowa in the 2009 Annual Statement, to those reported in the accompanying statutory-basis financial statements:
113
Transamerica Life Insurance Company
Notes to Financial StatementsStatutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2009 |
||||
Statement of Operations: |
||||
Statutory net loss as reported in the Company's Annual Statement of Operations: |
$ | (99,471 | ) | |
Increase federal income tax benefit |
93,046 | |||
|
|
|||
Total statutory net loss per financial statements |
$ | (6,425 | ) | |
|
|
16. Subsequent Events
The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are available to be issued, April 13, 2012, provided they give evidence of conditions that existed at the balance sheet date (Type I). Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). As of April 13, 2012, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2011.
114
Transamerica Life Insurance Company
Summary of InvestmentsOther Than
Investments in Related Parties
(Dollars in Thousands)
December 31, 2011
SCHEDULE I
Type of Investment |
Cost (1) | Market Value |
Amount at Which Shown in the Balance Sheet |
|||||||||
Fixed maturities |
||||||||||||
Bonds: |
||||||||||||
United States government and government agencies and authorities |
$ | 4,048,385 | $ | 4,914,836 | $ | 4,048,385 | ||||||
States, municipalities and political subdivisions |
923,005 | 967,657 | 923,005 | |||||||||
Foreign governments |
528,683 | 535,650 | 528,683 | |||||||||
Hybrid securities |
1,031,126 | 794,493 | 1,031,126 | |||||||||
All other corporate bonds |
33,191,089 | 34,647,322 | 33,191,089 | |||||||||
Preferred stocks |
138,596 | 149,539 | 138,596 | |||||||||
|
|
|
|
|
|
|||||||
Total fixed maturities |
39,860,884 | 42,009,497 | 39,860,884 | |||||||||
Equity securities |
||||||||||||
Common stocks: |
||||||||||||
Industrial, miscellaneous and all other |
198,433 | 229,973 | 229,973 | |||||||||
|
|
|
|
|
|
|||||||
Total equity securities |
198,433 | 229,973 | 229,973 | |||||||||
Mortgage loans on real estate |
6,758,752 | 6,758,752 | ||||||||||
Real estate |
95,749 | 95,749 | ||||||||||
Policy loans |
727,684 | 727,684 | ||||||||||
Other long-term investments |
1,315,279 | 1,315,279 | ||||||||||
Receivable for Securities |
3,593 | 3,593 | ||||||||||
Securities Lending |
3,520,304 | 3,520,304 | ||||||||||
Cash, cash equivalents and short-term investments |
2,931,352 | 2,931,352 | ||||||||||
|
|
|
|
|||||||||
Total investments |
$ | 55,412,030 | $ | 55,443,570 | ||||||||
|
|
|
|
(1) | Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts. |
115
Transamerica Life Insurance Company
Supplementary Insurance Information
(Dollars in Thousands)
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, 2011 |
||||||||||||||||||||||||||||
Individual life |
$ | 13,797,712 | $ | | $ | 179,695 | $ | 242,721 | $ | 767,798 | $ | 1,288,152 | $ | 934,829 | ||||||||||||||
Individual health |
2,993,069 | 97,990 | 134,931 | 438,582 | 202,494 | 420,327 | 151,433 | |||||||||||||||||||||
Group life and health |
1,430,308 | 14,510 | 58,498 | 337,648 | 88,118 | 272,474 | 119,561 | |||||||||||||||||||||
Annuity |
16,637,184 | | 23,495 | 8,845,105 | 1,557,448 | 5,813,892 | 5,790,315 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 34,858,273 | $ | 112,500 | $ | 396,619 | $ | 9,864,056 | $ | 2,615,858 | $ | 7,794,845 | $ | 6,996,138 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year ended December 31, 2010 |
||||||||||||||||||||||||||||
Individual life |
$ | 14,015,969 | $ | | $ | 256,354 | $ | 1,411,484 | $ | 993,846 | $ | 1,938,525 | $ | 1,109,156 | ||||||||||||||
Individual health |
2,906,758 | 102,601 | 137,513 | 492,364 | 199,500 | 437,569 | 150,292 | |||||||||||||||||||||
Group life and health |
1,413,616 | 15,466 | 96,571 | 330,139 | 75,398 | 281,807 | 114,825 | |||||||||||||||||||||
Annuity |
17,990,509 | | 26,915 | 6,931,132 | 1,650,427 | 5,616,190 | 3,283,491 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 36,326,852 | $ | 118,067 | $ | 517,353 | $ | 9,165,119 | $ | 2,919,171 | $ | 8,274,091 | $ | 4,657,764 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Year ended December 31, 2009 |
||||||||||||||||||||||||||||
Individual life |
$ | 13,898,182 | $ | | $ | 273,389 | $ | 1,286,997 | $ | 900,907 | $ | 1,408,720 | $ | 986,135 | ||||||||||||||
Individual health |
2,801,188 | 116,341 | 121,468 | 470,438 | 179,158 | 411,103 | 158,964 | |||||||||||||||||||||
Group life and health |
1,409,957 | 16,322 | 103,431 | 344,829 | 92,181 | 270,852 | 135,934 | |||||||||||||||||||||
Annuity |
19,080,480 | | 22,049 | 5,997,868 | 1,900,911 | 1,404,938 | 6,767,121 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$ | 37,189,807 | $ | 132,663 | $ | 520,337 | $ | 8,100,132 | $ | 3,073,157 | $ | 3,495,613 | $ | 8,048,154 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* | 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. |
116
Transamerica Life Insurance Company
(Dollars in Thousands)
SCHEDULE IV
Gross Amount |
Ceded to Other Companies |
Assumed From Other Companies |
Net Amount |
Percentage of Amount Assumed to Net |
||||||||||||||||
Year ended December 31, 2011 |
||||||||||||||||||||
Life insurance in force |
$ | 452,085,562 | $ | 1,075,361,646 | $ | 732,908,307 | $ | 109,632,223 | 669 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Premiums: |
||||||||||||||||||||
Individual life |
2,300,979 | 3,793,088 | 1,734,830 | 242,721 | 715 | % | ||||||||||||||
Individual health |
535,034 | 215,579 | 119,127 | 438,582 | 27 | % | ||||||||||||||
Group life and health |
417,156 | 109,724 | 30,216 | 337,648 | 9 | % | ||||||||||||||
Annuity |
10,043,863 | 1,247,624 | 48,866 | 8,845,105 | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 13,297,032 | $ | 5,366,015 | $ | 1,933,039 | $ | 9,864,056 | 20 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2010 |
||||||||||||||||||||
Life insurance in force |
$ | 459,820,666 | $ | 969,368,385 | $ | 731,229,732 | $ | 221,682,013 | 330 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Premiums: |
||||||||||||||||||||
Individual life |
$ | 2,631,499 | $ | 3,101,663 | $ | 1,881,648 | $ | 1,411,484 | 133 | % | ||||||||||
Individual health |
536,163 | 154,031 | 110,232 | 492,364 | 22 | % | ||||||||||||||
Group life and health |
398,638 | 87,932 | 19,433 | 330,139 | 6 | % | ||||||||||||||
Annuity |
7,197,141 | 334,516 | 68,507 | 6,931,132 | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 10,763,441 | $ | 3,678,142 | $ | 2,079,820 | $ | 9,165,119 | 23 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Year ended December 31, 2009 |
||||||||||||||||||||
Life insurance in force |
$ | 450,746,436 | $ | 908,732,362 | $ | 677,546,211 | $ | 219,560,285 | 309 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Premiums: |
||||||||||||||||||||
Individual life |
$ | 2,466,652 | $ | 2,799,049 | $ | 1,619,394 | $ | 1,286,997 | 126 | % | ||||||||||
Individual health |
540,470 | 189,419 | 119,387 | 470,438 | 25 | % | ||||||||||||||
Group life and health |
389,911 | 74,823 | 29,741 | 344,829 | 9 | % | ||||||||||||||
Annuity |
9,312,898 | 3,355,296 | 40,266 | 5,997,868 | 1 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
$ | 12,709,931 | $ | 6,418,587 | $ | 1,808,788 | $ | 8,100,132 | 22 | % | |||||||||||
|
|
|
|
|
|
|
|
|
|
117
FINANCIAL STATEMENTS
Transamerica Life Insurance Company
Separate Account VA-2L
Year Ended December 31, 2011
Transamerica Life Insurance Company
Separate Account VA-2L
Financial Statements
Year Ended December 31, 2011
Contents
Report of Independent Registered Public Accounting Firm |
1 | |||
Financial Statements |
||||
Statements of Assets and Liabilities |
2 | |||
Statements of Operations and Changes in Net Assets |
14 | |||
Notes to Financial Statements |
18 |
Report of Independent Registered Public Accounting Firm
The Board of Directors and Contract Owners
of Separate Account VA-2L
Transamerica Life Insurance Company
We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Separate Account VA-2L of Transamerica Life Insurance Company (comprised of the Money Market, Appreciation, Growth and Income, International Equity, International Value, Quality Bond, Opportunistic Small Cap, Dreyfus Stock Index, The Dreyfus Socially Responsible Growth, Core Value, MidCap Stock, Technology Growth, and TA WMC Diversified Growth subaccounts), at December 31, 2011, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Accounts management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Separate Accounts internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate Accounts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2011 by correspondence with the mutual funds transfer agents. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts of Separate Account VA-2L of Transamerica Life Insurance Company at December 31, 2011, and the results of their operations and changes in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Des Moines, Iowa
April 16, 2012
1
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2011
Money Market Subaccount |
Appreciation Subaccount |
Growth and Income Subaccount |
International Equity Subaccount |
|||||||||||||
Assets |
||||||||||||||||
Investment in securities: |
||||||||||||||||
Number of shares - Initial |
73,915,881.970 | 1,408,448.133 | 1,497,816.364 | 783,774.003 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | 73,915,882 | $ | 48,106,434 | $ | 30,652,908 | $ | 14,113,221 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Number of shares - Service |
| 432,649.378 | 367,468.851 | 186,490.386 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | | $ | 14,792,558 | $ | 7,896,016 | $ | 3,487,758 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investments in mutual funds, |
||||||||||||||||
Level 1 quoted prices at net asset value |
$ | 73,915,882 | $ | 69,849,217 | $ | 35,373,157 | $ | 13,335,541 | ||||||||
Receivable for units sold |
172 | | 1 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
73,916,054 | 69,849,217 | 35,373,158 | 13,335,541 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Payable for units redeemed |
| | | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 73,916,054 | $ | 69,849,217 | $ | 35,373,158 | $ | 13,335,540 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Deferred annuity contracts terminable by owners |
$ | 73,916,054 | $ | 69,849,217 | $ | 35,373,158 | $ | 13,335,540 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net assets |
$ | 73,916,054 | $ | 69,849,217 | $ | 35,373,158 | $ | 13,335,540 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
2
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
Money Market Subaccount |
Appreciation Subaccount |
Growth and Income Subaccount |
International Equity Subaccount |
|||||||||||||
Accumulation units outstanding - Initial: |
||||||||||||||||
M&E - 1.30% |
1,145,568 | | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
50,427,638 | 1,205,243 | 953,162 | 509,930 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
2,167,247 | | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Initial: |
||||||||||||||||
M&E - 1.30% |
$ | 1.045205 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | 1.397759 | $ | 44.406829 | $ | 29.794109 | $ | 21.134050 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | 1.030346 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | 1.028573 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | 1.012057 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | 1.007485 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | 0.998509 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | 0.994036 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | 0.994118 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | 0.977283 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | 0.960898 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | 0.944718 | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
3
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
Money Market Subaccount |
Appreciation Subaccount |
Growth and Income Subaccount |
International Equity Subaccount |
|||||||||||||
Accumulation units outstanding - Service: |
||||||||||||||||
M&E - 1.30% |
| 1,216,310 | 351,442 | 45,394 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
| 302,279 | 207,601 | 104,295 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
| 1,302,970 | 542,518 | 256,014 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Service: |
||||||||||||||||
M&E - 1.30% |
$ | | $ | 1.311266 | $ | 1.053470 | $ | 1.399254 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | | $ | 43.168679 | $ | 29.098660 | $ | 20.537874 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | | $ | 1.292660 | $ | 1.038502 | $ | 1.379347 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | | $ | 1.509954 | $ | 1.277204 | $ | 1.663075 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | | $ | 1.490260 | $ | 1.302196 | $ | 1.707240 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | | $ | 1.483552 | $ | 1.296365 | $ | 1.699579 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | | $ | 1.470280 | $ | 1.284776 | $ | 1.684382 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | | $ | 1.463721 | $ | 1.278981 | $ | 1.676813 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | | $ | 1.459314 | $ | 1.234388 | $ | 1.607287 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | | $ | 1.434719 | $ | 1.213586 | $ | 1.580199 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | | $ | 1.410595 | $ | 1.193161 | $ | 1.553588 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | | $ | 1.386915 | $ | 1.173120 | $ | 1.527489 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
4
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
International Value Subaccount |
Quality Bond Subaccount |
Opportunistic Small Cap Subaccount |
Dreyfus
Stock Index Subaccount |
|||||||||||||
Assets |
||||||||||||||||
Investment in securities: |
||||||||||||||||
Number of shares - Initial |
742,977.781 | 2,567,152.868 | 810,753.448 | 1,451,371.967 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | 10,068,083 | $ | 28,228,626 | $ | 28,412,195 | $ | 41,243,628 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Number of shares - Service |
427,813.120 | 1,628,698.071 | 127,059.813 | 431,968.317 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | 6,006,470 | $ | 18,022,062 | $ | 4,320,926 | $ | 12,673,002 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investments in mutual funds, |
||||||||||||||||
Level 1 quoted prices at net asset value |
$ | 10,486,008 | $ | 49,949,395 | $ | 24,579,965 | $ | 55,533,831 | ||||||||
Receivable for units sold |
| 3 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
10,486,008 | 49,949,398 | 24,579,965 | 55,533,831 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Payable for units redeemed |
| | 2 | 2 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 10,486,008 | $ | 49,949,398 | $ | 24,579,963 | $ | 55,533,829 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Deferred annuity contracts terminable by owners |
$ | 10,486,008 | $ | 49,949,398 | $ | 24,579,963 | $ | 55,533,829 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net assets |
$ | 10,486,008 | $ | 49,949,398 | $ | 24,579,963 | $ | 55,533,829 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
5
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
International Value Subaccount |
Quality Bond Subaccount |
Opportunistic Small Cap Subaccount |
Dreyfus Stock Index Subaccount |
|||||||||||||
Accumulation units outstanding - Initial: |
||||||||||||||||
M&E - 1.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
441,931 | 1,176,366 | 293,686 | 921,433 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Initial: |
||||||||||||||||
M&E - 1.30% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | 15.063618 | $ | 26.012697 | $ | 72.493648 | $ | 46.434698 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
6
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
International Value Subaccount |
Quality Bond Subaccount |
Opportunistic Small Cap Subaccount |
Dreyfus Stock Index Subaccount |
|||||||||||||
Accumulation units outstanding - Service: |
||||||||||||||||
M&E - 1.30% |
222,516 | 1,636,863 | 166,450 | 711,054 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
209,929 | 564,336 | 39,751 | 238,374 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
412,705 | 2,025,810 | 429,260 | 984,972 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Service: |
||||||||||||||||
M&E - 1.30% |
$ | 1.144476 | $ | 1.394951 | $ | 0.829461 | $ | 1.182755 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | 14.808050 | $ | 25.303693 | $ | 70.452281 | $ | 45.130686 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | 1.128216 | $ | 1.375157 | $ | 0.817665 | $ | 1.165944 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | 1.442060 | $ | 1.280567 | $ | 1.072241 | $ | 1.378657 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | 1.388863 | $ | 1.321604 | $ | 1.107748 | $ | 1.422044 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | 1.382634 | $ | 1.315674 | $ | 1.102765 | $ | 1.415663 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | 1.370237 | $ | 1.303932 | $ | 1.092935 | $ | 1.402980 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | 1.364113 | $ | 1.298084 | $ | 1.088039 | $ | 1.396673 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | 1.393710 | $ | 1.237641 | $ | 1.036256 | $ | 1.332499 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | 1.370188 | $ | 1.216780 | $ | 1.018748 | $ | 1.310000 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | 1.347124 | $ | 1.196297 | $ | 1.001620 | $ | 1.287957 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | 1.324506 | $ | 1.176200 | $ | 0.984789 | $ | 1.266325 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
7
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
The Dreyfus Socially Responsible Growth Subaccount |
Core Value Subaccount |
MidCap Stock Subaccount |
Technology Growth Subaccount |
|||||||||||||
Assets |
||||||||||||||||
Investment in securities: |
||||||||||||||||
Number of shares - Initial |
386,482.732 | 771,841.068 | 907,836.214 | 1,086,540.239 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | 11,692,310 | $ | 12,221,201 | $ | 12,463,551 | $ | 9,312,294 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Number of shares - Service |
68,747.821 | 937,994.327 | 616,437.698 | 192,165.317 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Cost |
$ | 1,694,996 | $ | 15,736,902 | $ | 8,601,437 | $ | 1,690,240 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investments in mutual funds, |
||||||||||||||||
Level 1 quoted prices at net asset value |
$ | 13,602,197 | $ | 20,864,977 | $ | 20,047,116 | $ | 15,246,535 | ||||||||
Receivable for units sold |
| 4 | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets |
13,602,197 | 20,864,981 | 20,047,116 | 15,246,535 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
||||||||||||||||
Payable for units redeemed |
3 | | 2 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | 13,602,194 | $ | 20,864,981 | $ | 20,047,114 | $ | 15,246,535 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets: |
||||||||||||||||
Deferred annuity contracts terminable by owners |
$ | 13,602,194 | $ | 20,864,981 | $ | 20,047,114 | $ | 15,246,535 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net assets |
$ | 13,602,194 | $ | 20,864,981 | $ | 20,047,114 | $ | 15,246,535 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
8
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
The Dreyfus Socially Responsible Growth Subaccount |
Core Value Subaccount |
MidCap Stock Subaccount |
Technology Growth Subaccount |
|||||||||||||
Accumulation units outstanding - Initial: |
||||||||||||||||
M&E - 1.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
382,515 | 788,720 | 788,738 | 1,613,520 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Initial: |
||||||||||||||||
M&E - 1.30% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | 30.220215 | $ | 11.909565 | $ | 15.147146 | $ | 8.060566 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | | $ | | $ | | $ | | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
9
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
The Dreyfus Socially Responsible Growth Subaccount |
Core Value Subaccount |
MidCap Stock Subaccount |
Technology Growth Subaccount |
|||||||||||||
Accumulation units outstanding - Service: |
||||||||||||||||
M&E - 1.30% |
100,448 | 551,880 | 412,192 | 80,750 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
62,014 | 776,804 | 447,634 | 245,313 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
102,992 | 1,691,733 | 684,918 | 171,298 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
| | | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulation unit value - Service: |
||||||||||||||||
M&E - 1.30% |
$ | 1.089166 | $ | 1.065003 | $ | 1.310014 | $ | 1.284316 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.40% |
$ | 29.388865 | $ | 11.724710 | $ | 14.912862 | $ | 7.826996 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.45% |
$ | 1.073682 | $ | 1.049880 | $ | 1.291406 | $ | 1.266058 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.50% |
$ | 1.368877 | $ | 1.285247 | $ | 1.557242 | $ | 1.614797 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.65% |
$ | 1.379402 | $ | 1.303328 | $ | 1.630295 | $ | 1.777749 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.70% |
$ | 1.373183 | $ | 1.297483 | $ | 1.622949 | $ | 1.769782 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.80% |
$ | 1.360933 | $ | 1.285870 | $ | 1.608473 | $ | 1.753955 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.85% |
$ | 1.354880 | $ | 1.280124 | $ | 1.601291 | $ | 1.746120 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 1.90% |
$ | 1.322974 | $ | 1.242138 | $ | 1.505001 | $ | 1.560653 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.10% |
$ | 1.300679 | $ | 1.221157 | $ | 1.479652 | $ | 1.534331 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.30% |
$ | 1.278787 | $ | 1.200650 | $ | 1.454740 | $ | 1.508494 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
M&E - 2.50% |
$ | 1.257314 | $ | 1.180467 | $ | 1.430290 | $ | 1.483177 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
10
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
TA
WMC Diversified Growth Subaccount |
||||
Assets |
||||
Investment in securities: |
||||
Number of shares - Initial |
482,734.748 | |||
|
|
|||
Cost |
$ | 10,775,731 | ||
|
|
|||
Number of shares - Service |
| |||
|
|
|||
Cost |
$ | | ||
|
|
|||
Investments in mutual funds, |
||||
Level 1 quoted prices at net asset value |
$ | 10,393,279 | ||
Receivable for units sold |
| |||
|
|
|||
Total assets |
10,393,279 | |||
|
|
|||
Liabilities |
||||
Payable for units redeemed |
| |||
|
|
|||
$ | 10,393,279 | |||
|
|
|||
Net Assets: |
||||
Deferred annuity contracts terminable by owners |
$ | 10,393,279 | ||
|
|
|||
Total net assets |
$ | 10,393,279 | ||
|
|
See accompanying notes.
11
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liablities
December 31, 2011
TA WMC Diversified Growth Subaccount |
||||
Accumulation units outstanding - Initial: |
||||
M&E - 1.30% |
22,859 | |||
|
|
|||
M&E - 1.40% |
766,807 | |||
|
|
|||
M&E - 1.45% |
83,547 | |||
|
|
|||
M&E - 1.50% |
| |||
|
|
|||
M&E - 1.65% |
| |||
|
|
|||
M&E - 1.70% |
| |||
|
|
|||
M&E - 1.80% |
| |||
|
|
|||
M&E - 1.85% |
| |||
|
|
|||
M&E - 1.90% |
| |||
|
|
|||
M&E - 2.10% |
| |||
|
|
|||
M&E - 2.30% |
| |||
|
|
|||
M&E - 2.50% |
| |||
|
|
|||
Accumulation unit value - Initial: |
||||
M&E - 1.30% |
$ | 1.329149 | ||
|
|
|||
M&E - 1.40% |
$ | 13.371588 | ||
|
|
|||
M&E - 1.45% |
$ | 1.310233 | ||
|
|
|||
M&E - 1.50% |
$ | 1.454049 | ||
|
|
|||
M&E - 1.65% |
$ | 1.559158 | ||
|
|
|||
M&E - 1.70% |
$ | 1.552212 | ||
|
|
|||
M&E - 1.80% |
$ | 1.538326 | ||
|
|
|||
M&E - 1.85% |
$ | 1.531443 | ||
|
|
|||
M&E - 1.90% |
$ | 1.405269 | ||
|
|
|||
M&E - 2.10% |
$ | 1.381595 | ||
|
|
|||
M&E - 2.30% |
$ | 1.358312 | ||
|
|
|||
M&E - 2.50% |
$ | 1.335537 | ||
|
|
See accompanying notes.
12
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2011
TA WMC Diversified Growth Subaccount |
||||
Accumulation units outstanding - Service: |
||||
M&E - 1.30% |
| |||
|
|
|||
M&E - 1.40% |
| |||
|
|
|||
M&E - 1.45% |
| |||
|
|
|||
M&E - 1.50% |
| |||
|
|
|||
M&E - 1.65% |
| |||
|
|
|||
M&E - 1.70% |
| |||
|
|
|||
M&E - 1.80% |
| |||
|
|
|||
M&E - 1.85% |
| |||
|
|
|||
M&E - 1.90% |
| |||
|
|
|||
M&E - 2.10% |
| |||
|
|
|||
M&E - 2.30% |
| |||
|
|
|||
M&E - 2.50% |
| |||
|
|
|||
Accumulation unit value - Service: |
||||
M&E - 1.30% |
$ | | ||
|
|
|||
M&E - 1.40% |
$ | | ||
|
|
|||
M&E - 1.45% |
$ | | ||
|
|
|||
M&E - 1.50% |
$ | | ||
|
|
|||
M&E - 1.65% |
$ | | ||
|
|
|||
M&E - 1.70% |
$ | | ||
|
|
|||
M&E - 1.80% |
$ | | ||
|
|
|||
M&E - 1.85% |
$ | | ||
|
|
|||
M&E - 1.90% |
$ | | ||
|
|
|||
M&E - 2.10% |
$ | | ||
|
|
|||
M&E - 2.30% |
$ | | ||
|
|
|||
M&E - 2.50% |
$ | | ||
|
|
See accompanying notes.
13
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations Changes in Net Assets
Years Ended December 31, 2010 and 2011
Money Market Subaccount |
Appreciation Subaccount |
Growth and Income Subaccount |
International Equity Subaccount |
|||||||||||||
Net Assets as of January 1, 2010 |
$ | 112,087,498 | $ | 74,635,242 | $ | 40,236,819 | $ | 19,255,202 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
11,604 | 1,547,960 | 445,983 | 299,249 | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
1,370,539 | 989,766 | 546,301 | 243,708 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
(1,358,935 | ) | 558,194 | (100,318 | ) | 55,541 | ||||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | | ||||||||||||
Realized gain (loss) on investments |
| (1,923,675 | ) | (1,468,951 | ) | 85,053 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
| (1,923,675 | ) | (1,468,951 | ) | 85,053 | ||||||||||
Net change in unrealized appreciation/depreciation |
| 10,393,594 | 7,717,843 | 1,188,662 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
| 8,469,919 | 6,248,892 | 1,273,715 | ||||||||||||
Increase (decrease) in net assets from operations |
(1,358,935 | ) | 9,028,113 | 6,148,574 | 1,329,256 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(22,608,405 | ) | (10,458,762 | ) | (4,863,542 | ) | (2,642,410 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(23,967,340 | ) | (1,430,649 | ) | 1,285,032 | (1,313,154 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2010 |
$ | 88,120,158 | $ | 73,204,593 | $ | 41,521,851 | $ | 17,942,048 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
4,489 | 1,178,718 | 468,461 | 335,249 | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
1,112,878 | 989,419 | 543,093 | 220,595 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
(1,108,389 | ) | 189,299 | (74,632 | ) | 114,654 | ||||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | | ||||||||||||
Realized gain (loss) on investments |
| 5,196 | (827,330 | ) | 29,310 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
| 5,196 | (827,330 | ) | 29,310 | |||||||||||
Net change in unrealized appreciation/depreciation |
| 4,910,628 | (696,974 | ) | (2,695,756 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
| 4,915,824 | (1,524,304 | ) | (2,666,446 | ) | ||||||||||
Increase (decrease) in net assets from operations |
(1,108,389 | ) | 5,105,123 | (1,598,936 | ) | (2,551,792 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(13,095,715 | ) | (8,460,499 | ) | (4,549,757 | ) | (2,054,716 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(14,204,104 | ) | (3,355,376 | ) | (6,148,693 | ) | (4,606,508 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2011 |
$ | 73,916,054 | $ | 69,849,217 | $ | 35,373,158 | $ | 13,335,540 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
14
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations Changes in Net Assets
Years Ended December 31, 2010 and 2011
International Value Subaccount |
Quality Bond Subaccount |
Opportunistic
Small Cap Subaccount |
Dreyfus Stock Index Subaccount |
|||||||||||||
Net Assets as of January 1, 2010 |
$ | 15,847,369 | $ | 57,406,394 | $ | 27,575,617 | $ | 62,265,650 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
259,708 | 2,153,972 | 210,139 | 1,041,947 | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
203,720 | 787,607 | 392,798 | 832,187 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
55,988 | 1,366,365 | (182,659 | ) | 209,760 | |||||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | | ||||||||||||
Realized gain (loss) on investments |
(1,485,895 | ) | (77,540 | ) | (1,909,772 | ) | (1,745,168 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
(1,485,895 | ) | (77,540 | ) | (1,909,772 | ) | (1,745,168 | ) | ||||||||
Net change in unrealized appreciation/depreciation |
1,782,734 | 2,480,891 | 9,525,421 | 9,010,778 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
296,839 | 2,403,351 | 7,615,649 | 7,265,610 | ||||||||||||
Increase (decrease) in net assets from operations |
352,827 | 3,769,716 | 7,432,990 | 7,475,370 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(1,371,078 | ) | (6,617,728 | ) | (2,948,979 | ) | (7,386,316 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(1,018,251 | ) | (2,848,012 | ) | 4,484,011 | 89,054 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2010 |
$ | 14,829,118 | $ | 54,558,382 | $ | 32,059,628 | $ | 62,354,704 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
274,409 | 1,871,612 | 116,133 | 1,042,223 | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
181,434 | 728,115 | 401,434 | 821,709 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
92,975 | 1,143,497 | (285,301 | ) | 220,514 | |||||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | 401,130 | ||||||||||||
Realized gain (loss) on investments |
(1,523,278 | ) | 500,579 | (895,770 | ) | (762,112 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
(1,523,278 | ) | 500,579 | (895,770 | ) | (360,982 | ) | |||||||||
Net change in unrealized appreciation/depreciation |
(1,199,001 | ) | 1,186,946 | (3,443,793 | ) | 426,804 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
(2,722,279 | ) | 1,687,525 | (4,339,563 | ) | 65,822 | ||||||||||
Increase (decrease) in net assets from operations |
(2,629,304 | ) | 2,831,022 | (4,624,864 | ) | 286,336 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(1,713,806 | ) | (7,440,006 | ) | (2,854,801 | ) | (7,107,211 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(4,343,110 | ) | (4,608,984 | ) | (7,479,665 | ) | (6,820,875 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2011 |
$ | 10,486,008 | $ | 49,949,398 | $ | 24,579,963 | $ | 55,533,829 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
15
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations Changes in Net Assets
Years Ended December 31, 2010 and 2011
The Dreyfus Socially Responsible Growth Subaccount |
Core
Value Subaccount |
MidCap
Stock Subaccount |
Technology
Growth Subaccount |
|||||||||||||
Net Assets as of January 1, 2010 |
$ | 15,325,521 | $ | 27,392,300 | $ | 21,350,267 | $ | 16,047,958 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
122,727 | 374,765 | 215,965 | | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
201,135 | 360,263 | 305,150 | 225,303 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
(78,408 | ) | 14,502 | (89,185 | ) | (225,303 | ) | |||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | | ||||||||||||
Realized gain (loss) on investments |
(703,935 | ) | (2,598,382 | ) | (2,238,599 | ) | (21,840 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
(703,935 | ) | (2,598,382 | ) | (2,238,599 | ) | (21,840 | ) | ||||||||
Net change in unrealized appreciation/depreciation |
2,556,965 | 5,379,867 | 7,341,975 | 4,413,408 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
1,853,030 | 2,781,485 | 5,103,376 | 4,391,568 | ||||||||||||
Increase (decrease) in net assets from operations |
1,774,622 | 2,795,987 | 5,014,191 | 4,166,265 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(1,830,611 | ) | (3,592,400 | ) | (2,823,439 | ) | (1,593,250 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(55,989 | ) | (796,413 | ) | 2,190,752 | 2,573,015 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2010 |
$ | 15,269,532 | $ | 26,595,887 | $ | 23,541,019 | $ | 18,620,973 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Investment Income: |
||||||||||||||||
Dividends |
128,605 | 239,620 | 102,601 | | ||||||||||||
Investment Expenses: |
||||||||||||||||
Mortality and expense risk and other charges |
204,605 | 329,562 | 306,791 | 242,207 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net investment income (loss) |
(76,000 | ) | (89,942 | ) | (204,190 | ) | (242,207 | ) | ||||||||
Net realized and unrealized gains (losses) on investments: |
||||||||||||||||
Capital gain distributions |
| | | | ||||||||||||
Realized gain (loss) on investments |
(184,591 | ) | (2,324,506 | ) | (1,259,199 | ) | 659,639 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Net realized capital gains (losses) on investments |
(184,591 | ) | (2,324,506 | ) | (1,259,199 | ) | 659,639 | |||||||||
Net change in unrealized appreciation/depreciation |
202,597 | 733,733 | 1,295,889 | (1,982,629 | ) | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Gain (Loss) on Investment |
18,006 | (1,590,773 | ) | 36,690 | (1,322,990 | ) | ||||||||||
Increase (decrease) in net assets from operations |
(57,994 | ) | (1,680,715 | ) | (167,500 | ) | (1,565,197 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Increase (decrease) in net assets from contract transactions |
(1,609,344 | ) | (4,050,191 | ) | (3,326,405 | ) | (1,809,241 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total increase (decrease) in net assets |
(1,667,338 | ) | (5,730,906 | ) | (3,493,905 | ) | (3,374,438 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Assets as of December 31, 2011 |
$ | 13,602,194 | $ | 20,864,981 | $ | 20,047,114 | $ | 15,246,535 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes.
16
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations Changes in Net Assets
Years Ended December 31, 2010 and 2011
TA WMC Diversified Growth Subaccount |
||||
Net Assets as of January 1, 2010 |
$ | 11,189,346 | ||
|
|
|||
Investment Income: |
||||
Dividends |
59,567 | |||
Investment Expenses: |
||||
Mortality and expense risk and other charges |
153,199 | |||
|
|
|||
Net investment income (loss) |
(93,632 | ) | ||
Net realized and unrealized gains (losses) on investments: |
||||
Capital gain distributions |
| |||
Realized gain (loss) on investments |
260,127 | |||
|
|
|||
Net realized capital gains (losses) on investments |
260,127 | |||
Net change in unrealized appreciation/depreciation |
1,518,892 | |||
|
|
|||
Net Gain (Loss) on Investment |
1,779,019 | |||
Increase (decrease) in net assets from operations |
1,685,387 | |||
|
|
|||
Increase (decrease) in net assets from contract transactions |
(1,042,706 | ) | ||
|
|
|||
Total increase (decrease) in net assets |
642,681 | |||
|
|
|||
Net Assets as of December 31, 2010 |
$ | 11,832,027 | ||
|
|
|||
Investment Income: |
||||
Dividends |
43,189 | |||
Investment Expenses: |
||||
Mortality and expense risk and other charges |
157,648 | |||
|
|
|||
Net investment income (loss) |
(114,459 | ) | ||
Net realized and unrealized gains (losses) on investments: |
||||
Capital gain distributions |
| |||
Realized gain (loss) on investments |
257,663 | |||
|
|
|||
Net realized capital gains (losses) on investments |
257,663 | |||
Net change in unrealized appreciation/depreciation |
(694,890 | ) | ||
|
|
|||
Net Gain (Loss) on Investment |
(437,227 | ) | ||
Increase (decrease) in net assets from operations |
(551,686 | ) | ||
|
|
|||
Increase (decrease) in net assets from contract transactions |
(887,062 | ) | ||
|
|
|||
Total increase (decrease) in net assets |
(1,438,748 | ) | ||
|
|
|||
Net Assets as of December 31, 2011 |
$ | 10,393,279 | ||
|
|
See accompanying notes.
17
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
1. Organization and Summary of Significant Accounting Policies (Header used for all titles on this tab)
Organization
Separate Account VA-2L (the Separate Account) is a segregated investment account of Transamerica Life Insurance Company (TLIC), an indirect wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.
The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Dreyfus/Transamerica Triple Advantage Variable Annuity.
Subaccount Investment by Mutual Fund: | ||
SubAccount |
Mutual Fund | |
Dreyfus Variable Investments Fund |
Dreyfus Variable Investments Fund | |
Money Market |
Money Market Portfolio | |
Dreyfus Variable Investment Fund - Initial Class |
Dreyfus Variable Investment Fund - Initial Class | |
Appreciation |
Appreciation Portfolio | |
Growth and Income |
Growth and Income Portfolio | |
International Equity |
International Equity Portfolio | |
International Value |
International Value Portfolio | |
Quality Bond |
Quality Bond Portfolio | |
Opportunistic Small Cap |
Opportunistic Small Cap Portfolio | |
Dreyfus Variable Investment Fund - Service Class |
Dreyfus Variable Investment Fund - Service Class | |
Appreciation |
Appreciation Portfolio | |
Growth and Income |
Growth and Income Portfolio | |
International Equity |
International Equity Portfolio | |
International Value |
International Value Portfolio | |
Quality Bond |
Quality Bond Portfolio | |
Opportunistic Small Cap |
Opportunistic Small Cap Portfolio | |
Dreyfus Stock Index Fund, Inc. - Initial Class |
Dreyfus Stock Index Fund, Inc. - Initial Class | |
Dreyfus Stock Index |
Dreyfus Stock Index Fund, Inc. - Initial Class | |
Dreyfus Stock Index Fund, Inc. - Service Class |
Dreyfus Stock Index Fund, Inc. - Service Class | |
Dreyfus Stock Index |
Dreyfus Stock Index Fund, Inc. - Service Class | |
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Class |
The Dreyfus Socially Responsible Growth Fund, Inc. - Initial Class | |
The Dreyfus Socially Responsible Growth |
The Dreyfus Socially Responsible Growth Fund, Inc. | |
The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
The Dreyfus Socially Responsible Growth Fund, Inc. -Service Class | |
The Dreyfus Socially Responsible Growth |
The Dreyfus Socially Responsible Growth Fund, Inc. | |
Dreyfus Investment Portfolios - Initial Class |
Dreyfus Investment Portfolios - Initial Class | |
Core Value |
Core Value Portfolio | |
MidCap Stock |
MidCap Stock Portfolio | |
Technology Growth |
Technology Growth Portfolio | |
Dreyfus Investment Portfolios - Service Class |
Dreyfus Investment Portfolios - Service Class | |
Core Value |
Core Value Portfolio | |
MidCap Stock |
MidCap Stock Portfolio | |
Technology Growth |
Technology Growth Portfolio |
18
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
1. Organization and Summary of Significant Accounting Policies (continued)
Subaccount Investment by Mutual Fund (continued): | ||
SubAccount |
Mutual Fund | |
Transamerica Series Trust - Initial Class | Transamerica Series Trust - Initial Class | |
TA WMC Diversified Growth |
Transamerica WMC Diversified Growth VP |
Effective December 12, 2011, Transamerica has been changed to TA and VP has been removed from the Subaccount names.
Investments
Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2011.
Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.
Dividend Income
Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.
Accounting Policy
The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.
19
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
2. Investments
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2011 were as follows:
Subaccount |
Purchases | Sales | ||||||
Money Market |
$ | 2,827,323 | $ | 17,031,571 | ||||
Appreciation |
2,143,989 | 10,415,189 | ||||||
Growth and Income |
899,428 | 5,523,813 | ||||||
International Equity |
816,556 | 2,756,612 | ||||||
International Value |
590,946 | 2,211,769 | ||||||
Quality Bond |
5,109,307 | 11,405,821 | ||||||
Opportunistic Small Cap |
629,168 | 3,769,287 | ||||||
Dreyfus Stock Index |
2,440,977 | 8,926,540 | ||||||
The Dreyfus Socially Responsible Growth |
333,062 | 2,018,400 | ||||||
Core Value |
631,692 | 4,771,837 | ||||||
MidCap Stock |
858,438 | 4,389,040 | ||||||
Technology Growth |
265,406 | 2,316,867 | ||||||
TA WMC Diversified Growth |
302,146 | 1,303,668 |
20
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
3. Change in Units
The changes in units outstanding were as follows:
Year ended December 31, | ||||||||||||||||||||||||
2011 | 2010 | |||||||||||||||||||||||
Subaccount |
Units Purchased |
Units Redeemed and Transferred to/from |
Net Increase (Decrease) |
Units Purchased |
Units Redeemed and Transferred to/from |
Net Increase (Decrease) |
||||||||||||||||||
Money Market |
832,582 | (10,293,264 | ) | (9,460,682 | ) | 429,608 | (16,734,982 | ) | (16,305,374 | ) | ||||||||||||||
Appreciation |
11,527 | (809,941 | ) | (798,414 | ) | 12,715 | (1,052,756 | ) | (1,040,041 | ) | ||||||||||||||
Growth and Income |
6,308 | (320,173 | ) | (313,865 | ) | 8,918 | (327,852 | ) | (318,934 | ) | ||||||||||||||
International Equity |
27,353 | (176,336 | ) | (148,983 | ) | 15,265 | (256,106 | ) | (240,841 | ) | ||||||||||||||
International Value |
9,920 | (138,478 | ) | (128,558 | ) | 10,329 | (220,645 | ) | (210,316 | ) | ||||||||||||||
Quality Bond |
34,358 | (844,318 | ) | (809,960 | ) | 12,998 | (954,608 | ) | (941,610 | ) | ||||||||||||||
Opportunistic Small Cap |
1,856 | (165,798 | ) | (163,942 | ) | 1,373 | (194,993 | ) | (193,620 | ) | ||||||||||||||
Dreyfus Stock Index |
20,117 | (656,318 | ) | (636,201 | ) | 13,587 | (934,857 | ) | (921,270 | ) | ||||||||||||||
The Dreyfus Socially Responsible Growth |
3,808 | (79,288 | ) | (75,480 | ) | 5,461 | (93,292 | ) | (87,831 | ) | ||||||||||||||
Core Value |
26,780 | (667,367 | ) | (640,587 | ) | 18,858 | (790,520 | ) | (771,662 | ) | ||||||||||||||
MidCap Stock |
21,892 | (399,276 | ) | (377,384 | ) | 19,223 | (729,489 | ) | (710,266 | ) | ||||||||||||||
Technology Growth |
15,035 | (271,262 | ) | (256,227 | ) | 10,713 | (283,880 | ) | (273,167 | ) | ||||||||||||||
TA WMC Diversified Growth |
8,651 | (73,329 | ) | (64,678 | ) | 12,519 | (106,676 | ) | (94,157 | ) |
21
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
4. Financial Highlights
The Separate Account offers various death benefit options, which have differing fees that are charges against the contract owners account balance. These charges are discussed in more detail in the individuals policy. Differences in the fee structures for these units result in different unit values, expense ratios and total returns.
Subaccount |
Year Ended | Units | Unit Fair Value Corresponding to Lowest to Highest Exp Ration |
Net Assets | Investment Income Ratio* |
Expense Ratio Lowest to Highest ** |
Total Return Corresponding to Lowest to Highest Expense Ratio *** |
|||||||||||||||||||||||||||||||||||||||||||||
Money Market |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 53,740,453 | $ | 1.05 | to | $ | 0.94 | $ | 73,916,054 | 0.01 | % | 1.30 | % | to | 2.50 | % | (1.27 | )% | to | (2.43 | )% | ||||||||||||||||||||||||||||||||
12/31/2010 | 63,201,135 | 1.06 | to | 0.97 | 88,120,158 | 0.01 | 1.30 | to | 2.50 | (1.28 | ) | to | (2.43 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2009 | 79,506,509 | 1.07 | to | 0.99 | 112,087,498 | 0.15 | 1.30 | to | 2.50 | (1.15 | ) | to | (2.31 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2008 | 106,041,677 | 1.08 | to | 1.02 | 151,450,292 | 2.75 | 1.30 | to | 2.50 | 1.22 | to | 0.03 | ||||||||||||||||||||||||||||||||||||||||
12/31/2007 | 134,828,890 | 1.07 | to | 1.02 | 190,801,881 | 4.48 | 1.30 | to | 2.50 | 3.52 | to | 2.30 | ||||||||||||||||||||||||||||||||||||||||
Appreciation |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 4,026,802 | 1.31 | to | 1.39 | 69,849,217 | 1.64 | 1.30 | to | 2.50 | 7.35 | to | 6.09 | ||||||||||||||||||||||||||||||||||||||||
12/31/2010 | 4,825,216 | 1.22 | to | 1.31 | 73,204,593 | 2.19 | 1.30 | to | 2.50 | 13.57 | to | 12.24 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 5,865,257 | 1.08 | to | 1.16 | 74,635,242 | 2.63 | 1.30 | to | 2.50 | 20.66 | to | 19.25 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 7,117,499 | 0.89 | to | 0.98 | 71,665,728 | 2.08 | 1.30 | to | 2.50 | (30.63 | ) | to | (31.44 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 8,272,667 | 1.28 | to | 1.42 | 128,954,545 | 1.57 | 1.30 | to | 2.50 | 5.47 | to | 4.23 | ||||||||||||||||||||||||||||||||||||||||
Growth and Income |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 2,054,723 | 1.05 | to | 1.17 | 35,373,158 | 1.19 | 1.30 | to | 2.50 | (4.23 | ) | to | (5.35 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 2,368,588 | 1.10 | to | 1.24 | 41,521,851 | 1.14 | 1.30 | to | 2.50 | 16.78 | to | 15.41 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 2,687,522 | 0.94 | to | 1.07 | 40,236,819 | 1.27 | 1.30 | to | 2.50 | 26.79 | to | 25.31 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 3,139,290 | 0.74 | to | 0.86 | 37,253,144 | 0.60 | 1.30 | to | 2.50 | (41.30 | ) | to | (41.99 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 3,850,248 | 1.27 | to | 1.48 | 77,926,323 | 0.72 | 1.30 | to | 2.50 | 6.80 | to | 5.54 | ||||||||||||||||||||||||||||||||||||||||
International Equity |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 915,633 | 1.40 | to | 1.53 | 13,335,540 | 2.09 | 1.30 | to | 2.50 | (16.00 | ) | to | (16.99 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 1,064,616 | 1.67 | to | 1.84 | 17,942,048 | 1.71 | 1.30 | to | 2.50 | 8.33 | to | 7.06 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 1,305,457 | 1.54 | to | 1.72 | 19,255,202 | 4.07 | 1.30 | to | 2.50 | 23.28 | to | 21.84 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 1,528,924 | 1.25 | to | 1.41 | 17,805,708 | 1.82 | 1.30 | to | 2.50 | (43.10 | ) | to | (43.77 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 1,802,898 | 2.19 | to | 2.51 | 39,787,358 | 1.56 | 1.30 | to | 2.50 | 15.33 | to | 13.98 | ||||||||||||||||||||||||||||||||||||||||
International Value |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 1,287,081 | 1.14 | to | 1.32 | 10,486,008 | 2.07 | 1.30 | to | 2.50 | (19.80 | ) | to | (20.74 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 1,415,639 | 1.43 | to | 1.67 | 14,829,118 | 1.78 | 1.30 | to | 2.50 | 2.88 | to | 1.68 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 1,625,955 | 1.39 | to | 1.64 | 15,847,369 | 4.00 | 1.30 | to | 2.50 | 28.98 | to | 27.47 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 1,912,970 | 1.08 | to | 1.29 | 13,805,157 | 0.03 | 1.30 | to | 2.50 | (38.29 | ) | to | (39.01 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 2,252,653 | 1.74 | to | 2.11 | 29,006,528 | 1.40 | 1.30 | to | 2.50 | 2.58 | to | 1.38 | ||||||||||||||||||||||||||||||||||||||||
Quality Bond |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 5,403,375 | 1.39 | to | 1.18 | 49,949,398 | 3.56 | 1.30 | to | 2.50 | 5.42 | to | 4.19 | ||||||||||||||||||||||||||||||||||||||||
12/31/2010 | 6,213,335 | 1.32 | to | 1.13 | 54,558,382 | 3.79 | 1.30 | to | 2.50 | 6.81 | to | 5.56 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 7,154,945 | 1.24 | to | 1.07 | 57,406,394 | 4.66 | 1.30 | to | 2.50 | 13.16 | to | 11.83 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 8,691,893 | 1.09 | to | 0.96 | 57,836,202 | 5.16 | 1.30 | to | 2.50 | (5.69 | ) | to | (6.80 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 9,798,501 | 1.16 | to | 1.03 | 72,891,024 | 4.74 | 1.30 | to | 2.50 | 1.97 | to | 0.77 |
22
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
4. Financial Highlights (continued)
Subaccount |
Year Ended | Units | Unit Fair Value Corresponding to Lowest to Highest Exp Ration |
Net Assets | Investment Income Ratio* |
Expense Ratio Lowest to Highest ** |
Total Return Corresponding to Lowest to Highest Expense Ratio *** |
|||||||||||||||||||||||||||||||||||||||||||||
Opportunistic Small Cap |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 929,147 | $ | 0.83 | to | $ | 0.98 | $ | 24,579,963 | 0.40 | % | 1.30 | % | to | 2.50 | % | (15.16 | )% | to | (16.15 | )% | ||||||||||||||||||||||||||||||||
12/31/2010 | 1,093,089 | 0.98 | to | 1.17 | 32,059,628 | 0.75 | 1.30 | to | 2.50 | 29.14 | to | 27.63 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 1,286,709 | 0.76 | to | 0.92 | 27,575,617 | 1.65 | 1.30 | to | 2.50 | 24.15 | to | 22.69 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 1,465,132 | 0.61 | to | 0.75 | 25,483,791 | 0.91 | 1.30 | to | 2.50 | (38.57 | ) | to | (39.30 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 1,658,728 | 0.99 | to | 1.24 | 49,055,771 | 0.77 | 1.30 | to | 2.50 | (12.42 | ) | to | (13.46 | ) | ||||||||||||||||||||||||||||||||||||||
Dreyfus Stock Index |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 2,855,833 | 1.18 | to | 1.27 | 55,533,829 | 1.74 | 1.30 | to | 2.50 | 0.32 | to | (0.85 | ) | |||||||||||||||||||||||||||||||||||||||
12/31/2010 | 3,492,034 | 1.18 | to | 1.28 | 62,354,704 | 1.75 | 1.30 | to | 2.50 | 13.07 | to | 11.74 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 4,413,304 | 1.04 | to | 1.14 | 62,265,650 | 2.02 | 1.30 | to | 2.50 | 24.43 | to | 22.97 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 5,625,950 | 0.84 | to | 0.93 | 58,801,858 | 2.04 | 1.30 | to | 2.50 | (38.13 | ) | to | (38.86 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 6,640,575 | 1.35 | to | 1.52 | 119,814,220 | 1.62 | 1.30 | to | 2.50 | 3.64 | to | 2.42 | ||||||||||||||||||||||||||||||||||||||||
The Dreyfus Socially Responsible Growth |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 647,969 | 1.09 | to | 1.26 | 13,602,194 | 0.86 | 1.30 | to | 2.50 | (0.64 | ) | to | (1.80 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 723,449 | 1.10 | to | 1.28 | 15,269,532 | 0.85 | 1.30 | to | 2.50 | 13.08 | to | 11.75 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 811,280 | 0.97 | to | 1.15 | 15,325,521 | 0.92 | 1.30 | to | 2.50 | 31.73 | to | 30.19 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 950,345 | 0.74 | to | 0.88 | 13,187,371 | 0.01 | 1.30 | to | 2.50 | (35.43 | ) | to | (36.19 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 1,102,787 | 1.14 | to | 1.38 | 25,106,854 | 0.53 | 1.30 | to | 2.50 | 6.11 | to | 4.86 | ||||||||||||||||||||||||||||||||||||||||
Core Value |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 3,809,137 | 1.07 | to | 1.18 | 20,864,981 | 1.00 | 1.30 | to | 2.50 | (7.23 | ) | to | (8.31 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 4,449,724 | 1.15 | to | 1.29 | 26,595,887 | 1.46 | 1.30 | to | 2.50 | 11.49 | to | 10.18 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 5,221,386 | 1.03 | to | 1.17 | 27,392,300 | 2.86 | 1.30 | to | 2.50 | 16.44 | to | 15.08 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 6,631,271 | 0.88 | to | 1.02 | 29,487,939 | 2.33 | 1.30 | to | 2.50 | (36.76 | ) | to | (37.50 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 7,918,437 | 1.40 | to | 1.62 | 58,498,781 | 1.41 | 1.30 | to | 2.50 | 1.46 | to | 0.27 | ||||||||||||||||||||||||||||||||||||||||
MidCap Stock |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 2,333,482 | 1.31 | to | 1.43 | 20,047,114 | 0.46 | 1.30 | to | 2.50 | (1.08 | ) | to | (2.24 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 2,710,866 | 1.32 | to | 1.46 | 23,541,019 | 0.99 | 1.30 | to | 2.50 | 25.32 | to | 23.85 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 3,421,132 | 1.06 | to | 1.18 | 21,350,267 | 1.24 | 1.30 | to | 2.50 | 33.59 | to | 32.03 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 3,851,907 | 0.79 | to | 0.89 | 17,769,413 | 0.92 | 1.30 | to | 2.50 | (41.21 | ) | to | (41.91 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 4,434,244 | 1.35 | to | 1.54 | 37,107,008 | 0.38 | 1.30 | to | 2.50 | 0.08 | to | (1.10 | ) | |||||||||||||||||||||||||||||||||||||||
Technology Growth |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 2,110,881 | 1.28 | to | 1.48 | 15,246,535 | | 1.30 | to | 2.50 | (9.22 | ) | to | (10.28 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2010 | 2,367,108 | 1.41 | to | 1.65 | 18,620,973 | | 1.30 | to | 2.50 | 27.99 | to | 26.50 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 2,640,275 | 1.11 | to | 1.31 | 16,047,958 | 0.40 | 1.30 | to | 2.50 | 55.06 | to | 53.24 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 2,911,815 | 0.71 | to | 0.85 | 11,030,117 | | 1.30 | to | 2.50 | (42.00 | ) | to | (42.68 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 3,348,837 | 1.23 | to | 1.49 | 22,527,521 | | 1.30 | to | 2.50 | 12.96 | to | 11.63 |
23
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
4. Financial Highlights (continued)
Subaccount |
Year Ended | Units | Unit Fair Value Corresponding to Lowest to Highest Exp Ration |
Net Assets | Investment Income Ratio* |
Expense Ratio Lowest to Highest ** |
Total Return Corresponding to Lowest to Highest Expense Ratio *** |
|||||||||||||||||||||||||||||||||||||||||||||
TA WMC Diversified Growth |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
12/31/2011 | 873,213 | $ | 1.33 | to | $ | 1.34 | $ | 10,393,279 | 0.38 | % | 1.30 | % | to | 2.50 | % | (4.97 | )% | to | (6.08 | )% | ||||||||||||||||||||||||||||||||
12/31/2010 | 937,891 | 1.40 | to | 1.42 | 11,832,027 | 0.54 | 1.30 | to | 2.50 | 16.30 | to | 14.94 | ||||||||||||||||||||||||||||||||||||||||
12/31/2009 | 1,032,048 | 1.20 | to | 1.24 | 11,189,346 | 0.96 | 1.30 | to | 2.50 | 27.54 | to | 26.04 | ||||||||||||||||||||||||||||||||||||||||
12/31/2008 | 1,171,713 | 0.94 | to | 0.98 | 9,815,421 | 0.23 | 1.30 | to | 2.50 | (46.70 | ) | to | (47.33 | ) | ||||||||||||||||||||||||||||||||||||||
12/31/2007 | 1,343,964 | 1.77 | to | 1.86 | 21,556,928 | | 1.30 | to | 2.50 | 14.78 | to | 13.43 |
* | These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest. |
** | These amounts represent the annualized contract expenses of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded. |
*** | These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. |
24
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
4. Financial Highlights (continued)
There are subaccounts that have total return ranges outside of the range indicated above. The following is a list of the subaccounts and their corresponding lowest and highest total return.
Subaccount |
2011 Total Return Range | |||||||||||
Appreciation |
6.09 | % | to | 7.51 | % | |||||||
Growth and Income |
(5.35 | ) | to | (4.13 | ) | |||||||
International Equity |
(16.99 | ) | to | (15.86 | ) | |||||||
International Value |
(20.74 | ) | to | (19.60 | ) | |||||||
Quality Bond |
4.19 | to | 5.56 | |||||||||
Opportunistic Small Cap |
(16.15 | ) | to | (15.03 | ) | |||||||
Dreyfus Stock Index |
(0.85 | ) | to | 0.47 | ||||||||
The Dreyfus Socially Responsible Growth |
(1.80 | ) | to | (0.49 | ) | |||||||
Core Value |
(8.31 | ) | to | (7.11 | ) | |||||||
MidCap Stock |
(2.24 | ) | to | (0.99 | ) | |||||||
Technology Growth |
(10.28 | ) | to | (9.05 | ) | |||||||
Subaccount |
2010 Total Return Range | |||||||||||
Appreciation |
12.24 | % | to | 13.73 | % | |||||||
Growth and Income |
15.41 | to | 16.97 | |||||||||
International Equity |
7.06 | to | 8.51 | |||||||||
International Value |
5.56 | to | 6.88 | |||||||||
Quality Bond |
1.68 | to | 3.01 | |||||||||
Opportunistic Small Cap |
27.63 | to | 29.34 | |||||||||
Dreyfus Stock Index |
11.74 | to | 13.25 | |||||||||
The Dreyfus Socially Responsible Growth |
11.75 | to | 13.23 | |||||||||
Core Value |
10.18 | to | 11.65 | |||||||||
MidCap Stock |
23.85 | to | 25.34 | |||||||||
Technology Growth |
26.50 | to | 28.14 |
25
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
4. Financial Highlights (continued)
Subaccount |
2009 Total Return Range | |||||||||||
Appreciation |
19.25 | % | to | 20.87 | % | |||||||
Growth and Income |
25.31 | to | 27.01 | |||||||||
International Equity |
21.84 | to | 23.54 | |||||||||
International Value |
27.47 | to | 29.17 | |||||||||
Quality Bond |
11.83 | to | 13.37 | |||||||||
Opportunistic Small Cap |
22.69 | to | 24.30 | |||||||||
Dreyfus Stock Index |
22.97 | to | 24.59 | |||||||||
The Dreyfus Socially Responsible Growth |
30.19 | to | 31.91 | |||||||||
Core Value |
15.08 | to | 16.54 | |||||||||
MidCap Stock |
32.03 | to | 33.64 | |||||||||
TA WMC Diversified Growth |
53.24 | to | 55.49 | |||||||||
Subaccount |
2008 Total Return Range | |||||||||||
Appreciation |
(31.44 | %) | to | (30.53 | %) | |||||||
Growth and Income |
(41.99 | ) | to | (39.62 | ) | |||||||
International Equity |
(43.77 | ) | to | (41.08 | ) | |||||||
International Value |
(40.04 | ) | to | (38.19 | ) | |||||||
Quality Bond |
(6.80 | ) | to | (1.81 | ) | |||||||
Opportunistic Small Cap |
(39.30 | ) | to | (35.98 | ) | |||||||
Dreyfus Stock Index |
(38.86 | ) | to | (35.63 | ) | |||||||
The Dreyfus Socially Responsible Growth |
(36.19 | ) | to | (34.36 | ) | |||||||
Core Value |
(37.50 | ) | to | (35.31 | ) | |||||||
MidCap Stock |
(41.91 | ) | to | (37.91 | ) | |||||||
Technology Growth |
(42.68 | ) | to | (35.59 | ) | |||||||
TA WMC Diversified Growth |
(47.33 | ) | to | (42.35 | ) | |||||||
Subaccount |
2007 Total Return Range | |||||||||||
Appreciation |
4.23 | % | to | 5.65 | % | |||||||
Growth and Income |
5.54 | to | 9.79 | |||||||||
International Equity |
13.98 | to | 19.38 | |||||||||
International Value |
(0.39 | ) | to | 2.71 | ||||||||
Quality Bond |
0.77 | to | 6.11 | |||||||||
Opportunistic Small Cap |
(13.46 | ) | to | (8.77 | ) | |||||||
Dreyfus Stock Index |
2.42 | to | 7.78 | |||||||||
The Dreyfus Socially Responsible Growth |
4.86 | to | 7.81 | |||||||||
Core Value |
0.27 | to | 3.74 | |||||||||
MidCap Stock |
(1.10 | ) | to | 5.64 | ||||||||
Technology Growth |
11.63 | to | 25.39 | |||||||||
TA WMC Diversified Growth |
13.43 | to | 24.10 |
26
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
5. Administrative and Mortality and Expense Risk Charges
TLIC deducts a daily administrative charge equal to an annual rate of .15% of the contract owners account for administrative expenses. TLIC also deducts an annual charge, not to exceed $35, proportionately from the subaccounts unit values. An annual charge ranging from 1.15% to 2.35% is deducted (based on the death benefit selected) from the unit values of the subaccounts of the Separate Account for TLICs assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund. Charges for administrative and mortality and expense risk are an expense of the Separate Account. Charges reflected above are those currently assessed and may be subject to change. Contract owners should see their actual policy and any related attachments to determine their specific charges.
6. Income Taxes
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 annuity contracts.
7. Dividend Distributions
Dividends are not declared by the Separate Account, since the increase in the value of the underlying investment in the Mutual Funds is reflected daily in the accumulation unit price used to calculate the equity value within the Separate Account. Consequently, a dividend distribution by the Mutual Funds does not change either the accumulation unit price or equity values within the Separate Account.
27
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2011
8. Fair Value Measurements and Fair Value Hierarchy
The Accounting Standards Codification (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:
Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
a) Quoted prices for similar assets or liabilities in active markets
b) Quoted prices for identical or similar assets or liabilities in non-active markets
c) Inputs other than quoted market prices that are observable
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect managements own assumptions about the assumptions a market participant would use in pricing the asset or liability.
All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.
9. Subsequent Events
The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.
28
PART C OTHER INFORMATION
Item 24. | Financial Statements and Exhibits |
(a) |
Financial Statements | |||||||||||
All required financial statements are included in Part B of this Registration Statement. | ||||||||||||
(b) |
Exhibits: | |||||||||||
(1 | ) | (a | ) | Resolution of the Board of Directors of Transamerica Life Insurance Company authorizing establishment of the Separate Account. Note 13. | ||||||||
(1 | ) | (b | ) | Consent of Board of Directors - Merger. Note 13 | ||||||||
(2 | ) | Not Applicable. | ||||||||||
(3 | ) | (a | ) | Amended and Restated Principal Underwriting Agreement by and between Transamerica Life Insurance Company, on its own behalf and on the behalf of the Separate Account, and Transamerica Capital, Inc. Note 1. | ||||||||
(a | )(2) | Amendment No. 8 and Novation to Amended and Restated Principal Underwriting Agreement. Note 2. | ||||||||||
(a | )(3) | Amendment No. 9 to Amended and Restated Principal Underwriting Agreement. Note 3. | ||||||||||
(a | )(4) | Amendment No. 10 to Amended and Restated Principal Underwriting Agreement. Note 14. | ||||||||||
(a | )(5) | Amended and Restated Principal Underwriting Agreement. Note 16. | ||||||||||
(b | ) | Form of Broker/Dealer Supervision and Sales Agreement by and between Transamerica Capital, Inc. and the Broker/Dealer. Note 17. | ||||||||||
(4 | ) | (a | ) | Form of Individual Contract and Endorsements. Note 4. | ||||||||
(b | ) | Form of Liquidity Rider. Note 4. | ||||||||||
(c | ) | Form of Premium Enhancement Rider. Note 5. | ||||||||||
(d | ) | Form of Tax Relief II Rider. Note 6. | ||||||||||
(e | ) | Form of GMIB Rider II. Note 6. | ||||||||||
(5 | ) | (a | ) | Form of Application. Note 6. | ||||||||
(6 | ) | (a | ) | Articles of Incorporation of Transamerica Life Insurance Company. Note 7. | ||||||||
(b | ) | ByLaws of Transamerica Life Insurance Company. Note 7. | ||||||||||
(7 | ) | Reinsurance Agreements. Note 8. | ||||||||||
(a | ) | Reinsurance agreement between Transamerica Life Insurance & annuity Company and Swiss RE Life & Health America Inc. Note. 14. | ||||||||||
(b | ) | Reinsurance agreement between Transamerica Occidental Life Insurance Company and North America Reassurance Company. Note. 14. | ||||||||||
(c | ) | Reinsurance agreement No. FUV-1 between Transamerica Life Insurance Co. and Union Hamilton Reinsurance Limited. Note. 14. | ||||||||||
(c | )1 | Reinsurance agreement Amendment No. 1 to agreement FUV-1 between Transamerica Life Insurance Co. and Union Hamilton Reinsurance Limited. Note. 14. | ||||||||||
(d | ) | Reinsurance agreement No. FUV-011 between Transamerica Life Insurance Co. and Scottish Annuity and Life International Insurance Co. (Bermuda) Limited. Note. 14. | ||||||||||
(e | ) | Reinsurance agreement between Transamerica Life Insurance Co. and Transamerica International RE(Bermuda) LTD. Note. 14. | ||||||||||
(1) Reinsurance agreement Amendment No. 1. Note 16. | ||||||||||||
(2) Reinsurance agreement Amendment No. 2. Note 16. | ||||||||||||
(3) Reinsurance agreement Amendment No. 3. Note 16. | ||||||||||||
(f | ) | Reinsurance agreement between American United Life Insurance Co. and Transamerica Life Insurance Co. Note. 14. | ||||||||||
(g | ) | Release and Modification Agreement between Transamerica Life Insurance Company, Union Hamilton Reinsurance and Scottish Annuity & Life International Insurance Company. Note 15. | ||||||||||
(8 | ) | (a | ) | Participation Agreement (Dreyfus). Note 13. | ||||||||
(b | ) | Participation Agreement (Transamerica Series Trust). Note 9. | ||||||||||
(b | )(1) | Amendment No. 16 to Participation Agreement. Note 10. | ||||||||||
(b | )(2) | Amendment No. 17 to Participation Agreement. Note 11. | ||||||||||
(b | )(3) | Summary Prospectus Amendment (TST). Note 17. |
(b | )(3) | Amendment No. 20 to Participation Agreement. Note 4. | ||||||||
(b | )(4) | Amendment No. 31 to Participation Agreement. Note 8. | ||||||||
(b | )(5) | Amendment No. 32 to Participation Agreement. Note 12. | ||||||||
(b | )(6) | Amendment No. 43 to Participation Agreement. Note 16. | ||||||||
(b | )(7) | Amendment No. 44 to Participation Agreement. Note 16. | ||||||||
(9) | (a | ) | Opinion and Consent of Counsel. Note 17. | |||||||
(b | ) | Consent of Counsel. Note 17. | ||||||||
(10) | (a | ) | Consent of Independent Registered Public Accounting Firm. Note 17. | |||||||
(11) | Not applicable. | |||||||||
(12) | Not applicable. | |||||||||
(13) | Powers of Attorney. Craig D. Vermie, Arthur Schneider, Eric J. Martin, Brenda K. Clancy, M. Craig Fowler, Darryl Button, Kenneth Kilbane and Mark W. Mullin) Note 17. |
Note 1. |
Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-98891) filed on August 29, 2002. | |
Note 2. |
Incorporated herein by reference to Post-Effective Amendment No. 7 to form N-4 Registration Statement (File No. 333-109580) filed on April 27, 2007. | |
Note 3. |
Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-149336) on February 21, 2008. | |
Note 4. |
Incorporated herein by reference to Post-Effective Amendment No. 22 to N-4 Registration Statement (File No. 033-49998) filed on September 5, 2002. | |
Note 5. |
Incorporated herein by reference to Post-Effective Amendment No. 23 to N-4 Registration Statement (File No. 033-49998) filed on February 26, 2003. | |
Note 6. |
Incorporated herein by reference to Post-Effective Amendment No. 25 to N-4 Registration Statement (File No. 033-49998) filed on April 29, 2003. | |
Note 7. |
Incorporated herein by reference to Initial Filing of form N-4 Registration Statement (File No. 333-62738) filed on June 11, 2001. | |
Note 8. |
Incorporated herein by reference to Post-Effective Amendment No. 2 to form N-4 Registration Statement (File No. 333-109580) filed on January 7, 2005. | |
Note 9. |
Incorporated herein by reference to Post-Effective Amendment No. 1 to form N-4 Registration Statement (File No. 333-26209) filed on April 29, 1998. | |
Note 10. |
Incorporated herein by reference to Initial Filing to form N-4 Registration Statement (File No. 333-62738) filed on June 11, 2001. | |
Note 11. |
Incorporated herein by reference to Post-Effective Amendment No. 25 to form N-4 Registration Statement (File No. 033-33085) filed on April 27, 2001. | |
Note 12. |
Incorporated herein by reference to Post-Effective Amendment No. 27 to form N-4 Registration Statement (File No. 033-49998) filed on April 29, 2005. | |
Note 13. |
Filed with Initial Filing to Form N-4 Registration Statement (File No. 333-153773) filed on October 2, 2008. | |
Note 14. |
Filed with Post-Effective Amendment No. 1 to form N-4 Registration Statement (File No. 333-153773) filed on April 29, 2009. | |
Note 15. |
Filed with Post-Effective Amendment No. 2 to form N-4 Registration Statement (File No. 333-153773) filed on April 28, 2010. | |
Note 16. |
Filed with Post-Effective Amendment No. 3 to form N-4 Registration Statement (File No. 333-153773) dated April 29, 2011. | |
Note 17. |
Filed herewith. |
Item 25. | Directors and Officers of the Depositor (Transamerica Life Insurance Company) |
Name and Business Address |
Principal Positions and Offices with Depositor | |
Craig D. Vermie 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
Director, Senior Vice President, Secretary, and General Counsel | |
Arthur C. Schneider 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
Director, Chief Tax Officer, and Senior Vice President | |
Eric J. Martin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
Senior Vice President and Corporate Controller | |
Brenda K. Clancy 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
Director and President | |
Darryl D. Button 4333 Edgewood Road, N.E. Cedar Rapids, IA. 52499-0001 |
Director, Executive Vice President and Chief Financial Officer | |
Mark W. Mullin 4333 Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
Director and Chairman of the Board |
Item 26. Persons Controlled by or under Common Control with the Depositor or Registrant.
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
25 East 38th Street, LLC |
Delaware | AEGON USA Realty Advisors, LLC is the non-owner Manager | Real estate investments | |||
239 West 20th Street, LLC |
Delaware | Sole Member - AEGON USA Realty Advisors, LLC | Real estate investments | |||
313 East 95th Street, LLC |
Delaware | Sole Member - AEGON USA Realty Advisors, LLC | Real estate investments | |||
319 East 95th Street, LLC |
Delaware | Sole Member - AEGON USA Realty Advisors, LLC | Real estate investments | |||
AEGON Alliances, Inc. |
Virginia | 100% Commonwealth General Corporation | Insurance company marketing support | |||
AEGON Asset Management Services, Inc. |
Delaware | 100% AUSA Holding Co. | Registered investment advisor | |||
AEGON Assignment Corporation |
Illinois | 100% AEGON Financial Services Group, Inc. | Administrator of structured settlements | |||
AEGON Assignment Corporation of Kentucky |
Kentucky | 100% AEGON Financial Services Group, Inc. | Administrator of structured settlements | |||
AEGON Canada ULC |
Canada | AEGON Canada Holding B.V. owns 168,250,001 shares of Common Stock; 1,500 shares of Series III Preferred stock; 2 shares of Series II Preferred stock. TIHI Canada Holding, LLC owns 1,441,941.26 shares of Class B - Series I Preferred stock. | Holding company | |||
AEGON Capital Management Inc. |
Canada | 100% AEGON Asset Management (Canada) B.V. | Portfolio management company/investment advisor | |||
AEGON-CMF GP, LLC |
Delaware | Transamerica Realty Services, Inc. is sole Member | Investment in commercial mortgage loans | |||
AEGON Core Mortgage Fund, LP |
Delaware | General Partner - AEGON-CMF GP, LLC | Investment in mortgages | |||
AEGON Direct & Affinity Marketing Services Limited |
Hong Kong | 100% AEGON DMS Holding B.V. | Provide consulting services ancillary to the marketing of insurance products overseas. | |||
AEGON Direct Marketing Services, Inc. |
Maryland | Monumental Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares | Marketing company | |||
AEGON Direct Marketing Services Australia Pty Ltd. |
Australia | 100% Transamerica Direct Marketing Asia Pacific Pty Ltd. | Marketing/operations company | |||
AEGON Direct Marketing Services Europe Ltd. |
United Kingdom | 100% Cornerstone International Holdings, Ltd. | Marketing | |||
AEGON Direct Marketing Services Insurance Broker (HK) Limited |
Hong Kong | 100% AEGON Direct Marketing Services Hong Kong Limited | Brokerage company | |||
AEGON Direct Marketing Services International, Inc. |
Maryland | 100% AUSA Holding Company | Marketing arm for sale of mass marketed insurance coverage | |||
AEGON Direct Marketing Services Japan K.K. |
Japan | 100% AEGON DMS Holding B.V. | Marketing company | |||
AEGON Direct Marketing Services Korea Co., Ltd. |
Korea | 100% AEGON DMS Holding B.V. | Provide consulting services ancillary to the marketing of insurance products overseas. | |||
AEGON Direct Marketing Services Mexico, S.A. de C.V. |
Mexico | 100% AEGON DMS Holding B.V. | Provide management advisory and technical consultancy services. | |||
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V. |
Mexico | 100% AEGON DMS Holding B.V. | Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies. |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
AEGON Direct Marketing Services, Inc. |
Taiwan | 100% AEGON DMS Holding B.V. | Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business requiring special permission of government | |||
AEGON Direct Marketing Services (Thailand) Ltd. |
Thailand | 97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees | Marketing of insurance products in Thailand | |||
AEGON Financial Services Group, Inc. |
Minnesota | 100% Transamerica Life Insurance Company | Marketing | |||
AEGON Fund Management Inc. |
Canada | 100% AEGON Asset Management (Canada) B.V. | Mutual fund manager | |||
AEGON Funding Company, LLC. |
Delaware | 100% AEGON USA, LLC | Issue debt securities-net proceeds used to make loans to affiliates | |||
AEGON Institutional Markets, Inc. |
Delaware | 100% Commonwealth General Corporation | Provider of investment, marketing and administrative services to insurance companies | |||
AEGON Life Insurance Agency Inc. |
Taiwan | 100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled) | Life insurance | |||
AEGON Managed Enhanced Cash, LLC |
Delaware | Members: Transamerica Life Insurance Company (91.4675%) ; Monumental Life Insurance Company (8.5325%) | Investment vehicle for securities lending cash collateral | |||
AEGON Management Company |
Indiana | 100% AEGON U.S. Holding Corporation | Holding company | |||
AEGON N.V. |
Netherlands | 22.446% of Vereniging AEGON Netherlands Membership Association | Holding company | |||
AEGON Stable Value Solutions Inc. |
Delaware | 100% Commonwealth General Corporation | Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts. | |||
AEGON Structured Settlements, Inc. |
Kentucky | 100% Commonwealth General Corporation | Administers structured settlements of plaintiffs physical injury claims against property and casualty insurance companies | |||
AEGON U.S. Holding Corporation |
Delaware | 100% Transamerica Corporation | Holding company | |||
AEGON USA Asset Management Holding, LLC |
Iowa | 100% AUSA Holding Company | Holding company | |||
AEGON USA Investment Management, LLC |
Iowa | 100% AEGON USA Asset Management Holding, LLC | Investment advisor | |||
AEGON USA Real Estate Services, Inc. |
Delaware | 100% AEGON USA Realty Advisors, Inc. | Real estate and mortgage holding company | |||
AEGON USA Realty Advisors, LLC |
Iowa | Sole Member - AEGON USA Asset Management Holding, LLC | Administrative and investment services | |||
AEGON USA Realty Advisors of California, Inc. |
Iowa | 100% AEGON USA Realty Advisors, Inc. | Investments | |||
AEGON USA Travel and Conference Services LLC |
Iowa | 100% Money Services, Inc. | Travel and conference services | |||
AEGON USA, LLC |
Iowa | 100% AEGON U.S. Holding Corporation | Holding company | |||
AFSG Securities Corporation |
Pennsylvania | 100% Commonwealth General Corporation | Inactive | |||
ALH Properties Eight LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Eleven LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Four LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Nine LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Seven LLC |
Delaware | 100% FGH USA LLC | Real estate |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
ALH Properties Seventeen LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Sixteen LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Ten LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Twelve LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
ALH Properties Two LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
American Bond Services LLC |
Iowa | 100% Transamerica Life Insurance Company (sole member) | Limited liability company | |||
ARC Reinsurance Corporation |
Hawaii | 100% Transamerica Corporation | Property & Casualty Insurance | |||
ARV Pacific Villas, A California Limited Partnership |
California | General Partners - Transamerica Affordable Housing, Inc. (0.5%); Non-Affiliate of AEGON, Jamboree Housing Corp. (0.5%). Limited Partner: Transamerica Life Insurance Company (99%) | Property | |||
Asia Business Consulting Company |
China | 100% Asia Investments Holdings, Limited | Provide various services upon request from Beijing Dafu Insurance Agency. | |||
Asia Investments Holdings, Limited |
Hong Kong | 99% Transamerica Life Insurance Company | Holding company | |||
AUSA Holding Company |
Maryland | 100% AEGON USA, LLC | Holding company | |||
AUSA Properties, Inc. |
Iowa | 100% AUSA Holding Company | Own, operate and manage real estate | |||
AUSACAN LP |
Canada | General Partner - AUSA Holding Co. (1%); Limited Partner - AEGON USA, LLC (99%) | Inter-company lending and general business | |||
AXA Equitable AgriFinance, LLC |
Delaware | Members: AEGON USA Realty Advisors, LLC (50%); AXA Equitable Life Insurance Company, a non-affiliate of AEGON (50%) | Agriculturally-based real estate advisory services | |||
Bay Area Community Investments I, LLC |
California | 70%Transamerica Life Insurance Company; 30% Monumental Life Insurance Company | Investments in low income housing tax credit properties | |||
Bay State Community Investments I, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments in low income housing tax credit properties | |||
Bay State Community Investments II, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments in low income housing tax credit properties | |||
Beijing Dafu Insurance Agency Co. Ltd. |
Peoples Republic of China |
10% owned by WFG China Holdings, Inc.; 90% owned by private individual (non-AEGON associated) | Insurance Agency | |||
Canadian Premier Holdings Ltd. |
Canada | 100% AEGON DMS Holding B.V. | Holding company | |||
Canadian Premier Life Insurance Company |
Canada | 100% Canadian Premier Holdings Ltd. | Insurance company | |||
CBC Insurance Revenue Securitization, LLC |
Delaware | 100% Clark Consulting, LLC | Special purpose | |||
Chicago Community Housing Fund I, LLC |
Delaware | 100% Transamerica Life Insurance Company | Investments | |||
Clark/Bardes (Bermuda) Ltd. |
Bermuda | 100% Clark Consulting, LLC | Insurance agency | |||
Clark, LLC |
Delaware | Sole Member - Diverisified Investment Advisors, Inc. | Holding company | |||
Clark Consulting, LLC |
Delaware | 100% Clark, LLC | Financial consulting firm | |||
Clark Investment Strategies, inc. |
Delaware | 100% Clark Consulting, LLC | Registered investment advisor | |||
Clark Securities, Inc. |
California | 100% Clark Consulting, LLC | Broker-Dealer | |||
Commonwealth General Corporation |
Delaware | 100% AEGONUSA, LLC | Holding company | |||
Consumer Membership Services Canada Inc. |
Canada | 100% Canadian Premier Holdings Ltd. | Marketing of credit card protection membership services in Canada | |||
Cornerstone International Holdings Ltd. |
UK | 100% AEGON DMS Holding B.V. | Holding company | |||
CRG Insurance Agency, Inc. |
California | 100% Clark Consulting, Inc. | Insurance agency | |||
Creditor Resources, Inc. |
Michigan | 100% AUSA Holding Co. | Credit insurance | |||
CRI Canada Inc. |
Canada | 100% Creditor Resources, Inc. | Holding company | |||
CRI Solutions Inc. |
Maryland | 100% Creditor Resources, Inc. | Sales of reinsurance and credit insurance | |||
Cupples State LIHTC Investors, LLC |
Delaware | 100% Garnet LIHTC Fund VIII, LLC | Investments |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Diversified Actuarial Services, Inc. |
Massachusetts | 100% Diversified Investment Advisors, Inc. | Employee benefit and actuarial consulting | |||
Diversified Investors Securities Corp. |
Delaware | 100% Diversified Investment Advisors, Inc. | Broker-Dealer | |||
Diversified Retirement Corporation |
Delaware | 100% AUSA Holding Company | Registered investment advisor | |||
Erfahrungsschatz GmbH |
Germany | 100% Cornerstone International Holdings, Ltd. | Marketing/membership | |||
FD TLIC, LLC |
New York | 100% Transamerica Life Insurance Company | Broadway production | |||
FD TLIC Ltd. |
United Kingdom | 100% FD TLIC, LLC | Theatre production | |||
FGH Realty Credit LLC |
Delaware | 100% FGH USA, LLC | Real estate | |||
FGH USA LLC |
Delaware | 100% RCC North America LLC | Real estate | |||
FGP 90 West Street LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
FGP West Mezzanine LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
FGP West Street LLC |
Delaware | 100% FGP West Mezzanine LLC | Real estate | |||
FGP West Street Two LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
Fifth FGP LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
Financial Planning Services, Inc. |
District of Columbia | 100% Commonwealth General Corporation | Special-purpose subsidiary | |||
First FGP LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
Fourth & Market Funding, LLC |
Delaware | Commonwealth General Corporation owns 0% participating percentage, but is Managing Member. Ownership: 99% Monumental Life Insurance Company and 1% Garnet Assurance Corporation II | Inactive | |||
Fourth FGP LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
Garnet Assurance Corporation |
Kentucky | 100%Transamerica Life Insurance Company | Investments | |||
Garnet Assurance Corporation II |
Iowa | 100% Commonwealth General Corporation | Business investments | |||
Garnet Assurance Corporation III |
Iowa | 100% Transamerica Life Insurance Company | Business investments | |||
Garnet Community Investments, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments II, LLC |
Delaware | 100% Monumental Life Insurance Company | Securities | |||
Garnet Community Investments III, LLC |
Delaware | 100%Transamerica Life Insurance Company | Business investments | |||
Garnet Community Investments IV, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments V, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments VI, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments VII, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments VIII, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments IX, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments X, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments XI, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments XII, LLC |
Delaware | 100% Monumental Life Insurance Company | Investments | |||
Garnet Community Investments XVIII, LLC |
Delaware | 100% Transamerica Life Insurance Company | Investments |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Garnet Community Investments XX, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investments XXIV, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Real estate investments | |||
Garnet Community Investments XXV, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investment XXVI, LLC |
Delaware | 100% Transamerica Life Insurance Company | Investments | |||
Garnet Community Investments XXVII, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investment XXVIII, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investments XXIX, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investments XXX, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet Community Investments XXXI, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Investments | |||
Garnet LIHTC Fund II, LLC |
Delaware | Members: Garnet Community Investments II, LLC (0.01%); Metropolitan Life Insurance Company, a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund III, LLC |
Delaware | Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund IV, LLC |
Delaware | Members: Garnet Community Investments IV, LLC (0.01%); Goldenrod Asset Management, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund V, LLC |
Delaware | Members: Garnet Community Investments V, LLC (0.01%); Lease Plan North America, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund VI, LLC |
Delaware | Members: Garnet Community Investments VI, LLC (0.01%); Pydna Corporation, a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund VII, LLC |
Delaware | Members: Garnet Community Investments VII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%) | Investments | |||
Garnet LIHTC Fund VIII, LLC |
Delaware | Members: Garnet Community Investments VIII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate(99.99%) | Investments | |||
Garnet LIHTC Fund IX, LLC |
Delaware | Members: Garnet Community Investments IX, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund X, LLC |
Delaware | Members: Garnet Community Investments X, LLC (0.01%); Goldenrod Asset Management, a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XI, LLC |
Delaware | Members: Garnet Community Investments XI, LLC (0.01%); NorLease, Inc., a non-AEGON affiliate (99.99%) | Investments |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Garnet LIHTC Fund XII, LLC |
Delaware | Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%) | Investments | |||
Garnet LIHTC Fund XII-A, LLC |
Delaware | Garnet Community Investments XII, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XII-B, LLC |
Delaware | Garnet Community Investments XII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XII-C, LLC |
Delaware | Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XIII, LLC |
Delaware | Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc. (13.30%) | Investments | |||
Garnet LIHTC Fund XIII-A, LLC |
Delaware | Garnet Community Investments XII, LLC (.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XIII-B, LLC |
Delaware | Garnet Community Investments XII, LLC (.01%); Norlease, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XIV, LLC |
Delaware | 0.01% Garnet Community Investments, LLC; 49.995% Wells Fargo Bank, N.A.; and 49.995% Goldenrod Asset Management, Inc. | Investments | |||
Garnet LIHTC Fund XV, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XVI, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); FNBC Leasing Corporation, a non-AEGON entity (99.99%) | Investments | |||
Garnet LIHTC Fund XVII, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life Insurance Company, a non-affiliate of AEGON (86.991%). | Investments | |||
Garnet LIHTC Fund XVIII, LLC |
Delaware | Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XIX, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XX, LLC |
Delaware | Sole Member - Garnet Community Investments XX, LLC | Investments |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Garnet LIHTC Fund XXI, LLC |
Delaware | 100% Garnet Community Investments, LLC | Investments | |||
Garnet LIHTC Fund XXII, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XXIII, LLC |
Delaware | Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc., a non-AEGON affiliate (99.99%) | Investments | |||
Garnet LIHTC Fund XXIV, LLC |
Delaware | 100% Garnet Community Investments XXVI, LLC | Investments | |||
Garnet LIHTC Fund XXV, LLC |
Delaware | Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable Housing I LLC (1%) | Investments | |||
Garnet LIHTC Fund XXVI, LLC |
Delaware | Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%) | Investments | |||
Garnet LIHTC Fund XXVII, LLC |
Delaware | Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company (30.2856%); New York Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Brank and Trust Company (18.1714%) | Investments | |||
Garnet LIHTC Fund XXVIII, LLC |
Delaware | Members: Garnet Community Investments XXVIII LLC (0.01%); non-affiliates of AEGON: USAA Casualty Insurance Company (17.998%); USAA General Indemnity Company (19.998%); USAA Life Insurance Company (3.999%); United Services Automobile Association (57.994%) | Real estate investments | |||
Garnet LIHTC Fund XXIX, LLC |
Delaware | Members: Garnet Community Investments XXIX, LLC (.01%); non-affiliate of AEGON: Bank of America, N.A. (99.99%) | Investments | |||
Garnet LIHTC Fund XXX, LLC |
Delaware | Managing Member - Garnet Community Investments XXX, LLC | Investments | |||
Garnet LIHTC Fund XXXI, LLC |
Delaware | Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable Housing I, LLC (1%) | Investments | |||
Global Preferred Re Limited |
Bermuda | 100% AEGON USA, LLC | Reinsurance | |||
Horizons Acquisition 5, LLC |
Florida | Sole Member - PSL Acquisitions Operating, LLC | Development company | |||
Horizons St. Lucie Development, LLC |
Florida | Sole Member - PSL Acquisitions Operating, LLC | Development company |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Innergy Lending, LLC |
Delaware | 50% World Financial Group, Inc.; 50% ComUnity Lending, Inc.(non-AEGON entity) | In the process of being dissolved | |||
Intersecurities Insurance Agency, Inc. |
California | 100% Western Reserve Life Assurance Co. of Ohio | Insurance agency | |||
Investment Advisors International, Inc. |
Delaware | 100% AUSA Holding Company | Investments | |||
Investors Warranty of America, Inc. |
Iowa | 100% AUSA Holding Co. | Leases business equipment | |||
IWA Commercial Venture, LLC |
Georgia | Sole Member - Investors Waranty of America, Inc. | Maintain property tax abatement | |||
Legacy General Insurance Company |
Canada | 100% Canadian Premier Holdings Ltd. | Insurance company | |||
Life Investors Alliance, LLC |
Delaware | Sole Member - Transamerica Life Insurance Company | Purchase, own, and hold the equity interest of other entities | |||
LIICA Holdings, LLC |
Delaware | Sole Member: Transamerica Life Insurance Company | To form and capitalize LIICA Re I, Inc. | |||
LIICA Re I, Inc. |
Vermont | 100% LIICA Holdings, LLC | Captive insurance company | |||
LIICA Re II, Inc. |
Vermont | 100%Transamerica Life Insurance Company | Captive insurance company | |||
Massachusetts Fidelity Trust Company |
Iowa | 100% AUSA Holding Co. | Trust company | |||
MLIC Re I, Inc. |
Vermont | 100% Stonebridge Life Insurance Company | Captive insurance company | |||
Money Services, Inc. |
Delaware | 100% AUSA Holding Co. | Provides financial counseling for employees and agents of affiliated companies | |||
Monumental Financial Services, Inc. |
Maryland | 100% AEGON USA, LLC | DBA in the State of West Viriginia for United Financial Services, Inc. | |||
Monumental General Administrators, Inc. |
Maryland | 100% AUSA Holding Company | Provides management services to unaffiliated third party administrator | |||
Monumental Life Insurance Company |
Iowa | 87.72% Commonwealth General Corporation; 12.28% AEGON USA, LLC | Insurance Company | |||
nVISION Financial, Inc. |
Iowa | 100% AUSA Holding Company | Special-purpose subsidiary | |||
NEF Investment Company |
California | 100% Transamerica Life Insurance Company | Real estate development | |||
New Markets Community Investment Fund, LLC |
Iowa | 50% AEGON Institutional Markets, Inc.; 50% AEGON USA Realty Advisors, Inc. | Community development entity | |||
Oncor Insurance Services, LLC |
Iowa | Sole Member - Life Investors Financial Group, Inc. | Direct sales of term life insurance | |||
Peoples Benefit Services, LLC |
Pennsylvania | Sole Member - Stonebridge Life Insurance Company | Special-purpose subsidiary | |||
Pine Falls Re, Inc. |
Vermont | 100% Stonebridge Life Insurance Company | Captive insurance company | |||
Primus Guaranty, Ltd. |
Bermuda | Partners are: Transamerica Life Insurance Company (13.1%) and non-affiliates of AEGON: XL Capital, Ltd. (34.7%); CalPERS/PCO Corporate Partners Fund, LLC (13.0%); Radian Group (11.1%). The remaining 28.1% of stock is publicly owned. | Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations. | |||
Prisma Holdings, Inc. I |
Delaware | 100% AEGON USA Asset Management Holding, LLC | Holding company | |||
Prisma Holdings, Inc. II |
Delaware | 100% AEGON USA Asset Management Holding, LLC | Holding company | |||
PSL Acquisitions, LLC |
Iowa | Sole Member: Investors Warranty of America, Inc. | Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate. | |||
PSL Acquisitions Operating, LLC |
Iowa | Sole Member: Investors Warranty of America, Inc. | Owner of Core subsidiary entities |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Pyramid Insurance Company, Ltd. |
Hawaii | 100% Transamerica Corporation | Property & Casualty Insurance | |||
RCC North America LLC |
Delaware | 100% AEGON USA, LLC | Real estate | |||
Real Estate Alternatives Portfolio 1 LLC |
Delaware | Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty Advisors, Inc. | Real estate alternatives investment | |||
Real Estate Alternatives Portfolio 2 LLC |
Delaware | Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA Realty Advisors, Inc. | Real estate alternatives investment | |||
Real Estate Alternatives Portfolio 3 LLC |
Delaware | Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors, Inc. | Real estate alternatives investment | |||
Real Estate Alternatives Portfolio 3A, Inc. |
Delaware | Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance Company (1%) | Real estate alternatives investment | |||
Real Estate Alternatives Portfolio 4 HR, LLC |
Delaware | Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc. | Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment | |||
Real Estate Alternatives Portfolio 4 MR, LLC |
Delaware | Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty Advisors, Inc. | Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment | |||
Realty Information Systems, Inc. |
Iowa | 100% Transamerica Realty Services, LLC | Information Systems for real estate investment management | |||
Retirement Project Oakmont |
California | General Partner: Transamerica Oakmont Retirement Associates, a CA limited partnership; Transamerica Life Insurance Company (limited partner); and Oakmont Gardens, a CA limited partnership (non-AEGON entity limited partner). General Partner of Transamerica Oakmont Retirement Associates is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors. | Senior living apartment complex | |||
River Ridge Insurance Company |
Vermont | 100% AEGON Management Company | Captive insurance company | |||
Second FGP LLC |
Delaware | 100% FGH USA LLC | Real estate |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Selient Inc. |
Canada | 100% Canadian Premier Holdings Ltd. | Application service provider providing loan origination platforms to Canadian credit unions. | |||
Seventh FGP LLC |
Delaware | 100% FGH USA LLC | Real estate | |||
Short Hills Management Company |
New Jersey | 100% AEGON U.S. Holding Corporation | Holding company | |||
Southwest Equity Life Insurance Company |
Arizona | Voting common stock is allocated 75% of total cumulative vote - AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is allocated 25% of total cumulative vote. | Insurance | |||
St. Lucie West Development Company, LLC |
Florida | Sole Member - PSL Acquisitions Operating, LLC | Development company | |||
Stonebridge Benefit Services, Inc. |
Delaware | 100% Commonwealth General Corporation | Health discount plan | |||
Stonebridge Casualty Insurance Company |
Ohio | 100% AEGON USA, LLC | Insurance company | |||
Stonebridge Group, Inc. |
Delaware | 100% Commonwealth General Corporation | General purpose corporation | |||
Stonebridge International Insurance Ltd. |
UK | 100% Cornerstone International Holdings Ltd. | General insurance company | |||
Stonebridge Life Insurance Company |
Vermont | 100% Commonwealth General Corporation | Insurance company | |||
Stonebridge Reinsurance Company |
Vermont | 100% Stonebridge Life Insurance Company | Captive insurance company | |||
TAH-MCD IV, LLC |
Iowa | Sole Member - Transamerica Affordable Housing, Inc. | Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership | |||
TAH Pentagon Funds, LLC |
Iowa | Sole Member - Transamerica Affordable Housing, Inc. | Serve as a general partner in a lower-tier tax credit entity | |||
TAHP Fund 1, LLC |
Delaware | Sole Member - Monumental Life Insurance Company | Real estate investments | |||
TAHP Fund 2, LLC |
Delaware | Sole Member - Garnet LIHTC Fund VIII, LLC | Low incoming housing tax credit | |||
TAHP Fund VII, LLC |
Delaware | Investor Member: Garnet LIHTC Fund XIX, LLC | Real estatement investments | |||
TCF Asset Management Corporation |
Colorado | 100% TCFC Asset Holdings, Inc. | A depository for foreclosed real and personal property | |||
TCFC Air Holdings, Inc. |
Delaware | 100% Transamerica Commercial Finance Corporation, I | Holding company | |||
TCFC Asset Holdings, Inc. |
Delaware | 100% Transamerica Commercial Finance Corporation, I | Holding company | |||
The AEGON Trust Advisory Board: Mark W. Mullin, Alexander R. Wynaendts, and Craig D. Vermie |
Delaware | AEGON International B.V. | Voting Trust | |||
The RCC Group, Inc. |
Delaware | 100% FGH USA LLC | Real estate | |||
THH Acquisitions, LLC |
Iowa | Sole Member - Investors Waranty of America, Inc. | Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, Inc. and holder of foreclosed real estate. | |||
TIHI Canada Holding, LLC |
Iowa | Sole Member - Transamerica International Holdings, Inc. | Holding company |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
TIHI Mexico, S. de R.L. de C.V. |
Mexico | 95% Transamerica International Holdings, Inc.; 5% Transamerica Life Insurance Company | To render and receive all kind of administrative, accountant, mercantile and financial counsel and assistance to and from any other Mexican or foreign corporation, whether or not this company is a shareholder of them | |||
TLIC Riverwood Reinsurance, Inc. |
Iowa | 100% Transamerica Life Insurance Company | Limited purpose subsidiary life insurance company | |||
Tradition Development Company, LLC |
Florida | Sole Member PSL Acquisitions Operating, LLC | Development company | |||
Tradition Irrigation Company, LLC |
Florida | Sole Member PSL Acquisitions Operating, LLC | Irrigation company | |||
Transamerica Accounts Holding Corporation |
Delaware | 100% TCFC Asset Holdings, Inc. | Holding company | |||
Transamerica Advisors Life Insurance Company |
Arkansas | 100% AEGON USA, LLC | Insurance company | |||
Transamerica Advisors Life Insurance Company of New York |
New York | 100% AEGON USA, LLC | Insurance company | |||
Transamerica Affinity Marketing Corretora de Seguros Ltda. |
Brazil | 749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V. | Brokerage company | |||
Transamerica Affinity Services, Inc. |
Maryland | 100% AEGON Direct Marketing Services, Inc. | Marketing company | |||
Transamerica Affordable Housing, Inc. |
California | 100% Transamerica Realty Services, LLC | General partner LHTC Partnership | |||
Transamerica Agency Network, Inc. |
Iowa | 100% AUSA Holding Company | Special purpose subsidiary | |||
Transamerica Annuity Service Corporation |
New Mexico | 100% Transamerica International Holdings, Inc. | Performs services required for structured settlements | |||
Transamerica Asset Management, Inc. |
Florida | Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%. | Fund advisor | |||
Transamerica Aviation LLC |
Delaware | 100% TCFC Air Holdings, Inc. | Special purpose corporation | |||
Transamerica Capital, Inc. |
California | 100% AUSA Holding Co. | Broker/Dealer | |||
Transamerica Commercial Finance Corporation, I |
Delaware | 100% Transamerica Finance Corporation | Holding company | |||
Transamerica Consultora Y Servicios Limitada |
Chile | 95% Transamerica Life Insurance Company; 5% Transamerica International Holdings, Inc. | Special purpose limited liability corporation | |||
Transamerica Consumer Finance Holding Company |
Delaware | 100% TCFC Asset Holdings, Inc. | Consumer finance holding company | |||
Transamerica Corporation |
Delaware | 100% The AEGON Trust | Major interest in insurance and finance | |||
Transamerica Corporation |
Oregon | 100% Transamerica Corporation | Holding company | |||
Transamerica Direct Marketing Asia Pacific Pty Ltd. |
Australia | 100% AEGON DMS Holding B.V. | Holding company | |||
Transamerica Direct Marketing Consultants, LLC |
Maryland | 51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc. | Provide consulting services ancillary to the marketing of insurance products overseas. | |||
Transamerica Direct Marketing Consultants Private Limited |
India | 100% AEGON DMS Holding B.V. | Marketing consultant | |||
Transamerica Distribution Finance Overseas, Inc. |
Delaware | 100% TCFC Asset Holdings, Inc. | Commercial Finance | |||
Transamerica Finance Corporation |
Delaware | 100% Transamerica Corporation | Commercial & Consumer Lending & equipment leasing |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Transamerica Financial Advisors, Inc. |
Delaware | 1,00 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc. | Broker/Dealer | |||
Transamerica Financial Life Insurance Company |
New York | 87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company | Insurance | |||
Transamerica Fund Services, Inc. |
Florida | Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56% | Mutual fund | |||
Transamerica Funding LP |
U.K. | 99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I | Intermodal leasing | |||
Transamerica Home Loan |
California | 100% Transamerica Consumer Finance Holding Company | Consumer mortgages | |||
Transamerica Insurance Marketing Asia Pacific Pty Ltd. |
Australia | 100% Transamerica Direct Marketing Asia Pacific Pty Ltd. | Insurance intermediary | |||
Transamerica International Direct Marketing Consultants, LLC |
Maryland | 51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc. | Provide consulting services ancillary to the marketing of insurance products overseas. | |||
Transamerica International Holdings, Inc. |
Delaware | 100% AEGON USA, LLC | Holding company | |||
Transamerica International RE (Bermuda) Ltd. |
Bermuda | 100% AEGON USA, LLC | Reinsurance | |||
Transamerica International Re Escritório de Representação no Brasil Ltd |
Brazil | 95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc. | Insurance and reinsurance consulting | |||
Transamerica Investment Management, LLC |
Delaware | Sole Member - AEGON USA Asset Management Holding, LLC | Investment advisor | |||
Transamerica Leasing Holdings, Inc. |
Delaware | 100% Transamerica Finance Corporation | Holding company | |||
Transamerica Life (Bermuda) Ltd. |
Bermuda | 100% Transamerica Life Insurance Company | Long-term life insurer in Bermuda - - will primarily write fixed universal life and term insurance | |||
Transamerica Life Canada |
Canada | 100% AEGON Canada ULC | Life insurance company | |||
Transamerica Life Insurance Company |
Iowa | 676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock owned by AEGON USA, LLC | Insurance | |||
Transamerica Minerals Company |
California | 100% Transamerica Realty Services, LLC | Owner and lessor of oil and gas properties | |||
Transamerica Oakmont Corporation |
California | 100% Transamerica International Holdings, Inc. | General partner retirement properties |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
Transamerica Oakmont Retirement Associates |
California | General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors. | Senior living apartments | |||
Transamerica Pacific Insurance Company, Ltd. |
Hawaii | 26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc. | Life insurance | |||
Transamerica Pyramid Properties LLC |
Iowa | 100% Monumental Life Insurance Company | Realty limited liability company | |||
Transamerica Realty Investment Properties LLC |
Delaware | 100% Monumental Life Insurance Company | Realty limited liability company | |||
Transamerica Realty Services, LLC |
Delaware | AUSA Holding Company - sole Member | Real estate investments | |||
Transamerica Resources, Inc. |
Maryland | 100% Monumental General Administrators, Inc. | Provides actuarial consulting services | |||
Transamerica Retirement Management, Inc. |
Minnesota | 100% AEGON Financial Services Group, Inc. | Life Insurance and underwriting services | |||
Transamerica Retirement Services Corp. |
Ohio | 100% AUSA Holding Company | Record keeping | |||
Transamerica Small Business Capital, Inc. |
Delaware | 100% TCFC Asset Holdings, Inc. | Holding company | |||
Transamerica Trailer Leasing Sp. Z.O.O. |
Poland | 100% Transamerica Leasing Holdings, Inc. | Leasing | |||
Transamerica Vendor Financial Services Corporation |
Delaware | 100% TCFC Asset Holdings, Inc. | Provides commercial leasing | |||
United Financial Services, Inc. |
Maryland | 100% AEGON USA, LLC | General agency | |||
Universal Benefits, LLC |
Iowa | 100% AUSA Holding Co. | Third party administrator | |||
Western Reserve Life Assurance Co. of Ohio |
Ohio | 100% AEGON USA, LLC | Insurance | |||
WFG China Holdings, Inc. |
Delaware | 100% World Financial Group, Inc. | Hold interest in Insurance Agency located in Peoples Republic of China | |||
WFG Insurance Agency of Puerto Rico, Inc. |
Puerto Rico | 100% World Financial Group Insurance Agency, Inc. | Insurance agency | |||
WFG Properties Holdings, LLC |
Georgia | 100% World Financial Group, Inc. | Marketing | |||
WFG Property & Casualty Insurance Agency of Nevada, Inc. |
Nevada | 100% WFG Property & Casualty Insurance Agency, Inc. | Insurance agency | |||
WFG Property & Casualty Insurance Agency, Inc. |
Georgia | 100% World Financial Group Insurance Agency, Inc. | Insurance agency | |||
WFG Reinsurance Limited |
Bermuda | 51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd. | Reinsurance | |||
WFG Securities of Canada, Inc. |
Canada | 100% World Financial Group Holding Company of Canada, Inc. | Mutual fund dealer | |||
World Financial Group Holding Company of Canada Inc. |
Canada | 100% Transamerica International Holdings, Inc. | Holding company | |||
World Financial Group, Inc. |
Delaware | 100% AEGON Asset Management Services, Inc. | Marketing | |||
World Financial Group Insurance Agency of Canada Inc. |
Ontario | 50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc. | Insurance agency | |||
World Financial Group Insurance Agency of Hawaii, Inc. |
Hawaii | 100% World Financial Group Insurance Agency, Inc. | Insurance agency | |||
World Financial Group Insurance Agency of Massachusetts, Inc. |
Massachusetts | 100% World Financial Group Insurance Agency, Inc. | Insurance agency | |||
World Financial Group Insurance Agency of Wyoming, Inc. |
Wyoming | 100% World Financial Group Insurance Agency, Inc. | Insurance agency |
Name |
Jurisdiction of Incorporation |
Percent of Voting Securities Owned |
Business | |||
World Financial Group Insurance Agency, Inc. |
California | 100% Western Reserve Life Assurance Co. of Ohio | Insurance agency | |||
World Financial Group Subholding Company of Canada Inc. |
Canada | 100% World Financial Group Holding Company of Canada, Inc. | Holding company | |||
World Group Securities, Inc. |
Delaware | 100% AEGON Asset Management Services, Inc. | Broker-dealer | |||
Yarra Rapids, LLC |
Delaware | Yarra Rapids Management, LLC is the non-owner Manager | Real estate investments | |||
Yarra Rapids Management, LLC |
Delaware | AEGON USA Realty Advisors, LLC is non-owner Manager; no ownership interests at this time. | Company organized for the intention of real estate investments but no business at this time | |||
Zahorik Company, Inc. |
California | 100% AUSA Holding Co. | Inactive | |||
Zero Beta Fund, LLC |
Delaware | Members are: Transamerica Life Insurance Company (74.0181%); Monumental Life Insurance Company (23.6720%); Transamerica Financial Life Insurance Company (2.3097%). Manager: AEGON USA Investment Management LLC | Aggregating vehicle formed to hold various fund investments. |
Item 27. | Number of Contract Owners |
As of February 28, 2012, there were 8,858 Contract owners.
Item 28. | Indemnification |
The Iowa Code (Sections 490.850 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies producers for determining when indemnification payments can be made.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
ITEM 29. Principal Underwriters
(a) | Transamerica Capital, Inc. serves as the principal underwriter for: |
Transamerica Capital, Inc. serves as the principal underwriter for the Retirement Builder Variable Annuity Account, Separate Account VA A, Separate Account VA B, Separate Account VA C, Separate Account VA D, Separate Account VA E, Separate Account VA F, Separate Account VA I, Separate Account VA J, Separate Account VA K, Separate Account VA L, Separate Account VA M, Separate Account VA P, Separate Account VA Q, Separate Account VA R, Separate Account VA S, Separate Account VA W, Separate Account VA X, Separate Account VA Y; Separate Account VA EE, Separate Account VA FF, Separate Account VA HH, Separate Account VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Separate Account VUL A, and Variable Life Account A. These accounts are separate accounts of Transamerica Life Insurance Company.
Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA N, Separate Account VA BNY, Separate Account VA HNY, Separate Account VA PP, Separate Account VA QNY, Separate Account VA QQ, Separate Account VA WNY, Separate Account VA YNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account and TFLIC Series Life Account. These accounts are separate accounts of Transamerica Financial Life Insurance Company.
Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA U, Separate Account VA V, Separate Account VA AA, WRL Series Life Account, WRL Series Life Account G, WRL Series Life Corporate Account, WRL Series Annuity Account and WRL Series Annuity Account B. These accounts are separate accounts of Western Reserve Life Assurance Co. of Ohio.
Transamerica Capital, Inc. also serves as principal underwriter for Separate Account VA BB, Separate Account VA CC and Separate Account VL E. This account is a separate account of Monumental Life Insurance Company.
Transamerica Capital, Inc. also serves as principal underwriter for Merrill Lynch Life Variable Annuity Separate Account, Merrill Lynch Life Variable Annuity Separate Account A, Merrill Lynch Life Variable Annuity Separate Account B, Merrill Lynch Life Variable Annuity Separate Account C, Merrill Lynch Life Variable Annuity Separate Account D, Merrill Lynch Variable Life Separate Account, and Merrill Lynch Life Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company.
Transamerica Capital, Inc. also serves as principal underwriter for ML of New York Variable Annuity Separate Account, ML of New York Variable Annuity Separate Account A, ML of New York Variable Annuity Separate Account B, ML of New York Variable Annuity Separate Account C, ML of New York Variable Annuity Separate Account D, ML of New York Variable Life Separate Account, and ML of New York Variable Life Separate Account II. These accounts are separate accounts of Transamerica Advisors Life Insurance Company of New York.
Transamerica Capital, Inc. also serves as principal underwriter for Transamerica Series Trust, Transamerica Funds and Transamerica Investors, Inc.
(b) | Directors and Officers of Transamerica Capital, Inc.: |
Name |
Principal Business Address |
Position and Offices with Underwriter | ||
Thomas A. Swank |
(1) | Director | ||
Michael W. Brandsma |
(2) | Director, President and Chief Financial Officer | ||
David W. Hopewell |
(1) | Director | ||
David R. Paulsen |
(2) | Director, Chief Executive Officer and Chief Sales Officer | ||
Blake S. Bostwick |
(2) | Chief Marketing Officer and Chief Operations Officer | ||
Courtney John |
(2) | Chief Compliance Officer and Vice President | ||
Erin K. Burke |
(1) | Assistant Secretary | ||
Amy Angle |
(3) | Assistant Vice President | ||
Elizabeth Belanger |
(4) | Assistant Vice President | ||
Margaret A. Cullem-Fiore |
(5) | Assistant Vice President | ||
Dennis P. Gallagher |
(5) | Assistant Vice President | ||
Shelley A. Mossman |
(1) | Assistant Vice President | ||
Christy Post-Rissin |
(5) | Assistant Vice President | ||
Brenda L. Smith |
(5) | Assistant Vice President | ||
Darin D. Smith |
(1) | Assistant Vice President | ||
Lisa Wachendorf |
(1) | Assistant Vice President | ||
Arthur D. Woods |
(5) | Assistant Vice President | ||
Carrie N. Powicki |
(2) | Secretary | ||
Karen R. Wright |
(3) | Treasurer | ||
Karen D. Heburn |
(5) | Vice President | ||
Wesley J. Hodgson |
(2) | Vice President |
(1) | 4333 Edgewood Road N.E., Cedar Rapids, IA 52499-0001 |
(2) | 4600 S Syracuse St, Suite 1100, Denver, CO 80237-2719 |
(3) | 100 Light Street, Floor B1, Baltimore, MD 21202 |
(4) | 440 Mamaroneck Avenue, Harrison, NY 10528 |
(5) | 570 Carillon Parkway, St. Petersburg, FL 33716 |
(c) | Compensation to Principal Underwriter: |
Name of Principal Underwriter |
Net Underwriting Discounts and Commissions (1) |
Compensation on Redemption |
Brokerage Commissions |
Compensation | ||||||||||||
Transamerica Capital, Inc. |
$ | 370,286 | 0 | 0 | 0 |
(1) | Fiscal Year 2011. |
Item 30. | Location of Accounts and Records |
The records required to be maintained by Section 31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3 promulgated thereunder, are maintained by Manager Regulatory Filing Unit, Transamerica Life Insurance Company at 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499-0001.
Item 31. | Management Services. |
All management Contracts are discussed in Part A or Part B.
Item 32. | Undertakings |
(a) | Registrant undertakes that it will file a post-effective amendment to this registration statement as frequently as necessary to ensure that the audited financial statements in the registration statement are never more than 16 months old for so long as Premiums under the Contract may be accepted. |
(b) | Registrant undertakes that it will include either (i) a postcard or similar written communication affixed to or included in the Prospectus that the applicant can remove to send for a Statement of Additional Information or (ii) a space in the Policy application that an applicant can check to request a Statement of Additional Information. |
(c) | Registrant undertakes to deliver any Statement of Additional Information and any financial statements required to be made available under this Form promptly upon written or oral request to Transamerica Life Insurance Company at the address or phone number listed in the Prospectus. |
(d) | Transamerica Life Insurance Company hereby represents that the fees and charges deducted under the contracts, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Transamerica Life Insurance Company. |
SECTION 403(B) REPRESENTATIONS
Transamerica Life Insurance Company represents that it is relying on a no-action letter dated November 28, 1988, to the American Council of Life Insurance (Ref. No. IP-6-88), regarding Sections 22(e), 27(c)(1), and 27(d) of the Investment Company Act of 1940, in connection with redeemability restrictions on Section 403(b) Policies, and that paragraphs numbered (1) through (4) of that letter will be complied with.
TEXAS ORP REPRESENTATION
The Registrant intends to offer policies to participants in the Texas Option Retirement Program. In connection with that offering the Registrant is relying on Rule 6c-7 under the Investment Company Act of 1940 and is complying with, or shall comply with, paragraphs (a) (d) of that Rule.
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this Registration Statement to be signed on its behalf, in the City of Cedar Rapids and State of Iowa, on this 13th day of April, 2012.
SEPARATE ACCOUNT VA-2L |
TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY (DEPOSITOR) |
|
Brenda K. Clancy |
President and Director |
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the date indicated.
Signatures |
Titles |
Date | ||
* Darryl D. Button |
Director, Executive Vice President and Chief Financial Officer | , 2012 | ||
* Mark W. Mullin |
Director and Chairman of the Board | , 2012 | ||
* Brenda K. Clancy |
Director and President | , 2012 | ||
* Craig D. Vermie |
Director, Senior Vice President, Secretary, and General Counsel | , 2012 | ||
* Arthur Schneider |
Director, Chief Tax Officer and Senior Vice President | , 2012 | ||
* Eric J. Martin |
Corporate Controller and Senior Vice President | , 2012 | ||
/s/ Darin D. Smith *By: Darin D. Smith |
Vice President, Division General Counsel and Assistant Secretary | April 13, 2012 |
*By: | Darin D. Smith Attorney-in-Fact pursuant to Powers of Attorney filed previously and herewith. |
Registration No.
333-153773
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS
TO
FORM N-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
FOR
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE
EXHIBIT INDEX
Exhibit No. |
Description of Exhibit |
Page No.* | ||
(3)(b) | Sales Agreement | |||
8(b)(3) | Summary Prospectus Amendment (TST) | |||
9(a) | Opinion and Consent of Counsel | |||
9(b) | Consent of Counsel | |||
10(a) | Consent of Independent Registered Public Accounting Firm | |||
(13) | Powers of Attorney |
* | Page numbers included only in manually executed original. |
Exhibit 3(b)
Sales Agreement
LIFE INSURANCE COMPANY PRODUCT SALES AGREEMENT
THIS AGREEMENT is made by and among each life insurance company (Insurer); each principal securities underwriter for Insurer (Underwriter); each selling broker/dealer (Broker-Dealer); and each selling insurance agency (Agency) in the capacities as set forth on Schedule A-Signature Page which is attached to and made a part of this Agreement by this reference. (Broker-Dealer and Agency are collectively referred to as Producer). This Agreement is initially effective on the date of first execution by Insurer.
RECITALS
A. Insurer offers various life insurance policies and annuity contracts (Products) for sale to the public which may be registered with the U.S. Securities and Exchange Commission (SEC) or not so registered (either Registered Products or Unregistered Products, respectively). Pursuant to section 3(a)(8) of the Securities Exchange Act of 1934 (Exchange Act), Unregistered Products are insurance products under this Agreement which are exempt securities not underwritten by the Underwriter and excluded from the definition of securities issued by an issuer.
B. Underwriter has been appointed as the principal underwriter of the Registered Products of Insurer (Insurer and Underwriter are collectively referred to as Company).
NOW, THEREFORE, the parties agree as follows:
1. | APPOINTMENT |
Company hereby authorizes Producer to solicit and sell Products pursuant to the terms of each attached Schedule B to the extent authorized by and only in the states where: (a) Producer has been separately notified by Company that Products are qualified for sale or exempt from qualification under all applicable securities and insurance laws; (b) Producer is duly life insurance-licensed; (c) Producer is, where required, duly securities licensed; and (d) Producer is duly appointed with Insurer. One or more Product Commission Schedules attached and incorporated as Schedule B from time to time shall identify the specific parties who are authorized to issue, underwrite and distribute Products. Submission of an application or order for Products listed on a Schedule B delivered by Company shall constitute written consent by Producer to the terms of such Schedule B. No exclusive rights are granted to, or required of, Producer except as may be expressly provided by Company in writing or on Schedule B. Producer accepts this appointment as an independent contractor, on the terms set forth in this Agreement. Producers shall only offer such contracts pursuant to the offering restrictions set forth in the applicable Schedule B or in a private placement memorandum describing such contracts.
2. | AUTHORITY AND RESPONSIBILITY |
(a) Producer is authorized and responsible in each State to train, use and supervise qualified professional insurance agents and solicitors who are duly qualified as provided in this Agreement to sell the Products (Subproducers). Producer shall ensure that each Subproducer has adequate training in the sales practices and disclosures and for the various Products. Producer shall also ensure that Subproducers have reviewed Product marketing materials, guidelines, communications or other tools made available by Company and that Subproducer has sufficient knowledge of each Products features, benefits, and costs prior to making any recommendation to a customer. Broker-Dealer shall provide training, conduct manuals, or other information to unregistered employees of Agencies and Subproducers regarding the limitations on such unregistered employees permissible securities activities and monitor those activities as Broker-Dealer deems appropriate to maintain compliance with such limitations.
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(b) Producer shall notify Company immediately upon hiring or contracting with any Subproducer for solicitation of Products and upon the termination of any Subproducer. Producer shall provide or shall cause Subproducers to provide Company with appropriate authorization to allow Company to conduct the background and credit investigations of Subproducers necessary or appropriate under applicable law. Insurer reserves the right of final approval of the appointment of any Subproducers. Insurer may cancel the appointment of any Subproducer upon notice to Producer.
(c) Producer shall ensure that it and all Subproducers: (i) as fiduciary for Company, collect and submit purchase payments to Company such payments to be in the form of checks made payable solely to the order of Company, or at such time and by such other means (by wire or electronic transfers) as mutually agreed in writing; (ii) in accordance with Companys communicated guidelines, promptly deliver Product contract to the purchaser, unless Company has done so; (iii) record each transaction, record the fact of delivery, and maintain any other documentation requested by Company; (iv) responsibly perform in good faith each authorized action hereunder in accordance with Companys administrative procedures as provided to Producer from time-to-time in writing and cooperate with Company as required to provide service to the purchasers of the Products; (v) make and record suitable recommendations, document the rational for each product recommendation, as required in the Suitability Determination and Supervision Section of this Agreement; (vi) adopt, abide by, and enforce the principles set forth in the ethics code provided to Producer as Exhibit B to this Agreement (Ethics Code); (vii) distribute and enforce all Company guidelines and communications related to the marketing and sale of its Products provided or made available to Producer; (viii) monitor both state and federal laws to ensure that the sales practices and disclosures of Producer and Subproducers are compliant; and (ix) establish and maintain guidelines for Subproducers which ensure compliance with both state and federal requirements for do-not-call lists, proper use of designations, and disclosures required by Producer and Subproducer including, but not limited to, compensation-related disclosures and other sales-related disclosures.
(d) Broker-Dealer, on its own behalf and on behalf of Agencies and Subproducers, shall maintain the books and records relating to the sale of the Registered Products and the receipt and disbursement of Commissions (defined in the Commissions and Chargebacks Section) and fees thereon so as to clearly and accurately disclose the nature and details of the transactions. Such books and records shall be maintained and preserved as required under the Exchange Act and the rules thereunder. Duplicate books and records relating to the Registered Products and maintained by Agencies and Subproducers shall be deemed books and records of Broker-Dealer for the purposes of this subsection.
(e) Insurer reserves the unconditional right to refuse to accept applications and purchase orders procured by Producer, or to accept premiums and settlements tendered or made. Insurer reserves the unconditional right to, at any time without prior notice: (i) modify any Product in any respect, modify or alter the conditions or terms under which any policy form may be sold or regulate its sale; (ii) discontinue or withdraw any policy form from any geographic area or market segment without prejudice to continuation of such form in any other area or market segment; (iii) suspend the sale of any of the Products; or (iv) cease doing business in any area in whole or in part. Notwithstanding these rights, Insurer will use reasonable efforts to provide Producer with notice of its intention to modify or suspend the sale of any Products.
(f) No deviation of Producers authority and responsibility granted under this Agreement shall be permitted except with Companys prior specific written consent.
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3. | PROHIBITIONS |
In addition to any prohibitions contained in applicable law or regulation, and not in limitation thereof, Producer and Subproducers have no authority to, and Producer shall ensure that it and any Subproducers shall not: (a) make any promise or incur any debt on behalf of Company; (b) hold themselves out as employees or affiliates of Company unless true; (c) misrepresent, add, alter, waive, discharge, or omit any provision of the Products, the then-current prospectus for the Registered Products or the underlying funds, confirmations, statements, applications, or other Company materials; (d) waive any forfeiture, extend the time of making any payments, or alter or substitute any of Companys forms; (e) use, or supply to a third party for use, any of Companys forms other than for purposes of this Agreement; (f) make any recommendation or take any action which is likely to induce the surrender, transfer, exchange, replacement, cancellation, non-renewal of, or the withdrawal from, any Product,(i.e., a Replacement) except when Producer has documented suitability of the Replacement in accordance with the Suitability Determination and Supervision Section of this Agreement and has first offered Company the opportunity to present a suitable replacement Product; (g) pay or allow to be paid to any prospective owner, insured, annuitant, beneficiary or other person any inducement not specified in the contract for the Products; (h) cause any premium or consideration to be rebated, in any manner whatsoever, directly or indirectly; (i) give or offer to give, on Companys behalf, any advice or opinion regarding the taxation of any purchasers or prospective purchasers income or estate in connection with the sale or solicitation for sale of any Products; (j) sign or allow any person to sign a form or other document for another except pursuant to a proper power of attorney or guardianship appointment approved by Company; (k) negotiate, deposit, or co-mingle purchase payments except as may be otherwise specifically agreed in a written addendum to this Agreement; (l) enter into any contracts with Subproducers for the solicitation of the Products or payment of compensation based on sales with anyone not licensed and appointed with Company; (m) engage in speculation on human life in any way; (n) solicit or take applications for the Products in a state other than the purchasers state of residence for the sole purpose of circumventing the insurance laws of such purchasers state of residence; (o) take any other action beyond the scope of the authority granted under this Agreement; or (p) allow any employee or contractor of Agency or any Subproducer who is not a registered representative of Broker-Dealer to: engage in securities activities, receive compensation based on securities transactions or providing securities advice, recommend any security, give investment advice, discuss the merits of any security or type of security, respond to any question that might require familiarity with the securities industry, handle or maintain customer funds, including checks routed through Broker-Dealer and Agencies, or securities in connection with securities transactions, or have any involvement in securities transactions other than providing clerical or ministerial assistance.
4. | REPRESENTATIONS, WARRANTIES AND COVENANTS |
(a) More than one Insurer, Underwriter, Broker-Dealer, or Agency may execute this Agreement at its inception, or by subsequent addition of parties from time to time pursuant to a revised Schedule A. Each such execution shall be deemed to create a new and separate agreement between Insurer, and Underwriter if applicable on the one hand and the Broker-Dealer, and/or Agency if applicable, on the other. The existence of more than one executed Schedule A shall not create any agency relationship or other selling authority between any Insurer that executes one Schedule A, and any Underwriter, Broker-Dealer and/or Agency that executes another Schedule A. No Insurer shall be liable for the obligations or actions of any other Insurer.
(b) Underwriter and Broker-Dealer are registered with the SEC as broker-dealers under the Exchange Act, and are members in good standing of the Financial Industry Regulatory Authority (FINRA).
(c) Agency is duly licensed and lawfully authorized under applicable insurance or annuity laws and regulations to market and distribute the Products, as set forth in this Agreement. If Agency only markets and distributes Unregistered Products, the provisions of this Agreement that specifically refer to
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Registered Products or the requirements of FINRA or SEC shall be inapplicable, except to the extent the laws and regulations governing those agencies contain valid requirements applicable to Unregistered products.
(d) Broker-Dealer is duly licensed and lawfully authorized under applicable insurance or annuity laws and regulations to market and distribute the Products. If Broker-Dealer is not so licensed, then Agency is duly licensed and lawfully authorized to market and distribute the Products under applicable insurance or annuity regulations, and an associated person of Broker-Dealer.
(e) Producer represents, warrants and covenants that(i) it, and each Subproducer, and any person, or entity employed or contracted with or by Producer or Subproducer in connection with sales of the Products, and/or (ii) any person or entity to whom Producer pays commissions pursuant to this Agreement: (i) will have sound business reputations and backgrounds (as more fully described in the General Letter of Recommendation attached as Exhibit A and incorporated by reference); (ii) will be duly life-insurance licensed, appointed to represent Company, and securities-registered (for Registered Products) in compliance with all applicable federal and state laws and regulations, including those of FINRA or other SROs, prior to and during the sale of any Products pursuant to this Agreement; and (iii) will comply with all other applicable federal and state laws and regulations, including those of FINRA or other SROs, and applicable procedures, Ethics Codes, manuals, and other written rules and regulations of Company as delivered to Producer from time to time, including the provisions of this Agreement. Producer shall take all necessary steps to communicate Companys rules and regulations to such persons.
(f) Producer represents, warrants and covenants that any Subproducer that sells Registered Products shall be an associated person of Broker-Dealer within the meaning of section 3(a)(18) of the Exchange Act. Broker-Dealer agrees that any Agency or Subproducer whom the SEC, FINRA or any other applicable self-regulatory organization bars or suspends from association with Broker-Dealer or any other broker-dealer will be immediately terminated or suspended from all activities related to Registered Products and Company shall be notified immediately in writing of any such bar or suspension.
(g) Producer shall provide prompt notice to Company and cease all Product solicitations if it or any Subproducer is barred or suspended from performing insurance or annuity sales by state insurance regulators, FINRA or other state or federal regulators. Producer shall provide to Company prompt notice and a copy of the regulatory findings of any other fines or disciplinary action by FINRA or state or federal regulators involving Producer or any Subproducer.
(h) Producer represents, warrants and covenants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder.
(i) Company represents, warrants and covenants that all Products have been filed with and approved by the appropriate insurance departments in compliance with the laws of each State and that Company is licensed to do business by the insurance department of each State. Further, Company represents, warrants and covenants that the Registered Products have been filed and registered as appropriate with the SEC and FINRA and are in compliance with the applicable regulations promulgated under the Exchange Act. Company will, during the term of this Agreement, notify Producer of the issuance by the SEC of any stop order with respect to the registration statement or any amendments thereto or the initiation of any proceedings for that purpose or for any other purpose relating to the registration and offering of the Products and of any other action or circumstance that may prevent the lawful sale of the Products in any state or jurisdiction.
(j) Company represents and warrants that it has full power and authority to enter into this Agreement and to perform its obligations hereunder.
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(k) This Agreement has been duly authorized, executed, and delivered on behalf of Producer and Company and constitutes a valid and binding agreement of the parties enforceable in accordance with its terms, except (i) as such enforceability may be limited by bankruptcy, moratorium, insolvency, reorganization or other laws affecting or limiting the enforcement of creditors rights generally; (ii) as such enforceability is subject to general principles of equity, regardless whether such enforceability is considered in a proceeding in equity or at law; and (iii) as the right of a party to indemnification or contribution may be judicially determined to be unenforceable.
5. | SUITABILITY DETERMINATION AND SUPERVISION |
As permitted by state insurance laws and regulations, Company contracts with Producer for Producer to establish procedures which are reasonably designed to ensure suitable recommendations and provide appropriate supervision of sales of Products. Producer shall ensure that it monitor federal and state laws, rules and regulations to ensure that the sales practices, suitability determinations and supervision practices of Producer and Subproducer continue to follow all applicable laws, rules and regulations as it relates to Products offered by Producer.
Therefore, Producer shall:
(a) | Maintain written suitability procedures which are compliant with SEC and FINRA rules, as well as the laws and regulations of state insurance and other regulatory authorities as applicable; |
(b) | Ensure all applications are reviewed and approved by a supervising principal prior to application being submitted to Insurer. |
(c) | Ensure that prior to recommending purchase of a Product all Subproducers make a reasonable effort to obtain information regarding a consumers financial status, tax status, investment objectives and any other information either required by state or federal law or considered reasonable by Subproducer, Producer or Company. |
(d) | Ensure that Subproducers have reasonable grounds for believing that a recommendation is suitable for the consumer on the basis of the facts disclosed by the consumer. |
(e) | Maintain all information collected and used in determining a recommendation was suitable or the supervision of the transaction for the length of time required by state insurance and other regulatory authorities, but in no case less than 5 years from the date of the transaction. |
(f) | Provide Company with information regarding individual product recommendations upon written request from Company. |
(g) | Notify Company promptly upon learning of any circumstances that render such suitability information inaccurate or a transaction unsuitable. |
(h) | Establish and maintain reasonable procedures for the inspection and supervision of Product sales practices of its Subproducers. |
(i) | Provide to Company an annual certification by a senior manager with responsibility for Product suitability supervision in a format acceptable to Company. |
(j) | Promptly cooperate with any periodic reviews by the Company designed to verify the accuracy of the annual certification and ongoing compliance with this Agreement. |
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(k) | Submit reports to Company as may be reasonably requested regarding compliance with the aforementioned procedures. |
6. | COMMISSIONS, CHARGEBACKS, AND DISCLOSURE |
(a) Company shall pay Producer commissions (Commissions), if any, set forth on the applicable Schedule B for sales in the States during the term of this Agreement. Broker-Dealer shall report all Commissions for Registered Products on its FOCUS and FINRA Fee Assessment reports. Insurer is solely responsible for payment of all Commissions under this Agreement. Underwriter has no obligation to make any commission payment unless it receives payment from the Insurer.
(b) Producer shall pay Company in full for any indebtedness to Company arising under this Agreement or otherwise within thirty days of demand. Producer will pay the maximum lawful rate of interest on any indebtedness that Producer owes to Company, along with reasonable legal expenses, attorneys fees, and court costs incurred by Company in collecting such indebtedness. Producer shall pay to Company, or Company may offset from Commissions due, any unpaid indebtedness due to Company remaining after demand, and the chargebacks (Chargebacks) set forth on the applicable Schedule B. This right to offset shall constitute a first lien against any compensation due Producer from Company or any of its affiliates and shall have priority over any assignment by Producer or by operation of law. Producer has no right to offset.
(c) No Commissions will be paid to Producer on Products that are surrendered or canceled and subsequently reinstated or rewritten, or on subsequent premiums that result from prior partial withdrawals from the Product. No Commissions will be paid to Producer for Contracts for which Producer is no longer Agent of record.
(d) Company reserves the right, upon reasonable notice to Producer, to modify or eliminate any Commissions or Chargebacks payable on Products issued, renewed, converted, or exchanged after the date of the notice. Notwithstanding any other provisions of this Agreement to the contrary, Company shall not be obligated to pay any compensation which would be in violation of any applicable law, rule, regulation or order.
(e) Producer shall be solely liable for and shall promptly pay any and all amounts payable to any Subproducer in connection with the sale of Products. No Subproducer or other person shall have any claim against Company on account of the sale or service of any Product.
(f) Producer shall comply with all applicable laws, rules and regulations pertaining to requirements that persons soliciting applications for the sale of life insurance or annuity contracts disclose compensation arrangements.
7. | INDEMNIFICATION |
(a) By Insurer. Insurer agrees to indemnify and hold harmless Producer and each officer and director of Producer (Producer Indemnitee) against any and all losses, claims, fines, penalties, damages, or liabilities, joint and several (collectively Claims), to which Producer Indemnitee may become subject or otherwise, insofar as such Claims arise out of, relate to, or are based upon (i) any untrue statement or alleged untrue statement of a material fact, contained in any registration statement or any post-effective amendment thereto or in the prospectus or any amendment or supplement thereto for the Products, or in any Sales Materials provided by Company or that was required to be stated therein or necessary to make the statements therein not misleading; or (ii) the failure of Insurer, its officers, employees, or agents to comply with the provisions of this Agreement. Insurer agrees to reimburse Producer Indemnitee for
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reasonable legal and other expenses (including attorneys fees) incurred by such indemnitee in connection with investigating or defending Claims. This indemnity agreement will be in addition to any liability that Insurer may otherwise have.
(b) By Producer. Producer agrees to indemnify and hold harmless Company and each of its current and former directors and officers, each person, if any, who controls or has controlled Company within the meaning of the Securities Act or the Exchange Act, employees, and agents (Company Indemnitee), against any and all Claims to which Company and Company Indemnitee may become subject; or otherwise, insofar as such Claims arise out of, relate to, or are based upon: (i) any unauthorized use of sales materials, any verbal or written misrepresentations, product recommendations which are determined to be unsuitable, or any unlawful sales practices concerning Products by Producer, its agents, employees, or representatives; (ii) claims for commissions, services fees, development allowances, reimbursements, or other compensation or remuneration of any type relating to any Subproducer or former Subproducer or relating to any employee or contractor of Producer or any Subproducer; or (iii) the failure of Producer, its officers, employees, agents or Subproducers to comply with the provisions of this Agreement, including but not limited to any unauthorized actions, failure to timely deliver contracts, or errors or omissions by Subproducers. Producer agrees to reimburse Company Indemnitee for any reasonable legal or other expenses (including attorneys fees) incurred by Company Indemnitee in connection with investigating or defending Claims. This indemnity agreement will be in addition to any liability that Producer may otherwise have.
8. | APPROVAL OF ADVERTISING |
(a) No sales, promotion or other advertising or training materials relating to the Products or Company (Sales Material) shall be used by any Producer or Subproducer unless approved in writing by Company prior to such use. Company approval notice will specify the approved jurisdictions, intended audience and manner of distribution for the specific material. Sales Material shall include, but is not limited to, any material relating to the Products or Company which is designed to create public interest in life insurance or annuities or in an insurer, or in an insurance producer, or to induce the public to purchase, modify, increase, reinstate, borrow on, surrender, replace, or retain a policy of insurance or annuity.
(b) The consideration for and the giving of such approval shall apply to each specific request and shall not be construed to have applied to any subsequent materials or programs. All materials shall be subject to annual review after initial approval to ensure continued compliance with applicable law, regulations, and Company policies. At least one hard copy of each piece of Sales Materials in the form proposed to be used shall be supplied to Company at least ten business days prior to first use. Additional copies or longer time period may be required for Sales Materials that must be filed for approval with any regulatory authorities prior to use. Producer or Subproducer shall maintain records of sales material dissemination for no less than 5 years after discontinuance of use or publication, unless otherwise notified by Company. These dissemination records shall be provided promptly to Company upon request.
(c) Company retains the right to revoke any sales material approvals. Upon receipt of a written revocation notice from Company, Producer or Subproducer shall discontinue use of the specific material within 3 business days.
(d) No representations in connection with the sale or solicitation for sale of the Products, other than those contained in the currently effective registration statement and prospectus for each Registered Product filed with the SEC, or in the approved Sales Materials for each Product, shall be made by Producer. Producer assumes full responsibility for all Sales Materials not prepared or approved by Company and all such Sales Materials will be deemed to be Producers materials. Unless otherwise agreed by the parties it shall be Broker-Dealers responsibility to file and obtain FINRA approval of any Sales Materials prepared by Producer.
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(e) Company will use reasonable efforts to provide Producer with information and marketing assistance, including providing reasonable quantities of advertising materials, sales literature, and reports on such terms and at such costs as Company and Producer shall mutually agree from time to time. Sales Material provided by Company shall have been authorized by Company and shall conform to all applicable legal requirements as of the date of delivery.
(f) Company shall not use any advertising material, prospectus, proposal, or representation referring to Producer or its affiliates unless furnished by Producer or until the approval of Producer shall have been first secured. The consideration for and the giving of such approval shall relate to each specific request and shall not be construed to have applied to any subsequent materials or programs.
(g) As between Company and Producer, all trademarks, service marks, trade names, logos, or other words, symbols or indicia of origin, identifying the Company or the Companys products or services (the Marks) are and will remain the exclusive property of the Company or its licensors. Before publishing or disseminating any materials bearing a Mark, Producer will deliver an exact copy of the materials to the Company for prior written approval. If the Company notifies Producer that the use of the Mark is inappropriate, Producer will not publish or otherwise disseminate the materials until they have been modified and approved by the Company in writing. Producer will not acquire any rights in the Marks, except the limited use rights specified in the written approval provided by the Company. Producer will not register, directly or indirectly, any trademark, service mark, trade name, company name, Internet domain name, or other proprietary or commercial right, that is identical or confusingly similar to a Mark, or constitutes a translation of a Mark. All goodwill arising from the use of the Marks inures to the exclusive benefit of the Company or its licensors.
9. | CONFIDENTIALITY AND PRIVACY |
(a) Confidential Information. Confidential Information shall mean all information, written or verbal, which may be disclosed, whether or not marked as Confidential or Proprietary by the disclosing Party or to which the receiving party may be provided access to by disclosing party in accordance with this Agreement, or which is generated or learned as a result of or in connection with this Agreement (Confidential Information). Confidentiality obligations hereunder shall not apply to any Confidential Information which: (i) is or later becomes generally available to the public without breach of any express or implied obligation of confidentiality by the receiving party; (ii) written evidence shows Confidential Information is in the possession of receiving party with the full right to disclose prior to its receipt from disclosing party; (iii) is later acquired by the receiving party from a third party without any restriction on disclosure or breach of an express or implied obligation of confidentiality; or (iv) receiving party can document in writing that receiving party independently created such information without reference to or use of Confidential Information.
(b) Non-disclosure Obligations. Receiving party promises and agrees to use reasonable efforts to hold Confidential Information in confidence, but in any event efforts not less than receiving party uses to protect and safeguard its own confidential information, and without limiting the generality of the foregoing, receiving party further promises and agrees: (i) to protect and safeguard the Confidential Information against unauthorized use, publication or disclosure; (ii) not to, directly or indirectly, in any way, reveal, report, publish, disclose, transfer or otherwise use any of the Confidential Information except as specifically authorized in writing by disclosing party in accordance with this Agreement; (iii) not to use any Confidential Information to unfairly compete or obtain an unfair advantage vis-a-vis disclosing party in any commercial activity which may be comparable to the commercial activity contemplated by the parties in connection with this Agreement; (iv) to restrict access to the Confidential
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Information to those who clearly need such access to carry out the purposes of this Agreement; (v) to advise each of the persons to whom it provides access to any of the Confidential Information that such persons are strictly prohibited from making any use, publishing or otherwise disclosing to others, or permitting others to use for their benefit or to the detriment of disclosing party, any of the Confidential Information; and (vi) receiving party shall not use any Confidential Information of the disclosing party to engage in any fraudulent, deceptive, manipulative or otherwise unlawful practice in connection with the purchase or sale of securities or to improperly influence the performance of securities.
(c) Mandatory Disclosure. If the receiving party becomes compelled or is ordered to disclose Confidential Information whether (i) by a court order or governmental agency order which has jurisdiction over the parties and subject matter, or (ii) in the opinion of its legal counsel, by law, regulation or the rules of a national securities exchange to disclose any Confidential Information, the receiving party will, to the extent practicable and except as may be prohibited by law or legal process, provide the disclosing party with prompt written notice to permit the disclosing party to object to the disclosure or seek an appropriate protective order or other remedy. If a remedy acceptable to the disclosing party is not obtained by the date that the receiving party must comply with the disclosure requirement, the receiving party will furnish only that portion of the Confidential Information it is legally required to furnish, and the receiving party will exercise commercially reasonable efforts to obtain confidential treatment for the Confidential Information that is disclosed. It is understood and agreed that regulators having jurisdiction over each party shall have unrestricted access to all books, records, files and other materials in such partys possession, including the Confidential Information, and disclosure of the Confidential Information to such persons solely for purposes of supervision or examination may occur without written notice to or authorization from the other party.
(d) Privacy. For purposes of this Section 9 only, the following definitions apply:
(i) | Applicable Privacy Law: means any law, ordinance, statute, rule or regulation applicable to or binding on either or each party with respect to privacy or data security, including but not limited to, the Gramm-Leach-Bliley Act (Pub. L. 106-102), Regulation S-P (17 CFR 248), the Fair and Accurate Credit Transactions Act of 2003 (Pub. L. 108-159), and the Standards for the Protection of Personal Information of Residents of the Commonwealth (201 CMR 17), as each may be amended from time to time. |
(ii) | Personal Information: means, in addition to any definition under Applicable Law, any personally identifiable information about any individual, including, but not limited to, name, email address, telephone number, age or date of birth, gender, demographic information, marketing preferences, social security number, alien identification number, credit or debit card numbers, other financial account numbers, application data, credit history, financial information, drivers license number, other unique identifier or authenticator, health insurance or medical information, consumer report information and data about transactions or experiences with the Insurer or marketing partner of the Insurer. The term individual for purposes of this definition includes, but is not limited to, a customer, client, employee, or contractor of the Insurer. |
(iii) | Responsible Party: means Producer, Subproducer, and any party acting on behalf of or at the direction and control of Producer or Subproducer, e.g. sales assistant or back-office assistant. |
(iv) | Security Breach: means any actual or potential breach under Applicable Law with respect to any record or data containing Personal Information, and shall include any incident involving the unauthorized access to or acquisition of encrypted or unencrypted, electronic or paper copy of Personal Information or where the potential exists that encrypted information could be compromised. |
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(e) Disclosure and Use of Personal Information. If Responsible Party receives, uses, stores, maintains, processes, transmits, disposes or otherwise has access to Personal Information, Responsible Party shall use, store, maintain, process, transmit, dispose of and protect Personal Information in accordance with Applicable Law. Access to and use of Personal Information by Responsible Party is specifically limited to that which is necessary to perform the services set forth in this Agreement and Responsible Party shall only disclose Personal Information to those employees who have a need to know such information to perform such services. For those affiliates and contractors for which the Insurer provides written authorization, Responsible Party shall obligate those affiliates and contractors to terms at least as stringent as those set forth herein.
(f) Information Security Program. Responsible Party shall develop and implement, within thirty (30) days after the date of execution of this Agreement, if it has not already done so, and thereafter maintain a comprehensive written information security program that contains administrative, technical, and physical safeguards compliant with Applicable Law (the Security Program) designed to (i) protect the confidentiality, integrity and availability of Personal Information; (ii) protect against anticipated threats or hazards to the security, confidentiality, integrity and/or availability of Personal Information; (iii) protect against any unauthorized access, disclosure or use of Personal Information ; (iv) address computer and network security; (v) address physical security; (vi) address business continuity and disaster recovery, (vii) address a security incident response program and (viii) provide for the secure destruction and disposal of Personal Information. The Security Program shall comply with all Applicable Law and shall be updated as required by Applicable Law and industry best practices. Responsible Party shall require its contractors who provide services on behalf of the Responsible Party and who may have access to Personal Information (Contractors) to develop, implement and maintain a written Security Program and to provide Responsible Party with written acknowledgement of compliance of Contractors Security Program. Nothing herein should be construed to waive any requirement in any agreement between Responsible Party and its Contractors for compliance with the Insurers security standards and requirements for Personal Information, privacy, data security and network/systems security that have or may from time to time be communicated to Responsible Party. At the Insurers request, Responsible Party agrees to certify in writing to Insurer its compliance with the terms of this Section.
(g) Security Breach Reporting. Responsible Party shall notify Insurer within forty-eight (48) hours upon learning of an actual or potential Security Breach involving Personal Information. Responsible Party must provide notice to Insurers Security Office by emailing security@transamerica.com and must include, at a minimum, and to the extent known the following information: (a) the nature of the Security Breach; (b) the estimated impact on the Insurer; (c) the name of a senior level person responsible for communicating with the Insurer regarding the Security Breach; and (e) the investigative action taken or planned. Responsible Party must cooperate fully with all Insurer requests for information regarding the Security Breach and Responsible Party must provide regular updates on each Security Breach and the investigative and corrective action taken. Any action taken with respect to such Security Breach, including but not limited to the investigation and any communication to internal or external parties regarding the Security Breach, will be at the sole discretion of the Insurer unless otherwise required by applicable law.
(h) Other Agreements. This section does not supersede or replace any other provision in any agreement between the parties with respect to privacy and security of Personal Information except to the extent such provisions are less stringent than the provisions set forth herein. Personal Information shall be construed as Confidential Information under this Agreement and subject to paragraphs (b) and (c) above.
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(i) Indemnity. Producer hereby agrees to defend, indemnify, and hold the Insurer and its affiliates and all of their directors, officers, personnel, and their successors and assigns harmless from any and all expenses, damages, awards, settlements, claims, actions, demands, losses, obligations, fines, penalties, liabilities, regulatory actions and causes of action (including, but not limited to, attorneys fees and expenses, breach notification costs, credit monitoring or watch services, internal and external breach remediation plans) arising out of or relating to any privacy or security breach Personal Information in the possession of or under the control of the Responsible Party or its Contractors or for Responsible Partys breach of any obligations set forth in this Section.
10. | COMPLAINTS AND INVESTIGATIONS |
(a) Producer, upon notification, shall promptly notify Company of any notice of any regulatory or self-regulatory investigation or proceeding or judicial proceeding arising in connection with the Products or the solicitation or sale of the Products no later than by next day express or overnight mail, secure e-mail, or facsimile. Producer and Company further agree to cooperate fully in any regulatory or self-regulatory investigation or proceeding or judicial proceeding with respect to Producer, Subproducers, Company, their affiliates, and their agents or representatives to the extent that such investigation or proceeding is in connection with this Agreement or the transactions contemplated hereunder. Producer shall furnish applicable federal, state, and self-regulatory authorities with any information or reports in connection with their services under this Agreement which such authorities may request in order to ascertain whether Producers or Companys operations are being conducted in a manner consistent with any applicable law, regulation, or rule of an SRO. Each party shall bear its own costs and expenses in complying with any regulatory or self-regulatory requests, subject to any right of indemnification that may be available pursuant to this Agreement.
(b) Company and Producer shall each develop and maintain appropriate procedures to ensure timely response to Policyholder complaints and ensure they maintain a log of Policyholder complaints arising out of the solicitation or sale of the Products. The log will record the date and substance of each Policyholder complaint and the date and substance of the resolution of each such complaint. Each partys log, maintained for no less than seven years, shall be provided to the other upon request.
(c) Producer and Subproducer shall promptly respond to any inquiries from Company for information necessary to provide a response to an investigation or complaint within the timeframe requested by Company Producer understands that failure to respond within the requested timeframes may result in fines, penalties, unnecessary settlements and other increased expenses for Company. Producer will indemnify Company for fines, penalties or expenses incurred due to a failure of Producer or Sub-Producer to respond as requested.
(d) Each party will immediately notify the other of any Policyholder complaint or other complaint against that party, its agents or Sub-Producers or third party vendors arising from the performance, or failure to perform, the terms of this Agreement. For purposes of this Agreement, a Policyholder complaint includes, but is not limited to, a written notification (including a notification by electronic mail) that: (1) expresses a grievance or alleges misrepresentation of information, improper sales practices or confusion over the Products status as an insurance or annuity product; or (2) an error or inaction or unfair treatment by former or current employees or agents of Producer, Company or affiliates of each, and (3) requests resolution of the matter. Each party shall reasonably determine, in accordance with state and federal law, whether an oral or telephonic notification that clearly meets the foregoing requirements should be treated as a written complaint for the purposes of this Agreement. Each party will, upon receipt of any summons, complaint, or notice of suit, forward such notice to the other party no later than by next-day express or overnight mail, secure e-mail, or facsimile.
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11. | TERMINATION |
(a) This Agreement shall continue in force from its effective date and may be terminated by any party, as to that party, by providing thirty days written notice to the others.
(b) Notwithstanding the provisions of subsection (a), either Company or Producer may terminate this Agreement immediately and without notice if (i) the Underwriter or Broker-Dealer ceases to be registered under the Exchange Act or to be a member in good standing of FINRA; (ii) the other party fails to comply with any licensing laws or any other applicable law or regulation; (iii) the other party becomes insolvent, either voluntarily or involuntarily declares or files bankruptcy, or suffers other financial impairment that may affect its or the other partys performance of this Agreement; or (iv) the other party is prohibited from offering the Products hereunder as a result of any change in federal or state laws or regulations.
(c) Upon material breach of this Agreement any party may terminate the Agreement, ten days after the receipt of written notice to the other parties. In the event of the receipt of such notice, and upon request, the other party has the right to a ten day cure period for the breach. If the party is able to cure the breach to the good faith satisfaction of the other party within the cure period, this Agreement will continue in effect as though it were never terminated.
12. | ANTI-MONEY LAUNDERING |
(a) Each party represents that it has implemented programs reasonably designed to comply with all applicable anti-money laundering laws, regulations, rules and government guidance. These include the reporting, recordkeeping, auditing, and compliance requirements of, to the extent applicable, the Bank Secrecy Act (BSA), as amended by the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2002, Title III of the USA PATRIOT Act (Patriot Act), its implementing regulations, and related SEC and SRO Rules.
(b) The programs shall include, but not be limited to (i) policies, procedures and internal controls for complying with all applicable laws and regulations; (ii) policies, procedures and internal controls, for identifying, evaluating and reporting suspicious activity; (iii) a designated compliance officer or officers; and (iv) an independent audit function.
(c) Producer acknowledges that Company shall rely on Producer to have in place appropriate anti-money laundering training and, if applicable, customer identification program (CIP) procedures and controls. Producer acknowledges that it will follow such procedures and controls in connection with the sale of Companys Products.
(d) Producer represents it will not sell any Products to any person listed on the U.S. Treasury Departments Office of Foreign Assets Control (OFAC) list of prohibited persons, entities, and countries, and which any Company transaction with such investor are prohibited under the various economic sanctions, laws, and regulations administered by OFAC.
13. | MARKET TIMING |
(a) Company reserves the right to terminate this Agreement immediately without notice to any party if Company, in its discretion, determines that any of Producers or Subproducers clients are engaging in market timing activities (defined as programmed, large or frequent transfers) with respect to any portfolios of the Registered Products or that any Producer or Subproducer is providing advice or assistance to any persons to engage in such activities.
Page 12 of 14
(b) Company reserves the right to reject any purchase orders submitted by any parties whom (or whose clients) Company determines to be engaging in market timing activity. In addition to the indemnification provided in the Indemnification Section of this Agreement, and any other liability Producer may have, Producer will be liable to Company and each portfolio affected by such market timing activity for any damages or losses, actual or consequential, sustained by them as a result of such market timing activity.
14. | BOOKS AND RECORDS |
Each party shall create and maintain at its principal administrative office books and records of all transactions under this Agreement as required by applicable state and federal law and regulations. Each party hereto shall have the right, during normal business hours and upon ten (10) days prior written notice, to inspect and audit the books and records of the other party relating solely to the business contemplated by this Agreement, including files, letters, Sales Material, and other documents relating in any way to such business. Such books and records shall be maintained in accordance with the respective record retention policy of Company or Producer and applicable federal or state law or regulation.
15. | PRODUCERS TERMINATION OF SERVICING DUTIES |
Producer must promptly notify Company of its intent to remove itself as Agent of record or Broker Dealer of record on specific policies. Producer shall assist with the transfer of Broker Dealer of record responsibilities to another duly licensed Broker Dealer, including the transfer of customer files. Producer must promptly provide Company information including, but not limited to, the following: client records, initial suitability analysis, annual suitability analysis, principal sign-off.
16. | GENERAL PROVISIONS |
(a) This Agreement shall be governed as to its validity, interpretation, and effect by the substantive and procedural laws of the state of domicile of Insurer as set forth on Schedule A without giving effect to principles of conflicts of laws.
(b) This Agreement, including each Schedule, Exhibit, and Addendum to this Agreement, contains the entire understanding and agreement among the parties with respect to its subject matter and with respect to sales of the Products, and supersedes all prior and contemporaneous discussions, agreements, and understandings. Producer and Company hereby acknowledge that they have not relied upon any representations other than the representations expressly contained within this Agreement except as otherwise provided herein. This Agreement may be amended, assigned and/or supplemented (Amended or Amendment) by mutual written consent signed by the parties to this Agreement, except as otherwise provided herein. In addition, this Agreement also may be Amended by Company at any time by providing a written copy of such Amendment to Broker-Dealer and Agency. In the absence of written objection to the Amendment within fifteen days after notification is sent, continued performance by Broker-Dealer and Agency under the Agreement shall constitute acceptance of any such Amendment. A change in control of the Company shall not constitute an Amendment of this Agreement.
(c) This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and, to the extent permissible hereunder, assigns. Producer may only assign this Agreement to an affiliate of Producer.
(d) Company and Producer shall be held to the exercise of reasonable care in carrying out the provisions of this Agreement.
Page 13 of 14
(e) The relationship of Producer or Subproducer to Company under this Agreement shall be that of an independent contractor. Nothing in this Agreement shall be construed to create the relationship between Company and Producer or Subproducer of employer and employee; a partnership or joint venture; or principal and agent, except to the extent expressly provided herein.
(f) Any notice hereunder shall be (i) in writing, and (ii) personally delivered; delivered by a third party courier; mailed by registered or certified mail, postage prepaid; or transmitted by facsimile or other electronic means. Notice to Insurer or Underwriter shall be deemed sufficiently given if addressed as set forth on Schedule A, with a copy at the same address to Division General Counsel. Notice to Broker-Dealer or Agency or Producer by Company under General Provision subsection (b) above shall be deemed sufficiently given if transmitted by facsimile or other electronic means. Notice to Producer shall be deemed sufficiently given if addressed as set forth on Schedule A. A party may designate a different address with notice to the other party in accordance with this subsection. All notices sent in accordance with the requirements of this subsection shall be deemed to have been received: (i) if personally delivered, on the date of receipt; (ii) if by facsimile or other electronic means, on the date of transmission if received; (ii) if by courier, one day after receipt is confirmed, or (iii) if by mail, on the fifth day following the day of posting.
(g) In the event any term, phrase, clause, paragraph, restriction, covenant, or agreement contained in this Agreement or the attached Exhibits, Schedules, or Addenda shall be held to be invalid or unenforceable by a court of competent jurisdiction, the same shall be severable and shall not affect the enforceability of the remaining provisions thereof.
(h) A waiver by any party of the breach of any provision of this Agreement by another party shall not operate or be construed as a waiver of any other or subsequent breach by any party.
(i) This Agreement shall be construed and enforced in accordance with the procedural and substantive laws of the State of Iowa, without regard to its conflicts of laws provisions. The exclusive forum and venue for all disputes shall be the state and federal courts having jurisdiction in Linn County, Iowa, and each party hereto consents to personal jurisdiction in such courts.
(j) For purposes of this Agreement, a document (or signature page thereto) signed and transmitted electronically or by facsimile machine is to be treated as an original document. Upon Company request, Producer shall provide Company with the original document. Company will consider information received via electronic transmission to be controlling. Producer is responsible for remedying any inaccurate information electronically transmitted and is responsible for any resulting ramifications.
(k) This Agreement may be executed by the parties hereto on any number of separate counterparts, and all such counterparts so executed constitute one agreement binding on all parties hereto.
(l) Sections of this Agreement titled Prohibitions, Suitability Determination and Supervision, Commissions, Chargebacks and Disclosure, Indemnification, Confidentiality and Privacy, Complaints and Investigations, Anti-Money Laundering, Market Timing, Books and Records, Producers Termination of Servicing Duties, and General Provisions shall survive the termination of this Agreement to the maximum extent permitted by law.
[SCHEDULE ASIGNATURE PAGE FOLLOWS]
Page 14 of 14
SCHEDULE ASIGNATURE PAGE
LIFE INSURANCE COMPANY PRODUCT SALES AGREEMENT
Complete and attach additional copies of this Schedule as needed. Include tax ID number where indicated and sign on page A-2. Attach copies of current Agency licenses for applicable states.
Insurers and Underwriters
The following affiliated Insurers and Underwriters are deemed to be parties to, and bound by all provisions of, the Agreement with respect to Products issued or underwritten by such parties, including each Products commission schedules issued to the date of execution hereof by the respective Insurer.
Name: | Transamerica Life Insurance Company |
Name: | Transamerica Capital, Inc. | |||
State of Domicile: | Iowa |
Business Address: | 4333 Edgewood Rd NE | |||
Business Address: | 4333 Edgewood Rd NE |
Cedar Rapids, IA 52499 | ||||
Cedar Rapids, IA 52499 |
Broker-Dealers and Agencies
The following affiliated Broker-Dealers and Agencies are deemed to be parties to, and bound by all provisions of, the Agreement with respect to Products distributed by such parties:
(Print name of Broker-Dealer above) | Contact Person at Broker-Dealer: | |||||
Address: |
|
Name: |
| |||
|
Phone: |
| ||||
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Fax: |
| ||||
Tax ID #: |
|
Email: |
|
(Print name of Agency above) | Contact Person at Agency: | |||||
Address: |
|
Name: |
| |||
|
Phone: |
| ||||
|
Fax: |
| ||||
Tax ID #: |
|
Email: |
|
A-1
Please check the appropriate box: | ||
q | Corporation | |
q | Partnership | |
q | Other: |
**Required | Information |
Broker Dealer/Agency General Counsel: | Mailing address for General Counsel: | |||||||
Name: | ||||||||
Phone: | ||||||||
Fax: | Main Office? | Y or N (if yes, please list address here) | ||||||
Email: | Branch? | Y or N (if yes, enclose list of branch addresses) | ||||||
Broker Dealer/Agency Chief Compliance Officer: | Mailing address for Chief Compliance Officer: | |||||||
Name: | ||||||||
Phone: | ||||||||
Fax: | Main Office? | Y or N (if yes, please list address here) | ||||||
Email: | Branch? | Y or N (if yes, enclose list of branch addresses) | ||||||
Contact for client policy and licensing matters (if different from above or indicate Same): |
Mailing address for client policy and licensing matters: | |||||||
Name: | ||||||||
Phone: | ||||||||
Fax: | Main Office? | Y or N (if yes, please list address here) | ||||||
Email: | Branch? | Y or N (if yes, enclose list of branch addresses) | ||||||
Contact for commissions matters (if different from above or indicate Same): |
Mailing address for commission statements and checks: | |||||||
Name: | ||||||||
Phone: | ||||||||
Fax: | Main Office? | Y or N (if yes, please list address here) | ||||||
Email: | Branch? | Y or N (if yes, enclose list of branch addresses) | ||||||
A-2
SIGNATURES
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the dates written below,
Transamerica Life Insurance Company |
Transamerica Capital, Inc. | |||||
Insurers | Underwriter | |||||
Signature: |
|
Signature: |
| |||
Printed Name: |
|
Printed Name: |
| |||
Title: |
|
Title: |
| |||
Date: |
|
Date: |
|
Print Name of Broker-Dealer Above | Print Name of *Agency Above (Broker-Dealer should sign here also if life insurance-licensed) | |||||
Signature: |
|
Signature: |
| |||
Printed Name: |
|
Printed Name: |
| |||
Title: |
|
Title: |
| |||
Date: |
|
Date: |
|
Print Name of *Agency Above (Broker-Dealer should sign here also if life insurance-licensed) |
Print Name of *Agency Above (Broker-Dealer should sign here also if life insurance-licensed) | |||||
Signature: |
|
Signature: |
| |||
Printed Name: |
|
Printed Name: |
| |||
Title: |
|
Title: |
| |||
Date: |
|
Date: |
|
*Complete | and attach additional copies of this page if needed for more parties. |
A-3
EXHIBIT A
LIFE INSURANCE COMPANY PRODUCTS SALES AGREEMENT
General Letter of Recommendation
Producer hereby certifies to Company that all the following requirements will be fulfilled in conjunction with the submission of licensing/appointment papers for all applicants as agents of Company submitted by Producer. Producer will, upon request, forward proof of compliance with same to Company in a timely manner.
(a) | We have made an identity, criminal, and credit investigation of each applicant and declare that each applicant is personally known to us, and we are unaware of any reason why each applicant would not be worthy of a license. |
(b) | When required because the applicant intends to solicit persons to purchase Registered Products, we have on file a U-4 form which was completed (and has been amended, as required) by each applicant. We have fulfilled all the necessary investigative requirements for the registration of each applicant as a registered representative through our FINRA member firm, including but not limited to: (i) checking for and investigating criminal arrest and conviction records available to the Broker-Dealer on the CRD system; and (ii) communicating with each employer of the applicant for 3 years prior to the applicants registration with our firm. Each applicant is presently registered as a FINRA registered representative. |
(c) | Producer has been provided with Companys appointment guidelines. Producer represents and warrants that each applicant meets Companys guidelines and applicable state and federal licensing, and appointment requirements. |
(d) | At the time of application, in those states required by Company, we shall provide Company with a copy of the entire U-4 form, or designated pages, thereof, completed by each applicant, including any amendments or updates thereto, and we certify those items are true copies of the original. |
(e) | We certify that all educational requirements have been met for the specified state in which each applicant is requesting a license in, and that all such persons have fulfilled the appropriate examination, education, and training requirements. |
(f) | If the applicant is required to submit a picture, a signature, and securities registration in the state in which the applicant is applying for a license, we certify that those items forwarded to Company are those of the applicant and the securities registration is a true copy of the original. |
(g) | We hereby warrant that the applicant is not applying for a license with Company in order to place insurance chiefly and solely on the applicants life or property, or lives or property of the applicants relatives, or property or liability of the applicants associates. |
(h) | We will not permit any applicant to transact insurance in a state as an agent until duly licensed and appointed therefore with the appropriate state insurance regulatory authority. No applicants have been given a contract or furnished supplies, nor have any applicants been permitted to write, solicit business, or act as an agent in any capacity, and they will not be so permitted until the certificate of authority or license applied for is received. |
Page A-1
EXHIBIT B
LIFE INSURANCE COMPANY PRODUCT SALES AGREEMENT
Code of Professional Conduct
[SEPARATE ATTACHMENT]
Page B-1
EXHIBIT C
LIFE INSURANCE COMPANY PRODUCT SALES AGREEMENT
Company Information Security Requirements
[SEPARATE ATTACHMENT]
Page C-1
Exhibit 8(b)(3)
Summary Prospectus Amendment (TST)
AMENDMENT NO. 11 TO THE
FUND PARTICIPATION AGREEMENT
This Amendment is to the Fund Participation Agreement dated May 1, 2001, as amended, (Agreement) between Transamerica Life Insurance Company, Monumental Life Insurance Company, Transamerica Financial Life Insurance Company, life insurance companies organized under the laws of the State of New York (each, Insurance Company), on behalf of themselves and on behalf of the Separate Accounts listed on Exhibit A of the Agreement, Dreyfus Variable Investment Fund, Dreyfus Investment Portfolios, The Dreyfus Socially Responsible Growth Fund, Inc. and the Dreyfus Stock Index Fund, Inc. (each as the Fund) (the Agreement). All capitalized terms used herein and not otherwise defined shall have the meaning ascribed to such term in the Agreement.
1. | A new Article XV is hereby added to the Agreement as follows: |
SUMMARY PROSPECTUS
15.1 | For purposes of this Amendment, the terms Summary Prospectus and Statutory Prospectus shall have the same meaning as set forth in Rule 498 of the Securities Act of 1933 (Rule 498). |
15.2 | The Fund shall provide Insurance Company with copies of the Summary Prospectuses in the same manner and at the same times as the Participation Agreement requires that the Fund provide Insurance Company with Statutory Prospectuses. |
15.3 | The Fund shall be responsible for compliance with Rule 498(e). |
15.4 | The Fund represents and warrants that the Summary Prospectuses and the web site hosting of such Summary Prospectuses will comply with the requirements of Rule 498 applicable to the Fund and its series. |
15.5 | The Fund agrees that the URL indicated on each Summary Prospectus will lead Insurance Company policyholders/contract owners directly to the web page used for hosting Summary Prospectuses and that such web page will host the current Fund and series documents required to be posted in compliance with Rule 498. |
15.6 | The Fund represents and warrants that it will be responsible for compliance with the provisions of Rule 498(f)(1) involving policyholder/contract owner requests for additional Fund documents made directly to the Fund. The Fund further represents and warrants that any information obtained about policyholders/contract owners pursuant to this provision will be used solely for the purposes of responding to requests for additional Fund documents. |
15.7 | Insurance Company represents and warrants that it will respond to requests for additional Fund documents made by policyholders/contract owners directly to Insurance Company or one of its affiliates. |
15.8 | Insurance Company represents and warrants that any binding together of Summary Prospectuses and/or Statutory Prospectuses for which Insurance Company is responsible will be done in compliance with Rule 498. |
15.9 | At Insurance Companys request, the Fund will provide Insurance Company with URLs to the current Fund and series documents for use with Insurance Companys electronic delivery of Fund documents or on Insurance Companys website. The Fund will be responsible for maintaining the Fund and series current documents on the website to which such URLs originally navigate. |
15.10 | If the Fund determines that it will end its use of the Summary Prospectus delivery option, the Fund will provide Insurance Company with advance notice of its intent as soon as is reasonably practicable. |
15.11 | The parties agree that all other provisions of the Agreement, including the Indemnification provisions, will apply to the terms of this Amendment as applicable. |
15.12 | The parties agree that Insurance Company is not required to distribute Summary Prospectuses to Contract Owners, but rather that the use of the Summary Prospectuses will be at the discretion of Insurance Company. Insurance Company agrees that it will give the Fund sufficient notice of its intended use of the Summary Prospectuses or the Statutory Prospectuses. |
2. | Exhibit A of the Agreement is hereby deleted in its entirety and replaced with the following: |
EXHIBIT A
Effective May 1, 2011
List of Separate Accounts
Transamerica Financial Life Insurance Company
Separate Account VA-2LNY
Separate Account VA-6NY
TFLIC Separate Account C
TFLIC Separate Account VNY
Transamerica Life Insurance Company
Retirement Builder Variable Annuity Account
Separate Account VA A
Separate Account VUL-A
Separate Account VA-2L
PFL Corporate Account One
Separate Account VA-6
Separate Account VA-7
Separate Account VA-8
Separate Account VUL-1
Separate Account VUL-2
Separate Account VUL-4
Separate Account VUL-5
Separate Account VA J
Separate Account VUL-6
Separate Account VA S
Monumental Life Insurance Company
Separate Account VA CC
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be executed in its name and behalf by its duly authorized officer.
Dated as of July 15, 2011.
TRANSAMERICA LIFE INSURANCE COMPANY | TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY | |||||||
By: | /s/ Arthur D. Woods | By: | /s/ Arthur D. Woods | |||||
Name: Title: Date: |
Arthur D. Woods Vice President 8/10/11 |
Name: Title: Date: |
Arthur D. Woods Vice President 8/10/11 | |||||
MONUMENTAL LIFE INSURANCE COMPANY | On Behalf of the Funds listed on Exhibit B of the Agreement | |||||||
By: | /s/ Steven R. Shepard | By: | /s/ Kathleen DeNicholas | |||||
Name: Title: Date: |
Steven R. Shepard Vice President 8/10/11 |
Name: Title: Date: |
Kathleen DeNicholas Assistant Secretary 7/28/11 |
EXHIBIT (9)(a)
OPINION AND CONSENT OF COUNSEL
[Transamerica Life Insurance Company Letterhead]
April 16, 2012
Transamerica Life Insurance Company
4333 Edgewood Road N.E.
Cedar Rapids, Iowa 52499-0001
Dear Sir/Madam:
With reference to the Registration Statement on Form N-4 by Transamerica Life Insurance Company and Separate Account VA-2L with the Securities and Exchange Commission covering individual variable annuity contracts, I have examined such documents and such law as I considered necessary and appropriate, and on the basis of such examination, it is my opinion that:
1. | Transamerica Life Insurance Company is duly organized and validly existing under the laws of the State of Iowa and has been duly authorized to issue individual variable annuity contracts by the Department of Insurance of the State of Iowa. |
2. | Separate Account VA-2L is a duly authorized and existing separate account established pursuant to the provisions of Section 508A.1 of the Iowa Insurance Code. |
3. | The Individual Variable Annuity Contracts, when issued as contemplated by said Form N-4 Registration Statement, will constitute legal, validly issued and binding obligations of Transamerica Occidental Life Insurance Company. |
I hereby consent to the filing of this opinion as an exhibit to said N-4 Registration Statement.
Very truly yours,
TRANSAMERICA LIFE INSURANCE COMPANY
/s/ Darin D. Smith |
Darin D. Smith |
General Counsel |
EXHIBIT (9)(b)
Consent of Counsel
[Sutherland Asbill & Brennan LLP Letterhead]
April 16, 2012
Board of Directors
Transamerica Life Insurance Company
Separate Account VA-2L
4333 Edgewood Road, NE
Cedar Rapids, IA. 52499-0001
RE: | Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage Variable Annuity |
File No. 333-153773/811-07042 |
Gentlemen:
We hereby consent to the use of our name under the caption Legal Matters in the Statement of Additional Information contained in Post-Effective Amendment No. 4 to the Registration Statement to Form N-4 (File No. 333-153773) of the Separate Account VA-2L filed by Transamerica Life Insurance Company with the Securities and Exchange Commission. In giving this consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act of 1933.
Very truly yours, | ||
Sutherland Asbill & Brennan LLP | ||
By: | /s/ Frederick R. Bellamy | |
Frederick R. Bellamy, Esq. |
EXHIBIT 10(a)
Consent of Independent Registered Public Accounting Firm
Consent of Independent Registered Public Accounting Firm
We consent to the reference to our firm under the caption Independent Registered Public Accounting Firm in the Statement of Additional Information, and to the use of our reports: (1) dated April 13, 2012, with respect to the statutory-basis financial statements and schedules of Transamerica Life Insurance Company, and (2) dated April 16, 2012, with respect to the financial statements of the subaccounts of Separate Account VA-2L, included in Post-Effective Amendment No. 4 to the Registration Statement (Form N-4 No. 333-153773) under the Securities Act of 1933 and related Prospectus of Dreyfus/Transamerica Triple Advantage Variable Annuity.
/s/ Ernst & Young LLP
Des Moines, Iowa
April 16, 2012
EXHIBIT (13)
POWERS OF ATTORNEY
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Eric J. Martin, a Senior Vice President and Corporate Controller of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 4th day of January, 2012.
/s/ Eric J. Martin |
Eric J. Martin |
Senior Vice President and Corporate Controller |
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Darryl D. Button, a Director, Executive Vice President and Chief Financial Officer of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of January, 2012.
/s/ Darryl D. Button |
Darryl D. Button |
Director, Executive Vice President and Chief Financial Officer |
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Brenda K. Clancy, a Director and President of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 27th day of December, 2011.
/s/ Brenda K. Clancy |
Brenda K. Clancy |
Director and President |
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Arthur C. Schneider, a Director, Chief Tax Officer and Senior Vice President of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of January, 2012.
/s/ Arthur C. Schneider |
Arthur C. Schneider Director, Chief Tax Officer and Senior Vice President |
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Mark W. Mullin, a Director and Chairman of the Board of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of January, 2012.
/s/ Mark W. Mullin |
Mark W. Mullin Director and Chairman of the Board |
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that I, Craig D. Vermie, a Director, Senior Vice President, Secretary and General Counsel of Transamerica Life Insurance Company, an Iowa corporation, do hereby appoint Darin D. Smith and David W. Hopewell, and each of them severally, my true and lawful attorney-in-fact, for me and in my name, place and stead to execute and file any instrument or document to be filed as part of or in connection with or in any way related to the Registration Statements and any and all amendments thereto, filed by said Company under the Securities Act of 1933 and/or the Investment Company Act of 1940, as amended, in connection with the registration of the variable contracts listed below, and to have full power and authority to do or cause to be done in my name, place and stead each and every act and thing necessary or appropriate in order to effectuate the same, as fully to all intents and purposes I might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact or any of them, may do or cause to be done by virtue hereof. Each said attorney-in-fact shall have power to act hereunder without the others.
Separate Account Name |
Product Name |
SEC 1933
File Number | ||
Separate Account VA B |
Transamerica Landmark Variable Annuity | 033-33085 | ||
Separate Account VA B |
Transamerica Freedom Variable Annuity | 033-56908 | ||
Separate Account VA C |
Transamerica Extra Variable Annuity | 333-83957 | ||
Separate Account VA Q |
Flexible Premium Variable Annuity B | 333-110049 | ||
Separate Account VA W |
Flexible Premium Variable Annuity G | 333-116562 | ||
Separate Account VA X |
Flexible Premium Variable Annuity I | 333-125817 | ||
Separate Account VA Y |
Flexible Premium Variable Annuity J | 333-131987 | ||
Separate Account VA EE |
Flexible Premium Variable Annuity O | 333-149336 | ||
Separate Account VA-2L |
Dreyfus/Transamerica Triple Advantage® Variable Annuity | 333-153773 | ||
Separate Account VA FF |
SecurePath for Life Product | 333-163878 | ||
Separate Account VA GG |
Flexible Premium Variable Annuity Q | 333-169445 | ||
Separate Account VA HH |
Flexible Premium Variable Annuity S | 333-173285 | ||
Separate Account VA M |
Flexible Premium Variable Annuity U | 333-177584 |
IN WITNESS WHEREOF, I have hereunto set my hand this 10th day of January, 2012.
/s/ Craig D. Vermie |
Craig D. Vermie Director, Senior Vice President, Secretary and General Counsel |
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