485BPOS
As filed with the Securities and Exchange Commission on April 25, 2013
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
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| SECURITIES ACT OF 1933 |
| Pre-Effective Amendment No. |
| Post-Effective Amendment No. 6 |
and
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 39
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 Depositor’s Principal Executive Offices)
Depositor’s 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)
Title of Securities Being Registered: Flexible Premium Variable Annuity Policies
It is proposed that this filing become effective:
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immediately upon filing pursuant to paragraph (b) of Rule 485 |
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on May 1, 2013 pursuant to paragraph (b) of Rule 485 |
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60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
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on pursuant to paragraph (a)(1) of Rule
485 |
If appropriate, check the following box:
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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, 2013
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, 2013. 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 SEC’s Public Reference Room in Washington, D.C. You
may obtain information about the operation of the public reference room by calling the SEC at 1-800-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:
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are not federally insured |
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are not endorsed by any bank or government agency |
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are not guaranteed to achieve their goal |
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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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TABLE OF CONTENTS
3
GLOSSARY OF TERMS
Account Value—On or before the annuity date, the account value is equal to the owner’s:
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purchase payments; minus |
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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 |
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interest credited in the fixed account; plus |
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accumulated gains in the variable account; minus |
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losses in the variable account; minus |
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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.
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 Transamerica’s 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.
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.
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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 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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SUMMARY
The sections in this summary correspond to sections in this prospectus, which discuss the topics in more
detail.
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.
You can add as little
as $50 at any time during the accumulation phase. We will not accept purchase payments for new contracts.
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.
The value of the contract
will vary up or down depending upon the investment performance of the subaccounts you choose.
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.
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:
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10% of your purchase payments less surrenders deemed to be from purchase payments; or |
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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.
(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.
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:
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.
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.
This contract has
additional features that might interest you. These include, but are not limited to, the following:
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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. |
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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. |
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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. |
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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. |
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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.” |
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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.” |
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You may generally make transfers and/or change the allocation of additional purchase payments by telephone. We may restrict or eliminate this feature.
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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.” |
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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.
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.
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
800-525-6205
You may check your contract at www.transamericaannuities.com. Follow the logon
procedures. We cannot guarantee that you will be able to access this site.
You should protect your logon information, because on-line (or
telephone) options may be available and could be made by anyone who knows your logon information. We may not be able to verify that the person providing instructions using your logon information 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.
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| Contract Owner Transaction Expenses: |
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| Sales Load On Purchase Payments |
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0% |
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| Maximum Surrender Charge (as a % of purchase payments surrendered)(2) |
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7% |
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| Transfer Fee(3) |
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$0 - $10 |
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| Special Service Fee(4) |
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$0 - $25 |
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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.
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| Annual Service Charge |
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$0 - $35 Per
Contract |
| Variable Account Annual Expenses (as a percentage of average separate
account value): |
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| Base Variable Account Expenses: |
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| Mortality and Expense Risk Fee(5) |
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1.15% |
| Administrative Charge |
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0.15% |
| Total Variable Account Annual Expenses |
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1.30% |
| Optional Variable Account Expenses: |
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| Double Enhanced Death Benefit(6) |
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0.80% |
| Annual Step-Up Death Benefit(7) |
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0.20% |
| Liquidity Rider(8) |
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0.40% |
| Premium Accelerator(9) |
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0.20% |
| Total Variable Account Annual Expenses with Highest Optional Variable
Account Expenses(10) |
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2.50% |
| Annual Optional Rider
Fees(11): |
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| Additional Death Benefit Rider(12) |
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0.25% |
| Additional Death Benefit Rider II(13) |
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0.55% |
| Guaranteed Minimum Benefit Rider(14) No Longer Available |
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0.45% |
The next items shows the lowest and highest total operating expenses charged by underlying fund portfolios for
the year ended December 31, 2012 (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.
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| Total Portfolio Annual Operating Expenses(15): |
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Lowest
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Highest
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| Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other
expenses. |
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0.53% |
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1.53% |
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, 2012, 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:
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| Example |
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1 Year
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3 Years
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5 Years
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10
Years |
| If the contract is surrendered at the end of the applicable time period. |
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$1,097 |
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$1,944 |
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$2,298 |
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$4,505 |
| If the contract is annuitized at the end of the applicable time period Or if you do not surrender your contract. |
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$464 |
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$1,397 |
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$2,298 |
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$4,505 |
For information concerning compensation paid for the sale of the contracts, see “Distributor of the
Contracts.”
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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)
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We may deduct a charge for special services, including overnight delivery, duplicate policies; non-sufficient checks on new business; duplicate 1099
and 5498 tax forms; duplicate disclosure documents and semi-annual reports; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. In addition, we may consider as special services
customer initiated changes, modifications and transactions which are submitted in such a manner as to require the Company to incur additional processing costs. |
| (5) |
The mortality and expense risk fee shown (1.15%) is for the accumulation phase with the “Return of Premium Death Benefit.”
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| (6) |
The fee for the “Double Enhanced Death Benefit” (0.80%) is in addition to the mortality and expense risk and administrative fees.
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| (7) |
The fee for the “Annual-Step Death Benefit” (0.20%) is in addition to the mortality and expense risk and administrative fees.
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| (8) |
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. |
| (9) |
The Premium Accelerator fee (0.20%) is only deducted in the first nine contract years. |
| (10) |
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. |
| (11) |
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. |
| (12) |
The annual Additional Death Benefit Rider fee is 0.25% of the account value and is deducted only during the accumulation phase.
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| (13) |
The annual Additional Death Benefit Rider II fee is 0.55% of the account value and is deducted only during the accumulation phase.
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| (14)
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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. |
| (15) |
The fee table information relating to the underlying fund portfolios is for the year ending December 31, 2012 (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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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.
Contract Issue Requirements
Transamerica will not accept purchase payments for new contracts.
Additional Purchase Payments
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 Administrative Office. Your check must be honored in order for Transamerica to pay any
associated payments and benefits due under the contract.
13
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.
Account Value
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.
The Variable Account
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.
14
You should not expect the investment results of the underlying fund portfolios to be the same as those of
other underlying fund portfolios.
More detailed information, including an explanation of the underlying fund portfolio’s 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 adviser’s or sub-adviser’s reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying fund portfolio or its
service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates. For additional information about these arrangements, see “Revenue We Receive.” We review the portfolios
periodically and may remove a portfolio, or limit its availability to new premiums and/or transfers of cash value if we determine that a portfolio no longer satisfies one or more of the selection criteria, and/or if the portfolio has not attracted
significant allocations from owners. We have included the Transamerica Series Trust (“TST”) underlying fund portfolios at least in part because they are managed by one of our affiliates, Transamerica Asset Management, Inc.
(“TAM”).
We have developed this variable annuity product in cooperation with 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 portfolio’s prospectus, statement of additional information and annual and semi/annual reports. Other sources such as the Fund’s website or newspapers and
financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a Fund or underlying fund portfolio. After you select underlying fund portfolios for your initial
premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate.
You bear the risk of
any decline in the cash value of your policy resulting from the performance of the underlying fund portfolios you have chosen.
We do not
recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.
We do not guarantee that any of the
subaccounts will always be available for 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.
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
15
investments. Transamerica reserves the right to eliminate the shares of any portfolio held by a subaccount 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 Transamerica’s 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.
The Fixed Account
Purchase payments allocated and amounts transferred to the fixed account become part of Transamerica’s general account. Interests in the general
account have not been registered under the Securities Act of 1933 (the “1933 Act”), nor is the general account registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are
generally subject to the provisions of the 1933 or 1940 Acts.
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
16
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 Transamerica’s other general assets. The amount of money you are able to accumulate in the fixed account during the accumulation phase depends upon the total interest credited. The amount of 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.
Transfers
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 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.
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.
17
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 portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”); |
| (2) |
an adverse effect on portfolio management, such as: |
| |
(a) |
impeding a portfolio manager’s ability to sustain an investment objective; |
| |
(b) |
causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or |
| |
(c) |
causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the
underlying fund portfolio; and |
| (3) |
increased brokerage and administrative expenses.
|
These costs are borne by all 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 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
18
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 portfolio’s operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that
purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the
transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers
we permit. Because determining whether to impose any such special restrictions depends on our judgment and discretion, it is possible that some contract owners could engage in disruptive trading that is not permitted for others. We also reserve the
right to reverse a potentially harmful transfer if an underlying fund portfolio refuses or reverses our order; in such instances some 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 TST 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.
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
19
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 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
20
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.
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.
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.
Surrender Charges
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.
21
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. |
Excess Interest Adjustment
Surrenders and transfers from the
fixed account may be subject to an excess interest adjustment. This adjustment could retroactively reduce the interest credited in the fixed account to the guaranteed minimum or increase the amount credited. This adjustment may also apply to amounts
applied to an annuity payment option. See “The Fixed Account” in Section 3.
22
Transfer Fee
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.
Special Service Fees
We will deduct a charge for special services you request.
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.
Administrative Charges
We deduct a daily administrative charge to cover the costs of administering the contract (including certain
distribution–related 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.
Premium Taxes
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.
Initial Payment Guarantee
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.
23
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.
Liquidity Rider
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.
Premium
Accelerator
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.
Portfolio Fees and Expenses
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.
Revenue We Receive
This prospectus describes generally the payments that we (and/or our affiliates) may directly or indirectly receive from the underlying fund portfolios, their
advisers, subadvisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other 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 certain 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. |
| • |
|
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 |
24
| |
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) |
| 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% |
|
Transamerica Series Trust(2) |
|
0.25% |
| |
(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 funds invested in subaccounts that are closed to new
investments, depending on the terms of the agreements supporting those payments and on the services provided. |
| |
(2) |
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 subaccounts that 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 2012 we received $112,349,723.11 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.
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. |
Surrenders
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.
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.
25
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 owner’s account.
If these laws apply in a particular situation, we would not be allowed to pay any request for withdrawals, surrenders, or death benefits, make transfers, or continue making annuity payments absent instructions from the appropriate federal regulator.
We may also be required to provide information about you and your 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.
Excess Interest Adjustment
Money that you transfer out of or surrender from a guaranteed period option of the fixed account before the end of its guaranteed period (the number of years you specified the money would remain in the
guaranteed period option) may be subject to an excess interest adjustment. At the time you request a transfer or surrender (either full or partial), if interest rates set by 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.
26
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.
Signature Guarantees
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
owner’s account. PLEASE NOTE: This requirement will not apply to requests made in connection with exchanges of one annuity for another with the same owner in a “tax-free exchange”;
|
| • |
|
Any surrender when the Company does not have an originating or guaranteed signature on file; |
| • |
|
Any other transaction where we require. |
We may change the specific requirements listed above, or add signature guarantees in other circumstances, 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 |
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.
(THE INCOME PHASE)
You can generally change the annuity commencement date by giving us 30 days notice with the new date or age.
The latest annuity commencement date generally cannot be after the date specified in your policy unless a later date is agreed to by us. 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).
27
Unless you specify otherwise, the annuitant will receive the annuity payments. After the annuitant’s
death, the beneficiary will receive any remaining guaranteed payments.
Annuity Payment Options
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 1—Income 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 2—Income 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 3—Life
Income. You may choose between:
| • |
|
No Period Certain (fixed or variable)—Payments will be made only during the annuitant’s lifetime. |
| • |
|
10 Years Certain (fixed or variable)—Payments will be made for the longer of the annuitant’s lifetime or ten years.
|
| • |
|
Guaranteed Return of Contract Proceeds (fixed only)—Payments will be made for the longer of the annuitant’s lifetime or until the total
dollar amount of payments we made to you equals the amount applied to this option. |
| • |
|
Life with Emergency
Cash® (fixed or variable)—Payments will be made during the annuitant’s 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
|
28
| |
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 4—Joint 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 or we may limit certain options to ensure they comply with applicable tax law provisions.
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; |
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 person’s beneficiary, or their present value may be paid in a single sum.
|
29
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 payee’s 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) or a later date if agreed to by us. If you do not elect an annuity payment option, the default option will generally be Option 3 Life with 10 Years Certain subject to certain
exceptions for qualified policies, and all optional benefits (including guaranteed minimum death benefits and living benefits) will terminate.
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 Office of satisfactory proof of the annuitant’s death, written directions 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”). For policies with multiple beneficiaries, we may require due proof of death from all beneficiaries before paying the death
proceeds. Please note, we may be required to
remit the death benefit proceeds to a state prior to receiving “due proof of death.” See Section 11. OTHER INFORMATION – Abandoned or Unclaimed Property.
Please note: Such due proof of death must be submitted in good order to avoid a delay in processing the death benefit claim. Due proof requires
selecting a payment option. See Section 11. OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order.
The
death benefit proceeds remain invested in the separate account in accordance with the allocations made by the policy owner until the beneficiary has provided us with due proof of death. Once the Company receives due proof of death, then investment
in the separate account may be reallocated in accordance with the beneficiary’s instructions.
The Company may permit the beneficiary to
give a “one-time” written instruction to reallocate the investments in the separate account to the money market fund after the death of the annuitant. If there is more than one beneficiary, all beneficiaries must agree to the reallocation
instructions. This one-time reallocation will be permitted if the beneficiary provides satisfactory evidence of the annuitant’s death.
When We Pay A Death Benefit
We will pay a death benefit IF:
| • |
|
you are both the annuitant and sole owner of the 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. |
If the only person receiving the death benefit is the surviving spouse of the owner, then he or she if eligible, 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.
30
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 owner’s 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.
Deaths After the Annuity Date
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. |
Succession of Ownership
If any owner dies during the accumulation phase, the annuitant will become the new owner.
Amount of Death Benefit
Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum or as annuity payments. The amount of the death
benefit depends on the guaranteed minimum death benefit option 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.
| 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
|
31
| |
• |
|
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 annuitant’s date of death or the annuitant’s 81st birthday. |
| 2. |
On each contract anniversary before annuitant’s 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 annuitant’s death or the
annuitant’s 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 annuitant’s 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 annuitant’s death or the
annuitant’s 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.
Adjusted Partial Surrender
When you request a partial surrender, your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial surrender. Under certain circumstances, the adjusted partial surrender
may be more than the dollar amount of your surrender request. This will generally be the case if the guaranteed minimum death benefit exceeds the 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.
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. The federal income tax consequences discussed herein reflects our understanding of current law,
and the law may
32
change. No representation is made regarding the likelihood of continuation of the present federal
income tax law or of the current interpretations by the Internal Revenue Service. 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.
Introduction
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 (the “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 withdrawn. 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. Thus, the owner must generally include in income any increase in the account value over the investment in the contract during each taxable year.
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.
If you purchase the contract as an individual retirement annuity or as part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan), or an employer sponsored retirement
program, your contract is referred to as a qualified 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. To the extent there is a
conflict between a plan’s provisions and a contract’s provisions, the plan’s provisions will control.
If you purchase the contract other than as part of any arrangement described in the preceding paragraph, the contract is referred to as a nonqualified contract.
You will generally not be taxed on increases in the value of your contract, whether qualified or non-qualified, until a distribution occurs (either as a
surrender, withdrawal, or as annuity payments). Under certain circumstances, however, you may be subject to current taxation if you assign or pledge or enter into an agreement to assign or pledge any portion of the contract.
The Internal Revenue Service (“IRS”) has not reviewed the contract for qualification as an IRA annuity, 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 from a qualified plan/or contract.
Taxation of Us
We are at present taxed
as a life insurance company under part I of Subchapter L of the Code. The separate account is treated as part of us 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. We may
benefit from any dividends received
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or foreign tax credits attributable to taxes paid by certain underlying funds to foreign jurisdictions to the extent permitted under federal tax law.
Tax Status of the Contract
Diversification Requirements. In order for a non-qualified variable contract which is based on a segregated asset account to qualify as an annuity
contract under Section 817(h) of the Code, the investments made by such account must be “adequately diversified” in accordance with Treasury Regulations. The Regulations apply a diversification requirement to each of the subaccounts.
Each 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 but we do not have control over the underlying fund portfolio companies. The contract owners bear the risk that the entire contract could be disqualified as an annuity contract under
the Code due to the failure of a subaccount to be deemed to be “adequately diversified.”
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. In
Revenue Ruling 2003-91, the IRS stated that whether the owner of a variable contract is to be treated as the owner of the assets held by the insurance company under the contract will depend on all of the facts and circumstances.
Revenue Ruling 2003-91 also gave an example of circumstances under which the owner of a variable contract would not possess sufficient control over the
assets underlying the contract to be treated as the owner of those assets for federal income tax purposes. To the extent the circumstances relating to the issuance and ownership of a contract vary from those
described in Revenue Ruling 2003-91, owners bear the risk that they will be treated as the owner of Separate Account assets and taxed accordingly.
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. Concerned owners should consult their own tax
advisers regarding the tax matter discussed above.
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 starting 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 owner’s death. If any owner dies before the
annuity starting date, the entire interest in the contract must generally be distributed within 5 years after such owner’s date of death or be used to provide payments to a designated beneficiary beginning within one year of such owner’s
death that will be made for the life of the beneficiary or for a period not extending beyond the life expectancy of the beneficiary. However, if upon such owner’s death prior to the annuity starting date, such owner’s surviving spouse is
the sole beneficiary, under the nonqualified contract, then the contract may be continued with the surviving spouse as the new owner. If any owner is not a natural person (except in the case of certain grantor trusts), 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.
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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 the spousal continuation provisions of this contract or any riders by
persons who do not meet the definition of “spouse” under federal law—e.g., civil union partners and same-sex marriage spouses—may have adverse tax consequences. Consult a tax adviser for more information on this subject.
Taxation of Annuities
The
following discussion assumes the contract qualifies as an annuity contract for federal income tax purposes.
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 contract 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 contract
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. A contract owned by a trust using the grantor’s social security number as its taxpayer identification number will be treated
as owned by the grantor (natural person) for the purposes of our application of Section 72 of the Code. Consult a tax adviser for more information on how this may impact your contract.
Different Individual Owner and Annuitant
If the owner and annuitant on the contract are
different individuals, there may be negative tax consequences to the owner and/or beneficiaries under the contract if the annuitant predeceases the owner including, but not limited, to the assessment of penalty tax and the loss of certain death
benefit distribution options. You may wish to consult your legal counsel or tax adviser if you are considering designating a different individual as the annuitant on your contract to determine the potential tax ramifications of such a designation.
Annuity Starting Date
This
section makes reference to the annuity starting date as defined in Section 72 of the Code and the applicable regulations. Generally, the definition of annuity starting date will correspond with the definition of annuity commencement date used
in your contract and the dates will be the same. However, in certain circumstances, your annuity starting date and annuity commencement date will not be the same date. If there is a conflict between the definitions, we will interpret and apply the
definitions in order to ensure your contract maintains its status as an annuity contract for federal income tax purposes. You may wish to consult a tax adviser for more information on when this issue may arise.
Taxation of 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.
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In general, the excludable portion of each annuity payment you receive will be determined as follows:
| • |
|
Fixed payments-by dividing the “investment in the contract” on the annuity starting date by the total expected return under the contract
(determined under Treasury regulations) for the term of the payments. This is the percentage of each annuity payment that is excludable. |
| • |
|
Variable payments-by dividing the “investment in the contract” on the annuity starting 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 contract’s entire “investment in the
contract” to each such option, for purposes of determining the excludable amount of each payment received under that option. We advise you to consult a competent tax adviser as to the potential tax effects of allocating amounts to any
particular annuity payment option.
If, after the annuity starting date, annuity payments stop because an annuitant died, the excess (if any)
of the “investment in the contract” as of the annuity starting 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.
Taxation of Surrenders and Partial Withdrawals-Nonqualified Contracts
When you surrender your contract, you are generally taxed on the amount that your surrender proceeds
exceeds the “investment in the contract,” which is generally your premiums paid (adjusted for any prior surrenders or portions thereof that were not taxable). Partial withdrawals are
generally treated first as taxable income to the extent of the excess in the contract over the “investment in the contract.” In general, loans, pledges, and assignments are taxed in the same manner as partial withdrawals and surrenders.
All taxable amounts received under a contract are subject to tax at ordinary rather than capital gain tax rates.
If your contract 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 adviser.
The 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 surrender withdrawals will be exempt from the penalty tax. They include, among others, any amounts: (1) paid on or after the taxpayer reaches age 59 1/2; (2) paid after an owner dies; (3) paid if the taxpayer becomes disabled (as that term is defined in the Code); (4) paid in a series of substantially equal payments made annually (or more
frequently) over the life of the taxpayer or the joint life of the taxpayer and the taxpayer’s designated beneficiary; (5) paid under an immediate annuity; or (6) which come from premium payments made prior to August 14, 1982.
Other exceptions may be applicable under certain circumstances and special rules may be applicable in connection with the exceptions
enumerated above. You may wish to consult a tax adviser for more information regarding the imposition of penalty tax.
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Guaranteed Lifetime Benefits
For contracts with a guaranteed lifetime benefit the application of certain tax rules, particularly those rules relating to distributions from your contract, are not entirely clear. The tax rules for
qualified contracts may impact the value of these optional benefits. Additionally, the actions of the qualified plan as contract holder may cause the qualified plan participant to lose the benefit of the guaranteed lifetime benefit. In view of this
uncertainty, you should consult a tax adviser before purchasing this contract as a qualified contract.
Aggregation
All nonqualified deferred annuity contracts that are issued by us (or our affiliates) to the same owner (contractholder) during any calendar year are
treated as one annuity for purposes of determining the amount includable in the owner’s income when a taxable distribution occurs. If you are considering purchasing multiple contracts from us (or our affiliates) during the same calendar year,
you may wish to consult with your tax adviser regarding how aggregation will apply to your contracts.
Partial Annuitization
Under a new tax provision enacted in 2010, if part of an annuity contract’s value is applied to an annuity option that provides
payments for one or more lives and for a period of at least ten years, those payments may be taxed as annuity payments instead of withdrawals. None of the payment options under the contract is intended to qualify for this “partial
annuitization” treatment and, if you apply only part of the value of the contract to a payment option, we will treat those payments as withdrawals for tax purposes.
Tax-Free Exchanges
Section 1035 of the Code provides that no gain or loss shall be
recognized on the exchange of one annuity contract for another annuity contract or a qualified long-term care insurance contract. Generally, an annuity contract issued in an exchange for another
annuity contract is treated as new for purposes of the penalty and distribution at death rules.
If the initial contribution is made as a result of an exchange or surrender of another annuity contract, we may require that you provide information relating to the federal income tax status of the
previous annuity contract to us.
Revenue Procedure 2011-38 significantly ease the restrictions on partial transfers previously adopted by the
IRS. Under Rev. Proc. 2011-38, a partial exchange will be treated as tax-free under Section 1035 of the Code if there are no distributions, from either annuity, within 180 days of the partial 1035 exchange and annuity payments that satisfy the
newly enacted partial annuitization rule of Section 72(a)(2) of the Code will not be treated as a distribution from either the old or new contract.
Pursuant to interim guidance provided in IRS Notice 2011-68, the IRS confirmed that it is permissible to partially exchange a portion of the cash surrender value of an annuity for a qualified long term
care insurance contract, provided that the requirements of Section 1035 are met. However, further guidance is needed regarding the application of Rev. Proc. 2011-38 to such transfers. Please discuss the tax consequences of any contemplated 1035
exchange transaction with a competent tax adviser.
Medicare Tax
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, trusts, and estates whose income exceeds certain threshold amounts. While distributions from qualified contracts are not
subject to the tax, such distributions may be includible in income for purposes of determining whether certain Medicare Tax thresholds have been met. As such, distributions from
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your qualified contract could cause your other investment income to be subject to the tax. Please consult a tax adviser for more information.
Taxation of Surrenders and Partial Withdrawals-Qualified Contracts
In the case of a withdrawal under a qualified contract (other than from a deferred compensation plan under Section 457 of the Code), 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. If you do not have any non-deductible purchase payments, your investment in the contract will be treated as zero.
The IRS 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 and/or living benefit options and riders elected may need to be considered in calculating minimum required distributions. Consult a competent tax adviser before purchasing an
optional death benefit.
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 which are similar to the penalty exceptions for distributions from nonqualified contracts discussed above. 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.
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: (1) if distributed in a lump sum, these amounts are taxed in the same manner as a full surrender; (2) if distributed via partial
withdrawals, these amounts are taxed in the same manner as partial surrenders; or (3) if distributed under an annuity payment option, these amounts are taxed in the same manner as annuity payments.
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 starting 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.
Separate Account Charges
It is possible that the IRS 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 IRS 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 adviser prior to selecting any optional benefit under the contract.
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
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distribution elects not to have federal income tax withheld. Election forms will be provided at the time distributions are requested or made. The amount of withholding varies according to the
type of distribution. 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 any distribution from such a plan, other than specified distributions such as distributions required by the Code, distributions in a specified annuity form or
hardship distributions. The 20% withholding does not apply, however, to nontaxable distributions or if (i) the employee (or employee’s spouse or former spouse as beneficiary or alternate payee) chooses a “direct rollover” from
the plan to a tax-qualified plan, IRA, Roth IRA or 403(b) tax-sheltered annuity or to a governmental 457 plan that agrees to separately account for rollover contributions; or (ii) a non-spouse beneficiary chooses a “direct rollover”
from the plan to an IRA established by the direct rollover.
Federal Estate, Gift and Generation-Skipping Transfer Taxes
Beginning in 2013, the federal estate tax, gift tax and generation skipping transfer (“GST”) tax exemptions and maximum rates are $5,000,000
indexed for inflation (currently $5,250,000) and 40%, respectively.
There is no guarantee that the transfer tax exemptions and maximum rates
will remain the same in the future. The uncertainty as to how the current law might be modified in coming years underscores the importance of seeking guidance from a competent legal adviser to help ensure that your estate plan adequately addresses
your needs and that of your beneficiaries under all possible scenarios.
Federal Estate Taxes. While no attempt is being made to
discuss the Federal estate tax implications of the contract in detail, 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 decedent’s 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 adviser for more information.
Generation-Skipping Transfer Tax. Under certain circumstances, the 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 Code may require us to deduct the tax from your contract, or from any applicable
payment, and pay it directly to the IRS.
Annuity Purchases by Residents of Puerto Rico
The IRS 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 Non-resident Aliens and Foreign Corporations
The discussion above provided general information (but not tax
advice) regarding U.S. federal income tax consequences to annuity owners that are U.S. persons. Taxable distributions made to owners who are not U.S. persons will generally be subject to U.S. federal income tax withholding at a 30% rate, unless a
lower treaty rate applies. In addition, distributions may be subject to state and/or municipal taxes and taxes that may be imposed by the owner’s country of citizenship or residence. Prospective foreign owners are advised to consult with a
qualified tax adviser regarding U.S., state, and foreign taxation for any annuity contract purchase.
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Foreign Account Tax Compliance Act (“FATCA”)
Beginning in 2014, we may be required to withhold at a rate of 30% under FATCA on certain distributions to foreign financial institutions and
non-financial foreign entities holding accounts on behalf of and/or the assets of U.S. persons unless the foreign entities provide us with certain certifications regarding their status under FATCA on the applicable IRS forms. Prospective foreign
entities are advised to consult with a competent tax adviser regarding the application of FATCA to their particular situation.
Qualified
Contracts
The qualified contract is designed for use with several types of tax-qualified retirement plans which are
briefly described below. 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. The distribution rules under
Section 72(s) of the Code do not apply to annuities provided under a plan described in Sections 401(a), 403(a), 403(b), 408 or 408A of the Code or to an annuity that is a qualified funding asset as defined in the Code Section 130(d) of the
Code. 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.
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 premium payments for any calendar year may not exceed the amount specified in the Code for the year, except in the case of a rollover
amount or contribution under Section 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) or 457(e)(16) of the Code; (iv) annuity payments or partial surrenders according to the requirements in the IRS regulations 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 contract 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.
SIMPLE and SEP IRAs are types of IRAs that allow employers to contribute to IRAs on behalf of their employees. SIMPLE IRAs permit certain small employers to establish SIMPLE plans as provided by section
408(p) of the Code, under which employees may elect to defer to a SIMPLE IRA a specified percentage of compensation. The sponsoring employer is required to make matching or non-elective contributions on behalf of employees. Distributions from SIMPLE
IRAs are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income. Subject to certain exceptions, premature distributions prior to age 59 1/2 are subject to a 10 percent penalty tax, which is increased to 25 percent if the distribution occurs within the first
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two years after the commencement of the employee’s participation in the plan. SEP IRAs permit employers to make contributions to IRAs on behalf of their employees, up to a specified dollar
amount for the year and subject to certain eligibility requirements as provided by Section 408(k) of the Code. Distributions from SEP IRAs are subject to the same restrictions that apply to IRA distributions and are taxed as ordinary income.
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, a traditional IRA or other allowed qualified
plan. A rollover from or conversion of an IRA to a Roth IRA may be subject to tax. The ability to make cash contributions to Roth IRAs 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 one of the following 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. Please note that specific tax ordering rules apply to Roth IRA distributions. Unlike the traditional IRA, there are no minimum required distributions during the owner’s lifetime; however,
required distributions at death are generally the same as for traditional IRAs.
Section 403(b) Plans. Under
Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase 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 premium payments or the contract value. Additionally, in accordance with the requirements of the Code, Section 403(b) annuities generally may not permit distribution of (i) elective contributions made in years
beginning after December 31, 1988, and (ii) earnings on those contributions, and (iii) earnings on amounts attributed to elective contributions held as of the end of the last year beginning before January 1, 1989. Distributions
of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59 1/2, severance from employment, disability, or financial hardship, except that income attributable to elective contributions
may not be distributed in the case of hardship. These rules may prevent the payment of guaranteed withdrawals under a guaranteed lifetime withdrawal benefit prior to age 59 1/2. For contracts issued after 2008, amounts attributable to non-elective contributions may be subject to distribution restrictions specified in the employer’s section 403(b) plan.
Employers using the contract in connection with Section 403(b) plans may wish to consult with their tax adviser.
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 record keeper, and other product providers.
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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. Contributions to and
distributions from such plans are limited by the Code and may be subject to penalties.
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. 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. Contributions to and distributions
from such plans are limited by the Code and may be subject to penalties.
Ineligible Owners-Qualified
We currently will not issue new contracts to/or for the following plans: 403(a), 403(b), 412(i)/412(e)(3), 419, 457 (we will in certain limited
circumstances accept 457(f) plans), employee stock ownership plans, Keogh/HR-10 plans and any other types of plans at our sole discretion.
Qualified Plan Distributions
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 is a “5 percent owner” (as defined in the Code), or in the case of an IRA (other than a Roth IRA which is
not subject to the lifetime required minimum distribution rules), distributions generally must begin no later than April 1 of the year following 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.
The Code generally requires that interest in a qualified contract be non-forfeitable. If your contract contains a bonus rider with a recapture,
forfeiture, or “vesting” feature, it may not be consistent with those requirements. Consult a tax adviser before purchasing a bonus rider as part of a qualified contract.
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.
Possible Tax Law Changes
Although the likelihood of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the 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.
42
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.
Systematic Withdrawal Option
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.
Initial Payment Guarantee
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.
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.
43
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 (“ADB”) 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 ADB Rider is only available for issue ages through age
80.
ADB Rider Amount. The ADB 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 ADB Rider is equal to:
| • |
|
the ADB 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 ADB 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 ADB Rider after you purchased
the contract, rider earnings do not include any gains before the 1035 exchange or the date the ADB Rider was added to your contract.
The ADB
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 ADB Rider will be considered.
Please see Appendix D for an example which illustrates the ADB Rider payable as well as the effect of a partial surrender on the ADB 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 ADB Rider Amount, the spouse will receive a
one-time account value increase equal to the ADB 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 if the ADB Rider is still being
offered.
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 ADB 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
|
44
| • |
|
the ADB Rider is paid or added to the account value under a spousal continuation. |
Once terminated, the ADB Rider may be re-elected if still being offered, however, a new rider will be issued and the ADB 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 ADB 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 (“ADB-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 ADB-II rider is available only for issue ages through age 75.
ADB-II Amount. The ADB-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 ADB- 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.
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 if the ADB-II is still being offered.
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.
|
45
Once terminated, the ADB-II may not be re-elected if still being offered 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 ADB-II may vary for certain contracts and may not be available for all contracts.
Liquidity Rider
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.
Premium Accelerator Rider
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.
46
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 annuitant’s spouse if the owner is not a natural person.
You may exercise this benefit at any time (during the accumulation phase). There is no charge for this benefit.
There is no restriction on the maximum amount you may surrender under this benefit.
This benefit may vary for certain contracts and may not be available for all contracts.
Unemployment Waiver
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.
|
47
You must provide written proof from your State’s Department of Labor, which verifies that you qualify
for and are receiving unemployment benefits at the time of surrender.
You may select this benefit at any time (during the accumulation phase)
and there is no charge for this benefit.
This benefit is also available to the annuitant or annuitant’s spouse if the owner is not a
natural person. There is no charge for this benefit.
There is no 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.
Telephone Transactions
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.
Dollar Cost
Averaging Program
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.
There are two Dollar
Cost Averaging programs available under your contract:
| • |
|
Traditional—You may specify the dollar amount to be transferred or the number of transfers. Transfers will begin as soon as the program is
started. |
| • |
|
Special—You 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
48
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; |
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.
Asset Rebalancing
During the accumulation phase you can instruct us to automatically rebalance the amounts in your subaccounts to maintain your desired asset allocation. This feature is called Asset Rebalancing and can be
started and stopped at any time. However, we will not rebalance if you are in the Dollar Cost Averaging program or if any other transfer is requested. If a transfer is requested, we will honor the requested transfer and discontinue Asset
Rebalancing. New instructions are required to start Asset Rebalancing. Asset Rebalancing ignores amounts in the fixed account. You can choose to rebalance monthly, quarterly, semi-annually, or annually.
49
There is no charge for this benefit.
Ownership
You, as owner of the contract, exercise all rights under the contract. You can generally change the owner at any time
by notifying us in writing at our Administrative Office. There may be limitations on your ability to change the ownership of a qualified policy. An ownership change may be a taxable event.
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 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 Office) within the applicable time period. The contract will then be deemed void.
Sending Forms and Transaction Requests in Good Order
We cannot process your requests for transactions relating to the Contract until they are received in good order. “Good order” means the actual receipt of the instructions relating to the
requested transaction in writing (or, when appropriate, by telephone or electronically), along with all forms, information and supporting legal documentation necessary to effect the transaction. This information and documentation
generally includes to the extent applicable to the transaction: your completed application; the Contract number; the transaction amount (in dollars or percentage terms); the names and allocations
to and/or from the Subaccounts affected by the requested transaction; the signatures of all Contract Owners (exactly as registered on the Contract), if necessary; Social Security Number or Tax I.D.; and any other information or supporting
documentation that we may require, including any spousal or Joint Owner’s consents. With respect to purchase requests, “good order” also generally includes receipt of sufficient funds to affect the purchase. We may, in our sole
discretion, determine whether any particular transaction request is in good order, and we reserve the right to change or waive any good order requirement at any time.
“Received” or receipt in good order generally means that everything necessary must be received by us, at our Administrative Office specified in the Definition of Special Terms, However, in
certain cases where applications or transaction request is transmitted electronically through or by a broker/dealer, “receipt” can mean the point in time when the application or transaction request is electronically transmitted by the
broker/dealer (or other financial intermediary), provided that we actually receive the application or transaction request promptly in good order. We reserve the right to reject electronic transactions that do not meet our requirements.
Assignment
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.
50
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 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.
51
State insurance regulators also require insurance companies to maintain a minimum amount of capital, which
acts as a cushion in the event that the insurer suffers a financial impairment, based on the inherent risks in the insurer’s operations. These risks include those associated with losses that we may incur as the result of defaults on the payment
of interest or principal on our general account assets, which include bonds, mortgages, general real estate investments, and stocks, as well as the loss in market value of these investments.
How to Obtain More Information. We encourage both existing and prospective Policy Owners to read and understand our financial statements.
We prepare our financial statements on a statutory basis. Our financial statements, which are presented in conformity with accounting practices prescribed or permitted by the Iowa Department of Commerce, Insurance Division – as well as the
financial statements of the 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 Office referenced in this
prospectus. In addition, the SAI is available on the SEC’s website at http://www.sec.gov. Our financial strength ratings can be found on our website.
The Variable Account
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 Transamerica’s other income, gains or losses.
The assets of the
variable account are held in Transamerica’s 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.
Mixed and Shared Funding
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.
Exchanges and Reinstatements
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
52
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 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.
Voting Rights
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.
Distribution of the Contracts
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
53
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.
We intend to recoup commissions and other sales expenses
primarily, but not exclusively, through:
| • |
|
the administrative 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.
Abandoned or Unclaimed Property
Every state has unclaimed
property laws that generally provide for escheatment to the state of unclaimed property (including proceeds of annuity, life and other insurance policies) under various circumstances. In addition to the state unclaimed property laws, we may be
required to escheat property pursuant to regulatory demand, finding, agreement or settlement. To help prevent such escheatment, it is important that you keep your contact and other information on file with us up
to date, including the names, contact information and identifying information for owners, insureds, annuitants, beneficiaries and other payees. Such updates should be communicated in a form and
manner satisfactory to us.
Legal Proceedings
We, like other life insurance companies, are subject to regulatory and legal proceedings, including class action lawsuits, in the ordinary course of our business. Such legal and regulatory matters include
proceedings specific to us and other proceedings generally applicable to business practices in the industry in which we operate. In some lawsuits and regulatory proceedings involving insurers, substantial damages have been sought and/or material
settlement payments have been made. Although the outcome of any litigation or regulatory proceeding cannot be predicted with certainty, at the present time, we believe that there are no pending or threatened proceedings or lawsuits that are likely
to have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy.
We are currently being audited on behalf of multiple states’ treasury and controllers’ offices for compliance with laws and regulations
concerning the identification, reporting and escheatment of unclaimed benefits or abandoned funds. The audits focus on insurance company processes and procedures for identifying unreported death claims, and their use of the Social Security Master
Death File to identify deceased policy and contract holders. In addition, we are the subject of multiple state Insurance Department inquiries and market conduct examinations with a similar focus on the handling of unreported claims and abandoned
property. The audits and related examination activity may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the identification of unreported claims and
handling of escheatable property. We do not believe that any regulatory actions or agreements that result
54
from these examinations will have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our
obligations under the policy.
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
Glossary of Terms
The
Contract—General Provisions
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
Independent Registered Public
Accounting Firm
Other Information
Financial Statements
Appendix A - Condensed
Financial Information
Appendix B
Guaranteed Minimum Income Benefit –
Additional Information
55
APPENDIX A
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 |
|
The Dreyfus Corporation |
| 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. |
| 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. |
|
|
|
|
| Opportunistic Small Cap Portfolio |
|
Opportunistic Small Cap Portfolio |
|
The Dreyfus Corporation |
| Investment Objective: 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 & Poor’s® 500 Composite Stock Price Index (S&P
500® Index). |
| Transamerica Series Trust - Service Class(2) |
|
|
| 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. |
56
|
|
|
|
|
| SUBACCOUNT(2) |
|
PORTFOLIO |
|
ADVISOR/SUBADVISOR |
| TA Market Participation Strategy |
|
Transamerica Market Participation Strategy VP |
|
Quantitative Management Associates LLC |
| Investment Objective: Seeks
capital appreciation |
| TA PIMCO Tactical - Balanced |
|
Transamerica PIMCO Tactical – Balanced VP |
|
Pacific Investment Management Company LLC |
| Investment Objective: Seeks a
combination of capital appreciation and income |
| TA PIMCO Tactical - Conservative |
|
Transamerica PIMCO Tactical – Conservative VP |
|
Pacific Investment Management Company LLC |
| Investment Objective: Seeks a
combination of capital appreciation and income |
| TA PIMCO Tactical - Growth |
|
Transamerica PIMCO Tactical – Growth VP |
|
Pacific Investment Management Company LLC |
| Investment Objective: Seeks a
combination of capital appreciation and income |
| TA Vanguard ETF – Balanced(3) |
|
Transamerica Vanguard ETF Portfolio – Balanced VP(3) |
|
AEGON USA Investment Management,
LLC |
| Investment Objective: Balance
capital appreciation and income. |
| TA Vanguard ETF – Conservative(4) |
|
Transamerica Vanguard ETF Portfolio – Conservative VP(4) |
|
AEGON USA Investment Management,
LLC |
| Investment Objective: Current
income and preservation of capital. |
| TA Vanguard ETF – Growth(5) |
|
Transamerica Vanguard ETF Portfolio – Growth VP(5) |
|
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. |
| (2) Some Subaccounts may be available for certain policies and may not be available for all policies. You should work with
your registered representative to decide which subaccount(s) may be appropriate for you based on a thorough analysis of your particular insurance needs, financial objectives, investment goals, time horizons, and risk tolerance. |
| (3) Effective on or about May 1, 2013, formerly portfolio name known as Transamerica Index 50 VP and formerly subaccount name
known as TA Vanguard ETF Index – Balanced. |
| (4) Effective on or about May 1, 2013, formerly portfolio name known as Transamerica Index 35 VP and formerly subaccount name
known as TA Vanguard ETF Index – Conservative. |
| (5) Effective on or about May 1, 2013, formerly portfolio name known as Transamerica Index 75 VP and formerly subaccount name
known as TA Vanguard ETF Index – Growth. |
57
APPENDIX B
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, 2012. 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:
| writing: |
Transamerica Life Insurance Company |
| |
Attention: Customer Care Group |
| |
Cedar Rapids, IA 52499-0001 |
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.013026 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011500 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016940 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002319 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$0.997398 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986966 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990058 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992925 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.984897 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015031 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011623 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019139 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.335537
$1.422934 $1.237108
$0.981483 $1.863447
$1.642755 $1.548751
$1.362102 $1.205665
$1.000000 |
|
$1.474365
$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 0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.386915
$1.307255 $1.164695
$0.976695 $1.424649
$1.366806 $1.205500
$1.186683 $1.160764
$1.000000 |
|
$1.490069
$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 0.000 |
58
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$0.984789 $1.174493 $0.920236 $0.750021 $1.235564 $1.427691 $1.413529
$1.372503 $1.266961 $1.000000 |
|
$1.155076
$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
0.000 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.173120 $1.239478 $1.073949 $0.857056 $1.477374 $1.399814 $1.255088
$1.246372 $1.191613 $1.000000 |
|
$1.347654
$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
0.000 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.527489 $1.840057 $1.718665 $1.410603 $2.508614 $2.201016 $1.833214
$1.641669 $1.354955 $1.000000 |
|
$1.830304
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.324506 $1.671152 $1.643594 $1.289430 $2.114222 $2.085516 $1.746545
$1.602717 $1.370969 $1.000000 |
|
$1.452520
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.176200 $1.128949 $1.069454 $0.956306 $1.026025 $1.018191 $1.004393
$1.006681 $1.001382 $1.000000 |
|
$1.224180
$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
0.000 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$0.944718 $0.968219 $0.992351 $1.015837 $1.015488 $0.992672 $0.972772
$0.971215 $0.987637 $1.000000 |
|
$0.921544
$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
0.000 |
59
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.266325 $1.277224 $1.142982 $0.929474 $1.520159 $1.484296 $1.320501
$1.295964 $1.203814 $1.000000 |
|
$1.426438
$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
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.257314 $1.280339 $1.145668 $0.880023 $1.379038 $1.315139 $1.237124
$1.226842 $1.187097 $1.000000 |
|
$1.369973
$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
0.000 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.180467 $1.287518 $1.168534 $1.015423 $1.624791 $1.620485 $1.370792
$1.334826 $1.227797 $1.000000 |
|
$1.359058
$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
0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.430290 $1.463082 $1.181307 $0.894755 $1.540180 $1.557298 $1.482349
$1.394676 $1.251541 $1.000000 |
|
$1.665072
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.483177 $1.653173 $1.306906 $0.852831 $1.487945 $1.332880 $1.313126
$1.300592 $1.330119 $1.000000 |
|
$1.668911
$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
0.000 |
(1)
Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1,
2013, formerly known as TA Vanguard ETF Index – Growth.
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021034 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019500 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024980 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.010238 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.005291 |
|
0.000 |
60
|
|
|
|
|
|
|
|
|
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990317 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993410 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.996292 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988238 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023061 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019619 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.027195 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.329149
$1.398595
$1.202573
$0.942915
$1.769136
$1.541267
$1.436101
$1.248282
$1.091940
$0.842931 |
|
$1.484781
$1.329149
$1.398595
$1.202573
$0.942915
$1.769136
$1.541267
$1.436101
$1.248282
$1.091940 |
|
20,619.307
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 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.311266
$1.221521
$1.075574
$0.891412
$1.284966
$1.218288
$1.061961
$1.033187
$0.998754
$0.837329 |
|
$1.425566
$1.311266
$1.221521
$1.075574
$0.891412
$1.284966
$1.218288
$1.061961
$1.033187
$0.998754 |
|
884,949.337
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 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$0.829461
$0.977679
$0.757075
$0.609812
$0.992750
$1.133591
$1.109241
$1.064476
$0.971085
$0.748900 |
|
$0.984482
$0.829461
$0.977679
$0.757075
$0.609812
$0.992750
$1.133591
$1.109241
$1.064476
$0.971085 |
|
149,781.358
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 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.053470
$1.100052
$0.942007
$0.742957
$1.265618
$1.185061
$1.050136
$1.030669
$0.973826
$0.780676 |
|
$1.224607
$1.053470
$1.100052
$0.942007
$0.742957
$1.265618
$1.185061
$1.050136
$1.030669
$0.973826 |
|
179,387.531
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 |
61
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.399254
$1.665856
$1.537756
$1.247347
$2.192161
$1.900731
$1.564621
$1.384779
$1.129519
$0.802572 |
|
$1.696605
$1.399254
$1.665856
$1.537756
$1.247347
$2.192161
$1.900731
$1.564621
$1.384779
$1.129519 |
|
35,205.283
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 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.144476
$1.427103
$1.387156
$1.075498
$1.742696
$1.698797
$1.406073
$1.275222
$1.078034
$0.801301 |
|
$1.270039
$1.144476
$1.427103
$1.387156
$1.075498
$1.742696
$1.698797
$1.406073
$1.275222
$1.078034 |
|
203,405.177
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 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.394951
$1.323281
$1.238867
$1.094832
$1.160859
$1.138430
$1.109887
$1.099429
$1.080807
$1.044870 |
|
$1.469150
$1.394951
$1.323281
$1.238867
$1.094832
$1.160859
$1.138430
$1.109887
$1.099429
$1.080807 |
|
1,151,331.088
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 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.045205
$1.058682
$1.072358
$1.084873
$1.071773
$1.035356
$1.002764
$0.989478
$0.994396
$1.000352 |
|
$1.031667
$1.045205
$1.058682
$1.072358
$1.084873
$1.071773
$1.035356
$1.002764
$0.989478
$0.994396 |
|
1,023,207.714
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 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.182755
$1.179004
$1.042741
$0.838028
$1.354472
$1.306942
$1.149142
$1.114620
$1.023219
$0.809430 |
|
$1.348154
$1.182755
$1.179004
$1.042741
$0.838028
$1.354472
$1.306942
$1.149142
$1.114620
$1.023219 |
|
440,385.789
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 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.089166
$1.096162
$0.969400
$0.735914
$1.139638
$1.074032
$0.998515
$0.978656
$0.935828
$0.753859 |
|
$1.200889
$1.089166
$1.096162
$0.969400
$0.735914
$1.139638
$1.074032
$0.998515
$0.978656
$0.935828 |
|
81,691.267
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 |
62
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.065003
$1.148009
$1.029738
$0.884328
$1.398348
$1.378233
$1.152258
$1.108933
$1.008051
$0.796894 |
|
$1.240729
$1.065003
$1.148009
$1.029738
$0.884328
$1.398348
$1.378233
$1.152258
$1.108933
$1.008051 |
|
396,823.841
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 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.310014
$1.324376
$1.056815
$0.791082
$1.345693
$1.344626
$1.264968
$1.176271
$1.043162
$0.803700 |
|
$1.543218
$1.310014
$1.324376
$1.056815
$0.791082
$1.345693
$1.344626
$1.264968
$1.176271
$1.043162 |
|
338,155.271
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 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012 2011 2010
2009 2008 2007
2006 2005 2004
2003 |
|
$1.284316
$1.414790
$1.105381
$0.712882
$1.229139
$1.088089
$1.059442
$1.037076
$1.048150
$0.704948 |
|
$1.462361
$1.284316
$1.414790
$1.105381
$0.712882
$1.229139
$1.088089
$1.059442
$1.037076
$1.048150 |
|
80,270.821
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 |
(1)
Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1,
2013, formerly known as TA Vanguard ETF Index – Growth.
63
APPENDIX C
CONTRACT VARIATIONS
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 |
64
APPENDIX D
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 |
65
APPENDIX E
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 |
66
APPENDIX F
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 annuitant’s 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 annuitant’s 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:
67
| • |
|
Life Income—An 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. |
| • |
|
Joint and Full Survivor—An 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.
68
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
rider 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.
69
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.
70
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE VARIABLE ANNUITY
Issued by
TRANSAMERICA LIFE INSURANCE COMPANY
Supplement Dated May 1,
2013
to the
Prospectus dated May 1, 2013
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, 2013
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, 2013 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, 2013
TABLE OF CONTENTS
2
GLOSSARY OF TERMS
Account Value—On or before the annuity date, the account value is equal to the owner’s:
| • |
|
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 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.
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 Transamerica’s 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 owner’s 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 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.
4
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
Owner
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 Transamerica’s consent; (4) receive annuity payments or name a payee to receive the payments; and (5) exercise, receive and
enjoy every other right and benefit contained in the 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 owner’s estate will become the new owner. If no probate estate is opened because the owner has precluded the opening of a probate estate by
means of a trust or other instrument, that trust may not exercise ownership rights to the 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 owner’s spouse) because the owner dies before the annuitant, the cash value generally must be distributed to the successor owner within five years of the
owner’s death, or payments must be made for a period certain or for the successor owner’s lifetime so long as any period certain does not exceed that successor owner’s life expectancy, if the first payment begins within one year of
your death.
Entire Contract
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.
5
Misstatement of Age or Gender
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.
Excess Interest Adjustment
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 contract’s minimum guaranteed effective
annual interest rate. This is referred to as the excess interest adjustment floor.
The formula that will be used to determine the excess
interest adjustment is:
S* (G-C)* (M/12)
|
|
|
|
|
| S |
|
= |
|
Gross amount being surrendered that is subject to the excess interest adjustment |
| G |
|
= |
|
Guaranteed interest rate in effect for the 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 |
6
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]
7
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. |
8
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 |
9
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 Transamerica’s Administrative 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.
Annuity Payment Options
Note: Portions of the following discussion do not apply to annuity payments under the Initial Payment Guarantee. See the “Stabilized Payments” section of this SAI.
During the lifetime of the annuitant and 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 order at 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.
10
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 annuitant’s 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.
Death Benefit
Adjusted Partial Surrender. If you make a partial surrender (withdrawal), then your guaranteed minimum death benefit is reduced by an amount
called the adjusted partial surrender. The 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. |
11
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.
12
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 deceased’s death, or (2) payments under an annuity payment option must begin no later than one year after the deceased annuitant’s death and must be made for the beneficiary’s lifetime or for a period certain (so
long as any period certain does not exceed the beneficiary’s 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 deceased’s death. If the
sole beneficiary is the deceased’s 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
beneficiary’s consent to such change is not required unless the beneficiary was irrevocably designated or law requires consent. (If an irrevocable beneficiary dies, the owner may then designate a new beneficiary.) The change will take effect as
of the date the owner signs the written notice, whether or not the owner is living when the notice is received by 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.
Death of Owner
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.
Assignment
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 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.
13
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 beneficiary’s creditors.
Ownership under qualified contracts is restricted to comply with the Code.
Evidence of Survival
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.
Non-Participating
The contract will not share in Transamerica’s surplus earnings; no dividends will be paid.
Amendments
No change in the contract is valid unless made in writing by Transamerica and approved by one of Transamerica’s 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.
Employee and Agent Purchases
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”.
Stabilized Payments
If you have selected a payout feature that provides for stabilized payments (e.g., the Initial Payment Guarantee), please note that the stabilized payments remain level throughout each year and are
adjusted on your annuitization anniversary.
14
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.
INVESTMENT EXPERIENCE
A “net investment factor” is used to determine the value of variable accumulation units and variable annuity units,
and to determine annuity payment rates.
15
Variable Accumulation Units
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 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. |
16
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:
17
| (a) |
is the variable annuity unit value for the subaccount on the immediately preceding business day; |
| (b) |
is the net investment factor for that subaccount for the valuation period; and |
| (c) |
is the assumed investment return adjustment factor for the valuation period. |
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:
| |
(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 |
Then, the variable annuity unit value is:
$X * Y * Z = $Q
18
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
HISTORICAL PERFORMANCE DATA
Money Market Yields
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 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:
19
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 Subaccount’s 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.
Total Returns
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 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.
20
Total returns will be calculated using subaccount unit values which Transamerica calculates on each business
day based on the performance of the variable account’s underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. Total return calculations will reflect the effect of surrender charges
that may be applicable to a particular period. The total return will then be calculated according to the following formula:
P (1 + T)N =
ERV
Where:
|
|
|
|
|
| T |
|
= |
|
The average annual total return net of subaccount recurring charges. |
| ERV |
|
= |
|
The ending redeemable value of the hypothetical account at the end of the period. |
| P |
|
= |
|
A hypothetical initial payment of $1,000. |
| N |
|
= |
|
The number of years in the period. |
Other Performance Data
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.
PUBLISHED RATINGS
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 & Poor’s Insurance Ratings Services, Moody’s Investors Service and Fitch Financial Ratings. The purpose of the ratings is to reflect the financial
strength of 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 Best’s Ratings. These ratings reflect their current opinion of the relative financial strength and operating performance
21
of an insurance company in comparison to the norms of the life/health insurance industry. In addition, these ratings may be referred to in advertisements or sales literature or in reports to
owners. These ratings are opinions of an operating insurance company’s financial capacity to meet the obligations of its insurance 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 Transamerica’s contract
liabilities and reserves so that the Division may determine the items are correct. Transamerica’s 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.
ADMINISTRATION
Transamerica performs administrative services for the contracts. These services include issuance of the contracts, maintenance of records concerning the contracts, and certain valuation services.
RECORDS AND REPORTS
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.
DISTRIBUTION OF THE CONTRACTS
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.
TCI as the principal underwriter of the contracts and may enter into agreements with broker-dealers for the distribution of the contracts. During fiscal year 2012, 2011 and 2010, respectively, $370,286,
$333,155, and $349,774 were paid to TCI, as underwriter of the contracts; no amounts were retained by TCI.
22
VOTING RIGHTS
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 person’s 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.
OTHER PRODUCTS
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.
CUSTODY OF ASSETS
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 Transamerica’s 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 Transamerica’s fidelity bond, presently in the amount of $5,000,000, covering the acts of officers and employees of Transamerica.
23
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The financial statements of the Separate Account at December 31, 2012 and for the periods disclosed in the financial
statements, and the statutory-basis financial statements and schedules of Transamerica at December 31, 2012 and 2011, and for each of the three years in the period ended December 31, 2012, 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.
OTHER INFORMATION
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.
FINANCIAL STATEMENTS
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.
24
APPENDIX A
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.
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.013026 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011500 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016940 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002319 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$0.997398 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986966 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990058 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992925 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.984897 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015031 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011623 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019139 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.335537
$1.422934 $1.237108
$0.981483 $1.863447
$1.642755 $1.548751
$1.362102 $1.205665
$1.000000 |
|
$1.474365
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.386915
$1.307255 $1.164695
$0.976695 $1.424649
$1.366806 $1.205500
$1.186683 $1.160764
$1.000000 |
|
$1.490069
$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
0.000 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$0.984789
$1.174493 $0.920236
$0.750021 $1.235564
$1.427691 $1.413529
$1.372503 $1.266961
$1.000000 |
|
$1.155076
$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
0.000 |
25
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.173120
$1.239478 $1.073949
$0.857056 $1.477374
$1.399814 $1.255088
$1.246372 $1.191613
$1.000000 |
|
$1.347654
$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
0.000 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.527489
$1.840057 $1.718665
$1.410603 $2.508614
$2.201016 $1.833214
$1.641669 $1.354955
$1.000000 |
|
$1.830304
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.324506
$1.671152 $1.643594
$1.289430 $2.114222
$2.085516 $1.746545
$1.602717 $1.370969
$1.000000 |
|
$1.452520
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.176200
$1.128949 $1.069454
$0.956306 $1.026025
$1.018191 $1.004393
$1.006681 $1.001382
$1.000000 |
|
$1.224180
$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
0.000 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$0.944718
$0.968219 $0.992351
$1.015837 $1.015488
$0.992672 $0.972772
$0.971215 $0.987637
$1.000000 |
|
$0.921544
$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
0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.266325
$1.277224 $1.142982
$0.929474 $1.520159
$1.484296 $1.320501
$1.295964 $1.203814
$1.000000 |
|
$1.426438
$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
0.000 |
26
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.257314
$1.280339 $1.145668
$0.880023 $1.379038
$1.315139 $1.237124
$1.226842 $1.187097
$1.000000 |
|
$1.369973
$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
0.000 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.180467
$1.287518 $1.168534
$1.015423 $1.624791
$1.620485 $1.370792
$1.334826 $1.227797
$1.000000 |
|
$1.359058
$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
0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.430290
$1.463082 $1.181307
$0.894755 $1.540180
$1.557298 $1.482349
$1.394676 $1.251541
$1.000000 |
|
$1.665072
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011 2010
2009 2008
2007 2006
2005 2004
2003 |
|
$1.483177
$1.653173 $1.306906
$0.852831 $1.487945
$1.332880 $1.313126
$1.300592 $1.330119
$1.000000 |
|
$1.668911
$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
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
27
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
2.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014343 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.012824 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018273 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.003631 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$0.998700 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987515 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990610 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993481 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.985444 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016364 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.012944 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020467 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
|
|
$1.358312
$1.443374
$1.253320
$0.992414
$1.880510
$1.654554
$1.556843
$1.36552
$1.207241
$1.000000 |
|
$1.502451
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
|
|
$1.410595
$1.326990
$1.179968
$0.987577
$1.437700
$1.376622
$1.211799
$1.190571
$1.162282
$1.000000 |
|
$1.518493
$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
0.000 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
|
|
$1.001620
$1.192238
$0.932321
$0.758381
$1.246881
$1.437931
$1.420894
$1.376971
$1.268600
$1.000000 |
|
$1.177128
$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
0.000 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
|
|
$1.193161
$1.258191
$1.088052
$0.866624
$1.490939
$1.409888
$1.261655
$1.250459
$1.193173
$1.000000 |
|
$1.373370
$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
0.000 |
28
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.553588
$1.867834
$1.741199
$1.426325
$2.531609
$2.216829
$1.842784
$1.647027
$1.356725
$1.000000 |
|
$1.865237
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.347124
$1.696375
$1.665148
$1.303790
$2.133570
$2.100476
$1.755651
$1.607947
$1.372760
$1.000000 |
|
$1.480235
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.196297
$1.146000
$1.083481
$0.966965
$1.035423
$1.025499
$1.009634
$1.009963
$1.002692
$1.000000 |
|
$1.247546
$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
0.000 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.960898
$0.982868
$1.005338
$1.027131
$1.024775
$0.999780
$0.977841
$0.974387
$0.988926
$1.000000 |
|
$0.939161
$0.960898
$0.982868
$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
0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.287957
$1.296518
$1.157978
$0.939835
$1.534083
$1.494948
$1.327396
$1.300188
$1.205386
$1.000000 |
|
$1.453651
$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
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.278787
$1.299673
$1.160716
$0.889840
$1.391685
$1.324610
$1.243603
$1.230861
$1.188647
$1.000000 |
|
$1.396103
$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
0.000 |
29
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.200650
$1.306977
$1.183887
$1.026749
$1.639663
$1.632105
$1.377930
$1.339173
$1.016838
$1.000000 |
|
$1.385022
$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
0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.454740
$1.485187
$1.196818
$0.904731
$1.554302
$1.568485
$1.490090
$1.399235
$1.253178
$1.000000 |
|
$1.696868
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.508494
$1.678114
$1.324036
$0.862326
$1.501576
$1.342459
$1.319990
$1.304581
$1.331857
$1.000000 |
|
$1.700738
$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
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
30
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.10% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015674 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014150 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019603 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004946 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.000015 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988077 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.991172 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.994035 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.985997 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017689 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014269 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021802 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.381595
$1.465242
$1.269820
$1.003507
$1.897776
$1.666461
$1.564987
$1.371033
$1.208820
$1.000000 |
|
$1.531217
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.434719
$1.347053
$1.195470
$0.998590
$1.450884
$1.386521
$1.218126
$1.194458
$1.163795
$1.000000 |
|
$1.547504
$1.434719
$1.347053
$1.195470
$0.998590
$1.450884
$1.386521
$1.218126
$1.194458
$1.163795 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.018748
$1.210263
$0.944575
$0.766852
$1.258335
$1.448285
$1.428330
$1.381479
$1.270261
$1.000000 |
|
$1.199613
$1.018748
$1.210263
$0.944575
$0.766852
$1.258335
$1.448285
$1.428330
$1.381479
$1.270261 |
|
0.000
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 |
31
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.10% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.213586
$1.277233
$1.102358
$0.876295
$1.504614
$1.420027
$1.254536
$1.254536
$1.194729
$1.000000 |
|
$1.399641
$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
0.000 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.580199
$1.896121
$1.764124
$1.442269
$2.554864
$2.232799
$1.852440
$1.652425
$1.358506
$1.000000 |
|
$1.900912
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.370188
$1.722046
$1.687044
$1.318349
$2.153161
$2.115603
$1.764851
$1.613213
$1.374554
$1.000000 |
|
$1.508537
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.216780
$1.163365
$1.097752
$0.977778
$1.044956
$1.032912
$1.013293
$1.013293
$1.004010
$1.000000 |
|
$1.271417
$1.216780
$1.163365
$1.097752
$0.977778
$1.044956
$1.032912
$1.013293
$1.013293
$1.004010 |
|
0.000
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 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.977283
$0.997698
$1.018560
$1.038604
$1.034183
$1.006965
$0.982963
$0.977572
$0.990215
$1.000000 |
|
$0.957061
$0.977283
$0.997698
$1.018560
$1.038604
$1.034183
$1.006965
$0.982963
$0.977572
$0.990215 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.310000
$1.316126
$1.173202
$0.950335
$1.548179
$1.505708
$1.334334
$1.304435
$1.206951
$1.000000 |
|
$1.481449
$1.310000
$1.316126
$1.173202
$0.950335
$1.548179
$1.505708
$1.334334
$1.304435
$1.206951 |
|
0.000
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 |
32
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.10% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.300679
$1.319345
$1.175979
$0.899783
$1.404474
$1.334148
$1.250108
$1.234886
$1.190202
$1.000000 |
|
$1.422803
$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
0.000 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.221157
$1.326711
$1.199415
$1.038182
$1.654667
$1.643808
$1.385118
$1.347963
$1.230996
$1.000000 |
|
$1.411444
$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
0.000
18,036.726 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.479652
$1.507665
$1.212561
$0.914827
$1.568550
$1.579753
$1.497874
$1.403803
$1.254809
$1.000000 |
|
$1.729318
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.534331
$1.703531
$1.341475
$0.871977
$1.515386
$1.352134
$1.326904
$1.309118
$8,474.073
$1.000000 |
|
$1.733274
$1.534331
$1.703531
$1.341475
$0.871977
$1.515386
$1.352134
$1.326904
$1.309118
$8,474.073 |
|
0.000
0.000
0.000
9,813.898
12,346.244
9,081.160
9,764.723
0.000
9,337.000
1.333591 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
33
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.90% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017003 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015477 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020948 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006254 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001328 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988629 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.991729 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.994601 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986557 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019031 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015605 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023148 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.405269
$1.487435
$1.286537
$1.014732
$1.915237
$1.678485
$1.573198
$1.375524
$1.210396
$1.000000 |
|
$1.560518
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.459314
$1.367467
$1.211212
$1.009766
$1.464231
$1.396514
$1.224510
$1.198366
$1.165308
$1.000000 |
|
$1.577138
$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
0.000 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 22, 2001 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.036256
$1.228648
$0.957047
$0.775446
$1.269919
$1.458741
$1.435829
$1.386018
$1.271926
$1.000000 |
|
$1.222637
$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
0.000 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
January 22, 2001 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.234388
$1.296587
$1.116867
$0.886096
$1.518450
$1.430274
$1.274906
$1.258666
$1.196302
$1.000000 |
|
$1.426436
$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
0.000 |
34
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.90% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.607287
$1.924848
$1.787338
$1.458389
$2.578338
$2.248876
$1.862141
$1.657837
$1.360279
$1.000000 |
|
$1.937321
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.393710
$1.748178
$1.709296
$1.333124
$2.172995
$2.130878
$1.774112
$1.618509
$1.376355
$1.000000 |
|
$1.537456
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.237641
$1.180989
$1.112198
$0.988707
$1.054571
$1.040344
$1.020255
$1.016607
$1.005320
$1.000000 |
|
$1.295753
$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
0.000 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.994118
$1.012897
$1.032009
$1.050259
$1.043729
$1.014273
$0.988145
$0.980802
$0.991521
$1.000000 |
|
$0.975475
$0.994118
$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
0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 22, 2001 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.332499
$1.336111
$1.188683
$0.960971
$1.562417
$1.516569
$1.341336
$1.308726
$1.208543
$1.000000 |
|
$1.509849
$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
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.322974
$1.339340
$1.191461
$0.909843
$1.417390
$1.343760
$1.256661
$1.238934
$1.191759
$1.000000 |
|
$1.450044
$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
0.000 |
35
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.90% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.242138
$1.346853
$1.215236
$1.049823
$1.669925
$1.655701
$1.392408
$1.347963
$1.232613
$1.000000 |
|
$1.438533
$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
0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.505001
$1.530503
$1.228524
$0.925061
$1.582978
$1.591143
$1.505724
$1.408405
$1.256448
$1.000000 |
|
$1.762418
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.560653
$1.729372
$1.359161
$0.881738
$1.529336
$1.361895
$1.333871
$1.313424
$1.335341
$1.000000 |
|
$1.766490
$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
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
36
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.85% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017346 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015807 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021278 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006593 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001649 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988770 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.991871 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.994744 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986697 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019364 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015940 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023484 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.531443
$1.620193
$1.400669
$1.104201
$2.083069
$1.824664
$1.709367
$1.493861
$1.313882
$1.000000 |
|
$1.701475
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.463721
$1.370932
$1.213679
$1.011334
$1.465780
$1.397314
$1.224601
$1.204998
$1.164242
$0.981374 |
|
$1.582667
$1.463721
$1.370932
$1.213679
$1.011334
$1.465780
$1.397314
$1.224601
$1.204998
$1.164242 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.088039
$1.289408
$1.003881
$0.812987
$1.330747
$1.527850
$1.503119
$1.450263
$1.330242
$1.031439 |
|
$1.284367
$1.088039
$1.289408
$1.003881
$0.812987
$1.330747
$1.527850
$1.503119
$1.450263
$1.330242 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.278981
$1.342771
$1.156091
$0.916776
$1.570253
$1.478330
$1.317097
$1.299686
$1.234690
$0.995174 |
|
$1.478697
$1.278981
$1.342771
$1.156091
$0.916776
$1.570253
$1.478330
$1.317097
$1.299686
$1.234690 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
37
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.85% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.676813
$2.007130
$1.862829
$1.519240
$2.684602
$2.340402
$1.936975
$1.578705
$1.413562
$1.009855 |
|
$2.022123
$1.676813
$2.007130
$1.862829
$1.519240
$2.684602
$2.340402
$1.936975
$1.578705
$1.413562 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.364113
$1.710215
$1.671358
$1.302895
$2.122673
$2.080511
$1.731335
$1.578705
$1.341858
$1.002806 |
|
$1.505549
$1.364113
$1.710215
$1.671358
$1.302895
$2.122673
$2.080511
$1.731335
$1.578705
$1.341858 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.298084
$1.238054
$1.165371
$1.035471
$1.103899
$1.088476
$1.066931
$1.062592
$1.050275
$1.020865 |
|
$1.359714
$1.298084
$1.238054
$1.165371
$1.035471
$1.103899
$1.088476
$1.066931
$1.062592
$1.050275 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.994036
$1.012293
$1.030925
$1.048619
$1.041587
$1.011691
$0.985157
$0.977374
$0.987580
$1.000000 |
|
$0.975882
$0.994036
$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
0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.396673
$1.399781
$1.244716
$1.005793
$1.634494
$1.585757
$1.401851
$1.367104
$1.261826
$1.003599 |
|
$1.583357
$1.396673
$1.399781
$1.244716
$1.005793
$1.634494
$1.585757
$1.401851
$1.367104
$1.261826 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.354880
$1.370959
$1.218984
$0.930400
$1.448686
$1.372749
$1.283144
$1.264427
$1.215676
$0.984585 |
|
$1.485758
$1.354880
$1.370959
$1.218984
$0.930400
$1.448686
$1.372749
$1.283144
$1.264427
$1.215676 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
38
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.85% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.280124
$1.387368
$1.251182
$1.080340
$1.717619
$1.702143
$1.430759
$1.384409
$1.265323
$1.005712 |
|
$1.483250
$1.280124
$1.387368
$1.251182
$1.080340
$1.717619
$1.702143
$1.430759
$1.384409
$1.265323 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.601291
$1.627623
$1.305835
$0.982793
$1.680930
$1.688770
$1.597324
$1.493350
$1.331565
$1.031466 |
|
$1.876100
$1.601291
$1.627623
$1.305835
$0.982793
$1.680930
$1.688770
$1.597324
$1.493350
$1.331565 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.746120
$1.933930
$1.519173
$0.985063
$1.707701
$1.519971
$1.487968
$1.464455
$1.488164
$1.006302 |
|
$1.977394
$1.746120
$1.933930
$1.519173
$0.985063
$1.707701
$1.519971
$1.487968
$1.464455
$1.488164 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
39
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.80% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017676 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016144 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021615 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006923 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001982 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988910 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992006 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.994882 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986837 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019701 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016267 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023820 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.538326
$1.626675
$1.405581
$1.107532
$2.088323
$1.828365
$1.712013
$1.495442
$1.314625
$1.000000 |
|
$1.709962
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.470280
$1.376400
$1.217919
$1.014361
$1.469444
$1.400111
$1.226465
$1.199111
$1.164893
$0.981440 |
|
$1.590554
$1.470280
$1.376400
$1.217919
$1.014361
$1.469444
$1.400111
$1.226465
$1.199111
$1.164893 |
|
0.000
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 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.092935
$1.294579
$1.007413
$0.815457
$1.334120
$1.530966
$1.505448
$1.451797
$1.330986
$1.031504 |
|
$1.290791
$1.092935
$1.294579
$1.007413
$0.815457
$1.334120
$1.530966
$1.505448
$1.451797
$1.330986 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.284776
$1.348194
$1.160190
$0.919553
$1.574236
$1.481347
$1.319148
$1.301064
$1.235390
$0.995239 |
|
$1.486136
$1.284776
$1.348194
$1.160190
$0.919553
$1.574236
$1.481347
$1.319148
$1.301064
$1.235390 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
40
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.80% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.684382
$2.015197
$1.869406
$1.523853
$2.691402
$2.345178
$1.939982
$1.725444
$1.414355
$1.009923 |
|
$2.032245
$1.684382
$2.015197
$1.869406
$1.523853
$2.691402
$2.345178
$1.939982
$1.725444
$1.414355 |
|
0.000
0.000
0.000
0.000
9,488.324
10,190.773
9,446.647
11,015.000
12,526.000
14,356.056 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.370237
$1.717053
$1.677223
$1.306827
$2.128035
$2.084724
$1.733998
$1.580366
$1.342603
$1.002874 |
|
$1.513061
$1.370237
$1.717053
$1.677223
$1.306827
$2.128035
$2.084724
$1.733998
$1.580366
$1.342603 |
|
0.000
0.000
0.000
0.000
10,981.402
11,794.385
10,973.832
11,998.000
13,070.000
15,140.429 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.303932
$1.243024
$1.169470
$1.038599
$1.106686
$1.090681
$1.068577
$1.063714
$1.050868
$1.020939 |
|
$1.366510
$1.303932
$1.243024
$1.169470
$1.038599
$1.106686
$1.090681
$1.068577
$1.063714
$1.050868 |
|
0.000
0.000
0.000
0.000
19,372.979
20,807.221
19,307.757
18,246.000
16,973.000
14,950.567 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.998509
$1.016382
$1.034530
$1.051803
$1.044238
$1.013760
$0.986677
$0.978394
$0.988127
$1.000000 |
|
$0.980762
$0.998509
$1.016382
$1.034530
$1.051803
$1.044238
$1.013760
$0.986677
$0.978394
$0.988127 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.402980
$1.405409
$1.249102
$1.008832
$1.638614
$1.588964
$1.403995
$1.368526
$1.262528
$1.003666 |
|
$1.591297
$1.402980
$1.405409
$1.249102
$1.008832
$1.638614
$1.588964
$1.403995
$1.368526
$1.262528 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.360933
$1.376404
$1.223245
$0.933196
$1.452325
$1.375524
$1.285100
$1.265741
$1.216341
$0.984653 |
|
$1.493123
$1.360933
$1.376404
$1.223245
$0.933196
$1.452325
$1.375524
$1.285100
$1.265741
$1.216341 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
41
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.80% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.285870
$1.392914
$1.255571
$1.083601
$1.721957
$1.705606
$1.432970
$1.385876
$1.266034
$1.005778 |
|
$1.490639
$1.285870
$1.392914
$1.255571
$1.083601
$1.721957
$1.705606
$1.432970
$1.385876
$1.266034 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.608473
$1.634119
$1.310406
$0.985744
$1.685145
$1.692166
$1.599759
$1.494902
$1.332293
$1.031530 |
|
$1.885453
$1.608473
$1.634119
$1.310406
$0.985744
$1.685145
$1.692166
$1.599759
$1.494902
$1.332293 |
|
0.000
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 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.753955
$1.941660
$1.524501
$0.988039
$1.712011
$1.523057
$1.490264
$1.465997
$1.489000
$1.006373 |
|
$1.987252
$1.753955
$1.941660
$1.524501
$0.988039
$1.712011
$1.523057
$1.490264
$1.465997
$1.489000 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
42
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.70% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018341 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016813 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022284 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.007584 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002635 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989191 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992290 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995161 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987114 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020362 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016943 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024489 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.552212
$1.639741
$1.415484
$1.114246
$2.098894
$1.835803
$1.717288
$1.498570
$1.316080
$1.000000 |
|
$1.727104
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.483552
$1.387455
$1.226514
$1.020513
$1.476900
$1.405827
$1.230267
$1.201648
$1.166204
$0.981572 |
|
$1.606507
$1.483552
$1.387455
$1.226514
$1.020513
$1.476900
$1.405827
$1.230267
$1.201648
$1.166204 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.102765
$1.304935
$1.014474
$0.820374
$1.340847
$1.537164
$1.511006
$1.454830
$1.332452
$1.031643 |
|
$1.303689
$1.102765
$1.304935
$1.014474
$0.820374
$1.340847
$1.537164
$1.511006
$1.454830
$1.332452 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.296365
$1.359021
$1.168355
$0.925115
$1.582195
$1.487367
$1.323199
$1.303791
$1.236770
$0.995377 |
|
$1.501014
$1.296365
$1.359021
$1.168355
$0.925115
$1.582195
$1.487367
$1.323199
$1.303791
$1.236770 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
43
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.70% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.699579
$2.031378
$1.882564
$1.533068
$2.705010
$2.354710
$1.945955
$1.729064
$1.415928
$1.010061 |
|
$2.052612
$1.699579
$2.031378
$1.882564
$1.533068
$2.705010
$2.354710
$1.945955
$1.729064
$1.415928 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.382634
$1.730874
$1.689055
$1.314754
$2.138828
$2.093231
$1.739364
$1.583710
$1.344107
$1.003009 |
|
$1.528260
$1.382634
$1.730874
$1.689055
$1.314754
$2.138828
$2.093231
$1.739364
$1.583710
$1.344107 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.315674
$1.252979
$1.177685
$1.044876
$1.112274
$1.095114
$1.071870
$1.065953
$1.052044
$1.021072 |
|
$1.380173
$1.315674
$1.252979
$1.177685
$1.044876
$1.112274
$1.095114
$1.071870
$1.065953
$1.052044 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.007485
$1.024554
$1.041848
$1.058170
$1.049530
$1.017894
$0.989733
$0.980468
$0.989235
$1.000000 |
|
$0.990574
$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
0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.415663
$1.416723
$1.257929
$1.014971
$1.646956
$1.595466
$1.408349
$1.371412
$1.263942
$1.003800 |
|
$1.607266
$1.415663
$1.416723
$1.257929
$1.014971
$1.646956
$1.595466
$1.408349
$1.371412
$1.263942 |
|
0.000
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 January 22, 2001 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.373183
$1.387442
$1.231833
$0.938838
$1.459673
$1.381125
$1.289073
$1.268404
$1.217703
$0.984784 |
|
$1.508056
$1.373183
$1.387442
$1.231833
$0.938838
$1.459673
$1.381125
$1.289073
$1.268404
$1.217703 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
44
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.70% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.297483
$1.404114
$1.264422
$1.090166
$1.730677
$1.712550
$1.437395
$1.388793
$1.267446
$1.005913 |
|
$1.505596
$1.297483
$1.404114
$1.264422
$1.090166
$1.730677
$1.712550
$1.437395
$1.388793
$1.267446 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.622949
$1.647212
$1.319618
$0.991702
$1.693656
$1.699035
$1.604676
$1.498031
$1.333778
$1.031669 |
|
$1.904301
$1.622949
$1.647212
$1.319618
$0.991702
$1.693656
$1.699035
$1.604676
$1.498031
$1.333778 |
|
0.000
0.000
0.000
0.000
0.000
0.00
0.000
0.000
0.000
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.769782
$1.957258
$1.535245
$0.994020
$1.720677
$1.529264
$1.494862
$1.469064
$1.490650
$1.006508 |
|
$2.007155
$1.769782
$1.957258
$1.535245
$0.994020
$1.720677
$1.529264
$1.494862
$1.469064
$1.490650 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
45
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.65% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018679 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017143 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022618 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.007913 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002962 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989330 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992428 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995308 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987256 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020696 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017271 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024831 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.559158
$1.646277
$1.420437
$1.117599
$2.104177
$1.839517
$1.719916
$1.500132
$1.316807
$1.020031 |
|
$1.735697
$1.559158
$1.646277
$1.420437
$1.117599
$2.104177
$1.839517
$1.719916
$1.500132
$1.316807 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.490260
$1.393054
$1.230844
$1.023622
$1.480675
$1.408715
$1.232176
$1.202921
$1.166849
$0.981639 |
|
$1.614562
$1.490260
$1.393054
$1.230844
$1.023622
$1.480675
$1.408715
$1.232176
$1.202921
$1.166849 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.107748
$1.310194
$1.018060
$0.822861
$1.344242
$1.540287
$1.512386
$1.456356
$1.333202
$1.031713 |
|
$1.310224
$1.107748
$1.310194
$1.018060
$0.822861
$1.344242
$1.540287
$1.512386
$1.456356
$1.333202 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.302196
$1.364465
$1.172458
$0.927916
$1.586196
$1.490397
$1.325245
$1.305162
$1.237454
$0.995441 |
|
$1.508515
$1.302196
$1.364465
$1.172458
$0.927916
$1.586196
$1.490397
$1.325245
$1.305162
$1.237454 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
22,137.969 |
46
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.65% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.707240
$2.039536
$1.889202
$1.537718
$2.711871
$2.359503
$1.948966
$1.730892
$1.416724
$1.010125 |
|
$2.062875
$1.707240
$2.039536
$1.889202
$1.537718
$2.711871
$2.359503
$1.948966
$1.730892
$1.416724 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.388863
$1.737814
$1.694996
$1.318722
$2.144206
$2.097468
$1.742036
$1.585358
$1.344852
$1.003075 |
|
$1.535903
$1.388863
$1.737814
$1.694996
$1.318722
$2.144206
$2.097468
$1.742036
$1.585358
$1.344852 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.321604
$1.258022
$1.181834
$1.048038
$1.115095
$1.097349
$1.073519
$1.067065
$1.052625
$1.021145 |
|
$1.387085
$1.321604
$1.258022
$1.181834
$1.048038
$1.115095
$1.097349
$1.073519
$1.067065
$1.052625 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.012057
$1.028645
$1.045507
$1.061361
$1.052176
$1.019962
$0.991250
$0.981486
$0.989783
$0.999153 |
|
$0.995542
$1.012057
$1.028645
$1.045507
$1.061361
$1.052176
$1.019962
$0.991250
$0.981486
$0.989783 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.422044
$1.422419
$1.262357
$1.018036
$1.651111
$1.598712
$1.410528
$1.372873
$1.264655
$1.003871 |
|
$1.615300
$1.422044
$1.422419
$1.262357
$1.018036
$1.651111
$1.598712
$1.410528
$1.372873
$1.264655 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
21,848.148 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.379402
$1.393041
$1.236209
$0.941703
$1.463387
$1.383940
$1.291059
$1.269731
$1.218374
$0.984848 |
|
$1.515636
$1.379402
$1.393041
$1.236209
$0.941703
$1.463387
$1.383940
$1.291059
$1.269731
$1.218374 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
47
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.65% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.303328
$1.409749
$1.268871
$1.093462
$1.735055
$1.716029
$1.439609
$1.390256
$1.268159
$1.005982 |
|
$1.513117
$1.303328
$1.409749
$1.268871
$1.093462
$1.735055
$1.716029
$1.439609
$1.390256
$1.268159 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.630295
$1.653853
$1.324821
$0.994724
$1.697974
$1.702520
$1.607185
$1.499628
$1.334534
$1.031740 |
|
$1.913858
$1.630295
$1.653853
$1.324821
$0.994724
$1.697974
$1.702520
$1.607185
$1.499628
$1.334534 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
21,561.245 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.777749
$1.965100
$1.540639
$0.997021
$1.725023
$1.532367
$1.497167
$1.470618
$1.491485
$1.006573 |
|
$2.017195
$1.777749
$1.965100
$1.540639
$0.997021
$1.725023
$1.532367
$1.497167
$1.470618
$1.491485 |
|
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
48
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019685 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018152 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023631 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.008908 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.003956 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989747 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992854 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995730 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987676 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021710 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018279 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.025846 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.454049
$1.533038
$1.320771
$1.037642
$1.950729
$1.702838
$1.589777
$1.384583
$1.213582
$1.000000 |
|
$1.621091
$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
0.000 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.509954
$1.409392
$1.243453
$1.032574
$1.491400
$1.416816
$1.237448
$1.206280
$1.168378
$1.000000 |
|
$1.638337
$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
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.072241
$1.266328
$0.982520
$0.792957
$1.293463
$1.479906
$1.450956
$1.395136
$1.275264
$1.000000 |
|
$1.270116
$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
0.000 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.277204
$1.336307
$1.146576
$0.906084
$1.546568
$1.451013
$1.288331
$1.266944
$1.199436
$1.000000 |
|
$1.481757
$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
0.000 |
49
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.663075
$1.983843
$1.834912
$1.491328
$2.626148
$2.281539
$1.881790
$1.668769
$1.363860
$1.000000 |
|
$2.012505
$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
0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.442060
$1.801725
$1.754738
$1.363187
$2.213240
$2.161778
$1.792804
$1.629166
$1.379972
$1.000000 |
|
$1.597104
$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
0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.280567
$1.217165
$1.141773
$1.011027
$1.074124
$1.055454
$1.031021
$1.023317
$1.007968
$1.000000 |
|
$1.346005
$1.280567
$1.217165
$1.141773
$1.011027
$1.074124
$1.055454
$1.031021
$1.023317
$1.007968 |
|
0.000
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 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.028573
$1.043901
$1.059440
$1.073928
$1.063052
$1.028971
$0.998548
$0.987257
$0.994129
$1.000000 |
|
$1.013271
$1.028573
$1.043901
$1.059440
$1.073928
$1.063052
$1.028971
$0.998548
$0.987257
$0.994129 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.378657
$1.376984
$1.220246
$0.982625
$1.591330
$1.538544
$1.355452
$1.317332
$1.211705
$1.000000 |
|
$1.568348
$1.378657
$1.376984
$1.220246
$0.982625
$1.591330
$1.538544
$1.355452
$1.317332
$1.211705 |
|
0.000
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 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.368877
$1.380375
$1.223153
$0.930379
$1.443649
$1.363264
$1.269909
$1.247105
$1.194894
$1.000000 |
|
$1.506296
$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
0.000 |
50
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.285247
$1.388132
$1.247570
$1.073519
$1.700878
$1.679723
$1.407081
$1.356839
$1.235847
$1.000000 |
|
$1.494350
$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
0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.557242
$1.577421
$1.261216
$0.945957
$1.612334
$1.614251
$1.521609
$1.417690
$1.259751
$1.000000 |
|
$1.830820
$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
0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.614797
$1.782349
$1.395301
$0.901642
$1.557678
$1.381654
$1.347928
$1.322071
$1.338854
$1.000000 |
|
$1.835022
$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
0.000 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
51
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.45% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020022 |
|
5,243.207 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018486 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023963 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.009242 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004290 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989890 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992993 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995871 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987812 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022044 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018610 |
|
3,412.028 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.026180 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.310233
$1.380722
$1.188963
$0.933628
$1.754316
$1.530621
$1.428284
$1.243330
$1.089233
$0.842088 |
|
$1.461475
$1.310233
$1.380722
$1.188963
$0.933628
$1.754316
$1.530621
$1.428284
$1.243330
$1.089233 |
|
91,610.941
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 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.292660
$1.205969
$1.063449
$0.882662
$1.274242
$1.209918
$1.056224
$1.029121
$0.996304
$0.836505 |
|
$1.403253
$1.292660
$1.205969
$1.063449
$0.882662
$1.274242
$1.209918
$1.056224
$1.029121
$0.996304 |
|
1,124,934.332
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 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.817665
$0.965205
$0.748519
$0.603818
$0.984456
$1.125799
$1.103236
$1.090274
$0.968686
$0.748154 |
|
$0.969034
$0.817665
$0.965205
$0.748519
$0.603818
$0.984456
$1.125799
$1.103236
$1.090274
$0.968686 |
|
428,475.872
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 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.038502
$1.086021
$0.931360
$0.735653
$1.255043
$1.176916
$1.044440
$1.026593
$0.971411
$0.779892 |
|
$1.205418
$1.038502
$1.086021
$0.931360
$0.735653
$1.255043
$1.176916
$1.044440
$1.026593
$0.971411 |
|
511,878.313
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 |
52
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.45% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.379347
$1.644585
$1.520365
$1.235067
$2.173818
$1.887627
$1.556126
$1.379292
$1.126730
$0.801779 |
|
$1.669991
$1.379347
$1.644585
$1.520365
$1.235067
$2.173818
$1.887627
$1.556126
$1.379292
$1.126730 |
|
249,968.563
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 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.128216
$1.408911
$1.371494
$1.064934
$1.728144
$1.687119
$1.398470
$1.270199
$1.075381
$0.800507 |
|
$1.250137
$1.128216
$1.408911
$1.371494
$1.064934
$1.728144
$1.687119
$1.398470
$1.270199
$1.075381 |
|
396,434.367
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 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.375157
$1.306433
$1.224894
$1.084087
$1.151170
$1.130604
$1.103888
$1.095092
$1.078138
$1.043839 |
|
$1.446148
$1.375157
$1.306433
$1.224894
$1.084087
$1.151170
$1.130604
$1.103888
$1.095092
$1.078138 |
|
1,938,234.089
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 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.030346
$1.045217
$1.060254
$1.074234
$1.062833
$1.028248
$0.997350
$0.985577
$0.991945
$0.999366 |
|
$1.015560
$1.030346
$1.045217
$1.060254
$1.074234
$1.062833
$1.028248
$0.997350
$0.985577
$0.991945 |
|
1,830,854.316
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 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.165944
$1.163959
$1.030960
$0.829791
$1.343140
$1.297948
$1.142925
$1.110229
$1.020708
$0.808638 |
|
$1.327016
$1.165944
$1.163959
$1.030960
$0.829791
$1.343140
$1.297948
$1.142925
$1.110229
$1.020708 |
|
913,639.972
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 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.073682
$1.082161
$0.958433
$0.728667
$1.130107
$1.066649
$0.993117
$0.0974799
$0.933524
$0.753110 |
|
$1.182058
$1.073682
$1.082161
$0.958433
$0.728667
$1.130107
$1.066649
$0.993117
$0.0974799
$0.933524 |
|
99,958.818
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 |
53
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.45% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.049880
$1.133372
$1.018107
$0.875632
$1.386653
$1.368734
$1.146008
$1.104555
$1.005558
$0.796103 |
|
$1.221285
$1.049880
$1.133372
$1.018107
$0.875632
$1.386653
$1.368734
$1.146008
$1.104555
$1.005558 |
|
1,436,156.159
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 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.291406
$1.307496
$1.044890
$0.783316
$1.334454
$1.335380
$1.258126
$1.171625
$1.040589
$0.802907 |
|
$1.519033
$1.291406
$1.307496
$1.044890
$0.783316
$1.334454
$1.335380
$1.258126
$1.171625
$1.040589 |
|
652,464.854
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 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.266058
$1.396741
$1.092884
$0.705872
$1.218857
$1.080591
$1.053691
$1.032968
$1.045556
$0.704242 |
|
$1.439435
$1.266058
$1.396741
$1.092884
$0.705872
$1.218857
$1.080591
$1.053691
$1.032968
$1.045556 |
|
175,781.306
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 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
54
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$43.168679
$40.253890
$35.479401
$29.433395
$42.470068
$40.306158
$35.168825
$34.249546
$33.140811
$27.812 |
|
$46.885196
$43.168679
$40.253890
$35.479401
$29.433395
$42.470068
$40.306158
$35.168825
$34.249546
$33.140811 |
|
255,894.563
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 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$70.452281
$83.122829
$64.430450
$51.948583
$84.654356
$96.760742
$94.774944
$91.039643
$83.135053
$64.177 |
|
$83.535962
$70.452281
$83.122829
$64.430450
$51.948583
$84.654356
$96.760742
$94.774944
$91.039643
$83.135053 |
|
37,031.502
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 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$29.098660
$30.415222
$26.071071
$20.582516
$35.096982
$32.895597
$29.178756
$28.666082
$27.111778
$21.756 |
|
$33.792512
$29.098660
$30.415222
$26.071071
$20.582516
$35.096982
$32.895597
$29.178756
$28.666082
$27.111778 |
|
184,748.224
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 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$20.537874
$24.475076
$22.615282
$18.362436
$32.303332
$28.036634
$23.101628
$20.466423
$16.710433
$11.885 |
|
$24.877669
$20.537874
$24.475076
$22.615282
$18.362436
$32.303332
$28.036634
$23.101628
$20.466423
$16.710433 |
|
81,948.309
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 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$14.808050
$18.483083
$17.983369
$13.956824
$22.637498
$22.089225
$18.300986
$16.614190
$14.059011
$10.460 |
|
$16.416338
$14.808050
$18.483083
$17.983369
$13.956824
$22.637498
$22.089225
$18.300986
$16.614190
$14.059011 |
|
181,756.826
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 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$25.303693
$24.027250
$22.516700
$19.918508
$21.140604
$20.752654
$20.25229
$20.081126
$19.760442
$19.122 |
|
$26.623196
$25.303693
$24.027250
$22.516700
$19.918508
$21.140604
$20.752654
$20.25229
$20.081126
$19.760442 |
|
465,481.299
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 |
55
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.40% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$45.130686
$45.031550
$39.866339
$32.071532
$51.886998
$50.115920
$44.108437
$42.825485
$39.352722
$31.161 |
|
$51.391203
$45.130686
$45.031550
$39.866339
$32.071532
$51.886998
$50.115920
$44.108437
$42.825485
$39.352722 |
|
190,997.809
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 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$29.388865
$29.606617
$26.208705
$19.915761
$30.872354
$29.124184
$27.103038
$26.590087
$25.451736
$20.523 |
|
$32.371351
$29.388865
$29.606617
$26.208705
$19.915761
$30.872354
$29.124184
$27.103038
$26.590087
$25.451736 |
|
55,453.323
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 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$11.724710
$12.650901
$11.358706
$9.764400
$15.455384
$15.248072
$12.760567
$12.292854
$11.185612
$8.851 |
|
$13.654748
$11.724710
$12.650901
$11.358706
$9.764400
$15.455384
$15.248072
$12.760567
$12.292854
$11.185612 |
|
669,990.426
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 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$14.912862
$15.091228
$12.054245
$9.032163
$15.379636
$15.382701
$14.485637
$13.483092
$11.969158
$9.231 |
|
$17.550138
$14.912862
$15.091228
$12.054245
$9.032163
$15.379636
$15.382701
$14.485637
$13.483092
$11.969158 |
|
374,689.167
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 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$7.826996
$8.630650
$6.749803
$4.357392
$7.520377
$6.663957
$6.494902
$6.364074
$6.438464
$4.335 |
|
$8.903238
$7.826996
$8.630650
$6.749803
$4.357392
$7.520377
$6.663957
$6.494902
$6.364074
$6.438464 |
|
221,616.019
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 |
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020360 |
|
270,361.403 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018822 |
|
109,312.239 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024308 |
|
3,115.513 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.009577 |
|
19,154.537 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004616 |
|
3,151.790 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990036 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993131 |
|
38,046.515 |
56
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.40% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.996015 |
|
3,169.590 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987957 |
|
3,211.943 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022380 |
|
559,093.397 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018952 |
|
80,935.351 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.026515 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$13.371588
$14.084089
$12.122085
$9.514146
$17.868537
$15.582415
$14.533536
$12.645276
$11.072522
$8.556 |
|
$14.922463
$13.371588
$14.084089
$12.122085
$9.514146
$17.868537
$15.582415
$14.533536
$12.645276
$11.072522 |
|
657,088.945
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 |
| Appreciation Portfolio – Initial Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$44.406829
$41.304761
$36.319470
$30.049175
$43.253484
$40.942145
$35.641053
$34.622873
$33.422396
$27.969 |
|
$48.358114
$44.406829
$41.304761
$36.319470
$30.049175
$43.253484
$40.942145
$35.641053
$34.622873
$33.422396 |
|
1,067,155.570
1,205,243.214
1,311,865.696
1,504,536.765
1,722,711.179
2,123,526.288
2,719,350.369
3,470665.000
4,340,754.000
5,195,190.333 |
| Opportunistic Small Cap Portfolio – Initial Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$72.493648
$85.320344
$65.965689
$53.071075
$86.236431
$98.325236
$96.076039
$92.075988
$83.858469
$64.569 |
|
$86.188169
$72.493648
$85.320344
$65.965689
$53.071075
$86.236431
$98.325236
$96.076039
$92.075988
$83.858469 |
|
259,757.957
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 |
| Growth and Income Portfolio – Initial Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$29.794109
$31.078753
$26.569722
$20.919753
$35.600677
$33.290226
$29.477130
$28.919251
$27.287406
$21.861 |
|
$34.690772
$29.794109
$31.078753
$26.569722
$20.919753
$35.600677
$33.290226
$29.477130
$28.919251
$27.287406 |
|
835,162.610
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 |
| International Equity Portfolio – Initial Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$21.134050
$25.17446
$23.147124
$18.737202
$32.885347
$28.474959
$23.415907
$20.689400
$16.840959
$11.951 |
|
$25.665704
$21.134050
$25.17446
$23.147124
$18.737202
$32.885347
$28.474959
$23.415907
$20.689400
$16.840959 |
|
433,239.392
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 |
57
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.40% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Value Portfolio – Initial Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$15.063618
$18.737000
$18.188838
$14.081857
$22.782630
$22.181979
$18.346912
$16.625294
$14.046184
$10.445 |
|
$16.736088
$15.063618
$18.737000
$18.188838
$14.081857
$22.782630
$22.181979
$18.346912
$16.625294
$14.046184 |
|
384,193.033
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 |
| Quality Bond Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$26.012697
$24.643048
$23.056812
$20.337536
$21.522606
$21.078909
$20.505219
$20.288656
$19.903122
$19.231 |
|
$27.446405
$26.012697
$24.643048
$23.056812
$20.337536
$21.522606
$21.078909
$20.505219
$20.288656
$19.903122 |
|
1,113,078.038
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 |
| Money Market – Initial Class
Sub-Account inception January 4,
1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.397759
$1.417193
$1.436867
$1.455100
$1.438946
$1.391426
$1.348960
$1.332390
$1.340330
$1.3497 |
|
$1.378328
$1.397759
$1.417193
$1.436867
$1.455100
$1.438946
$1.391426
$1.348960
$1.332390
$1.340330 |
|
43,178,890.203
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 |
| Dreyfus Stock Index Fund, Inc. – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$46.434698
$46.215710
$40.807235
$32.753237
$52.839247
$50.907734
$44.692069
$43.285226
$39.671542
$31.34 |
|
$52.996760
$46.434698
$46.215710
$40.807235
$32.753237
$52.839247
$50.907734
$44.692069
$43.285226
$39.671542 |
|
805,857.248
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 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Initial
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$30.220215
$30.368746
$26.820037
$20.332233
$31.441964
$29.581501
$27.467342
$26.878966
$25.662502
$20.651 |
|
$33.369462
$30.220215
$30.368746
$26.820037
$20.332233
$31.441964
$29.581501
$27.467342
$26.878966
$25.662502 |
|
334,168.147
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 |
| Core Value Portfolio – Initial Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$11.909565
$12.821784
$11.484012
$9.853790
$15.591518
$15.350987
$12.831642
$12.340986
$11.213553
$8.854 |
|
$13.898150
$11.909565
$12.821784
$11.484012
$9.853790
$15.591518
$15.350987
$12.831642
$12.340986
$11.213553 |
|
706,007.721
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 |
58
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.40% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| MidCap Stock Portfolio – Initial Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$15.147146
$15.398411
$12.205179
$9.133016
$15.544555
$15.530866
$14.615194
$13.574236
$12.024296
$9.256 |
|
$17.875820
$15.147146
$15.398411
$12.205179
$9.133016
$15.544555
$15.530866
$14.615194
$13.574236
$12.024296 |
|
667,334.901
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 |
| Technology Growth Portfolio – Initial Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$8.060566
$8.862844
$6.916586
$4.448190
$7.669115
$6.778873
$6.590565
$6.437911
$6.498373
$4.365 |
|
$9.190440
$8.060566
$8.862844
$6.916586
$4.448190
$7.669115
$6.778873
$6.590565
$6.437911
$6.498373 |
|
1,369,457.970
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 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
59
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA AEGON Tactical Vanguard ETF – Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021034 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019500 |
|
0.000 |
| TA AEGON Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024980 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.010238 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.005291 |
|
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990317 |
|
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993410 |
|
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.996292 |
|
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988238 |
|
0.000 |
| TA Vanguard ETF – Balanced – Service Class(1)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023061 |
|
0.000 |
| TA Vanguard ETF – Conservative – Service Class(2)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019619 |
|
0.000 |
| TA Vanguard ETF – Growth – Service Class(3)
Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.027195 |
|
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.329149
$1.398595
$1.202573
$0.942915
$1.769136
$1.541267
$1.436101
$1.248282
$1.091940
$0.842931 |
|
$1.484781
$1.329149
$1.398595
$1.202573
$0.942915
$1.769136
$1.541267
$1.436101
$1.248282
$1.091940 |
|
20,619.307
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 |
| Appreciation Portfolio – Service Class
Sub-Account inception
April 5, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.311266
$1.221521
$1.075574
$0.891412
$1.284966
$1.218288
$1.061961
$1.033187
$0.998754
$0.837329 |
|
$1.425566
$1.311266
$1.221521
$1.075574
$0.891412
$1.284966
$1.218288
$1.061961
$1.033187
$0.998754 |
|
884,949.337
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 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$0.829461
$0.977679
$0.757075
$0.609812
$0.992750
$1.133591
$1.109241
$1.064476
$0.971085
$0.748900 |
|
$0.984482
$0.829461
$0.977679
$0.757075
$0.609812
$0.992750
$1.133591
$1.109241
$1.064476
$0.971085 |
|
149,781.358
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 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.053470
$1.100052
$0.942007
$0.742957
$1.265618
$1.185061
$1.050136
$1.030669
$0.973826
$0.780676 |
|
$1.224607
$1.053470
$1.100052
$0.942007
$0.742957
$1.265618
$1.185061
$1.050136
$1.030669
$0.973826 |
|
179,387.531
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 |
60
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.399254
$1.665856
$1.537756
$1.247347
$2.192161
$1.900731
$1.564621
$1.384779
$1.129519
$0.802572 |
|
$1.696605
$1.399254
$1.665856
$1.537756
$1.247347
$2.192161
$1.900731
$1.564621
$1.384779
$1.129519 |
|
35,205.283
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 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.144476
$1.427103
$1.387156
$1.075498
$1.742696
$1.698797
$1.406073
$1.275222
$1.078034
$0.801301 |
|
$1.270039
$1.144476
$1.427103
$1.387156
$1.075498
$1.742696
$1.698797
$1.406073
$1.275222
$1.078034 |
|
203,405.177
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 |
| Quality Bond Portfolio – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.394951
$1.323281
$1.238867
$1.094832
$1.160859
$1.138430
$1.109887
$1.099429
$1.080807
$1.044870 |
|
$1.469150
$1.394951
$1.323281
$1.238867
$1.094832
$1.160859
$1.138430
$1.109887
$1.099429
$1.080807 |
|
1,151,331.088
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 |
| Money Market Portfolio – Initial Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.045205
$1.058682
$1.072358
$1.084873
$1.071773
$1.035356
$1.002764
$0.989478
$0.994396
$1.000352 |
|
$1.031667
$1.045205
$1.058682
$1.072358
$1.084873
$1.071773
$1.035356
$1.002764
$0.989478
$0.994396 |
|
1,023,207.714
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 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.182755
$1.179004
$1.042741
$0.838028
$1.354472
$1.306942
$1.149142
$1.114620
$1.023219
$0.809430 |
|
$1.348154
$1.182755
$1.179004
$1.042741
$0.838028
$1.354472
$1.306942
$1.149142
$1.114620
$1.023219 |
|
440,385.789
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 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.089166
$1.096162
$0.969400
$0.735914
$1.139638
$1.074032
$0.998515
$0.978656
$0.935828
$0.753859 |
|
$1.200889
$1.089166
$1.096162
$0.969400
$0.735914
$1.139638
$1.074032
$0.998515
$0.978656
$0.935828 |
|
81,691.267
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 |
61
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.065003
$1.148009
$1.029738
$0.884328
$1.398348
$1.378233
$1.152258
$1.108933
$1.008051
$0.796894 |
|
$1.240729
$1.065003
$1.148009
$1.029738
$0.884328
$1.398348
$1.378233
$1.152258
$1.108933
$1.008051 |
|
396,823.841
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 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception
May 1, 1998 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.310014
$1.324376
$1.056815
$0.791082
$1.345693
$1.344626
$1.264968
$1.176271
$1.043162
$0.803700 |
|
$1.543218
$1.310014
$1.324376
$1.056815
$0.791082
$1.345693
$1.344626
$1.264968
$1.176271
$1.043162 |
|
338,155.271
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 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003 |
|
$1.284316
$1.414790
$1.105381
$0.712882
$1.229139
$1.088089
$1.059442
$1.037076
$1.048150
$0.704948 |
|
$1.462361
$1.284316
$1.414790
$1.105381
$0.712882
$1.229139
$1.088089
$1.059442
$1.037076
$1.048150 |
|
80,270.821
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 |
(1) Effective on
or about May 1, 2013, formerly known as TA Vanguard ETF Index – Balanced.
(2) Effective on or about May 1, 2013, formerly known as TA Vanguard ETF Index – Conservative.
(3) Effective on or about May 1, 2013, formerly known
as TA Vanguard ETF Index – Growth.
62
APPENDIX B
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 annuitant’s (and joint annuitant’s, 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 SCHEDULES –
STATUTORY BASIS
Transamerica Life Insurance Company
Years Ended December 31, 2012, 2011 and 2010
Transamerica Life Insurance Company
Financial Statements and Schedules – Statutory Basis
Years Ended December 31, 2012, 2011 and 2010
Contents
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, 2012 and 2011, 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, 2012. Our audits also included the
statutory-basis financial statement schedules required by Regulation S-X, Article 7. These financial statements and schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements and schedules based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the
Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
As described in Note 1 to the financial statements, the financial statements have been prepared in conformity with accounting
practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted
accounting principles are described in Note 1. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.
In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S.
generally accepted accounting principles, the financial position of Transamerica Life Insurance Company at December 31, 2012 and 2011, or the results of its operations or its cash flows for each of the three years in the period ended
December 31, 2012.
1
However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all
material respects, the financial position of Transamerica Life Insurance Company at December 31, 2012 and 2011, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2012, 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 response to new accounting standards in 2012, the Company changed its method of accounting for deferred income taxes.
/s/ Ernst & Young LLP
April 3, 2013
2
Transamerica Life Insurance Company
Balance Sheets – Statutory Basis
(Dollars in Thousands, Except per Share Amounts)
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2012 |
|
|
2011 |
|
| Admitted assets |
|
|
|
|
|
|
|
|
| Cash and invested assets: |
|
|
|
|
|
|
|
|
| Cash, cash equivalents and short-term investments |
|
$ |
4,386,102 |
|
|
$ |
3,116,452 |
|
| Bonds: |
|
|
|
|
|
|
|
|
| Affiliated entities |
|
|
40,426 |
|
|
|
62,919 |
|
| Unaffiliated |
|
|
36,681,566 |
|
|
|
39,722,288 |
|
| Preferred stocks: |
|
|
|
|
|
|
|
|
| Affiliated entities |
|
|
7,162 |
|
|
|
7,162 |
|
| Unaffiliated |
|
|
111,471 |
|
|
|
138,596 |
|
| Common stocks: |
|
|
|
|
|
|
|
|
| Affiliated entities (cost: 2012—$961,200; 2011—$921,343) |
|
|
1,440,426 |
|
|
|
1,429,294 |
|
| Unaffiliated (cost: 2012—$167,843; 2011—$198,433) |
|
|
218,026 |
|
|
|
229,973 |
|
| Mortgage loans on real estate |
|
|
5,756,749 |
|
|
|
6,830,030 |
|
| Real estate, at cost less accumulated depreciation (2012—$41,312; 2011—$51,050) |
|
|
|
|
|
|
|
|
| Home office properties |
|
|
70,864 |
|
|
|
68,830 |
|
| Investment properties |
|
|
8,090 |
|
|
|
20,514 |
|
| Properties held for sale |
|
|
4,100 |
|
|
|
6,405 |
|
| Policy loans |
|
|
708,794 |
|
|
|
727,684 |
|
| Receivables for securities |
|
|
4,475 |
|
|
|
3,593 |
|
| Securities lending reinvested collateral assets |
|
|
2,160,218 |
|
|
|
3,520,304 |
|
| Derivatives |
|
|
557,584 |
|
|
|
248,484 |
|
| Collateral balance |
|
|
6,213 |
|
|
|
6,213 |
|
| Other invested assets |
|
|
2,290,392 |
|
|
|
2,460,085 |
|
|
|
|
|
|
|
|
|
|
| Total cash and invested assets |
|
|
54,452,658 |
|
|
|
58,598,826 |
|
| Accrued investment income |
|
|
465,779 |
|
|
|
475,813 |
|
| Cash surrender value of life insurance policies |
|
|
316,533 |
|
|
|
309,919 |
|
| Premiums deferred and uncollected |
|
|
125,291 |
|
|
|
131,183 |
|
| Current federal income tax recoverable |
|
|
— |
|
|
|
120,549 |
|
| Net deferred income tax asset |
|
|
652,973 |
|
|
|
716,608 |
|
| Reinsurance receivable |
|
|
158,536 |
|
|
|
230,426 |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
51,246 |
|
|
|
154,163 |
|
| Accounts receivable |
|
|
290,758 |
|
|
|
191,268 |
|
| General agents pension fund |
|
|
44,732 |
|
|
|
42,282 |
|
| Reinsurance deposit receivable |
|
|
167,223 |
|
|
|
156,620 |
|
| Amounts incurred under modified coinsurance agreement |
|
|
35,403 |
|
|
|
46,520 |
|
| Goodwill |
|
|
27,968 |
|
|
|
35,736 |
|
| Other assets |
|
|
23,928 |
|
|
|
34,909 |
|
| Separate account assets |
|
|
48,684,223 |
|
|
|
41,473,473 |
|
|
|
|
|
|
|
|
|
|
| Total admitted assets |
|
$ |
105,497,251 |
|
|
$ |
102,718,295 |
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2012 |
|
|
2011 |
|
| Liabilities and capital and surplus |
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Aggregate reserves for policies and contracts: |
|
|
|
|
|
|
|
|
| Life |
|
$ |
14,844,093 |
|
|
$ |
14,826,292 |
|
| Annuity |
|
|
15,866,274 |
|
|
|
16,637,184 |
|
| Accident and health |
|
|
3,678,436 |
|
|
|
3,507,297 |
|
| Policy and contract claim reserves: |
|
|
|
|
|
|
|
|
| Life |
|
|
238,728 |
|
|
|
220,281 |
|
| Accident and health |
|
|
169,217 |
|
|
|
176,338 |
|
| Liability for deposit-type contracts |
|
|
5,187,660 |
|
|
|
5,995,687 |
|
| Other policyholders’ funds |
|
|
21,289 |
|
|
|
19,333 |
|
| Federal income taxes payable |
|
|
6,704 |
|
|
|
— |
|
| Municipal reverse repurchase agreements |
|
|
89,724 |
|
|
|
88,828 |
|
| Remittances and items not allocated |
|
|
445,323 |
|
|
|
358,297 |
|
| Case level liability |
|
|
3,696 |
|
|
|
4,981 |
|
| Payable for derivative cash collateral |
|
|
971,392 |
|
|
|
1,094,942 |
|
| Asset valuation reserve |
|
|
915,880 |
|
|
|
879,479 |
|
| Interest maintenance reserve |
|
|
840,245 |
|
|
|
854,620 |
|
| Funds held under reinsurance treaties |
|
|
5,940,038 |
|
|
|
7,837,637 |
|
| Reinsurance in unauthorized reinsurers |
|
|
513 |
|
|
|
9,600 |
|
| Commissions and expense allowances payable on reinsurance assumed |
|
|
46,585 |
|
|
|
62,277 |
|
| Payable to parent, subsidiaries and affiliates |
|
|
7,245 |
|
|
|
243,112 |
|
| Payable for securities |
|
|
10,364 |
|
|
|
12,030 |
|
| Payable for securities lending |
|
|
2,160,218 |
|
|
|
3,520,304 |
|
| Borrowed money |
|
|
85,516 |
|
|
|
— |
|
| Transfers from separate accounts due or accrued (including $(915,131) and $(743,562) accrued for expense allowances recognized in
reserves, net of reinsurance allowances at December 31, 2012 and 2011, respectively) |
|
|
(2,496,726 |
) |
|
|
(726,356 |
) |
| Amounts withheld or retained |
|
|
157,590 |
|
|
|
149,180 |
|
| Derivatives |
|
|
357,183 |
|
|
|
107,235 |
|
| Bank owned life insurance surrender payable |
|
|
1,610,622 |
|
|
|
— |
|
| Other liabilities |
|
|
260,341 |
|
|
|
311,966 |
|
| Separate account liabilities |
|
|
48,608,538 |
|
|
|
41,406,109 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
100,026,688 |
|
|
|
97,596,653 |
|
| Capital and surplus: |
|
|
|
|
|
|
|
|
| Common stock, $10 per share par value, 1,000,000 shares authorized, 676,190 issued and outstanding at December 31, 2012 and
2011 |
|
|
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, 2012 and 2011; 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, 2012 and 2011 |
|
|
1,597 |
|
|
|
1,597 |
|
| Treasury stock, Series A Preferred, $10 per share par value, 42,500 shares as of December 31, 2012 and 2011 |
|
|
(58,000 |
) |
|
|
(58,000 |
) |
| Aggregate write-ins for other than special surplus funds |
|
|
— |
|
|
|
432,568 |
|
| Surplus notes |
|
|
150,000 |
|
|
|
150,000 |
|
| Paid-in surplus |
|
|
3,346,065 |
|
|
|
3,326,311 |
|
| Unassigned surplus |
|
|
2,024,139 |
|
|
|
1,262,404 |
|
|
|
|
|
|
|
|
|
|
| Total capital and surplus |
|
|
5,470,563 |
|
|
|
5,121,642 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and capital and surplus |
|
$ |
105,497,251 |
|
|
$ |
102,718,295 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
4
Transamerica Life Insurance Company
Statements of Operations – Statutory Basis
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums and other considerations, net of reinsurance: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
|
$ |
1,147,190 |
|
|
$ |
337,360 |
|
|
$ |
1,523,920 |
|
| Annuity |
|
|
9,948,086 |
|
|
|
8,845,105 |
|
|
|
6,931,132 |
|
| Accident and health |
|
|
711,538 |
|
|
|
681,591 |
|
|
|
710,067 |
|
| Net investment income |
|
|
2,729,527 |
|
|
|
2,615,858 |
|
|
|
2,919,171 |
|
| Amortization of interest maintenance reserve |
|
|
31,284 |
|
|
|
71,742 |
|
|
|
3,906 |
|
| Commissions and expense allowances on reinsurance ceded |
|
|
504,373 |
|
|
|
(1,597,611 |
) |
|
|
892,482 |
|
| Income from fees associated with investment management, administration and contract guarantees for separate
accounts |
|
|
603,433 |
|
|
|
494,516 |
|
|
|
380,170 |
|
| Reserve adjustment on reinsurance ceded |
|
|
(2,160,914 |
) |
|
|
(159,096 |
) |
|
|
(351,287 |
) |
| IMR adjustment due to reinsurance |
|
|
63,262 |
|
|
|
307,904 |
|
|
|
— |
|
| Consideration received on reinsurance recapture and novations |
|
|
43,455 |
|
|
|
— |
|
|
|
— |
|
| Income from administrative service agreement with affilate |
|
|
74,457 |
|
|
|
60,237 |
|
|
|
51,177 |
|
| Other income |
|
|
72,054 |
|
|
|
85,154 |
|
|
|
85,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13,767,745 |
|
|
|
11,742,760 |
|
|
|
13,146,218 |
|
| Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits paid or provided for: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life benefits |
|
|
940,593 |
|
|
|
993,834 |
|
|
|
1,133,801 |
|
| Accident and health benefits |
|
|
494,903 |
|
|
|
473,566 |
|
|
|
496,368 |
|
| Annuity benefits |
|
|
1,067,932 |
|
|
|
1,082,923 |
|
|
|
1,084,962 |
|
| Surrender benefits |
|
|
5,930,279 |
|
|
|
5,703,634 |
|
|
|
5,970,842 |
|
| Other benefits |
|
|
195,827 |
|
|
|
199,349 |
|
|
|
215,848 |
|
| Increase (decrease) in aggregate reserves for policies and contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
|
|
18,775 |
|
|
|
(201,230 |
) |
|
|
51,172 |
|
| Annuity |
|
|
(770,871 |
) |
|
|
(1,353,277 |
) |
|
|
(1,017,181 |
) |
| Accident and health |
|
|
150,798 |
|
|
|
88,562 |
|
|
|
100,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,028,236 |
|
|
|
6,987,361 |
|
|
|
8,036,692 |
|
| Insurance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
|
1,094,907 |
|
|
|
1,132,581 |
|
|
|
1,440,391 |
|
| General insurance expenses |
|
|
660,695 |
|
|
|
687,102 |
|
|
|
764,037 |
|
| Taxes, licenses and fees |
|
|
89,428 |
|
|
|
83,034 |
|
|
|
72,666 |
|
| Net transfers to separate accounts |
|
|
3,033,966 |
|
|
|
5,167,168 |
|
|
|
1,901,530 |
|
| Change in case level liability |
|
|
(1,284 |
) |
|
|
(2,434 |
) |
|
|
(5,821 |
) |
| Consideration paid on reinsurance transactions |
|
|
— |
|
|
|
352,463 |
|
|
|
— |
|
| Reinsurance transaction—modco reserve adjustment on reinsurance assumed |
|
|
(205,194 |
) |
|
|
(218,566 |
) |
|
|
(262,273 |
) |
| Other expenses |
|
|
46,754 |
|
|
|
602,274 |
|
|
|
984,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,719,272 |
|
|
|
7,803,622 |
|
|
|
4,895,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
12,747,508 |
|
|
|
14,790,983 |
|
|
|
12,931,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before dividends to policyholders, federal income tax benefit and net realized capital gains (losses)
on investments |
|
$ |
1,020,237 |
|
|
$ |
(3,048,223 |
) |
|
$ |
214,363 |
|
5
Transamerica Life Insurance Company
Statements of Operations – Statutory Basis (continued)
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Dividends to policyholders |
|
$ |
8,651 |
|
|
$ |
9,496 |
|
|
$ |
10,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before federal income tax benefit and net realized capital gains (losses) on
investments |
|
|
1,011,586 |
|
|
|
(3,057,719 |
) |
|
|
204,289 |
|
| Federal income tax benefit |
|
|
(162,504 |
) |
|
|
(174,917 |
) |
|
|
(270,228 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before net realized capital gains (losses) on investments |
|
|
1,174,090 |
|
|
|
(2,882,802 |
) |
|
|
474,517 |
|
| Net realized capital gains (losses) on investments (net of related federal income taxes and amounts transferred to/from interest
maintenance reserve) |
|
|
(382,526 |
) |
|
|
423,536 |
|
|
|
(56,838 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
|
$ |
417,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
6
Transamerica Life Insurance Company
Statements of Changes in Capital and Surplus – Statutory Basis
(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 January 1, 2010 |
|
$ |
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 capital 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 pursuant pursuant 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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2010 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
554,923 |
|
|
$ |
150,000 |
|
|
$ |
3,117,153 |
|
|
$ |
525,689 |
|
|
$ |
4,298,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Transamerica Life Insurance Company
Statements of Changes in Capital and Surplus – Statutory 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 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2011 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
432,568 |
|
|
$ |
150,000 |
|
|
$ |
3,326,311 |
|
|
$ |
1,262,404 |
|
|
$ |
5,121,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
Transamerica Life Insurance Company
Statements of Changes in Capital and Surplus – Statutory 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, 2011 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
432,568 |
|
|
$ |
150,000 |
|
|
$ |
3,326,311 |
|
|
$ |
1,262,404 |
|
|
$ |
5,121,642 |
|
| Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
791,564 |
|
|
|
791,564 |
|
| Change in net unrealized capital gains/losses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
2 |
|
| Change in net unrealized foreign exchange capital gains/losses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,563 |
|
|
|
9,563 |
|
| Change in net deferred income tax asset |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(105,935 |
) |
|
|
(105,935 |
) |
| Change in other nonadmitted assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,645 |
|
|
|
49,645 |
|
| Change in provision for reinsurance in unauthorized companies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,087 |
|
|
|
9,087 |
|
| Change in reserve on account of change in valuation basis |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
973 |
|
|
|
973 |
|
| Change in asset valuation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(36,401 |
) |
|
|
(36,401 |
) |
| Change in surplus in separate accounts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,197 |
|
|
|
8,197 |
|
| Change in surplus as a result of reinsurance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(34,731 |
) |
|
|
(34,731 |
) |
| Dividends to stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(300,000 |
) |
|
|
(300,000 |
) |
| Correction of error—IMR adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,889 |
) |
|
|
(8,889 |
) |
| Correction of error—claim waiver adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(20,341 |
) |
|
|
(20,341 |
) |
| Correction of error—reinsurance IMR gain deferral |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(33,567 |
) |
|
|
(33,567 |
) |
| Change in admitted deferred tax asset pursuant to SSAP No. 101 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(432,568 |
) |
|
|
— |
|
|
|
— |
|
|
|
432,568 |
|
|
|
— |
|
| Long-term incentive compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
19,754 |
|
|
|
— |
|
|
|
19,754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2012 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
— |
|
|
$ |
150,000 |
|
|
$ |
3,346,065 |
|
|
$ |
2,024,139 |
|
|
$ |
5,470,563 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
9
Transamerica Life Insurance Company
Statements of Cash Flow – Statutory Basis
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums collected, net of reinsurance |
|
$ |
11,814,188 |
|
|
$ |
9,977,873 |
|
|
$ |
9,222,197 |
|
| Net investment income received |
|
|
2,671,763 |
|
|
|
2,807,544 |
|
|
|
2,985,106 |
|
| Miscellaneous income (expense) |
|
|
(976,256 |
) |
|
|
1,162,966 |
|
|
|
569,910 |
|
| Benefit and loss related payments |
|
|
(8,664,812 |
) |
|
|
(9,577,187 |
) |
|
|
(9,022,576 |
) |
| Net transfers to separate accounts |
|
|
(4,796,312 |
) |
|
|
(4,563,220 |
) |
|
|
(1,709,930 |
) |
| Commissions, expenses paid and aggregate write-ins for deductions |
|
|
(278,351 |
) |
|
|
(332,606 |
) |
|
|
(2,756,812 |
) |
| Dividends paid to policyholders |
|
|
(9,263 |
) |
|
|
(9,884 |
) |
|
|
(10,559 |
) |
| Federal and foreign income taxes recovered (paid) |
|
|
188,989 |
|
|
|
92,471 |
|
|
|
(113,355 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(50,054 |
) |
|
|
(442,043 |
) |
|
|
(836,019 |
) |
| Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from investments sold, matured or repaid: |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
|
10,121,509 |
|
|
|
16,891,112 |
|
|
|
24,609,623 |
|
| Common stocks |
|
|
52,538 |
|
|
|
168,476 |
|
|
|
167,903 |
|
| Preferred stocks |
|
|
59,805 |
|
|
|
63,880 |
|
|
|
143,250 |
|
| Mortgage loans |
|
|
1,468,644 |
|
|
|
1,466,463 |
|
|
|
1,270,379 |
|
| Real estate and properties held for sale |
|
|
19,355 |
|
|
|
26,978 |
|
|
|
1,316 |
|
| Other invested assets |
|
|
486,960 |
|
|
|
528,027 |
|
|
|
693,425 |
|
| Receivable for securities |
|
|
24,450 |
|
|
|
13,693 |
|
|
|
(66,950 |
) |
| Securities lending reinvested collateral assets |
|
|
1,360,086 |
|
|
|
436,576 |
|
|
|
— |
|
| Miscellaneous proceeds |
|
|
27,906 |
|
|
|
321,467 |
|
|
|
112,803 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investment proceeds |
|
|
13,621,253 |
|
|
|
19,916,672 |
|
|
|
26,931,749 |
|
| Costs of investments acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
|
(6,763,489 |
) |
|
|
(9,541,749 |
) |
|
|
(23,107,917 |
) |
| Common stocks |
|
|
(59,779 |
) |
|
|
(292,401 |
) |
|
|
(96,764 |
) |
| Preferred stocks |
|
|
(25,851 |
) |
|
|
(60,610 |
) |
|
|
(112,885 |
) |
| Mortgage loans |
|
|
(373,806 |
) |
|
|
(191,262 |
) |
|
|
(38,062 |
) |
| Real estate and properties held for sale |
|
|
(2,894 |
) |
|
|
(1,343 |
) |
|
|
(350 |
) |
| Other invested assets |
|
|
(251,237 |
) |
|
|
(382,939 |
) |
|
|
(480,709 |
) |
| Securities lending reinvested collateral assets |
|
|
— |
|
|
|
— |
|
|
|
(3,956,880 |
) |
| Miscellaneous applications |
|
|
(509,843 |
) |
|
|
(2,145 |
) |
|
|
(227,105 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of investments acquired |
|
|
(7,986,899 |
) |
|
|
(10,472,449 |
) |
|
|
(28,020,672 |
) |
| Net decrease in policy loans |
|
|
18,890 |
|
|
|
18,994 |
|
|
|
13,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cost of investments acquired |
|
|
(7,968,009 |
) |
|
|
(10,453,455 |
) |
|
|
(28,007,393 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by (used in) investing activities |
|
|
5,653,244 |
|
|
|
9,463,217 |
|
|
|
(1,075,644 |
) |
10
Transamerica Life Insurance Company
Statements of Cash Flow – Statutory Basis (continued)
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Financing and miscellaneous activities |
|
|
|
|
|
|
|
|
|
|
|
|
| Net withdrawals on deposit-type contract funds and other liabilities without life or disability contingencies |
|
$ |
(825,256 |
) |
|
$ |
(1,726,008 |
) |
|
$ |
(1,839,672 |
) |
| Borrowed funds |
|
|
85,269 |
|
|
|
— |
|
|
|
— |
|
| Funds held under reinsurance treaties with unauthorized reinsurers |
|
|
(2,057,558 |
) |
|
|
(5,531,199 |
) |
|
|
(892,010 |
) |
| Dividends paid to stockholders |
|
|
(300,000 |
) |
|
|
— |
|
|
|
(1,400,000 |
) |
| Capital contribution received |
|
|
— |
|
|
|
200,000 |
|
|
|
— |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
102,917 |
|
|
|
94,676 |
|
|
|
(61,088 |
) |
| Payable to parent, subsidiaries and affiliates |
|
|
(235,867 |
) |
|
|
(233,864 |
) |
|
|
206,555 |
|
| Payable for securities lending |
|
|
(1,360,086 |
) |
|
|
(436,576 |
) |
|
|
3,956,880 |
|
| Other cash provided (used) |
|
|
257,041 |
|
|
|
155,168 |
|
|
|
(398,230 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in financing and miscellaneous activities |
|
|
(4,333,540 |
) |
|
|
(7,477,803 |
) |
|
|
(427,565 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net increase (decrease) in cash, cash equivalents and short-term investments |
|
|
1,269,650 |
|
|
|
1,543,371 |
|
|
|
(2,339,228 |
) |
| Cash, cash equivalents and short-term investments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Beginning of year |
|
|
3,116,452 |
|
|
|
1,573,081 |
|
|
|
3,912,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of year |
|
$ |
4,386,102 |
|
|
$ |
3,116,452 |
|
|
$ |
1,573,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
11
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2012
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).
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 Company’s 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 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.
12
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs)
are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the
mortgage-backed/asset-backed security is less than amortized cost, an entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the
mortgage-backed/asset-backed security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized
cost basis. An other-than-temporary impairment is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security.
If it is determined an other-than-temporary impairment has occurred as a result of the cash flow analysis, the security is written down to
the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to hold, the security is written down to fair value.
For GAAP, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS
and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used. If it
is determined that a decline in fair value is other-than-temporary and the entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current period credit
loss, the other-than-temporary impairment should be recognized in earnings equal to the entire difference between the amortized cost basis and its fair value at the impairment date. If the entity does not intend to sell the security and it is not
more likely than not that the entity will be required to sell the security before recovery, the other-than-temporary impairment should be separated into a) the amount representing the credit loss, which is recognized in earnings, and b) the amount
related to all other factors, which is recognized in OCI, net of applicable taxes.
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
13
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or
charged directly to unassigned surplus rather than to income as would be required under GAAP.
Valuation allowances are
established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan.
Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.
The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned
surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.
Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds and mortgage
loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. That net
deferral is reported as the interest maintenance reserve (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under 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.
14
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The AVR provides a valuation allowance for invested assets. The AVR is determined by an
NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.
Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations
of the Company as would be required under GAAP.
Policy Acquisition Costs: The costs of acquiring and renewing business
are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues,
would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable
from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.
Separate Accounts with Guarantees: Some of the Company’s separate accounts provide policyholders with a guaranteed return. In
accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. These separate accounts are included in
the general account for GAAP due to the nature of the guaranteed return.
Nonadmitted Assets: Certain assets designated
as “nonadmitted”, primarily net deferred tax assets and other assets not specifically identified as an admitted asset within the NAIC 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.
15
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Benefit Reserves: Certain policy reserves are calculated based on statutorily
required interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.
Reinsurance: Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for
unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established
through a charge to earnings.
Losses associated with an indemnity reinsurance transaction are reported within income when
incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.
Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.
Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with
deferred policy acquisition costs as required under GAAP.
Deferred Income Taxes: The Company computes deferred income
taxes in accordance with Statement of Statutory Accounting Principle (SSAP) No. 101, Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10. Under SSAP No. 101, admitted adjusted deferred income tax assets are limited
to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback
provisions, not to exceed three years, plus 2) the amount of adjusted gross deferred income tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital
and surplus, plus 3) the amount of remaining adjusted gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities after considering the character (i.e., ordinary versus capital) and reversal patterns of
the deferred tax assets and liabilities. The remaining adjusted deferred income tax assets are nonadmitted.
Deferred income
taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in all
future years, and a valuation allowance is established for deferred income tax assets not realizable.
16
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Goodwill: Goodwill is admitted subject to an aggregate limitation of ten percent
of the capital and surplus in the most recently filed annual statement excluding electronic data processing equipment, operating system software, net deferred income tax assets and net positive goodwill. Excess goodwill is nonadmitted. Goodwill is
amortized over ten years. Under GAAP, goodwill is measured as the excess of the consideration transferred plus the fair value of any noncontrolling interest in the acquiree at the acquisition date as compared to the fair values of the identifiable
net assets acquired. Goodwill is not amortized but is assessed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred.
Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies as
would be required under GAAP.
Surplus Notes: Surplus notes are reported as surplus rather than 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 Company’s balance sheet. Under GAAP, the reinvested collateral is included within invested assets (i.e. it is not one-line reported).
The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but
are presumed to be material.
Other significant accounting policies are as follows:
Investments
Investments in bonds, except those to which the SVO has ascribed an NAIC
designation of 6, are reported at amortized cost using the interest method.
17
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and
equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at
amortized cost or fair value based upon their NAIC rating.
Single class and multi-class mortgage-backed/asset-backed securities are valued at
amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer
surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using
the prospective method.
The Company closely monitors below investment grade holdings and those investment grade issuers where the Company has
concerns. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all
amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the
Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes
are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. Structured securities considered other-than-temporarily impaired are written down to discounted
estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. For structured securities, cash flow trends and
underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are determined to be other-than-temporarily impaired.
Investments in both affiliated and unaffiliated preferred stocks in good standing are reported at cost or amortized cost. Investments in preferred stocks
not in good standing are reported at the lower of cost or fair value, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.
Common stocks of unaffiliated companies, 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.
18
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
If the Company determines that a decline in the fair value of a common stock or a preferred stock is
other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers the following factors in determining
whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the
value has been below cost.
Common stocks of affiliated 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 Company’s 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, 2012 and 2011 was $49,416 and $27,673,
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 asset’s carrying value exceeds its fair value.
19
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Policy loans are reported at unpaid principal balances.
The Company has minority ownership interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in
the underlying audited GAAP equity of the investee. For a decline in the fair value of an investment in a joint venture or limited partnership which is determined to be other-than-temporary, the Company writes it down to fair value as the new cost
basis and the amount of the write down is accounted for as a realized loss in the statement of operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the
investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.
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 investment income when payment exceeds 90 days past due. At
December 31, 2012 and 2011, the Company excluded investment income due and accrued of $281 and $562, 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.
20
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Derivative Instruments
Overview: The Company may use various derivative instruments (options, caps, floors, swaps, foreign currency forwards and futures) to manage risks related to its ongoing business operations. On the
transaction date of the derivative instrument, the Company designates the derivative as either (A) hedging (fair value, foreign currency fair value, cash flow, foreign currency cash flow, forecasted transactions or net investment in a foreign
operation), (B) replication, (C) income generation or (D) held for other investment/risk management activities, which do not qualify for hedge accounting under SSAP No. 86, Accounting for Derivative Instruments and Hedging
Activities.
Derivative instruments used in hedging relationships are accounted for on a basis that is consistent with the hedged item
(amortized cost or fair value). Derivative instruments used in replication relationships are accounted for on a basis that is consistent with the cash instrument and the replicated asset (amortized cost or fair value). Derivative instruments used in
income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative indicates (amortized cost or fair value). Derivative instruments held for other
investment/risk management activities receive fair value accounting.
Derivative instruments are subject to market risk, which is the
possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the derivative changes, the value of a corresponding hedged asset or liability will move
in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.
The Company is exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but it does not expect any
counterparties to fail to meet their obligations given their high credit rating of ‘A’ or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty
level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to
the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the
Company is required to post assets instead.
21
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Instruments: Interest rate swaps are the primary derivative financial instruments used in the
overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based
on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged at 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 U.S. dollar (USD) denominated security. These cross currency swap agreements involve the exchange of two
principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the
principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium
or discount is amortized into income over the life of the contract, and the foreign currency translation adjustment is recorded as unrealized gain/loss in unassigned surplus. Swaps not meeting hedge accounting rules are carried at fair value with
fair value adjustments recorded in unassigned surplus. If a swap is terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the hedged instrument receives
that treatment.
Total return swaps are used in the asset/liability management process to mitigate the risk created when the company has
issued minimum guarantee insurance contracts linked to an index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to an equity or interest rate index) and floating leg (tied to LIBOR) amounts
based on an underlying
22
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 gamma risk created when the Company has issued minimum guarantee
insurance contracts linked to an index. These variance swaps are similar to volatility options where the underlying index provides for the market value movements. Variance swaps do not accrue interest. Typically, no cash is exchanged at the outset
of initiating the variance swap, and a single receipt or payment occurs at the maturity or termination of the contract. 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.
Collars are used in the
asset/liability management process to mitigate the residual risk created when the company has issued minimum guarantee insurance contracts linked to an index. These collars are similar to options where the underlying index provides for the market
value movements. The collars do not accrue interest. Typically, no cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Collars 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. Collars that do not meet hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
23
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Caps are used in the asset/liability management process to mitigate the interest rate risk created due
to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps
strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. Caps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized
cost, on the financial statements. If terminated prior to maturity, proceeds are exchanged equal to the fair value of the contract. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment. Caps that
do not meet hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
The Company may sell
products with expected benefit payments extending beyond investment assets currently available in the market. Because assets will have to be purchased in the future to fund future liability cash flows, the Company is exposed to the risk of future
investments made at lower yields than what is assumed at the time of pricing. Forward-starting interest rate swaps are utilized to lock-in the current forward rate. The accrual of income begins at the forward date, rather than at the inception date.
These forward-starting swaps meet hedge accounting rules and are carried at cost in the financial statements. Gains and losses realized upon termination of the forward-starting swap are deferred and used to adjust the basis of the asset purchased in
the hedged forecasted period. The basis adjustment is then amortized into income as a yield adjustment to the asset over its life.
The
Company issues fixed liabilities that have a guaranteed minimum crediting rate. The Company uses receiver swaption, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The
Company pays a single premium at the beginning of the contract that is amortized throughout the life of the swaption. These swaptions are carried at fair value with fair value adjustments recorded in unassigned surplus.
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.
24
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
A replication transaction is a derivative transaction entered into in conjunction with a cash instrument
to reproduce the investment characteristics of an otherwise permissible investment. The Company replicates investment grade corporate bonds or sovereign debt by combining a highly rated security as a cash component with a credit default swap which,
in effect, converts the high quality asset into an investment grade corporate asset or a sovereign debt. The benefits of using the swap market to replicate credit include possible enhanced relative values as well as ease of executing larger
transactions in a shortened time frame. Generally, a premium is received by the Company on a periodic basis and recognized in investment income. In the event the representative issuer defaults on its debt obligation referenced in the contract, a
payment equal to the notional amount of the contract will be made by the Company and recognized as a capital loss.
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 a 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 previously entered into some credit
default swaps linked to a collateralized debt obligation (CDO) structure as a result of market events on a liquidity facility it had entered. Under this transaction, the Company received a fee in exchange for providing credit protection if the
underlying CDO structure incurred losses greater than its supporting collateral. The fee was recorded in investment income. These swaps were marked to fair value in the balance sheet and the fair value adjustment was recorded in unassigned surplus.
This derivative structure was terminated in December 2012.
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.
25
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Assets held in trust for purchases of variable universal life and annuity contracts and the
Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets in the separate accounts are valued at fair value. Income and gains and losses with respect to the assets in the separate accounts
accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. The investment risks associated with fair value changes of the separate accounts are
borne entirely by the policyholders except in cases where minimum guarantees exist. The Company received variable contract premiums of $9,341,436, $9,381,447 and $6,368,599 in 2012, 2011 and 2010, respectively. In addition, the Company received
$603,433, $494,516 and $380,170 in 2012, 2011 and 2010, 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 date of death.
The aggregate policy reserves for life
insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioner’s 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 Commissioner’s Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioner’s Reserve
Valuation Method.
Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives
according to underwriting classification. Generally, mean reserves are determined by computing the regular mean reserve for the plan at the true age and holding, in addition, one-half (1/2) of the extra premium charge for the year. For certain
flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner’s Reserve Valuation Method for universal life policies and recognizing any substandard ratings.
Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to
cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with 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.
26
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 Commissioner’s Annuity
Reserve Valuation Method.
Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required
mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.
Tabular
interest, tabular less actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined primarily by formula.
During 2012, the Company reported a decrease in reserves, net of reinsurance, on account of a change in valuation basis of $1,381 due to changing from
the 1980 CSO mortality table to the minimum valuation standard of the 2001 CSO mortality table for a block of joint life universal life with secondary guarantee policies. Partially offsetting this decrease was a $408 increase in reserves on
account of a change in valuation basis due to coding in the reserve valuation system reserves which had been held constant since 2008 for paid-up additions on a block of participating policies. The net decrease in reserves of $973 due to the
changes in valuation bases has been credited directly to unassigned surplus.
During 2010, the Company reported a decrease in reserves, net of
reinsurance, 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.
27
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 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.
28
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unpaid
Claims
Liability
Beginning of
Year |
|
|
Claims
Incurred |
|
|
Claims
Paid |
|
|
Unpaid
Claims
Liability
End of Year |
|
| Year ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2012 |
|
$ |
— |
|
|
$ |
523,543 |
|
|
$ |
166,571 |
|
|
$ |
356,972 |
|
| 2011 and prior |
|
|
943,279 |
|
|
|
51,495 |
|
|
|
335,510 |
|
|
|
659,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
943,279 |
|
|
$ |
575,038 |
|
|
$ |
502,081 |
|
|
|
1,016,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Active life reserve |
|
|
2,740,356 |
|
|
|
|
|
|
|
|
|
|
|
2,831,417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total accident and health reserves |
|
$ |
3,683,635 |
|
|
|
|
|
|
|
|
|
|
$ |
3,847,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unpaid
Claims
Liability
Beginning of
Year |
|
|
Claims
Incurred |
|
|
Claims
Paid |
|
|
Unpaid
Claims
Liability
End of Year |
|
| Year ended December 31, 2011 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2011 |
|
$ |
— |
|
|
$ |
517,711 |
|
|
$ |
163,597 |
|
|
$ |
354,114 |
|
| 2010 and prior |
|
|
948,808 |
|
|
|
(15,043 |
) |
|
|
344,600 |
|
|
|
589,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
948,808 |
|
|
$ |
502,668 |
|
|
$ |
508,197 |
|
|
|
943,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Active life reserve |
|
|
2,680,895 |
|
|
|
|
|
|
|
|
|
|
|
2,740,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total accident and health reserves |
|
$ |
3,629,703 |
|
|
|
|
|
|
|
|
|
|
$ |
3,683,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s unpaid claims reserve was increased (decreased) by $51,495 and $(15,043) for the years ended
December 31, 2012 and 2011, respectively, for health claims that occurred prior to those balance sheet dates. The change in 2012 and 2011 resulted primarily from variances in the estimated frequency of claims and claim severity.
29
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The balance in the liability for unpaid accident and health claim adjustment expenses as of
December 31, 2012 and 2011 was $26,289 and $26,608, respectively. The Company incurred $13,288 and paid $13,608 of claim adjustment expenses in the current year, of which $10,113 of the paid amount was attributable to insured or covered events
of prior years. 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 of prior years. The Company did not increase or decrease the
provision for insured events of prior years during 2012 or 2011.
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
Certain management employees of the Company participate in a stock-based long-term incentive compensation plan issued by the Company’s indirect parent. In accordance with SSAP No. 13, Stock
Options and Stock Purchase Plans, the expense or benefit related to this plan for the Company’s management employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. The Company recorded an accrued
expense in the amount of $19,754, $9,158 and $3,205 for the years ended December 31, 2012, 2011 and 2010, respectively.
Recent
Accounting Pronouncements
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to require
disclosure of embedded credit derivatives within a financial instrument that expose the holder to the possibility of making future payments, and adopted guidance from Accounting Standards Update (ASU) 2010-11, Derivatives and Hedging – Scope
Exception Related to Embedded Credit Derivatives, to clarify that seller credit derivative disclosures do not apply to embedded derivative features related to the transfer of credit risk that is only in the form of subordination of one financial
instrument to another. The adoption of these revisions had no impact to the Company’s results of operations or financial position.
30
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to
move one aspect of the criteria for a hedged forecasted transaction and incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 27, Disclosure of Information about Financial
Instruments with Off-Balance-Sheet Risk, Financial Instruments with Concentrations of Credit Risk and Disclosures about Fair Value of Financial Instruments, which clarifies that embedded derivatives, which are not separately recognized as
derivatives under statutory accounting, are included in the disclosures of financial instruments with off-balance-sheet risk. The adoption of this revision had no impact to the Company’s results of operations or financial position.
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 1, Disclosures of Accounting Policies, Risks and
Uncertainties and Other Disclosures. These revisions require reference to the accounting policy and procedure footnote that describes permitted or prescribed practices when an individual note is impacted by such practices. The adoption of this
requirement had no impact to the Company’s results of operation or financial position, but did require additional disclosures. See Note 8 Policy and Contract Attributes for further details.
Effective January 1, 2012, the Company adopted revisions to SSAP No. 100, Fair Value Measurements (SSAP No. 100). These revisions
require new disclosures of fair value hierarchy and the method used to obtain the fair value measurement, a new footnote that summarizes hierarchy levels by type of financial instrument and gross presentation of purchases, sales, issues and
settlements within the reconciliation for fair value measurements categorized within Level 3 of the hierarchy. The adoption of these revisions had no impact to the Company’s results of operations or financial position, but did require
additional disclosures. See Note 4 Fair Values of Financial Instruments for further details.
Effective January 1, 2012, the Company
began computing current and deferred income taxes in accordance with SSAP No. 101. This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income
taxes. The adoption of this statement resulted in the transfer of $432,568 from Aggregate Write-Ins for Other than Special Surplus Funds to Unassigned Funds and updates to the Company’s income tax disclosures. See Note 7 Income Taxes for
further details.
For the years ended December 31, 2011 and 2010, the Company adopted SSAP No. 10R, Income Taxes –
Revised, A Temporary Replacement of SSAP No. 10 (SSAP No. 10R). This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The SSAP temporarily
superseded SSAP No. 10, Income
31
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Taxes. SSAP No. 10R allowed an entity to elect to admit additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of
three years on gross DTAs expected to be realized or 15% of statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the
old SSAP No. 10 provisions to calculate the DTA. Prior to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be
realized and a 10% capital and surplus limit on the admitted amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the adoption of this standard was the
difference between the calculation of the admitted DTA per SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011 and 2010. This change in accounting principle increased surplus by a net amount of $432,568 and $554,923,
respectively, at December 31, 2011 and 2010, which has been recorded within the statements of changes in capital and surplus.
Effective
December 31, 2011, the Company adopted SSAP No. 5R, Liabilities, Contingencies and Impairments of Assets – Revised. The revisions require the Company to recognize a liability equal to the greater of (a) the fair value of
the guarantee at its inception, even if the likelihood of payment under the guarantee is remote or (b) the contingent liability amount required to be recognized if it is probable that a liability has been incurred at the financial statement
date and the amount of loss can reasonably be determined. While this guidance does not exclude guarantees issued as intercompany transactions or between related parties from the initial liability recognition requirement, there are a couple
exceptions. Guarantees made to/or on behalf of a wholly-owned subsidiary and related party guarantees that are considered “unlimited” (for example, in response to a rating agency’s requirement to provide a commitment to support) are
exempt from the initial liability recognition. Additional disclosures are also required under this new guidance for all guarantees, whether or not they meet the criteria for initial liability recognition. The adoption of this new accounting
principle had no material impact to the Company’s results of operations or financial position, but did require additional disclosures regarding these guarantees. See Note 13 on Commitments and Contingencies for further details.
Effective December 31, 2011, the Company adopted non-substantive revisions to SSAP No. 100 to incorporate the provisions of ASU 2010-06,
Improving Disclosures about Fair Value Measurements. This revision required a new disclosure for assets and liabilities for which fair value is not measured and reported in the statement of financial position but is otherwise
disclosed. The adoption of these revisions had no impact to the Company’s results of operations or financial position. See Note 4 for further details.
Effective December 31, 2011, the Company adopted non-substantive changes to SSAP No. 32, Investments in Preferred Stock (including investments in preferred stock of subsidiary, controlled, or
affiliated entities). The amendment was made to clarify the definition of preferred
32
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
stock. Under the revised SSAP No. 32, a preferred stock is defined as any class or series of shares the holders of which have any preference, either as to the payment of dividends or
distribution of assets on liquidation, over the holder of common stock [as defined in SSAP No. 30, Investments in Common Stock (excluding investments in common stock of subsidiary, controlled, or affiliated entities)] issued by an
entity. This revised definition had no impact to the Company.
Effective January 1, 2011, the Company adopted SSAP No. 35R,
Guaranty Fund and Other Assessments – Revised. This statement modified the conditions required for recognizing a liability for insurance-related assessments and required additional disclosures. 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
December 31, 2010, the Company adopted modifications made to SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. The amendments resulted in cash collateral received from
counterparties to derivatives contracts also being reported on the Company’s balance 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 Company’s 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 January 1, 2013, the Company will adopt SSAP No. 92, Postretirement Benefits Other Than
Pensions, A Replacement of SSAP No. 14 and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with
related disclosures. SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of
33
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
the accumulated benefit obligation as under SSAP No. 89. In addition, SSAP No. 92 and SSAP No. 102 require consideration of non-vested participants. The adoption of these
standards will not impact the Company’s results of operations, financial position or disclosures as the Company does not sponsor the pension plan and is not directly liable under the plan. See Note 11 for further discussion of the
Company’s pension plan and other postretirement plans as sponsored by Aegon.
Effective January 1, 2013, the Company will adopt SSAP
No. 103, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities which adopts with modifications the guidance in ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of
Financial Assets and supersedes SSAP no. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The impact of the adoption of this standard is expected to be immaterial to the Company.
Effective January 1, 2013, the Company will adopt non-substantive revisions to SSAP No. 36, Troubled Debt Restructuring.
These revisions adopt guidance from ASU 2011-02, Receivables – A Creditors’ Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies what constitutes a troubled debt restructuring and adopts with
modification troubled debt restructuring disclosures for creditors from ASU 2010-20: Receivables (Topic 310), Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit Losses. The adoption of this revision is
not expected to impact the financial position or results of operations of the Company.
Effective December 31, 2013, the Company will
adopt revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient Protection and Affordable Care Act
related to assessments payable. The adoption of this revision is not expected to impact the financial position or results of operations of the Company as revisions relate to disclosures only.
Reclassifications
Certain reclassifications have been made to the 2011 and 2010 financial
statements to conform to the 2012 presentation.
During 2012, the Company changed the presentation of various reinsurance related balances. As
a result of these changes, $91,236 was reclassified from Remittances and items not allocated to Other liabilities as of December 31, 2011. In addition, $807,484 and $237,399, respectively, was reclassified between the Net transfers to separate
accounts line and the Surrender benefits line in the 2011 and 2010 Statements of Operations to conform to the 2012 presentation. Lastly, Reinsurance transaction – modco reserve adjustment on reinsurance assumed was presented as a separate line
item in 2012. As a result of this change in presentation, $(218,566) and $(262,273), respectively, was reclassed between the Other expenses line and the Reinsurance transaction – modco reserve adjustment on reinsurance assumed line in the 2011
and 2010 Statements of Operations to conform to the 2012 presentation.
34
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 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 Company’s guaranteed separate accounts. As prescribed by Iowa Administrative Code 508A.1.4, the Commissioner found that the Company is entitled to value the assets of the
guaranteed separate account at amortized cost, whereas the assets would be required to be reported at fair value under SSAP No. 56, Separate Accounts, of the NAIC SAP. There is no impact to the Company’s income or surplus as a result of
utilizing this prescribed practice.
35
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
A reconciliation of the Company’s net income and capital and surplus between NAIC SAP and practices
prescribed and permitted by the State of Iowa is shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Net income (loss), State of Iowa basis |
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
|
$ |
417,679 |
|
| 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 |
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
|
$ |
417,679 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory surplus, State of Iowa basis |
|
$ |
5,470,563 |
|
|
$ |
5,121,642 |
|
|
$ |
4,298,124 |
|
| State prescribed practice for parental guarantee |
|
|
(724,720 |
) |
|
|
(675,044 |
) |
|
|
— |
|
| State prescribed practice for secondary guarantee reinsurance |
|
|
(3,364,455 |
) |
|
|
(3,149,987 |
) |
|
|
(2,926,627 |
) |
| State permitted practice for valuation of wholly-owned foreign life subsidiary |
|
|
42,539 |
|
|
|
19,129 |
|
|
|
19,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory surplus, NAIC SAP |
|
$ |
1,423,927 |
|
|
$ |
1,315,740 |
|
|
$ |
1,391,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During 2011, 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 Company’s liabilities to SCOR SE (SCOR), a Societas Europaea organized under the laws of France, and subsequently 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 entity’s 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
36
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
party to the agreement, 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
Effective December 16, 2011, the Company released an IMR liability associated with the
block of business ceded to an unaffiliated entity on a coinsurance basis. Since the portion of the block of business ceded did not represent more than one percent of the Company’s general account liabilities, the IMR liability should not have
been released when the reinsurance transaction was effected. The error resulted in an understatement of the IMR liability in the amount of $8,889. This was corrected in 2012, and the Company reflected the impact of the correction as a change in
unassigned surplus within the statement of changes in capital and surplus.
Effective August 9, 2011, the Company released an IMR
liability associated with a block of business retroceded to an unaffiliated entity. The gain on the release of the IMR liability should have been deferred through unassigned surplus but was instead included in the statements of operations. The error
resulted in an overstatement of net income in the amount of $33,567. This was corrected in 2012, and the Company reflected the impact of the correction as a change in unassigned surplus within the statement of changes in capital and surplus. The
offsetting adjustment is to the change in surplus as a result of reinsurance line within the statements of operations. There was no net impact to surplus as a result of this correction.
During 2012, the Company discovered an error in the calculation of waiver of premium reserves for long term care business due to the use of inaccurate premiums waived data. The error resulted in an
understatement of reserves of $20,341 as of December 31, 2011. This has been reported as a correction of an error in the statement of changes in capital and surplus.
4. Fair Values of Financial Instruments
The fair value of a financial instrument is the
price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Determination of fair value
The fair values of financial instruments are determined by
management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing
hierarchy which dictates that publicly available prices are initially sought from
37
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced
using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.
To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents.
Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate
that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial
presence in the market and with appropriate experience and expertise are used.
Each month, the Company performs an analysis of the
information obtained from indices, third-party services, and brokers to ensure that the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this
analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from
indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.
Fair value hierarchy
The Company’s financial assets and liabilities carried at fair
value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and
liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to
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. |
38
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
| |
Level |
2—Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or
liability. Level 2 inputs include the following: |
| |
a) |
Quoted prices for similar assets or liabilities in active markets |
| |
b) |
Quoted prices for identical or similar assets or liabilities in non-active markets |
| |
c) |
Inputs other than quoted market prices that are observable |
| |
d) |
Inputs that are derived principally from or corroborated by observable market data through correlation or other means |
| |
Level |
3— Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the
Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
The
following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying balance sheets for these financial
instruments approximate their fair values. Cash is not included in the below tables.
Short-Term Notes Receivable from
Affiliates: The carrying amounts reported in the accompanying balance sheets for these financial instruments approximate their fair value.
Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds
and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.
Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the
description of level one and level two values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing
services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and
maturity of the investments.
39
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
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 credit default swaps are based upon the pricing differential as of the balance sheet date for similar
swap agreements.
Policy Loans: The fair value of policy loans is equal to the book value of the loan, which is stated
at unpaid principal balance.
Securities Lending Reinvested Collateral: The cash collateral from securities lending
is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash, Cash Equivalents and Short-Term Investments and Bonds and
Stocks.
Receivable From/Payable to Parents, Subsidiaries and Affiliates: The carrying amount of receivable
from/payable to affiliates approximates their fair value.
Separate Account Assets and Annuity Liabilities: The fair
value of separate account assets are based on quoted market prices when available. When not available, they are valued in the same manner as general account assets as further described in this note. The fair value of separate account annuity
liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.
Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred
annuities, GICs and funding agreements, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value.
Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying balance sheets approximate
their fair values.
40
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Surplus Notes: Fair values for surplus notes are estimated using a discounted
cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.
The Company
accounts for its investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures as they are not carried at fair value on the balance sheets.
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 it is not included in the following disclosures as it is not carried at fair value on the balance sheets.
Fair values for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are
not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing
interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.
41
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The following tables set forth a comparison of the estimated fair values and carrying amounts of the
Company’s financial instruments, including those not measured at fair value in the balance sheets, as of December 31, 2012 and 2011, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2012 |
|
| |
|
Estimated
Fair Value |
|
|
Admitted
Assets |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
Not
Practicable
(Carrying
Value) |
|
| Admitted assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash equivalents and short-term investments, other than affiliates |
|
$ |
3,899,465 |
|
|
$ |
3,899,465 |
|
|
$ |
— |
|
|
$ |
3,899,465 |
|
|
$ |
— |
|
|
$ |
— |
|
| Short-term notes receivable from affiliates |
|
|
411,200 |
|
|
|
411,200 |
|
|
|
— |
|
|
|
411,200 |
|
|
|
— |
|
|
|
— |
|
| Bonds |
|
|
40,790,267 |
|
|
|
36,721,992 |
|
|
|
4,064,778 |
|
|
|
35,427,671 |
|
|
|
1,297,818 |
|
|
|
— |
|
| Preferred stocks, other than affiliates |
|
|
111,258 |
|
|
|
111,471 |
|
|
|
— |
|
|
|
101,853 |
|
|
|
9,405 |
|
|
|
— |
|
| Common stocks, other than affiliates |
|
|
218,026 |
|
|
|
218,026 |
|
|
|
68,173 |
|
|
|
257 |
|
|
|
149,596 |
|
|
|
— |
|
| Mortgage loans on real estate |
|
|
6,343,771 |
|
|
|
5,756,749 |
|
|
|
— |
|
|
|
— |
|
|
|
6,343,771 |
|
|
|
— |
|
| Other invested assets |
|
|
172,494 |
|
|
|
157,176 |
|
|
|
— |
|
|
|
159,145 |
|
|
|
13,349 |
|
|
|
— |
|
| Options |
|
|
205,942 |
|
|
|
205,942 |
|
|
|
— |
|
|
|
205,942 |
|
|
|
— |
|
|
|
— |
|
| Interest rate swaps |
|
|
1,667,275 |
|
|
|
298,750 |
|
|
|
— |
|
|
|
1,648,192 |
|
|
|
19,083 |
|
|
|
— |
|
| Currency swaps |
|
|
64,632 |
|
|
|
40,080 |
|
|
|
— |
|
|
|
64,632 |
|
|
|
— |
|
|
|
— |
|
| Credit default swaps |
|
|
24,874 |
|
|
|
12,812 |
|
|
|
— |
|
|
|
24,874 |
|
|
|
— |
|
|
|
— |
|
| Policy loans |
|
|
708,794 |
|
|
|
708,794 |
|
|
|
— |
|
|
|
708,794 |
|
|
|
— |
|
|
|
— |
|
| Securities lending reinvested collateral |
|
|
2,159,184 |
|
|
|
2,160,218 |
|
|
|
— |
|
|
|
2,159,184 |
|
|
|
— |
|
|
|
— |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
51,246 |
|
|
|
51,246 |
|
|
|
— |
|
|
|
51,246 |
|
|
|
— |
|
|
|
— |
|
| Separate account assets |
|
|
48,756,861 |
|
|
|
48,684,223 |
|
|
|
43,059,585 |
|
|
|
5,693,280 |
|
|
|
3,996 |
|
|
|
— |
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment contract liabilities |
|
|
16,244,099 |
|
|
|
15,014,811 |
|
|
|
— |
|
|
|
1,107,623 |
|
|
|
15,136,476 |
|
|
|
— |
|
| Options |
|
|
49,393 |
|
|
|
49,393 |
|
|
|
— |
|
|
|
49,393 |
|
|
|
— |
|
|
|
— |
|
| Interest rate swaps |
|
|
406,498 |
|
|
|
212,460 |
|
|
|
— |
|
|
|
367,059 |
|
|
|
39,439 |
|
|
|
— |
|
| Currency swaps |
|
|
58,388 |
|
|
|
68,895 |
|
|
|
— |
|
|
|
58,388 |
|
|
|
— |
|
|
|
— |
|
| Credit default swaps |
|
|
7,285 |
|
|
|
26,435 |
|
|
|
— |
|
|
|
7,285 |
|
|
|
— |
|
|
|
— |
|
| Payable to parent, subsidiaries and affiliates |
|
|
7,245 |
|
|
|
7,245 |
|
|
|
— |
|
|
|
7,245 |
|
|
|
— |
|
|
|
— |
|
| Separate account annuity liabilities |
|
|
40,655,573 |
|
|
|
40,658,385 |
|
|
|
— |
|
|
|
40,509,576 |
|
|
|
145,997 |
|
|
|
— |
|
| Surplus notes |
|
|
168,588 |
|
|
|
150,000 |
|
|
|
— |
|
|
|
— |
|
|
|
168,588 |
|
|
|
— |
|
42
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2011 |
|
| |
|
Carrying
Amount |
|
|
Estimated
Fair Value |
|
| Admitted assets |
|
|
|
|
|
|
|
|
| Cash equivalents and short-term investments, other than affiliates |
|
$ |
2,427,211 |
|
|
$ |
2,427,211 |
|
| Short-term notes receivable from affiliates |
|
|
185,100 |
|
|
|
185,100 |
|
| Bonds |
|
|
39,785,207 |
|
|
|
41,910,771 |
|
| Preferred stocks, other than affiliates |
|
|
138,596 |
|
|
|
149,539 |
|
| Common stocks, other than affiliates |
|
|
229,973 |
|
|
|
229,973 |
|
| Mortgage loans on real estate |
|
|
6,830,030 |
|
|
|
7,364,129 |
|
| Other invested assets |
|
|
159,011 |
|
|
|
165,273 |
|
| Interest rate swaps |
|
|
233,642 |
|
|
|
1,950,058 |
|
| Currency swaps |
|
|
8,239 |
|
|
|
59,431 |
|
| Credit default swaps |
|
|
6,603 |
|
|
|
5,389 |
|
| Policy loans |
|
|
727,684 |
|
|
|
727,684 |
|
| Securities lending reinvested collateral |
|
|
3,520,304 |
|
|
|
3,517,849 |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
154,163 |
|
|
|
154,163 |
|
| Separate account assets |
|
|
41,473,473 |
|
|
|
41,473,473 |
|
| Liabilities |
|
|
|
|
|
|
|
|
| Investment contract liabilities |
|
|
16,415,861 |
|
|
|
17,090,179 |
|
| Interest rate swaps |
|
|
46,960 |
|
|
|
456,325 |
|
| Currency swaps |
|
|
40,536 |
|
|
|
75,759 |
|
| Credit default swaps |
|
|
19,739 |
|
|
|
27,931 |
|
| Payable to parent, subsidiaries and affiliates |
|
|
243,112 |
|
|
|
243,112 |
|
| Separate account annuity liabilities |
|
|
33,308,199 |
|
|
|
33,311,319 |
|
| Surplus notes |
|
|
150,000 |
|
|
|
153,819 |
|
43
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The following tables provide information about the Company’s financial assets and liabilities
measured at fair value as of December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2012 |
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Industrial and miscellaneous |
|
$ |
— |
|
|
$ |
103,093 |
|
|
$ |
8,147 |
|
|
$ |
111,240 |
|
| Hybrid securities |
|
|
— |
|
|
|
4,287 |
|
|
|
— |
|
|
|
4,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total bonds |
|
|
— |
|
|
|
107,380 |
|
|
|
8,147 |
|
|
|
115,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mutual funds |
|
|
250 |
|
|
|
69 |
|
|
|
— |
|
|
|
319 |
|
| Industrial and miscellaneous |
|
|
67,923 |
|
|
|
188 |
|
|
|
149,596 |
|
|
|
217,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total common stock |
|
|
68,173 |
|
|
|
257 |
|
|
|
149,596 |
|
|
|
218,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Government |
|
|
— |
|
|
|
82,823 |
|
|
|
— |
|
|
|
82,823 |
|
| Industrial and miscellaneous |
|
|
— |
|
|
|
3,284,316 |
|
|
|
— |
|
|
|
3,284,316 |
|
| Mutual funds |
|
|
— |
|
|
|
484,005 |
|
|
|
— |
|
|
|
484,005 |
|
| Intercompany notes receivable |
|
|
— |
|
|
|
411,200 |
|
|
|
— |
|
|
|
411,200 |
|
| Sweep accounts |
|
|
— |
|
|
|
48,320 |
|
|
|
— |
|
|
|
48,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total short-term investments |
|
|
— |
|
|
|
4,310,664 |
|
|
|
— |
|
|
|
4,310,664 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative assets |
|
|
— |
|
|
|
288,874 |
|
|
|
(20,355 |
) |
|
|
268,519 |
|
| Separate account assets |
|
|
43,036,673 |
|
|
|
4,980,375 |
|
|
|
807 |
|
|
|
48,017,855 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
43,104,846 |
|
|
$ |
9,687,550 |
|
|
$ |
138,195 |
|
|
$ |
52,930,591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liabilities |
|
$ |
— |
|
|
$ |
66,150 |
|
|
$ |
— |
|
|
$ |
66,150 |
|
| Separate account liabilities |
|
|
4,653 |
|
|
|
3,829 |
|
|
|
— |
|
|
|
8,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
$ |
4,653 |
|
|
$ |
69,979 |
|
|
$ |
— |
|
|
$ |
74,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
| Intercompany notes receivable |
|
|
— |
|
|
|
185,100 |
|
|
|
— |
|
|
|
185,100 |
|
| Sweep accounts |
|
|
— |
|
|
|
42,256 |
|
|
|
— |
|
|
|
42,256 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total short-term investments |
|
|
— |
|
|
|
2,612,302 |
|
|
|
— |
|
|
|
2,612,302 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
$ |
7,999,928 |
|
|
$ |
960,032 |
|
|
$ |
44,120,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bonds classified in Level 2 are valued using inputs from third party pricing services or broker quotes. Level 3
measurements for bonds are primarily those valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize inputs that are not market observable.
Preferred stock in Level 3 is being internally calculated.
Common stock in Level 3 is comprised primarily of shares in the Federal Home Loan Bank (FHLB) of Des Moines, which are valued at par as a proxy for fair value as 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.
45
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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.
46
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
During 2012 and 2011, there were no transfers between Level 1 and 2, respectively.
The following tables summarize the changes in assets and liabilities classified in Level 3 for 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Beginning
Balance at
January 1,
2012 |
|
|
Transfers
in
(Level 3) |
|
|
Transfers
out
(Level 3) |
|
|
Total Gains
and (Losses)
Included in
Net income (a) |
|
|
Total Gains and
(Losses) Included
in Surplus (b) |
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMBS |
|
$ |
26,721 |
|
|
$ |
12,792 |
|
|
$ |
20,573 |
|
|
$ |
24 |
|
|
$ |
(6,115 |
) |
| Other |
|
|
5,527 |
|
|
|
2,800 |
|
|
|
2,242 |
|
|
|
(535 |
) |
|
|
393 |
|
| Preferred stock |
|
|
1,236 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Common stock |
|
|
177,568 |
|
|
|
333 |
|
|
|
470 |
|
|
|
(1,391 |
) |
|
|
(1,239 |
) |
| Derivatives |
|
|
(9,633 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,944 |
|
| Separate account assets |
|
|
746,827 |
|
|
|
— |
|
|
|
8,196 |
|
|
|
(724,329 |
) |
|
|
65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
948,246 |
|
|
$ |
15,925 |
|
|
$ |
31,481 |
|
|
$ |
(726,231 |
) |
|
$ |
25,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Purchases |
|
|
Issuances |
|
|
Sales |
|
|
Settlements |
|
|
Ending Balance at
December 31, 2012 |
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMBS |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
10,657 |
|
|
$ |
2,192 |
|
| Other |
|
|
207 |
|
|
|
966 |
|
|
|
— |
|
|
|
1,161 |
|
|
|
5,955 |
|
| Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
1,236 |
|
|
|
— |
|
|
|
— |
|
| Common stock |
|
|
837 |
|
|
|
— |
|
|
|
26,042 |
|
|
|
— |
|
|
|
149,596 |
|
| Derivatives |
|
|
(32,793 |
) |
|
|
— |
|
|
|
— |
|
|
|
9,873 |
|
|
|
(20,355 |
) |
| Separate account assets |
|
|
— |
|
|
|
— |
|
|
|
9,994 |
|
|
|
3,566 |
|
|
|
807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
(31,749 |
) |
|
$ |
966 |
|
|
$ |
37,272 |
|
|
$ |
25,257 |
|
|
$ |
138,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Beginning
Balance at
January 1,
2011 |
|
|
Transfers
in
(Level
3) |
|
|
Transfers
out
(Level 3) |
|
|
Total Gains
and (Losses)
Included in
Net income (a) |
|
|
Total Gains
and (Losses)
Included
in
Surplus (b) |
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMBS |
|
$ |
51,719 |
|
|
$ |
16,364 |
|
|
$ |
24,461 |
|
|
$ |
(4,042 |
) |
|
$ |
3,757 |
|
| Other |
|
|
7,638 |
|
|
|
1 |
|
|
|
870 |
|
|
|
(232 |
) |
|
|
355 |
|
| Preferred stock |
|
|
1,236 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Common stock |
|
|
226,884 |
|
|
|
644 |
|
|
|
1,619 |
|
|
|
(206 |
) |
|
|
(345 |
) |
| Derivatives |
|
|
(4,600 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,209 |
) |
| Separate account assets |
|
|
793,212 |
|
|
|
33,755 |
|
|
|
26,894 |
|
|
|
(58,033 |
) |
|
|
(538 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
1,076,089 |
|
|
$ |
50,764 |
|
|
$ |
53,844 |
|
|
$ |
(62,513 |
) |
|
$ |
(3,980 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Purchases |
|
|
Issuances |
|
|
Sales |
|
|
Settlements |
|
|
Ending Balance at
December 31, 2011 |
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| RMBS |
|
$ |
— |
|
|
$ |
11,637 |
|
|
$ |
— |
|
|
$ |
28,253 |
|
|
$ |
26,721 |
|
| Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,365 |
|
|
|
5,527 |
|
| Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,236 |
|
| Common stock |
|
|
2,279 |
|
|
|
— |
|
|
|
50,069 |
|
|
|
— |
|
|
|
177,568 |
|
| Derivatives |
|
|
2,592 |
|
|
|
2,153 |
|
|
|
2,569 |
|
|
|
— |
|
|
|
(9,633 |
) |
| Separate account assets |
|
|
5,384 |
|
|
|
4,900 |
|
|
|
7 |
|
|
|
4,952 |
|
|
|
746,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
10,255 |
|
|
$ |
18,690 |
|
|
$ |
52,645 |
|
|
$ |
34,570 |
|
|
$ |
948,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
Recorded as a component of Net Realized Capital Gains/Losses on Investments in the Statements of Operations |
| (b) |
Recorded as a component of Change in Net Unrealized Capital Gains/Losses in the Statements of Changes in Capital and Surplus |
The Company’s policy is to recognize transfers in and out of levels as of the beginning of the reporting period.
Transfers in for bonds were the result of securities being valued using vendor inputs as of December 31, 2011, subsequently changing to being valued
using broker quotes during 2012. In addition, transfers in for bonds were the result of securities being carried at amortized cost at December 31, 2011 and 2010, subsequently changing to being carried at fair value during 2012 and 2011.
Transfers in for bonds were also the result of securities being valued using vendor inputs as of December 31, 2011, subsequently changing to being valued using internal models during 2012. Also, transfers in for bonds were partly attributable
to securities being valued using third party vendor inputs at December 31, 2010, subsequently changing to being valued using broker quotes which utilize unobservable inputs, thus causing the transfer into Level 3 during 2011.
48
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Transfers out for bonds were partly attributable to securities being valued using broker quotes which
utilize unobservable inputs at December 31, 2011 and 2010, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012 and 2011, respectively. In addition, transfers out for bonds
were attributed to securities being carried at fair value at December 31, 2011 and 2010, subsequently changing to being carried at amortized cost during 2012 and 2011, respectively. Also, transfers out for bonds were the result of securities
being valued using internal models at December 31, 2011, subsequently changing to being valued using vendor inputs during 2012.
Transfers in for common stock were attributed to securities being valued using third party vendor inputs at December 31, 2011, subsequently changing
to being valued using broker quotes which utilize unobservable inputs, thus causing the transfer in during 2012. In addition, there were securities that were valued using broker quotes which utilize observable inputs, subsequently changing to being
valued using broker quotes which utilize unobservable inputs during 2012. Additionally, 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 out for common stock were attributed to securities being valued using a stale price at
December 31, 2011, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012. In addition, transfers out for common stock were attributed to securities being valued using broker
quotes at December 31, 2011, subsequently changing to being valued using vendor inputs during 2012. Additionally, 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 bonds were attributable to securities 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.
Transfers out for separate account bonds were attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2011 and 2010, subsequently changing to
being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2012 and 2011, respectively.
49
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unaffiliated bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States Government and agencies |
|
$ |
2,980,978 |
|
|
$ |
778,329 |
|
|
$ |
— |
|
|
$ |
50 |
|
|
$ |
3,759,257 |
|
| State, municipal and other government |
|
|
802,196 |
|
|
|
104,712 |
|
|
|
8,884 |
|
|
|
324 |
|
|
|
897,700 |
|
| Hybrid securities |
|
|
499,556 |
|
|
|
14,971 |
|
|
|
101,545 |
|
|
|
1,522 |
|
|
|
411,460 |
|
| Industrial and miscellaneous |
|
|
21,604,497 |
|
|
|
3,425,875 |
|
|
|
36,414 |
|
|
|
17,759 |
|
|
|
24,976,199 |
|
| Mortgage and other asset-backed securities |
|
|
10,794,339 |
|
|
|
543,136 |
|
|
|
633,313 |
|
|
|
4,087 |
|
|
|
10,700,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,681,566 |
|
|
|
4,867,023 |
|
|
|
780,156 |
|
|
|
23,742 |
|
|
|
40,744,691 |
|
| Unaffiliated preferred stocks |
|
|
111,471 |
|
|
|
9,909 |
|
|
|
8,786 |
|
|
|
1,336 |
|
|
|
111,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,793,037 |
|
|
$ |
4,876,932 |
|
|
$ |
788,942 |
|
|
$ |
25,078 |
|
|
$ |
40,855,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012 and 2011, 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 430 and 593 securities with a carrying amount of $4,671,096 and $6,503,336 and an unrealized loss of $788,942 and $1,399,168 with an average price of 83.1 and 78.5 (fair
value/amortized cost). Of this portfolio, 52.0% and 58.7% were investment grade with associated unrealized losses of $289,823 and $544,964, respectively.
50
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012 and 2011, respectively, for bonds and preferred stocks that have been in a
continuous loss position for less than twelve months, the Company held 231 and 568 securities with a carrying amount of $1,021,012 and $3,644,457 and an unrealized loss of $25,078 and $187,775 with an average price of 97.5 and 94.9 (fair
value/amortized cost). Of this portfolio, 85.2% and 84.8% were investment grade with associated unrealized losses of $17,955 and $146,947, respectively.
At December 31, 2012 and 2011, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months, the Company held 3 and 2 securities with a cost
of $10 and $2 and an unrealized loss of $9 and $1 with an average price of 7.2 and 50.6 (fair value/cost).
At December 31, 2012 and
2011, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 14 and 19 securities with a cost of $12,588 and $2,748 and an unrealized loss of $263 and $429 with an average price of
97.9 and 84.4 (fair value/cost).
The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at
December 31, 2012 and 2011 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Losses 12
Months or
More |
|
|
Losses Less
Than 12
Months |
|
|
Total |
|
| December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
| Unaffiliated bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
| United States Government and agencies |
|
$ |
— |
|
|
$ |
33,517 |
|
|
$ |
33,517 |
|
| State, municipal and other government |
|
|
63,124 |
|
|
|
6,233 |
|
|
|
69,357 |
|
| Hybrid securities |
|
|
213,598 |
|
|
|
4,892 |
|
|
|
218,490 |
|
| Industrial and miscellaneous |
|
|
440,974 |
|
|
|
711,538 |
|
|
|
1,152,512 |
|
| Mortgage and other asset-backed securities |
|
|
3,139,452 |
|
|
|
232,431 |
|
|
|
3,371,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,857,148 |
|
|
|
988,611 |
|
|
|
4,845,759 |
|
| Unaffiliated preferred stocks |
|
|
25,005 |
|
|
|
7,324 |
|
|
|
32,329 |
|
| Unaffiliated common stocks |
|
|
1 |
|
|
|
12,325 |
|
|
|
12,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,882,154 |
|
|
$ |
1,008,260 |
|
|
$ |
4,890,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
51
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The carrying amount and estimated fair value of bonds at December 31, 2012, 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 |
|
$ |
1,240,506 |
|
|
$ |
1,262,341 |
|
| Due after one year through five years |
|
|
7,100,718 |
|
|
|
7,770,622 |
|
| Due after five years through ten years |
|
|
6,139,707 |
|
|
|
6,896,709 |
|
| Due after ten years |
|
|
11,406,296 |
|
|
|
14,114,944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
25,887,227 |
|
|
|
30,044,616 |
|
| Mortgage and other asset-backed securities |
|
|
10,794,339 |
|
|
|
10,700,075 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,681,566 |
|
|
$ |
40,744,691 |
|
|
|
|
|
|
|
|
|
|
For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.
Banking
At
December 31, 2012, the Company’s banking sector portfolio had investments in an unrealized loss position which had a fair value of $576,329 and a carrying value of $748,907, resulting in a gross unrealized loss of $172,578. The banking
sub-sector in the Company’s portfolio is large, diverse and of high quality. The unrealized losses in the banking sub-sector primarily reflect the size of the Company’s holdings, low floating rate coupons on some securities and credit
spread widening in the sector due to the Sovereign debt crisis in Europe as well as residual impact from both the U.S. financial crisis and concerns over the U.S. Fiscal Cliff.
52
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
As a whole, the sub-sector improved in the second half of 2012, following a volatile first half.
Decisive steps by European Union (EU) leaders and world central banks to stabilize the euro and improve funding conditions calmed investor concerns that a euro breakup was imminent. Credit spreads continue to reflect some uncertainty over new
efforts by regulators to impose “burden sharing” on creditors in order to quickly stabilize or wind up troubled banks. While these measures have made 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 and decouple troubled banks from the Sovereign. Furthermore, central banks appear committed to providing liquidity to the market, while asset
write-downs and credit losses have diminished substantially in all but the most troubled countries.
The value of the Company’s
investments in deeply subordinated securities in the financial services sector may be significantly impacted if issuers of certain securities with optional deferral features exercise the option to defer coupon payments or are required to defer as a
condition of receiving government aid. The deeply subordinated securities issued by non-U.S. Banks are broadly referred to as capital securities which can be categorized as Tier 1 or Upper Tier 2. Capital securities categorized as “Tier 1”
are typically perpetual with a non-cumulative coupon that can be deferred under certain conditions. Capital securities categorized as “Upper Tier 2” are generally perpetual with a cumulative coupon that is deferrable under certain
conditions. The deeply subordinated securities issued by U.S. Banks can be categorized as trust preferred or hybrid. Capital securities categorized as trust preferred typically have an original maturity of 30 years with call features after 10 years
with a cumulative coupon that is deferrable under certain conditions. Capital securities categorized as hybrid typically have an original maturity of more than 30 years, may be perpetual and are generally subordinate to traditional trust preferred
securities. The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of the unrealized loss and does not consider those investments to be impaired as of December 31, 2012.
Subprime Mortgages
At December 31,
2012, the Company’s asset-backed securities (ABS) subprime mortgages portfolio had investments in an unrealized loss position which had a fair value of $593,142 and a carrying value of $675,568, resulting in a gross unrealized loss of $82,426.
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.
53
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 updated and are reviewed quarterly. Model output is generated under base and stress-case scenarios. The
Company’s internal ABS-housing asset specialists utilize widely recognized industry modeling software to perform a loan-by-loan, bottom-up approach to modeling. Key assumptions used in the models are projected defaults, loss severities and
prepayments. Each of these key assumptions varies greatly based on the significantly diverse characteristics of the current collateral pool for each security. Loan-to-value, loan size and borrower credit history are some of the key characteristics
used to determine the level of assumption that is utilized. Defaults were estimated by identifying the loans that are in various delinquency buckets and defaulting a certain percentage of them over the near-term and long-term. Assumed defaults on
delinquent loans are dependent on the specific security’s collateral attributes and historical performance.
Loss severity assumptions
were determined by observing historical rates from broader market data and by adjusting those rates for vintage specific pool performance, collateral type, mortgage insurance and estimated loan modifications. Prepayments were estimated by examining
historical averages of prepayment activity on the underlying collateral. Once the entire pool is modeled, the results are closely analyzed by the Company’s internal asset specialist to determine whether or not the particular tranche or holding
is at risk for not collecting all contractual cash flows, taking into account the seniority and other terms of the tranches held.
If cash flow
models indicate a credit event will impact future cash flows and the Company does not have the intent to sell the tranche or holding and does have the intent and ability to hold the security, the security is impaired to discounted cash flows. As the
remaining unrealized losses in the ABS subprime mortgage portfolio relate to holdings where the Company expects to receive full principal and interest, the Company does not consider the underlying investments to be impaired as of December 31,
2012.
54
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Residential Mortgage-Backed Securities (RMBS) Sector
At December 31, 2012, the Company’s RMBS sector portfolio had investments in an unrealized loss position which had a fair value of $1,461,372
and a carrying value of $1,821,161, resulting in a gross unrealized loss of $359,789. 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 Company’s 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 Company’s 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 security’s 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 Company’s 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.
55
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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, 2012.
There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent to sell or lack of intent and ability to hold during the year ended December 31, 2012. The
following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold, in which the security is written down to fair value.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
56
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due
to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized Cost
Before Current
Period OTTI |
|
|
Recognized OTTI |
|
|
Amortized Cost
After OTTI |
|
|
Fair Value |
|
| Year ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1st quarter present value of cash flows expected to be less than the amortized cost basis |
|
$ |
357,700 |
|
|
$ |
23,038 |
|
|
$ |
334,662 |
|
|
$ |
210,662 |
|
| 2nd quarter present value of cash flows expected to be less than the amortized cost basis |
|
|
515,449 |
|
|
|
23,147 |
|
|
|
492,302 |
|
|
|
338,584 |
|
| 3rd quarter present value of cash flows expected to be less than the amortized cost basis |
|
|
515,274 |
|
|
|
25,476 |
|
|
|
489,798 |
|
|
|
348,834 |
|
| 4th quarter present value of cash flows expected to be less than the amortized cost basis |
|
|
154,272 |
|
|
|
7,923 |
|
|
|
146,349 |
|
|
|
96,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggregate total |
|
$ |
1,542,695 |
|
|
$ |
79,584 |
|
|
$ |
1,463,111 |
|
|
$ |
994,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The following loan-backed and structured securities were held at December 31, 2012, 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 |
|
$ |
528 |
|
|
$ |
462 |
|
|
$ |
66 |
|
|
$ |
462 |
|
|
$ |
444 |
|
|
1Q 2012 |
| 02146QAB9 |
|
|
60,611 |
|
|
|
56,967 |
|
|
|
3,644 |
|
|
|
56,967 |
|
|
|
33,420 |
|
|
1Q 2012 |
| 02146QAC7 |
|
|
40,173 |
|
|
|
38,252 |
|
|
|
1,921 |
|
|
|
38,252 |
|
|
|
22,057 |
|
|
1Q 2012 |
| 02146QAD5 |
|
|
33,942 |
|
|
|
30,247 |
|
|
|
3,695 |
|
|
|
30,247 |
|
|
|
19,728 |
|
|
1Q 2012 |
| 059515AC0 |
|
|
6,517 |
|
|
|
6,438 |
|
|
|
79 |
|
|
|
6,438 |
|
|
|
4,024 |
|
|
1Q 2012 |
| 05951VAV1 |
|
|
41,630 |
|
|
|
38,925 |
|
|
|
2,705 |
|
|
|
38,925 |
|
|
|
26,374 |
|
|
1Q 2012 |
| 12668RAA6 |
|
|
23,002 |
|
|
|
21,254 |
|
|
|
1,748 |
|
|
|
21,254 |
|
|
|
12,702 |
|
|
1Q 2012 |
| 126694YQ5 |
|
|
13,723 |
|
|
|
12,191 |
|
|
|
1,532 |
|
|
|
12,191 |
|
|
|
8,717 |
|
|
1Q 2012 |
| 225470FJ7 |
|
|
3,832 |
|
|
|
3,699 |
|
|
|
133 |
|
|
|
3,699 |
|
|
|
3,751 |
|
|
1Q 2012 |
| 24763LDE7 |
|
|
709 |
|
|
|
704 |
|
|
|
5 |
|
|
|
704 |
|
|
|
405 |
|
|
1Q 2012 |
| 35729PPZ7 |
|
|
13,403 |
|
|
|
13,125 |
|
|
|
278 |
|
|
|
13,125 |
|
|
|
1,696 |
|
|
1Q 2012 |
| 39539KAF0 |
|
|
4,306 |
|
|
|
4,288 |
|
|
|
18 |
|
|
|
4,288 |
|
|
|
4,077 |
|
|
1Q 2012 |
| 525170CG9 |
|
|
79 |
|
|
|
77 |
|
|
|
2 |
|
|
|
77 |
|
|
|
60 |
|
|
1Q 2012 |
| 525221HE0 |
|
|
2,317 |
|
|
|
450 |
|
|
|
1,867 |
|
|
|
450 |
|
|
|
482 |
|
|
1Q 2012 |
| 550279BA0 |
|
|
21,022 |
|
|
|
19,197 |
|
|
|
1,825 |
|
|
|
19,197 |
|
|
|
11,768 |
|
|
1Q 2012 |
| 65536PAA8 |
|
|
1,183 |
|
|
|
1,163 |
|
|
|
20 |
|
|
|
1,163 |
|
|
|
548 |
|
|
1Q 2012 |
| 75116EAA0 |
|
|
9,762 |
|
|
|
8,567 |
|
|
|
1,195 |
|
|
|
8,567 |
|
|
|
6,717 |
|
|
1Q 2012 |
| 75970JAJ5 |
|
|
4,264 |
|
|
|
4,213 |
|
|
|
51 |
|
|
|
4,213 |
|
|
|
2,358 |
|
|
1Q 2012 |
| 75970QAH3 |
|
|
5,411 |
|
|
|
5,378 |
|
|
|
33 |
|
|
|
5,378 |
|
|
|
3,183 |
|
|
1Q 2012 |
| 75971EAF3 |
|
|
5,208 |
|
|
|
5,185 |
|
|
|
23 |
|
|
|
5,185 |
|
|
|
3,069 |
|
|
1Q 2012 |
| 761118AH1 |
|
|
1,585 |
|
|
|
1,572 |
|
|
|
13 |
|
|
|
1,572 |
|
|
|
1,465 |
|
|
1Q 2012 |
| 761118RM2 |
|
|
2,457 |
|
|
|
2,162 |
|
|
|
295 |
|
|
|
2,162 |
|
|
|
1,268 |
|
|
1Q 2012 |
| 761118VY1 |
|
|
15,858 |
|
|
|
15,626 |
|
|
|
232 |
|
|
|
15,626 |
|
|
|
8,957 |
|
|
1Q 2012 |
| 12669F2J1 |
|
|
5,774 |
|
|
|
4,810 |
|
|
|
964 |
|
|
|
4,810 |
|
|
|
4,213 |
|
|
1Q 2012 |
| 52524YAF0 |
|
|
10,522 |
|
|
|
10,233 |
|
|
|
289 |
|
|
|
10,233 |
|
|
|
6,177 |
|
|
1Q 2012 |
| 75970QAD2 |
|
|
5,352 |
|
|
|
5,234 |
|
|
|
118 |
|
|
|
5,234 |
|
|
|
3,228 |
|
|
1Q 2012 |
| 3622NAAC4 |
|
|
728 |
|
|
|
667 |
|
|
|
61 |
|
|
|
667 |
|
|
|
436 |
|
|
1Q 2012 |
| 36185MAF9 |
|
|
21,978 |
|
|
|
21,941 |
|
|
|
37 |
|
|
|
21,941 |
|
|
|
18,631 |
|
|
1Q 2012 |
| 48123HAA1 |
|
|
1,527 |
|
|
|
1,418 |
|
|
|
109 |
|
|
|
1,418 |
|
|
|
620 |
|
|
1Q 2012 |
| 59020UUA1 |
|
|
297 |
|
|
|
217 |
|
|
|
80 |
|
|
|
217 |
|
|
|
87 |
|
|
1Q 2012 |
| 000759BP4 |
|
|
453 |
|
|
|
445 |
|
|
|
8 |
|
|
|
445 |
|
|
|
433 |
|
|
2Q 2012 |
| 02146QAC7 |
|
|
37,571 |
|
|
|
36,623 |
|
|
|
948 |
|
|
|
36,623 |
|
|
|
20,350 |
|
|
2Q 2012 |
| 02146QAD5 |
|
|
29,299 |
|
|
|
28,344 |
|
|
|
955 |
|
|
|
28,344 |
|
|
|
18,584 |
|
|
2Q 2012 |
| 05530PAA0 |
|
|
1,201 |
|
|
|
1,001 |
|
|
|
200 |
|
|
|
1,001 |
|
|
|
982 |
|
|
2Q 2012 |
| 12668ACG8 |
|
|
14,148 |
|
|
|
13,355 |
|
|
|
793 |
|
|
|
13,355 |
|
|
|
7,870 |
|
|
2Q 2012 |
| 12668RAA6 |
|
|
20,628 |
|
|
|
20,291 |
|
|
|
337 |
|
|
|
20,291 |
|
|
|
12,334 |
|
|
2Q 2012 |
| 126694A32 |
|
|
34,876 |
|
|
|
32,248 |
|
|
|
2,628 |
|
|
|
32,248 |
|
|
|
18,818 |
|
|
2Q 2012 |
| 12669GTS0 |
|
|
29,271 |
|
|
|
20,769 |
|
|
|
8,502 |
|
|
|
20,769 |
|
|
|
11,964 |
|
|
2Q 2012 |
| 225470FJ7 |
|
|
3,591 |
|
|
|
3,484 |
|
|
|
107 |
|
|
|
3,484 |
|
|
|
3,261 |
|
|
2Q 2012 |
| 225492AE7 |
|
|
16,507 |
|
|
|
16,428 |
|
|
|
79 |
|
|
|
16,428 |
|
|
|
15,362 |
|
|
2Q 2012 |
| 35729PPC8 |
|
|
445 |
|
|
|
371 |
|
|
|
74 |
|
|
|
371 |
|
|
|
211 |
|
|
2Q 2012 |
| 3622NAAE0 |
|
|
50,312 |
|
|
|
49,814 |
|
|
|
498 |
|
|
|
49,814 |
|
|
|
32,341 |
|
|
2Q 2012 |
| 36244SAE8 |
|
|
593 |
|
|
|
587 |
|
|
|
6 |
|
|
|
587 |
|
|
|
468 |
|
|
2Q 2012 |
| 41161MAC4 |
|
|
43,057 |
|
|
|
42,415 |
|
|
|
642 |
|
|
|
42,415 |
|
|
|
27,048 |
|
|
2Q 2012 |
| 52522QAM4 |
|
|
81,369 |
|
|
|
80,241 |
|
|
|
1,128 |
|
|
|
80,241 |
|
|
|
68,269 |
|
|
2Q 2012 |
| 61754HAB8 |
|
|
1,777 |
|
|
|
1,762 |
|
|
|
15 |
|
|
|
1,762 |
|
|
|
921 |
|
|
2Q 2012 |
| 65536PAA8 |
|
|
1,151 |
|
|
|
1,093 |
|
|
|
58 |
|
|
|
1,093 |
|
|
|
520 |
|
|
2Q 2012 |
| 74925FAA1 |
|
|
10,781 |
|
|
|
10,722 |
|
|
|
59 |
|
|
|
10,722 |
|
|
|
10,660 |
|
|
2Q 2012 |
| 75970JAJ5 |
|
|
4,115 |
|
|
|
4,084 |
|
|
|
31 |
|
|
|
4,084 |
|
|
|
2,298 |
|
|
2Q 2012 |
| 75970QAH3 |
|
|
5,278 |
|
|
|
5,245 |
|
|
|
33 |
|
|
|
5,245 |
|
|
|
3,095 |
|
|
2Q 2012 |
| 75971EAF3 |
|
|
5,098 |
|
|
|
5,079 |
|
|
|
19 |
|
|
|
5,079 |
|
|
|
2,914 |
|
|
2Q 2012 |
| 759950GY8 |
|
|
9,467 |
|
|
|
9,320 |
|
|
|
147 |
|
|
|
9,320 |
|
|
|
6,024 |
|
|
2Q 2012 |
59
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 761118RM2 |
|
$ |
2,108 |
|
|
$ |
2,077 |
|
|
$ |
31 |
|
|
$ |
2,077 |
|
|
$ |
1,176 |
|
|
2Q 2012 |
| 761118VY1 |
|
|
14,969 |
|
|
|
14,525 |
|
|
|
444 |
|
|
|
14,525 |
|
|
|
8,372 |
|
|
2Q 2012 |
| 41161PKD4 |
|
|
2,267 |
|
|
|
2,251 |
|
|
|
16 |
|
|
|
2,251 |
|
|
|
1,423 |
|
|
2Q 2012 |
| 05535DAM6 |
|
|
290 |
|
|
|
— |
|
|
|
290 |
|
|
|
— |
|
|
|
247 |
|
|
2Q 2012 |
| 75970QAD2 |
|
|
5,115 |
|
|
|
4,894 |
|
|
|
221 |
|
|
|
4,894 |
|
|
|
3,090 |
|
|
2Q 2012 |
| 3622NAAC4 |
|
|
646 |
|
|
|
624 |
|
|
|
22 |
|
|
|
624 |
|
|
|
388 |
|
|
2Q 2012 |
| 41161XAC0 |
|
|
66,572 |
|
|
|
62,665 |
|
|
|
3,907 |
|
|
|
62,665 |
|
|
|
41,665 |
|
|
2Q 2012 |
| 36185MAF9 |
|
|
20,698 |
|
|
|
20,550 |
|
|
|
148 |
|
|
|
20,550 |
|
|
|
16,829 |
|
|
2Q 2012 |
| 59020UUA1 |
|
|
206 |
|
|
|
40 |
|
|
|
166 |
|
|
|
40 |
|
|
|
82 |
|
|
2Q 2012 |
| 059523AV2 |
|
|
591 |
|
|
|
482 |
|
|
|
109 |
|
|
|
482 |
|
|
|
497 |
|
|
2Q 2012 |
| 759950GZ5 |
|
|
1,000 |
|
|
|
474 |
|
|
|
526 |
|
|
|
474 |
|
|
|
88 |
|
|
2Q 2012 |
| 02146QAB9 |
|
|
54,011 |
|
|
|
53,056 |
|
|
|
955 |
|
|
|
53,056 |
|
|
|
36,367 |
|
|
3Q 2012 |
| 02146QAC7 |
|
|
36,007 |
|
|
|
34,823 |
|
|
|
1,184 |
|
|
|
34,823 |
|
|
|
23,073 |
|
|
3Q 2012 |
| 02146QAD5 |
|
|
27,191 |
|
|
|
26,877 |
|
|
|
314 |
|
|
|
26,877 |
|
|
|
20,847 |
|
|
3Q 2012 |
| 02148AAA4 |
|
|
35,516 |
|
|
|
35,162 |
|
|
|
354 |
|
|
|
35,162 |
|
|
|
29,720 |
|
|
3Q 2012 |
| 02148GAD5 |
|
|
1,500 |
|
|
|
1,442 |
|
|
|
58 |
|
|
|
1,442 |
|
|
|
971 |
|
|
3Q 2012 |
| 02149QAD2 |
|
|
26,041 |
|
|
|
25,370 |
|
|
|
671 |
|
|
|
25,370 |
|
|
|
19,141 |
|
|
3Q 2012 |
| 026936AA2 |
|
|
138,711 |
|
|
|
126,429 |
|
|
|
12,282 |
|
|
|
126,429 |
|
|
|
84,791 |
|
|
3Q 2012 |
| 059515AC0 |
|
|
5,975 |
|
|
|
5,891 |
|
|
|
84 |
|
|
|
5,891 |
|
|
|
4,025 |
|
|
3Q 2012 |
| 126694A32 |
|
|
31,156 |
|
|
|
30,693 |
|
|
|
463 |
|
|
|
30,693 |
|
|
|
22,046 |
|
|
3Q 2012 |
| 126694YJ1 |
|
|
26,410 |
|
|
|
24,161 |
|
|
|
2,249 |
|
|
|
24,161 |
|
|
|
19,467 |
|
|
3Q 2012 |
| 23332UGM0 |
|
|
9,058 |
|
|
|
8,619 |
|
|
|
439 |
|
|
|
8,619 |
|
|
|
6,519 |
|
|
3Q 2012 |
| 3622MAAF8 |
|
|
33 |
|
|
|
— |
|
|
|
33 |
|
|
|
— |
|
|
|
— |
|
|
3Q 2012 |
| 3622NAAE0 |
|
|
47,914 |
|
|
|
43,590 |
|
|
|
4,324 |
|
|
|
43,590 |
|
|
|
37,070 |
|
|
3Q 2012 |
| 41161MAC4 |
|
|
41,081 |
|
|
|
40,299 |
|
|
|
782 |
|
|
|
40,299 |
|
|
|
27,180 |
|
|
3Q 2012 |
| 52108HV84 |
|
|
3,000 |
|
|
|
2,136 |
|
|
|
864 |
|
|
|
2,136 |
|
|
|
1,061 |
|
|
3Q 2012 |
| 65536PAA8 |
|
|
1,061 |
|
|
|
1,029 |
|
|
|
32 |
|
|
|
1,029 |
|
|
|
607 |
|
|
3Q 2012 |
| 759676AJ8 |
|
|
5,976 |
|
|
|
5,841 |
|
|
|
135 |
|
|
|
5,841 |
|
|
|
3,736 |
|
|
3Q 2012 |
| 759950GY8 |
|
|
9,123 |
|
|
|
9,042 |
|
|
|
81 |
|
|
|
9,042 |
|
|
|
6,008 |
|
|
3Q 2012 |
| 83611MMM7 |
|
|
7,497 |
|
|
|
7,459 |
|
|
|
38 |
|
|
|
7,459 |
|
|
|
747 |
|
|
3Q 2012 |
| 41161PKD4 |
|
|
2,168 |
|
|
|
2,109 |
|
|
|
59 |
|
|
|
2,109 |
|
|
|
1,540 |
|
|
3Q 2012 |
| 3622NAAC4 |
|
|
602 |
|
|
|
549 |
|
|
|
53 |
|
|
|
549 |
|
|
|
450 |
|
|
3Q 2012 |
| 12667GCH4 |
|
|
5,244 |
|
|
|
5,221 |
|
|
|
23 |
|
|
|
5,221 |
|
|
|
3,469 |
|
|
3Q 2012 |
| 02149QAD2 |
|
|
24,467 |
|
|
|
23,966 |
|
|
|
501 |
|
|
|
23,966 |
|
|
|
19,307 |
|
|
4Q 2012 |
| 059515AC0 |
|
|
5,691 |
|
|
|
5,592 |
|
|
|
99 |
|
|
|
5,592 |
|
|
|
4,027 |
|
|
4Q 2012 |
| 126694A32 |
|
|
29,181 |
|
|
|
28,800 |
|
|
|
381 |
|
|
|
28,800 |
|
|
|
23,236 |
|
|
4Q 2012 |
| 35729PPC8 |
|
|
353 |
|
|
|
339 |
|
|
|
14 |
|
|
|
339 |
|
|
|
275 |
|
|
4Q 2012 |
| 35729PPZ7 |
|
|
13,075 |
|
|
|
12,126 |
|
|
|
949 |
|
|
|
12,126 |
|
|
|
523 |
|
|
4Q 2012 |
| 46628SAJ2 |
|
|
6,769 |
|
|
|
6,499 |
|
|
|
270 |
|
|
|
6,499 |
|
|
|
5,926 |
|
|
4Q 2012 |
| 52108HV84 |
|
|
2,102 |
|
|
|
1,837 |
|
|
|
265 |
|
|
|
1,837 |
|
|
|
1,062 |
|
|
4Q 2012 |
| 52524YAA1 |
|
|
2,827 |
|
|
|
2,514 |
|
|
|
313 |
|
|
|
2,514 |
|
|
|
2,124 |
|
|
4Q 2012 |
| 61915RCJ3 |
|
|
19,356 |
|
|
|
19,181 |
|
|
|
175 |
|
|
|
19,181 |
|
|
|
14,371 |
|
|
4Q 2012 |
| 759676AJ8 |
|
|
5,724 |
|
|
|
5,531 |
|
|
|
193 |
|
|
|
5,531 |
|
|
|
3,866 |
|
|
4Q 2012 |
| 75970JAJ5 |
|
|
3,887 |
|
|
|
3,813 |
|
|
|
74 |
|
|
|
3,813 |
|
|
|
2,883 |
|
|
4Q 2012 |
| 75970QAH3 |
|
|
5,041 |
|
|
|
4,995 |
|
|
|
46 |
|
|
|
4,995 |
|
|
|
3,865 |
|
|
4Q 2012 |
| 75971EAF3 |
|
|
4,967 |
|
|
|
4,908 |
|
|
|
59 |
|
|
|
4,908 |
|
|
|
3,430 |
|
|
4Q 2012 |
| 86357UAA9 |
|
|
3,219 |
|
|
|
2,832 |
|
|
|
387 |
|
|
|
2,832 |
|
|
|
— |
|
|
4Q 2012 |
| 86357UBM2 |
|
|
564 |
|
|
|
494 |
|
|
|
70 |
|
|
|
494 |
|
|
|
— |
|
|
4Q 2012 |
| 86365EAA5 |
|
|
1,648 |
|
|
|
1,443 |
|
|
|
205 |
|
|
|
1,443 |
|
|
|
— |
|
|
4Q 2012 |
| 86365EAC1 |
|
|
695 |
|
|
|
609 |
|
|
|
86 |
|
|
|
609 |
|
|
|
— |
|
|
4Q 2012 |
| 86365KAA1 |
|
|
568 |
|
|
|
498 |
|
|
|
70 |
|
|
|
498 |
|
|
|
— |
|
|
4Q 2012 |
60
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 36298JAA1 |
|
$ |
9,827 |
|
|
$ |
6,747 |
|
|
$ |
3,080 |
|
|
$ |
6,747 |
|
|
$ |
3,553 |
|
|
4Q 2012 |
| 75970QAD2 |
|
|
4,669 |
|
|
|
4,630 |
|
|
|
39 |
|
|
|
4,630 |
|
|
|
3,624 |
|
|
4Q 2012 |
| 32113JAE5 |
|
|
1,004 |
|
|
|
924 |
|
|
|
80 |
|
|
|
924 |
|
|
|
250 |
|
|
4Q 2012 |
| 32113JAD7 |
|
|
1,324 |
|
|
|
1,314 |
|
|
|
10 |
|
|
|
1,314 |
|
|
|
406 |
|
|
4Q 2012 |
| 12667GCH4 |
|
|
5,160 |
|
|
|
5,053 |
|
|
|
107 |
|
|
|
5,053 |
|
|
|
3,589 |
|
|
4Q 2012 |
| 759950GZ5 |
|
|
444 |
|
|
|
— |
|
|
|
444 |
|
|
|
— |
|
|
|
66 |
|
|
4Q 2012 |
| 759950FJ2 |
|
|
1,710 |
|
|
|
1,704 |
|
|
|
6 |
|
|
|
1,704 |
|
|
|
404 |
|
|
4Q 2012 |
| 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 |
61
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
| 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 |
| 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 |
62
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
| 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 |
63
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
| 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 |
64
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
| 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 |
65
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
| 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 |
66
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
| 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 |
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, 2012 and 2011 is as follows:
|
|
|
|
|
|
|
|
|
| |
|
Losses 12
Months or
More |
|
|
Losses Less
Than 12
Months |
|
| Year ended December 31, 2012 |
|
|
|
|
|
|
|
|
| The aggregate amount of unrealized losses |
|
$ |
787,684 |
|
|
$ |
4,100 |
|
| The aggregate related fair value of securities with unrealized losses |
|
|
3,247,332 |
|
|
|
245,722 |
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
Detail of net investment income (loss) is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
$ |
1,905,410 |
|
|
$ |
2,147,304 |
|
|
$ |
2,476,783 |
|
| Preferred stocks |
|
|
9,320 |
|
|
|
9,136 |
|
|
|
10,296 |
|
| Common stocks |
|
|
168,713 |
|
|
|
48,828 |
|
|
|
36,266 |
|
| Mortgage loans on real estate |
|
|
411,742 |
|
|
|
469,635 |
|
|
|
534,467 |
|
| Real estate |
|
|
17,328 |
|
|
|
19,488 |
|
|
|
20,816 |
|
| Policy loans |
|
|
48,012 |
|
|
|
46,677 |
|
|
|
50,210 |
|
| Cash, cash equivalents and short-term investments |
|
|
7,509 |
|
|
|
5,010 |
|
|
|
11,008 |
|
| Derivatives |
|
|
197,183 |
|
|
|
(29,303 |
) |
|
|
(147,236 |
) |
| Other invested assets |
|
|
35,582 |
|
|
|
6,183 |
|
|
|
50,078 |
|
| Other |
|
|
34,107 |
|
|
|
11,912 |
|
|
|
14,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross investment income |
|
|
2,834,906 |
|
|
|
2,734,870 |
|
|
|
3,057,213 |
|
| Less investment expenses |
|
|
105,379 |
|
|
|
119,012 |
|
|
|
138,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
2,729,527 |
|
|
$ |
2,615,858 |
|
|
$ |
2,919,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Proceeds |
|
$ |
9,180,982 |
|
|
$ |
16,303,347 |
|
|
$ |
23,903,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross realized gains |
|
$ |
292,804 |
|
|
$ |
581,820 |
|
|
$ |
1,624,135 |
|
| Gross realized losses |
|
|
(45,003 |
) |
|
|
(85,014 |
) |
|
|
(142,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) |
|
$ |
247,801 |
|
|
$ |
496,806 |
|
|
$ |
1,481,182 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company had gross realized losses for the years ended December 31, 2012, 2011 and 2010 of $88,836, $127,005 and
$192,541, 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 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Bonds |
|
$ |
158,547 |
|
|
$ |
370,867 |
|
|
$ |
1,290,685 |
|
| Preferred stocks |
|
|
418 |
|
|
|
5,557 |
|
|
|
(75 |
) |
| Common stocks |
|
|
(621 |
) |
|
|
22,701 |
|
|
|
2,949 |
|
| Mortgage loans on real estate |
|
|
13,802 |
|
|
|
(2,171 |
) |
|
|
(18,451 |
) |
| Real estate |
|
|
7,190 |
|
|
|
4,287 |
|
|
|
(235 |
) |
| Cash, cash equivalents and short-term investments |
|
|
9 |
|
|
|
13 |
|
|
|
12 |
|
| Derivatives |
|
|
(508,177 |
) |
|
|
304,713 |
|
|
|
(160,155 |
) |
| Other invested assets |
|
|
112,293 |
|
|
|
91,017 |
|
|
|
124,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(216,539 |
) |
|
|
796,984 |
|
|
|
1,239,442 |
|
| Federal income tax effect |
|
|
(94,705 |
) |
|
|
(185,043 |
) |
|
|
(450,184 |
) |
| Transfer to interest maintenance reserve |
|
|
(71,282 |
) |
|
|
(188,405 |
) |
|
|
(846,096 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
$ |
(382,526 |
) |
|
$ |
423,536 |
|
|
$ |
(56,838 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012 and 2011, the Company had recorded investments in restructured securities of $8,476 and
$10,272, respectively. The capital gains (losses) taken as a direct result of restructures in 2012, 2011 and 2010 were $167, $(4,361) and $16,745, 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.
68
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The changes in net unrealized capital gains and losses on investments, including the changes in net
unrealized foreign capital gains and losses, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Change in Unrealized |
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Bonds |
|
$ |
108,175 |
|
|
$ |
(143,599 |
) |
|
$ |
(53,819 |
) |
| Preferred stocks |
|
|
3,957 |
|
|
|
(3,816 |
) |
|
|
(35 |
) |
| Common stocks |
|
|
21,290 |
|
|
|
(19,959 |
) |
|
|
22,057 |
|
| Affiliated entities |
|
|
(25,164 |
) |
|
|
461,477 |
|
|
|
70,914 |
|
| Mortgage loans on real estate |
|
|
6,270 |
|
|
|
(2,196 |
) |
|
|
1,826 |
|
| Derivatives |
|
|
(98,933 |
) |
|
|
239,967 |
|
|
|
113,051 |
|
| Other invested assets |
|
|
14,749 |
|
|
|
103,189 |
|
|
|
25,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized capital gains/losses, before taxes |
|
|
30,344 |
|
|
|
635,063 |
|
|
|
179,283 |
|
| Taxes on unrealized capital gains/losses |
|
|
(20,779 |
) |
|
|
(57,633 |
) |
|
|
(17,514 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized capital gains/losses, net of tax |
|
$ |
9,565 |
|
|
$ |
577,430 |
|
|
$ |
161,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During 2012, the Company issued mortgage loans with a maximum interest rate of 5.40% and a minimum interest rate of 3.44%
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, 2012 at the time of origination was 75%. During 2011, the Company issued mortgage
loans with a maximum interest rate of 6.16% and a minimum interest rate of 4.01% 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%. During 2012, the Company reduced the interest rate by 1% on two outstanding mortgage loans with statement value of $13,326. During 2011, the Company did not reduce interest rates on any outstanding mortgages.
At December 31, 2012 and 2011, there were no loans that were non-income producing for the previous 180 days. There was no accrued interest related to these mortgage loans at December 31, 2012 or 2011. 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, 2012 and 2011 there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.
At December 31, 2012 and 2011, respectively, the Company held $37,459 and $44,738 in impaired loans with related allowance for credit losses of
$2,124 and $8,394. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2012 and 2011, respectively. The average recorded investment in impaired loans during 2012 and 2011 was $41,959 and $53,714,
respectively.
69
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Balance at beginning of period |
|
$ |
8,394 |
|
|
$ |
6,198 |
|
|
$ |
8,024 |
|
| Additions, net charged to operations |
|
|
500 |
|
|
|
6,599 |
|
|
|
16,645 |
|
| Recoveries in amounts previously charged off |
|
|
(6,770 |
) |
|
|
(4,403 |
) |
|
|
(18,471 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at end of period |
|
$ |
2,124 |
|
|
$ |
8,394 |
|
|
$ |
6,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2012, 2011 and 2010, respectively, the Company
recognized $2,879, $3,701 and $8,500 of interest income on impaired loans. Interest income of $2,971, $3,610 and $8,568, respectively, was recognized on a cash basis for the years ended December 31, 2012, 2011 and 2010.
At December 31, 2012 and 2011, the Company held a mortgage loan loss reserve in the AVR of $54,808 and $65,017, respectively.
The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Geographic Distribution |
|
|
Property Type Distribution |
|
| |
|
December 31 |
|
|
|
|
December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
|
|
2012 |
|
|
2011 |
|
| South Atlantic |
|
|
25 |
% |
|
|
25 |
% |
|
Office |
|
|
27 |
% |
|
|
28 |
% |
| Pacific |
|
|
22 |
|
|
|
23 |
|
|
Retail |
|
|
27 |
|
|
|
23 |
|
| Middle Atlantic |
|
|
15 |
|
|
|
15 |
|
|
Apartment |
|
|
20 |
|
|
|
21 |
|
| Mountain |
|
|
15 |
|
|
|
14 |
|
|
Industrial |
|
|
18 |
|
|
|
18 |
|
| E. North Central |
|
|
9 |
|
|
|
10 |
|
|
Other |
|
|
3 |
|
|
|
4 |
|
| W. North Central |
|
|
6 |
|
|
|
6 |
|
|
Agricultural |
|
|
3 |
|
|
|
4 |
|
| W. South Central |
|
|
5 |
|
|
|
3 |
|
|
Medical |
|
|
2 |
|
|
|
2 |
|
| E. South Central |
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
| New England |
|
|
1 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
70
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012, 2011 and 2010, the Company had mortgage loans with a total net admitted asset
value of $2,176, $2,416 and $13,125, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2012, 2011 and 2010
related to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2012, 2011 or 2010.
During 2012, the Company recorded an impairment of $97 for its investment in Yucaipa Equity Partners, L.P. The impairment was taken because the decline in fair value of the fund was deemed to be other
than temporary and a recovery in value from the remaining underlying investments in the fund is not anticipated. The write-down is included in net realized capital gains (losses) within the statements of operations.
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.
At
December 31, 2012, the Company had ownership interests in fifty LIHTC investments. The remaining years of unexpired tax credits ranged from one to thirteen, and none of the properties were subject to regulatory review. The length of time
remaining for holding periods ranged from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2013 to 2029 is $23,053. There were no impairment losses, write-downs or reclassifications during the
year related to any of these credits.
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 was $53,963. There were no impairment losses, write-downs or reclassifications during 2011 related to any of these credits.
71
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Description of State Transferable and Non- |
|
|
|
|
December 31, 2012 |
|
| transferable Tax Credits |
|
State |
|
|
Carrying Value |
|
|
Unused Amount* |
|
| Low-Income Housing Tax Credits |
|
|
MA |
|
|
$ |
2,810 |
|
|
$ |
5,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
$ |
2,810 |
|
|
$ |
5,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Description of State Transferable and Non- |
|
|
|
|
December 31, 2011 |
|
| transferable Tax Credits |
|
State |
|
|
Carrying Value |
|
|
Unused Amount |
|
| Low-Income Housing Tax Credits |
|
|
MA |
|
|
$ |
4,446 |
|
|
$ |
6,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
$ |
4,446 |
|
|
$ |
6,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
The unused amount reflects credits that the Company deems will be realizable in the period from 2013 to 2015. |
The Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium,
tax rates and tax credits and comparing the projected future tax liability to the availability of remaining state transferable tax credits. The Company had no impairment losses related to state transferable tax credits.
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 Company’s behalf in an amount equal to
the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required
to post similar assets (cash or securities).
72
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012 and 2011, the fair value of all derivative contracts, aggregated at a
counterparty level, with a positive fair value amounted to $1,962,723 and $2,014,879, respectively.
At December 31, 2012 and 2011, the
fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $521,564 and $560,015, respectively.
For the years ended December 31, 2012 and 2011, the Company has recorded $42,816 and $142,076, 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.
The Company did not recognize any
unrealized gains or losses during 2012 and 2011 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, 2012, 2011 or 2010.
The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 20 years for forecasted hedge transactions.
At December 31, 2012 and 2011, none of the Company’s cash flow hedges have been discontinued as it was probable that the original forecasted
transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.
As of
December 31, 2012 and 2011, the Company has accumulated deferred gains in the amount of $66,410 and $78,051, 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, 2012 and 2011, the Company
had replicated assets with a fair value of $3,571,947 and $2,965,038 and credit default and forward starting interest rate swaps with a fair value of $(143,165) and $(195,744), respectively. For the years ended December 31, 2012 and 2011, the
Company recognized $6,989 and $(408), respectively, in capital gains (losses) related to replication transactions. For the year ended December 31, 2010, the Company did not recognize any capital losses related to replication transactions.
73
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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, 2012, credit default swaps, used in replicating corporate bonds are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deal, Receive (Pay), Underlying |
|
Maturity
Date |
|
|
Maximum Future
Payout (Estimate) |
|
|
Current Fair
Value |
|
| 4200, SWAP, USD 1 / (USD 0), : 912810QK7 |
|
|
12/20/2015 |
|
|
$ |
10,000 |
|
|
$ |
(19 |
) |
| 4201, SWAP, USD 1 / (USD 0), : 912828JR2 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
66 |
|
| 4203, SWAP, USD 1 / (USD 0), : 912810PX0 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
(5 |
) |
| 4208, SWAP, USD 1 / (USD 0), : 912810QK7 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
131 |
|
| 4252, SWAP, USD 1 / (USD 0), : 912803DJ9 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
21 |
|
| 4253, SWAP, USD 1 / (USD 0), : 912803BM4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
242 |
|
| 4254, SWAP, USD 1 / (USD 0), : 912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
(38 |
) |
| 4257, SWAP, USD 1 / (USD 0), : 912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
79 |
|
| 4261, SWAP, USD 1 / (USD 0), : 912803CH4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
74 |
|
| 4262, SWAP, USD 1 / (USD 0), : 912803BJ1 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
(38 |
) |
| 4267, SWAP, USD 1 / (USD 0), : 912803DJ9 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
42 |
|
| 4269, SWAP, USD 1 / (USD 0), : 912803CH4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
478 |
|
| 4272, SWAP, USD 1 / (USD 0), : 912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
281 |
|
| 4280, SWAP, USD 1 / (USD 0), : 912803DJ9 |
|
|
3/20/2016 |
|
|
|
10,000 |
|
|
|
167 |
|
| 4281, SWAP, USD 1 / (USD 0), : 912803DM2 |
|
|
3/20/2016 |
|
|
|
20,000 |
|
|
|
318 |
|
| 4299, SWAP, USD 1 / (USD 0), : US670346AE56 |
|
|
3/20/2016 |
|
|
|
10,000 |
|
|
|
141 |
|
| 4311, SWAP, USD 1 / (USD 0), : US35671DAS45 |
|
|
6/20/2016 |
|
|
|
20,000 |
|
|
|
(11 |
) |
| 4347, SWAP, USD 1 / (USD 0), : CDX IG 16 |
|
|
6/20/2016 |
|
|
|
20,000 |
|
|
|
220 |
|
| 4479, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
164 |
|
| 4480, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
164 |
|
| 4481, SWAP, USD 1 / (USD 0), : US46513EY48 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
(43 |
) |
| 4482, SWAP, USD 1 / (USD 0), : XS0113419690 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
170 |
|
| 4483, SWAP, USD 1 / (USD 0), : XS0203685788 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
334 |
|
| 4484, SWAP, USD 1 / (USD 0), : US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
214 |
|
| 4485, SWAP, USD 1 / (USD 0), : USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
175 |
|
| 4486, SWAP, USD 1 / (USD 0), : US712219AG90 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
223 |
|
| 4487, SWAP, USD 1 / (USD 0), : US168863AS74 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
255 |
|
| 4491, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
247 |
|
| 4493, SWAP, USD 1 / (USD 0), : XS0113419690 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
255 |
|
| 4494, SWAP, USD 1 / (USD 0), : US50064FAD69 |
|
|
3/20/2017 |
|
|
|
5,000 |
|
|
|
107 |
|
| 4500, SWAP, USD 0.25 / (USD 0), : XS0417728325 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
25 |
|
| 4502, SWAP, USD 1 / (USD 0), : XS0203685788 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
334 |
|
| 4504, SWAP, USD 1 / (USD 0), : XS0412694647 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
414 |
|
| 4505, SWAP, USD 1 / (USD 0), : US16886AS74 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
170 |
|
| 4506, SWAP, USD 1 / (USD 0), : JP1200551248 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
239 |
|
| 4507, SWAP, USD 1 / (USD 0), : XS0203685788 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
223 |
|
| 4508, SWAP, USD 1 / (USD 0), : XS0113419690 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
255 |
|
| 4509, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
164 |
|
| 4510, SWAP, USD 1 / (USD 0), : US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
214 |
|
| 4511, SWAP, USD 0.25 / (USD 0), : XS0417728325 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
17 |
|
| 4512, SWAP, USD 1 / (USD 0), : US168863AS74 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
170 |
|
| 4513, SWAP, USD 1 / (USD 0), : USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
5,000 |
|
|
|
87 |
|
| 4515, SWAP, USD 1 / (USD 0), : XS0412694647 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
276 |
|
| 4520, SWAP, USD 0.25 / (USD 0), : XS0417728325 |
|
|
3/20/2017 |
|
|
|
20,000 |
|
|
|
33 |
|
| 4521, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
164 |
|
| 4522, SWAP, USD 1 / (USD 0), : US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
214 |
|
74
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4523, SWAP, USD 1 / (USD 0), : XS0203685788 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
223 |
|
| 4524, SWAP, USD 1 / (USD 0), : JP1200551248 |
|
|
3/20/2017 |
|
|
|
20,000 |
|
|
|
319 |
|
| 4525, SWAP, USD 1 / (USD 0), : XS0412694647 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
276 |
|
| 4527, SWAP, USD 0.25 / (USD 0), : US317873AY36 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
14 |
|
| 4529, SWAP, USD 1 / (USD 0), : SUS650162AP56 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
267 |
|
| 4530, SWAP, USD 1 / (USD 0), : USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
175 |
|
| 4563, SWAP, USD 1 / (USD 0), : US59156RAN89 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
(512 |
) |
| 4564, SWAP, USD 1 / (USD 0), : US475070AD04 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
(715 |
) |
| 4567, SWAP, USD 1 / (USD 0), : US026874AZ07 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
(183 |
) |
| 4570, SWAP, USD 1 / (USD 0), : US026874AZ07 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
(183 |
) |
| 4576, SWAP, USD 1 / (USD 0), : US141781AC86 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
136 |
|
| 4577, SWAP, USD 1 / (USD 0), : US141781AC86 |
|
|
6/20/2017 |
|
|
|
5,000 |
|
|
|
68 |
|
| 4589, SWAP, USD 1 / (USD 0), : US42217KAL08 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
(23 |
) |
| 4599, SWAP, USD 1 / (USD 0), : CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
129 |
|
| 4600, SWAP, USD 1 / (USD 0), : CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
129 |
|
| 4603, SWAP, USD 1 / (USD 0), : CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
129 |
|
| 4604, SWAP, USD 1 / (USD 0), : CDX IG 18 |
|
|
6/20/2017 |
|
|
|
26,000 |
|
|
|
167 |
|
| 4622, SWAP, USD 1 / (USD 0), : CDX IG 18 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
161 |
|
| 4625, SWAP, USD 5 / (USD 0), : US345370BX76 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
3,334 |
|
| 4631, SWAP, USD 1 / (USD 0), : US105756AL40 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
25 |
|
| 4632, SWAP, USD 1 / (USD 0), : XS0114288789 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
(67 |
) |
| 4633, SWAP, USD 1 / (USD 0), : US715638AP79 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
73 |
|
| 4634, SWAP, USD 1 / (USD 0), : XS0203685788 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
213 |
|
| 4635, SWAP, USD 1 / (USD 0), : XS0412694647 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
275 |
|
| 4636, SWAP, USD 1 / (USD 0), : US731011AN26 |
|
|
6/20/2017 |
|
|
|
8,000 |
|
|
|
118 |
|
| 4675, SWAP, USD 1 / (USD 0), : US105756AL40 |
|
|
9/20/2017 |
|
|
|
5,700 |
|
|
|
2 |
|
| 4676, SWAP, USD 1 / (USD 0), : XS0114288789 |
|
|
9/20/2017 |
|
|
|
4,900 |
|
|
|
(50 |
) |
| 4677, SWAP, USD 1 / (USD 0), : US455780AQ93 |
|
|
9/20/2017 |
|
|
|
9,500 |
|
|
|
(77 |
) |
| 4678, SWAP, USD 1 / (USD 0), : US715638AP79 |
|
|
9/20/2017 |
|
|
|
9,000 |
|
|
|
49 |
|
| 4680, SWAP, USD 0.25 / (USD 0), : XS0417728325 |
|
|
9/20/2017 |
|
|
|
7,100 |
|
|
|
(8 |
) |
| 4684, SWAP, USD 1 / (USD 0), : US836205AJ33 |
|
|
9/20/2017 |
|
|
|
10,600 |
|
|
|
(168 |
) |
| 4686, SWAP, USD 1 / (USD 0), : US88322LAA70 |
|
|
9/20/2017 |
|
|
|
5,100 |
|
|
|
42 |
|
| 4709, SWAP, USD 1 / (USD 0), : JP1200551248 |
|
|
9/20/2017 |
|
|
|
4,000 |
|
|
|
51 |
|
| 4710, SWAP, USD 1 / (USD 0), : XS0114288789 |
|
|
9/20/2017 |
|
|
|
4,500 |
|
|
|
(46 |
) |
| 4711, SWAP, USD 0.25 / (USD 0), : XS0417728325 |
|
|
9/20/2017 |
|
|
|
3,000 |
|
|
|
(3 |
) |
| 4720, SWAP, USD 1 / (USD 0), : XS0114288789 |
|
|
9/20/2017 |
|
|
|
10,000 |
|
|
|
(101 |
) |
| 4721, SWAP, USD 1 / (USD 0), : US91086QAW87 |
|
|
9/20/2017 |
|
|
|
10,000 |
|
|
|
52 |
|
| 4724, SWAP, USD 1 / (USD 0), : US836205AJ33 |
|
|
9/20/2017 |
|
|
|
8,000 |
|
|
|
(127 |
) |
| 4725, SWAP, USD 1 / (USD 0), : US105756AL40 |
|
|
9/20/2017 |
|
|
|
8,000 |
|
|
|
2 |
|
| 4766, SWAP, USD 1 / (USD 0), : 12624KAD8 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
(28 |
) |
| 4767, SWAP, USD 1 / (USD 0), : 46634GAB7 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
49 |
|
| 4768, SWAP, USD 1 / (USD 0), : 92936CAJ8 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
(202 |
) |
| 4769, SWAP, USD 1 / (USD 0), : 175305EEE1 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
173 |
|
| 4770, SWAP, USD 1 / (USD 0), : 36248EAB1 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(134 |
) |
| 4772, SWAP, USD 1 / (USD 0), : 17305EDT9 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
(61 |
) |
| 4773, SWAP, USD 1 / (USD 0), : 46636DAJ5 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
36 |
|
| 4774, SWAP, USD 1 / (USD 0), : 36249KAC4 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
62 |
|
75
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4775, SWAP, USD 1 / (USD 0), : 17305EEE1 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
66 |
|
| 4790, SWAP, USD 1 / (USD 0), : 617459AD4 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(535 |
) |
| 4792, SWAP, USD 1 / (USD 0), : 61761DAD4 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(535 |
) |
| 4797, SWAP, USD 1 / (USD 0), : 36248EAB1 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(351 |
) |
| 4798, SWAP, USD 1 / (USD 0), : 12624PAE5 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(195 |
) |
| 4799, SWAP, USD 1 / (USD 0), : 92936YAC5 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
30 |
|
| 4800, SWAP, USD 1 / (USD 0), : 61761DAD4 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
10 |
|
| 4802, SWAP, USD 1 / (USD 0), : 912803DK6 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
44 |
|
| 4804, SWAP, USD 1 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
50 |
|
| 4808, SWAP, USD 1 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
27,000 |
|
|
|
54 |
|
| 4809, SWAP, USD 1 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
27,000 |
|
|
|
54 |
|
| 4811, SWAP, USD 1 / (USD 0), : 912810QV3 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
30 |
|
| 4812, SWAP, USD 1 / (USD 0), : 912803DP5 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
44 |
|
| 4815, SWAP, USD 1 / (USD 0), : 92930RBB7 |
|
|
12/20/2017 |
|
|
|
12,500 |
|
|
|
8 |
|
| 4816, SWAP, USD 1 / (USD 0), : 31359MEL3 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(26 |
) |
| 4817, SWAP, USD 1 / (USD 0), : 912810QH4 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(141 |
) |
| 4818, SWAP, USD 1 / (USD 0), : 912803DK6 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(390 |
) |
| 4820, SWAP, USD 1 / (USD 0), : 07401DAD3 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(514 |
) |
| 4821, SWAP, USD 1 / (USD 0), : 20176AB1 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
1 |
|
| 4822, SWAP, USD 5 / (USD 0), : 912803DS9 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
2,810 |
|
| 4828, SWAP, USD 1 / (USD 0), : 912803DS9 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
44 |
|
| 4829, SWAP, USD 1 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
497 |
|
| 4830, SWAP, USD 1 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
125 |
|
| 4832, SWAP, USD 1 / (USD 0), : 912803DP5 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
40 |
|
| 4833, SWAP, USD 1 / (USD 0), : 912803DM2 |
|
|
12/20/2017 |
|
|
|
50,000 |
|
|
|
99 |
|
| 4834, SWAP, USD 1 / (USD 0), : 912803DM2 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
1 |
|
| 4835, SWAP, USD 1 / (USD 0), : 912803DM2 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(527 |
) |
| 4836, SWAP, USD 1 / (USD 0), : BAE2Z99E1 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
50 |
|
| 4837, SWAP, USD 5 / (USD 0), : BRS0F7YG6 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
3,512 |
|
| 4846, SWAP, USD 1 / (USD 0), : 31359MEL3 |
|
|
12/20/2016 |
|
|
|
19,000 |
|
|
|
(37 |
) |
| 4856, SWAP, USD 1 / (USD 0), : 12624QAR4 |
|
|
12/20/2017 |
|
|
|
12,500 |
|
|
|
25 |
|
| 4860, SWAP, USD 1 / (USD 0), : 912803DJ9 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
(32 |
) |
| 4861, SWAP, USD 1 / (USD 0), : 912803BF9 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
1 |
|
| 4862, SWAP, USD 1 / (USD 0), : 912803BJ1 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
(141 |
) |
| 4864, SWAP, USD 5 / (USD 0), : 912803DM2 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
1,405 |
|
| 4875, SWAP, USD 1 / (USD 0), : 94987MAB7 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(97 |
) |
| 50953, SWAP, USD 5 / (USD 0), : 912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
283 |
|
| 50956, SWAP, USD 5 / (USD 0), : 912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
356 |
|
| 50961, SWAP, USD 5 / (USD 0), : 912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
284 |
|
| 50965, SWAP, USD 5 / (USD 0), : 912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
364 |
|
| 50966, SWAP, USD 5 / (USD 0), : 912828PC8 |
|
|
12/20/2017 |
|
|
|
3,500 |
|
|
|
245 |
|
| 50967, SWAP, USD 5 / (USD 0), : 912828QN3 |
|
|
12/20/2017 |
|
|
|
500 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,887,400 |
|
|
$ |
18,511 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company had no written options for the year ended December 31, 2012. At December 31, 2011, the Company had
written options with a fair value of $0 and average fair value for the year of $(32) as these positions were sold during 2011. The Company had no realized gains or losses for the year ended December 31, 2011 related to these options.
76
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012, the Company had credit default swaps linked to collateralized debt
obligations with a fair value of $0 and average fair value for the year of $(6,356). 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). The Company recognized losses of $1,929 for the year ended December 31, 2012, while having no realized gains or losses for the years ended December 31, 2011 related to these credit default swaps.
At December 31, 2012 and 2011, the Company’s outstanding financial instruments with on and off balance sheet risks, shown in notional amounts,
are summarized as follows:
|
|
|
|
|
|
|
|
|
| |
|
Notional Amount |
|
| |
|
2012 |
|
|
2011 |
|
| Interest rate and currency swaps: |
|
|
|
|
|
|
|
|
| Receive floating—pay floating |
|
$ |
1,538,065 |
|
|
$ |
1,592,865 |
|
| Receive fixed—pay floating |
|
|
12,433,324 |
|
|
|
12,082,972 |
|
| Receive floating—pay fixed |
|
|
4,490,128 |
|
|
|
4,052,254 |
|
| Receive fixed—pay fixed |
|
|
1,403,729 |
|
|
|
732,548 |
|
The Company recognized net realized gains (losses) from futures contracts in the amount of $(93,808), $147,183 and
$(120,396) for the years ended December 31, 2012, 2011 and 2010, respectively.
Open futures contracts at December 31, 2012 and
2011, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long/Short |
|
Number of
Contracts |
|
|
Contract Type |
|
Opening
Fair Value |
|
|
Year-End
Fair Value |
|
| December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short |
|
|
(1,167 |
) |
|
S&P 500 March 2013 Futures |
|
$ |
(414,806 |
) |
|
$ |
(414,314 |
) |
| Long |
|
|
6,220 |
|
|
US Ultra Bond March 2013 Futures |
|
|
1,030,465 |
|
|
|
1,011,333 |
|
|
|
|
|
|
| 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 |
|
77
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012 and 2011, investments with an aggregate carrying value of $39,774,342 and
$38,140,830, 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.
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 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Direct premiums |
|
$ |
13,426,938 |
|
|
$ |
13,297,032 |
|
|
$ |
10,763,441 |
|
| Reinsurance assumed—non affiliates |
|
|
1,751,054 |
|
|
|
1,710,756 |
|
|
|
1,652,588 |
|
| Reinsurance assumed—affiliates |
|
|
185,147 |
|
|
|
222,283 |
|
|
|
427,231 |
|
| Reinsurance ceded—non affiliates |
|
|
(3,985,049 |
) |
|
|
(6,259,014 |
) |
|
|
(1,042,739 |
) |
| Reinsurance ceded—affiliates |
|
|
428,724 |
|
|
|
892,999 |
|
|
|
(2,635,402 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net premiums earned |
|
$ |
11,806,814 |
|
|
$ |
9,864,056 |
|
|
$ |
9,165,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company received reinsurance recoveries in the amount of $3,542,504, $2,756,316 and $2,580,994 during 2012, 2011 and
2010, respectively. At December 31, 2012 and 2011, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $618,208 and $705,476, respectively. The aggregate reserves for policies
and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2012 and 2011 of $37,141,980 and $40,233,402, respectively.
The net amount of the reduction in surplus at December 31, 2012 and 2011, if all reinsurance agreements were cancelled, is $235,002 and $231,604, respectively.
78
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
During 2012, the Company recaptured various blocks of business that were previously reinsured on various
bases to two separate affiliates. The Company received recapture consideration of $63,624, released the associated funds withheld liability of $1,516,317, recaptured life, annuity and claim reserves of $1,628,072, recaptured other assets of
$5,428 and released into income from surplus a previously deferred unamortized gain from the original transaction in the amount of $24,215, resulting in a pre-tax loss of $18,488, which has been included in the statement of operations.
Subsequently, the Company ceded a portion of this recaptured business to two separate non-affiliated entities. The Company paid a reinsurance premium of
$1,508,278 and a ceding commission of $41,149, released life, annuity and claim reserves of $1,510,206 and released an after-tax IMR liability associated with the block of business in the amount of $90,462, resulting in a net of tax gain on the
transaction in the amount of $64,969 (IMR after-tax gain of $90,462, less gross loss on reinsurance of $39,221, taxed at 35%), which has been credited directly to unassigned surplus. This gain will be recognized in income as earnings emerge on the
reinsured block of business. During 2012, the Company amortized $3,261 of this deferred gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
During 2012, the Company recaptured certain treaties associated with the divestiture of the Transamerica Reinsurance operations that were previously ceded to various non-affiliated entities so they could
perform the ultimate novation, for which no net consideration was received. Life and claim reserves recaptured were $70,992 and other assets were recaptured of $67,295, resulting in a pre-tax loss of $3,697, which has been included in the statement
of operations.
Subsequent to these recaptures, the Company novated certain unaffiliated treaties that were previously ceded by the Company to
various non-affiliated entities, in which consideration paid was $30,509, life and claim reserves released were $153,224, other assets transferred were $72,723 and a previously deferred unamortized gain resulting from the original cession of this
business of $19,068 ($12,394 net of tax) was released in to income, resulting in a pre-tax gain of $69,060, which has been included in the statement of operations.
The Company novated third party assumed retrocession agreements that were previously retroceded to a non-affiliate in which no net consideration was exchanged. Life and claim reserves were exchanged in
the amount of $129,464 and other assets were exchanged in the amount of $10,748. As a result, there was no net financial impact from these transactions on a pre-tax basis, as assumed and ceded reserves along with other assets exchanged were impacted
by equivalent amounts.
79
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 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 2012 and 2011, the Company amortized $30,393
and $27,742, respectively, 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 2012 and 2011, the Company amortized $5,140 and $1,888,
respectively, of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
80
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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. During
2012 and 2011, respectively, the Company amortized $5,669 and $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 divestiture 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 divestiture 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 counterparty’s 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. Prior to the recaptures in 2011, the Company amortized $15,593 of the original gain into earnings on
a net of tax basis with a corresponding charge to unassigned surplus. Subsequently, the Company reinsured this business, along with
81
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
additional business, to a new affiliate on 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. The Company did not amortize any of
this deferred gain into earnings during 2012.
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. During 2012, the Company amortized $5,240 into earnings on a net of
tax basis with a corresponding charge 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
$37,311, 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 2012 and 2011, respectively, the Company amortized $17,543 and $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.
82
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 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 divestiture 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, the Company amortized $6,969, 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 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
83
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
amortized $11,200 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. With the recapture of this business during 2011, the remaining unamortized
previously deferred gain associated with the original April 1, 2010 cession to the affiliate was released into income from surplus in the amount of $289,633 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 $1,130, $1,073 and $1,019 of the liability in 2012, 2011 and 2010, respectively.
During 2012, 2011 and 2010, the Company amortized deferred gains from reinsurance transactions occurring prior to 2010 of $28,528, $29,355 and $58,297, 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 Transamerica Occidental Life Insurance Company’s (TOLIC) branch in Hong Kong. TOLIC merged in to the Company effective
October 1, 2008. 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 TOLIC’s 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 $7,767, $8,053 and $8,335 was amortized during 2012, 2011 and 2010, 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.
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 had been fully amortized at December 31, 2010. The accretion of the deferred liability was $1,433
for 2010.
84
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company reports a reinsurance deposit receivable of $167,223 and $156,620 as of December 31,
2012 and 2011, 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 2012, 2011 and 2010, the Company obtained
letters of credit of $790,269, $841,411 and $804,032, respectively, for the benefit of affiliated and nonaffiliated companies that have reinsured business to the Company where the ceding company’s state of domicile does not recognize the
Company as an authorized reinsurer.
85
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
7. Income Taxes
The net deferred income tax asset at December 31, 2012 and 2011 and the change from the prior year are comprised of the following
components:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Gross Deferred Tax Assets |
|
$ |
1,112,530 |
|
|
$ |
339,889 |
|
|
$ |
1,452,419 |
|
| Statutory Valuation Allowance Adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross Deferred Tax Assets |
|
|
1,112,530 |
|
|
|
339,889 |
|
|
|
1,452,419 |
|
| Deferred Tax Assets Nonadmitted |
|
|
349,584 |
|
|
|
— |
|
|
|
349,584 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal (Net Deferred Tax Assets) |
|
|
762,946 |
|
|
|
339,889 |
|
|
|
1,102,835 |
|
| Deferred Tax Liabilities |
|
|
320,092 |
|
|
|
129,770 |
|
|
|
449,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Deferred Tax Assets |
|
$ |
442,854 |
|
|
$ |
210,119 |
|
|
$ |
652,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 Assets Nonadmitted |
|
|
412,663 |
|
|
|
— |
|
|
|
412,663 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal (Net Deferred Tax Assets) |
|
|
782,391 |
|
|
|
426,364 |
|
|
|
1,208,755 |
|
| Deferred Tax Liabilities |
|
|
329,726 |
|
|
|
162,421 |
|
|
|
492,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Deferred Tax Assets |
|
$ |
452,665 |
|
|
$ |
263,943 |
|
|
$ |
716,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Ordinary |
|
|
Change
Capital |
|
|
Total |
|
| Gross Deferred Tax Assets |
|
$ |
(82,524 |
) |
|
$ |
(86,475 |
) |
|
$ |
(168,999 |
) |
| Statutory Valuation Allowance Adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross Deferred Tax Assets |
|
|
(82,524 |
) |
|
|
(86,475 |
) |
|
|
(168,999 |
) |
| Deferred Tax Assets Nonadmitted |
|
|
(63,079 |
) |
|
|
— |
|
|
|
(63,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal (Net Deferred Tax Assets) |
|
|
(19,445 |
) |
|
|
(86,475 |
) |
|
|
(105,920 |
) |
| Deferred Tax Liabilities |
|
|
(9,634 |
) |
|
|
(32,651 |
) |
|
|
(42,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Deferred Tax Assets |
|
$ |
(9,811 |
) |
|
$ |
(53,824 |
) |
|
$ |
(63,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
86
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The main components of deferred income tax amounts are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
|
Change |
|
| Deferred Tax Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary: |
|
|
|
|
|
|
|
|
|
|
|
|
| Discounting of unpaid losses |
|
$ |
2,848 |
|
|
$ |
3,007 |
|
|
$ |
(159 |
) |
| Policyholder reserves |
|
|
351,951 |
|
|
|
455,136 |
|
|
|
(103,185 |
) |
| Investments |
|
|
46,034 |
|
|
|
89,412 |
|
|
|
(43,378 |
) |
| Deferred acquisition costs |
|
|
505,352 |
|
|
|
532,831 |
|
|
|
(27,479 |
) |
| Compensation and benefits accrual |
|
|
31,260 |
|
|
|
24,149 |
|
|
|
7,111 |
|
| Receivables—nonadmitted |
|
|
28,128 |
|
|
|
23,090 |
|
|
|
5,038 |
|
| Tax credit carry-forward |
|
|
82,421 |
|
|
|
— |
|
|
|
82,421 |
|
| Assumption reinsurance |
|
|
16,946 |
|
|
|
18,968 |
|
|
|
(2,022 |
) |
| Corporate Provision |
|
|
892 |
|
|
|
2,295 |
|
|
|
(1,403 |
) |
| Other (including items <5% of ordinary tax assets) |
|
|
46,698 |
|
|
|
46,166 |
|
|
|
532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
1,112,530 |
|
|
|
1,195,054 |
|
|
|
(82,524 |
) |
| Nonadmitted |
|
|
349,584 |
|
|
|
412,663 |
|
|
|
(63,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Admitted ordinary deferred tax assets |
|
|
762,946 |
|
|
|
782,391 |
|
|
|
(19,445 |
) |
| Capital: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
|
339,889 |
|
|
|
426,364 |
|
|
|
(86,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
339,889 |
|
|
|
426,364 |
|
|
|
(86,475 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Admitted deferred tax assets |
|
$ |
1,102,835 |
|
|
$ |
1,208,755 |
|
|
$ |
(105,920 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
|
Change |
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
$ |
103,663 |
|
|
$ |
144,993 |
|
|
$ |
(41,330 |
) |
| Excess capital to offset ordinary |
|
|
147,464 |
|
|
|
104,004 |
|
|
|
43,460 |
|
| §807(f) adjustment |
|
|
52,736 |
|
|
|
61,737 |
|
|
|
(9,001 |
) |
| Separate account adjustments |
|
|
16,229 |
|
|
|
17,572 |
|
|
|
(1,343 |
) |
| Other (including items <5% of total ordinary tax liabilities) |
|
|
— |
|
|
|
1,420 |
|
|
|
(1,420 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
320,092 |
|
|
|
329,726 |
|
|
|
(9,634 |
) |
| Capital: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
|
277,234 |
|
|
|
265,968 |
|
|
|
11,266 |
|
| Excess capital to offset ordinary |
|
|
(147,464 |
) |
|
|
(104,004 |
) |
|
|
(43,460 |
) |
| Other (including items <5% of total capital tax liabilities) |
|
|
— |
|
|
|
457 |
|
|
|
(457 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
129,770 |
|
|
|
162,421 |
|
|
|
(32,651 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
449,862 |
|
|
|
492,147 |
|
|
|
(42,285 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net deferred tax assets/liabilities |
|
$ |
652,973 |
|
|
$ |
716,608 |
|
|
$ |
(63,635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
87
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
As discussed in Note 1, for the year ended December 31, 2012 the Company admits deferred income tax
assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101 |
|
|
|
|
|
|
|
|
|
|
|
|
| 2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks |
|
$ |
116,426 |
|
|
$ |
108,343 |
|
|
$ |
224,769 |
|
| 2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a)
above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below) |
|
|
326,428 |
|
|
|
101,776 |
|
|
|
428,204 |
|
| 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet
Date |
|
|
326,428 |
|
|
|
101,776 |
|
|
|
428,204 |
|
| 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold |
|
|
XXX |
|
|
|
XXX |
|
|
|
717,641 |
|
| 2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset
by Gross Deferred Tax Liabilities |
|
|
320,092 |
|
|
|
129,770 |
|
|
|
449,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +
2(c)) |
|
$ |
762,946 |
|
|
$ |
339,889 |
|
|
$ |
1,102,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011* |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101 |
|
|
|
|
|
|
|
|
|
|
|
|
| 2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks |
|
$ |
141,807 |
|
|
$ |
154,653 |
|
|
$ |
296,460 |
|
| 2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a)
above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below) |
|
|
310,858 |
|
|
|
109,291 |
|
|
|
420,149 |
|
| 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet
Date |
|
|
310,858 |
|
|
|
109,291 |
|
|
|
420,149 |
|
| 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold |
|
|
XXX |
|
|
|
XXX |
|
|
|
700,221 |
|
| 2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset
by Gross Deferred Tax Liabilities |
|
|
329,726 |
|
|
|
162,420 |
|
|
|
492,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +
2(c)) |
|
$ |
782,391 |
|
|
$ |
426,364 |
|
|
$ |
1,208,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
88
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Ordinary |
|
|
Change
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101 |
|
|
|
|
|
|
|
|
|
|
|
|
| 2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks |
|
$ |
(25,381 |
) |
|
$ |
(46,310 |
) |
|
$ |
(71,691 |
) |
| 2(b) Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a)
above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below) |
|
|
15,570 |
|
|
|
(7,515 |
) |
|
|
8,055 |
|
| 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet
Date |
|
|
15,570 |
|
|
|
(7,515 |
) |
|
|
8,055 |
|
| 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold |
|
|
XXX |
|
|
|
XXX |
|
|
|
17,420 |
|
| 2(c) Adjusted Gross Deferred Tax Assets (Excluding The Amount Of Deferred Tax Assets From 2(a) and 2(b) above) Offset
by Gross Deferred Tax Liabilities |
|
|
(9,634 |
) |
|
|
(32,650 |
) |
|
|
(42,284 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +
2(c)) |
|
$ |
(19,445 |
) |
|
$ |
(86,475 |
) |
|
$ |
(105,920 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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.
|
89
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2012 |
|
|
2011 |
|
| Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount |
|
|
895 |
% |
|
|
806 |
% |
|
|
|
|
|
|
|
|
|
| Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above |
|
$ |
4,789,621 |
|
|
$ |
4,369,299 |
|
|
|
|
|
|
|
|
|
|
The impact of tax planning strategies at December 31, 2012 and 2011 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| |
|
Ordinary
Percent |
|
|
Capital
Percent |
|
|
Total Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs
(% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
30 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs
(% of Total Net Admitted Adjusted Gross DTAs) |
|
|
38 |
% |
|
|
48 |
% |
|
|
41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
| |
|
Ordinary
Percent |
|
|
Capital
Percent |
|
|
Total Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs
(% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs
(% of Total Net Admitted Adjusted Gross DTAs) |
|
|
69 |
% |
|
|
41 |
% |
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Ordinary
Percent |
|
|
Change
Capital
Percent |
|
|
Total Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs
(% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
30 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs
(% of Total Net Admitted Adjusted Gross DTAs) |
|
|
-31 |
% |
|
|
7 |
% |
|
|
-18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.
90
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Current income taxes incurred consist of the following major components:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
|
Change |
|
| Current Income Tax |
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
$ |
(161,806 |
) |
|
$ |
(174,039 |
) |
|
$ |
12,233 |
|
| Foreign |
|
|
(698 |
) |
|
|
(879 |
) |
|
|
181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
(162,504 |
) |
|
|
(174,918 |
) |
|
|
12,414 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal income tax on net capital gains |
|
|
94,705 |
|
|
|
185,043 |
|
|
|
(90,338 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal and foreign income taxes incurred |
|
$ |
(67,799 |
) |
|
$ |
10,125 |
|
|
$ |
(77,924 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2012 or 2011.
91
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company’s current income tax incurred and change in deferred income tax differs from the amount
obtained by applying the federal statutory rate of 35% to income before tax as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Current income taxes incurred |
|
$ |
(67,799 |
) |
|
$ |
10,125 |
|
|
$ |
179,956 |
|
| Change in deferred income taxes |
|
|
105,935 |
|
|
|
(136,907 |
) |
|
|
126,689 |
|
| (without tax on unrealized gains and losses) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total income tax reported |
|
$ |
38,136 |
|
|
$ |
(126,782 |
) |
|
$ |
306,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before taxes |
|
$ |
795,047 |
|
|
$ |
(2,260,735 |
) |
|
$ |
1,443,732 |
|
|
|
|
35.00 |
% |
|
|
35.00 |
% |
|
|
35.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expected income tax expense (benefit) at 35% statutory rate |
|
$ |
278,266 |
|
|
$ |
(791,257 |
) |
|
$ |
505,306 |
|
| Increase (decrease) in actual tax reported resulting from: |
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends received deduction |
|
|
(36,188 |
) |
|
|
(31,014 |
) |
|
|
(27,413 |
) |
| Tax credits |
|
|
(58,619 |
) |
|
|
(62,184 |
) |
|
|
(57,815 |
) |
| Tax-exempt income |
|
|
(27 |
) |
|
|
(276 |
) |
|
|
(90 |
) |
| Tax adjustment for IMR |
|
|
(34,101 |
) |
|
|
(133,408 |
) |
|
|
(1,513 |
) |
| Surplus adjustment for inforce ceded |
|
|
(14,483 |
) |
|
|
863,606 |
|
|
|
(22,522 |
) |
| Nondeductible expenses |
|
|
774 |
|
|
|
8,166 |
|
|
|
3,213 |
|
| Deferred tax benefit on other items in surplus |
|
|
(4,103 |
) |
|
|
(15,569 |
) |
|
|
35,989 |
|
| Provision to return |
|
|
(13,629 |
) |
|
|
1,525 |
|
|
|
(5,730 |
) |
| Life-owned life insurance |
|
|
(4,268 |
) |
|
|
(3,786 |
) |
|
|
(3,741 |
) |
| Dividends from certain foreign corporations |
|
|
546 |
|
|
|
331 |
|
|
|
374 |
|
| Statutory valuation allowance |
|
|
— |
|
|
|
— |
|
|
|
(81,188 |
) |
| Prior period adjustment |
|
|
(51,467 |
) |
|
|
(26,684 |
) |
|
|
(57,775 |
) |
| Pre-tax income of Single Member Liability Companies (SMLLC’s) |
|
|
28,889 |
|
|
|
25,763 |
|
|
|
32,281 |
|
| Transfer of basis |
|
|
— |
|
|
|
51,597 |
|
|
|
— |
|
| Intercompany dividends |
|
|
(55,618 |
) |
|
|
(11,653 |
) |
|
|
(11,620 |
) |
| Partnership permanent adjustment |
|
|
1,014 |
|
|
|
2,290 |
|
|
|
2,402 |
|
| Other |
|
|
1,150 |
|
|
|
(4,229 |
) |
|
|
(3,513 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total income tax reported |
|
$ |
38,136 |
|
|
$ |
(126,782 |
) |
|
$ |
306,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 Company’s separately computed income tax liability or the consolidated group’s income tax
92
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed
income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue
Service. A tax return has not yet been filed for 2012.
As of December 31, 2012, the Company had an $82,421 tax credit carryforward
available for tax purposes. As of December 31, 2011, the Company had no tax credit carryforwards. As of December 31, 2012 and 2011, the Company had no operating loss or capital loss carryforwards available for tax purposes.
The Company incurred income taxes of $24,337, $25,193 and $187,671 during 2012, 2011 and 2010, respectively, which will be available for recoupment in
the event of future net losses.
The amount of tax contingencies calculated for the Company as of December 31, 2012 and 2011 is $1,448
and $1,178, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $1,448. The Company classifies interest and penalties related to income taxes as income tax expense. The
Company’s interest (benefit) expense related to income taxes for the years ending December 31, 2012, 2011 and 2010 is $1,102, ($3,883) and ($12,048), respectively. The total interest payable balance as of December 31, 2012 and 2011 is
$95 and $1,197, respectively. The Company recorded no liability for penalties. It is not anticipated that the total amounts of unrecognized tax benefits will significantly increase within twelve months of the reporting date.
The Company’s federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2004.
The examination for the years 2005 through 2006 have been completed and resulted in tax return adjustments that are currently undergoing final calculation at appeal. The examination for the years 2007 through 2008 has been completed and resulted in
tax return adjustments that are currently being appealed. An examination is already in progress for the years 2009 and 2010. The Company believes that there are adequate defenses against or sufficient provisions established related to any open
or contested tax positions.
8. Policy and Contract Attributes
Participating life insurance policies were issued by the Company which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is
determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted approximately 0.06% of ordinary life insurance in force at December 31, 2012 and
2011.
93
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
For the years ended December 31, 2012, 2011 and 2010, premiums for life participating policies were
$16,028, $17,183 and $18,274, 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 $8,651, $9,496 and $10,074 to policyholders during
2012, 2011 and 2010, respectively, and did not allocate any additional income to such policyholders.
A portion of the Company’s policy
reserves and other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. There may be certain restrictions placed upon the amount
of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31
2012 |
|
| |
|
General
Account |
|
|
Separate
Account with
Guarantees |
|
|
Separate
Account Non-
Guaranteed |
|
|
Total |
|
|
Percent |
|
| Subject to discretionary withdrawal With fair value adjustment |
|
$ |
1,613,239 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,613,239 |
|
|
|
2 |
% |
| At book value less surrender charge of 5% or more |
|
|
570,607 |
|
|
|
— |
|
|
|
— |
|
|
|
570,607 |
|
|
|
1 |
|
| At fair value |
|
|
83,912 |
|
|
|
— |
|
|
|
40,472,788 |
|
|
|
40,556,700 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total with adjustment or at fair value |
|
|
2,267,758 |
|
|
|
— |
|
|
|
40,472,788 |
|
|
|
42,740,546 |
|
|
|
54 |
|
| At book value without adjustment
(minimal or no charge or adjustment) |
|
|
21,018,430 |
|
|
|
83,567 |
|
|
|
— |
|
|
|
21,101,997 |
|
|
|
27 |
|
| Not subject to discretionary withdrawal provision |
|
|
15,474,341 |
|
|
|
65,241 |
|
|
|
36,789 |
|
|
|
15,576,371 |
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total annuity reserves and deposit liabilities |
|
|
38,760,529 |
|
|
|
148,808 |
|
|
|
40,509,577 |
|
|
|
79,418,914 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less reinsurance ceded |
|
|
17,304,424 |
|
|
|
— |
|
|
|
— |
|
|
|
17,304,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net annuity reserves and deposit liabilities |
|
$ |
21,456,105 |
|
|
$ |
148,808 |
|
|
$ |
40,509,577 |
|
|
$ |
62,114,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
94
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the liability for deposit-type contracts at December 31, 2012 and 2011 are $257,327 and $287,687,
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, 2012, the contractual maturities were as follows:
|
|
|
|
|
| Year |
|
Amount |
|
| 2013 |
|
$ |
— |
|
| 2014 |
|
|
257,327 |
|
| 2015 |
|
|
— |
|
| 2016 |
|
|
— |
|
| 2017 |
|
|
— |
|
| Thereafter |
|
|
— |
|
95
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company’s liability for deposit-type contracts includes GIC’s and funding agreements
assumed from MLIC. The liabilities assumed are $1,659,668 and $1,721,235 at December 31, 2012 and 2011, 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.
96
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Information regarding the separate accounts of the Company as of and for the years ended
December 31, 2012, 2011 and 2010 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, 2012 |
|
$ |
— |
|
|
$ |
396 |
|
|
$ |
9,951 |
|
|
$ |
9,341,436 |
|
|
$ |
9,351,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserves for separate accounts as of December 31, 2012 with assets at: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value |
|
$ |
— |
|
|
$ |
22,152 |
|
|
$ |
43,089 |
|
|
$ |
43,514,998 |
|
|
$ |
43,580,239 |
|
| Amortized cost |
|
|
— |
|
|
|
632,530 |
|
|
|
— |
|
|
|
— |
|
|
|
632,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total as of December 31, 2012 |
|
$ |
— |
|
|
$ |
654,682 |
|
|
$ |
43,089 |
|
|
$ |
43,514,998 |
|
|
$ |
44,212,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserves for separate accounts by withdrawal characteristics as of December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subject to discretionary withdrawal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| With fair value adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| At fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
43,478,209 |
|
|
|
43,478,209 |
|
| At book value without fair value adjustment and with current surrender charge of less than 5% |
|
|
— |
|
|
|
632,530 |
|
|
|
— |
|
|
|
— |
|
|
|
632,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
— |
|
|
|
632,530 |
|
|
|
— |
|
|
|
43,478,209 |
|
|
|
44,110,739 |
|
| Not subject to discretionary withdrawal |
|
|
— |
|
|
|
22,152 |
|
|
|
43,089 |
|
|
|
36,789 |
|
|
|
102,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total separate account liabilities at December 31, 2012 |
|
$ |
— |
|
|
$ |
654,682 |
|
|
$ |
43,089 |
|
|
$ |
43,514,998 |
|
|
$ |
44,212,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
97
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
98
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
A reconciliation of the amounts transferred to and from the Company’s separate accounts is
presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
|
2010 |
|
| Transfer as reported in the summary of operations of the separate accounts statement: |
|
|
|
|
|
|
|
|
|
|
|
|
| Transfers to separate accounts |
|
$ |
9,341,436 |
|
|
$ |
9,383,003 |
|
|
$ |
6,369,429 |
|
| Transfers from separate accounts |
|
|
(7,125,237 |
) |
|
|
(4,988,224 |
) |
|
|
(4,622,672 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transfers to separate accounts |
|
|
2,216,199 |
|
|
|
4,394,779 |
|
|
|
1,746,757 |
|
| Miscellaneous reconciling adjustments |
|
|
817,767 |
|
|
|
772,389 |
|
|
|
154,773 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transfers as reported in the statements of operations of the life, accident and health annual statement |
|
$ |
3,033,966 |
|
|
$ |
5,167,168 |
|
|
$ |
1,901,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2012 and 2011, the Company’s separate account statement included legally insulated assets of $48,683,536 and $41,472,571, respectively. The assets legally insulated from general account
claims at December 31, 2012 and 2011 are attributed to the following products:
|
|
|
|
|
|
|
|
|
| |
|
2012 |
|
|
2011 |
|
| Group annuities |
|
$ |
17,051,144 |
|
|
$ |
13,431,208 |
|
| Variable annuities |
|
|
25,509,279 |
|
|
|
21,175,176 |
|
| Fixed universal life |
|
|
610,585 |
|
|
|
593,065 |
|
| Variable universal life |
|
|
5,232,516 |
|
|
|
6,019,780 |
|
| Variable life |
|
|
171,104 |
|
|
|
158,187 |
|
| Modified separate accounts |
|
|
108,908 |
|
|
|
95,155 |
|
|
|
|
|
|
|
|
|
|
| Total separate account assets |
|
$ |
48,683,536 |
|
|
$ |
41,472,571 |
|
|
|
|
|
|
|
|
|
|
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, 2012 and 2011, the general account of the Company had a
maximum guarantee for separate account liabilities of $2,158,788 and $2,870,835, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $180,634, $124,027 and $107,662 to the general account in
2012, 2011 and 2010, respectively. During the years ended December 31, 2012, 2011 and 2010, the general account of the Company had paid $61,745, $28,556 and $76,405, respectively, toward separate account guarantees.
100
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012 and 2011, the Company reported guaranteed separate account assets at amortized
cost in the amount of $619,780 and $616,365, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $693,462 and $658,928 at December 31, 2012 and 2011,
respectively, which would have resulted in an unrealized gain of $73,682 and $42,563, respectively, had these assets been reported at fair value.
The Company does not participate in securities lending transactions within the separate account.
For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with Actuarial
Guideline XLIII (AG 43), which replaces Actuarial Guidelines 34 and 39. AG 43 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The AG 43
reserve calculation includes variable annuity products issued after January 1, 1981. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits,
guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of AG 43 is equal to the conditional tail expectation (CTE) Amount, but not less than the standard scenario
amount (SSA).
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.
101
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012 and 2011, 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, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum guaranteed death benefit |
|
$ |
8,547,006 |
|
|
$ |
531,351 |
|
|
$ |
485,123 |
|
| Minimum guaranteed income benefit |
|
|
5,385,861 |
|
|
|
2,335,881 |
|
|
|
1,909,075 |
|
| Guaranteed premium accumulation fund |
|
|
188,099 |
|
|
|
17,064 |
|
|
|
— |
|
| Minimum guaranteed withdrawal benefit |
|
|
16,521,109 |
|
|
|
33,780 |
|
|
|
1,757 |
|
| 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 |
|
Reserves on the Company’s traditional life insurance products are computed using mean reserving methodologies. These
methodologies result in the establishment of assets for the amount of the net valuation premiums that are anticipated to be received between the policy’s paid-through date to the policy’s next anniversary date. At December 31, 2012
and 2011, 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, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
| Life and annuity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary first-year business |
|
$ |
3,434 |
|
|
$ |
1,678 |
|
|
$ |
1,756 |
|
| Ordinary renewal business |
|
|
559,469 |
|
|
|
3,741 |
|
|
|
555,728 |
|
| Group life business |
|
|
4,716 |
|
|
|
2,760 |
|
|
|
1,956 |
|
| Credit life business |
|
|
1,322 |
|
|
|
— |
|
|
|
1,322 |
|
| Reinsurance ceded |
|
|
(458,956 |
) |
|
|
— |
|
|
|
(458,956 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
109,985 |
|
|
|
8,179 |
|
|
|
101,806 |
|
| Accident and health |
|
|
23,485 |
|
|
|
— |
|
|
|
23,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
133,470 |
|
|
$ |
8,179 |
|
|
$ |
125,291 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. As of December 31, 2012 and 2011, the Company had insurance in force aggregating $95,138,990 and $119,164,169, 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 $676,461 and $817,479 to cover these deficiencies as of
December 31, 2012 and 2011, 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 Company’s statutory surplus as
of the preceding December 31, or (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year. Subject to the availability of unassigned surplus at the time of such
dividend, the maximum payment which may be made in 2013, without the prior approval of insurance regulatory authorities, is $1,174,090.
103
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company paid an ordinary common stock dividend of $159,410 to its common stock shareholder,
Transamerica International Holdings, Inc. on December 21, 2012. The Company paid ordinary preferred stock dividends of $103,910 and $36,680 to its preferred stock shareholders, Transamerica Corporation and Aegon USA, LLC, respectively, on
December 21, 2012.
The Company received common stock dividends of $150,000 on October 9, 2012 and $5,000 on June 1, 2012, from
its subsidiaries, TLB and Garnet Assurance Corporation III, respectively.
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 TRRI’s stock.
The Company received a capital contribution of $200,000 from its parent company, Transamerica
International Holdings, Inc., on May 27, 2011.
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 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, 2012, 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 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.
104
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Additional information related to the outstanding surplus notes at December 31, 2012 and 2011 is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For Year Ending |
|
Balance
Outstanding |
|
|
Interest Paid
Current Year |
|
|
Cumulative
Interest Paid |
|
|
Accrued
Interest |
|
| 2012 |
|
$ |
150,000 |
|
|
$ |
9,000 |
|
|
$ |
90,000 |
|
|
$ |
2,250 |
|
| 2011 |
|
$ |
150,000 |
|
|
$ |
9,000 |
|
|
$ |
81,000 |
|
|
$ |
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, 2012 and 2011, respectively, securities in the amount of $2,064,426 and $3,425,216 were on loan under securities lending agreements as a part of this program. At December 31,
2012, 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 $2,159,184 and $3,517,849 at December 31, 2012 and 2011, respectively.
105
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The contractual maturities of the securities lending collateral positions are as follows:
|
|
|
|
|
| |
|
Fair Value |
|
| Open |
|
$ |
2,142,404 |
|
| 30 days or less |
|
|
— |
|
| 31 to 60 days |
|
|
— |
|
| 61 to 90 days |
|
|
— |
|
| Greater than 90 days |
|
|
— |
|
|
|
|
|
|
| Total |
|
|
2,142,404 |
|
| Securities received |
|
|
— |
|
|
|
|
|
|
| Total collateral received |
|
$ |
2,142,404 |
|
|
|
|
|
|
The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The
Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.
The maturity dates of the reinvested securities lending collateral are as follows:
|
|
|
|
|
|
|
|
|
| |
|
Amortized Cost |
|
|
Fair Value |
|
| Open |
|
$ |
191,636 |
|
|
$ |
191,636 |
|
| 30 days or less |
|
|
820,819 |
|
|
|
820,815 |
|
| 31 to 60 days |
|
|
762,167 |
|
|
|
762,167 |
|
| 61 to 90 days |
|
|
257,173 |
|
|
|
257,173 |
|
| 91 to 120 days |
|
|
97,568 |
|
|
|
97,568 |
|
| 1 to 2 years |
|
|
17,117 |
|
|
|
17,133 |
|
| 2 to 3 years |
|
|
13,738 |
|
|
|
12,692 |
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
2,160,218 |
|
|
|
2,159,184 |
|
| Securities received |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Total collateral reinvested |
|
$ |
2,160,218 |
|
|
$ |
2,159,184 |
|
|
|
|
|
|
|
|
|
|
For securities lending, the Company’s sources of cash that it uses to return the cash collateral is dependent upon
the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $2,160,580 (fair value of $2,159,184) that are currently tradable securities that could be sold and used to pay for the
$2,142,404 in collateral calls that could come due under a worst-case scenario.
106
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
11. Retirement and Compensation Plans
The Company’s employees participate in a qualified 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 employee’s eligible annual compensation. Pension expenses were $23,983, $20,647 and $18,324 for the years ended December 31, 2012, 2011 and 2010, respectively. The plan is subject to the
reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.
The Company’s employees participate in a
contributory defined contribution plan sponsored by Aegon, which is qualified under Section 401(k) of the Internal Revenue Code. Employees of the Company who customarily work at least 1,000 hours during each calendar year and meet the other
eligibility requirements are participants of the plan. Participants may elect to contribute up to twenty-five percent of their salary to the plan. The Company will match an amount up to three percent of the participant’s salary. Participants
may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974. Expense related to
this plan was $11,501, $10,237 and $10,390 for the years ended December 31, 2012, 2011 and 2010, respectively.
Aegon sponsors
supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory and benefits are based on years of
service and the employee’s eligible annual compensation. The plans are unfunded and nonqualified under the Internal Revenue Service Code. In addition, Aegon has established incentive deferred compensation plans for certain key employees of the
Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2012, 2011 and 2010 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 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. The Company has no legal obligation for the plan. Portions of the medical and dental plans are contributory. The expenses
of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations. The Company expensed $7,018, $3,951 and $4,609 related to these plans for the years ended
December 31, 2012, 2011 and 2010, respectively.
107
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 Company’s 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 $209,527, $75,124 and $46,373 during
2012, 2011 and 2010, 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 $74,457, $60,237 and $51,177 for these services during 2012, 2011 and 2010, respectively.
Transamerica
Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $70,768, $79,375 and $67,790 for the years ended December 31, 2012, 2011 and 2010,
respectively.
At December 31, 2012 and 2011, respectively, the Company reported a net amount of receivables (payables) from (to)
affiliates of $44,001 and $(88,949). 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.
108
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012, the Company had short-term intercompany notes receivable of $411,200 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 |
|
$ |
20,900 |
|
|
August 30, 2013 |
|
|
0.12 |
% |
| AEGON |
|
|
200,000 |
|
|
September 4, 2013 |
|
|
0.12 |
|
| AEGON |
|
|
22,800 |
|
|
September 24, 2013 |
|
|
0.12 |
|
| AEGON |
|
|
62,400 |
|
|
September 25, 2013 |
|
|
0.12 |
|
| AEGON |
|
|
32,500 |
|
|
October 25, 2013 |
|
|
0.12 |
|
| AEGON |
|
|
72,600 |
|
|
October 26, 2013 |
|
|
0.12 |
|
At December 31, 2011, the Company had short-term intercompany notes receivable of $185,100 as follows. This note was
repaid prior to its due date.
|
|
|
|
|
|
|
|
|
|
|
|
|
| Receivable from |
|
Amount |
|
|
Due By |
|
|
Interest Rate |
|
| AEGON |
|
$ |
185,100 |
|
|
|
December 28, 2012 |
|
|
|
0.12 |
% |
During 2012, 2011 and 2010, the Company paid net interest of $112, $252 and $142, 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 $152,524 and $148,230 at December 31, 2012 and 2011, 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, 2012 and 2011, the cash surrender value of
these policies was $156,981 and $153,701, respectively.
13. Commitments and Contingencies
At December 31, 2012 and 2011, the Company has mortgage loan commitments of $29,562 and $65,654, respectively. The Company has contingent commitments
for $245,514 and $384,572 as of December 31, 2012 and 2011, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $23,053 and $53,963,
respectively.
109
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2012, the Company has private placement commitments outstanding of $9,979. There
were no private placement commitments outstanding as of December 31, 2011.
There were no securities being acquired on a “to be
announced” (TBA) basis as of December 31, 2012. At December 31, 2011, the net amount of securities being acquired on a TBA basis was $10,206.
The Company may pledge assets as collateral for derivative transactions. At December 31, 2012 and 2011, the Company has pledged invested assets with a carrying value of $68,410 and $161,542,
respectively, and fair value of $76,776 and $184,431, respectively, in conjunction with these transactions.
Cash collateral received from
derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet. The amount of cash collateral posted as of December 31, 2012 and 2011, respectively, was $971,255 and $1,094,873. In
addition, securities in the amount of $619,879 and $382,069 were also posted to the Company as of December 31, 2012 and 2011, 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, 2012 and 2011, the Company has pledged invested assets with a carrying amount of $95,275 and $138,841, respectively, and fair value of $97,707 and $138,667, 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, 2012 or 2011, as the maximum potential amount of future payments the Company could be required to make is immaterial to the Company’s financial results. In the event the Company is required to make a payment under this
guarantee, the payment would be reflected in the Company’s financial statements as a decrease in net investment income. The maximum potential amount of future payments (undiscounted) that the Company could be required to make under these
guarantees was $245 and $309 at December 31, 2012 and 2011, respectively. No payments are required as of December 31, 2012. The current assessment of risk of making payments under these guarantees is remote.
110
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(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, 2012, 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 TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its
liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency, defined as 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, 2012, there is no payment or performance risk because TLB is able to meet its obligations and has
assets in excess of its liabilities by the prevailing level of solvency as of this date.
The Company has guaranteed that TLB will
(1) maintain tangible net worth of at least equal to the greater of 165% of Standard & Poor’s (S&P) 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 S&P 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
TLIC’s then current rating or AA, whichever is lower. As of December 31, 2012, 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 TLB’s (Singapore Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming insolvent as defined by Bermuda law, then the Company
shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2012 and 2011, TLB holds related statutory-basis policy and claim reserves of $384,529 and $267,940, respectively, which would be the
maximum potential amount of future payments the Company could be required to make under this guarantee. In the event the Company is required to make a payment under this guarantee, the payment would be reflected in the Company’s financial
statements as an increase to incurred claims. As of December 31, 2012, there is no payment or performance risk because TLB is not insolvent as of this date.
111
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company did not recognize a liability for any of the TLB guarantees due to the adoption of SSAP
No. 5R at December 31, 2012 or 2011, as a liability is not required for guarantees to or on behalf of a wholly-owned subsidiary. Management monitors TLB’s financial condition, and there are no indications that TLB will become
insolvent. As such, management feels the risk of payment under these guarantees on behalf of TLB is remote.
The Company has provided
guarantees for the obligations of noninsurance affiliates who have accepted assignments of structured settlement payment obligations from other insurers and purchase structured settlement insurance policies from subsidiaries of the Company that
match those obligations. The guarantees made by the Company are specific to each structured settlement contract and vary in date and duration of the obligation. These are numerous and are backed by the reserves established by the Company to
represent the present value of the future payments for those contracts. The statutory reserve established at December 31, 2012 and 2011 for the total payout block is $3,688,696 and $3,770,907, respectively. 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, 2012 and 2011:
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2012 |
|
|
2011 |
|
| Aggregate maximum potential of future payments of all guarantees (undiscounted) |
|
$ |
384,774 |
|
|
$ |
268,249 |
|
|
|
|
|
|
|
|
|
|
| Current liability recognized in financial statements: |
|
|
|
|
|
|
|
|
| Noncontingent liabilities |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Contingent liabilities |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Ultimate financial statement impact if action required: |
|
|
|
|
|
|
|
|
| Incurred claims |
|
|
384,529 |
|
|
|
267,940 |
|
| Other |
|
|
245 |
|
|
|
309 |
|
|
|
|
|
|
|
|
|
|
| Total impact if action required |
|
$ |
384,774 |
|
|
$ |
268,249 |
|
|
|
|
|
|
|
|
|
|
112
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company has issued funding agreements to FHLB, and the funds received are reported as deposit-type
liabilities per SSAP No. 52, Deposit-Type Contracts. Total reserves are equal to the funding agreements balance. These funding agreements are used for investment spread management purposes and are subject to the same asset/liability
management practices as other deposit-type business. All of the funding agreements issued to FHLB are classified in the general account as it is a general obligation of the Company. Collateral is required by FHLB to support repayment of the funding
agreements. In addition, FHLB requires their common stock to be purchased.
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2012 |
|
|
2011 |
|
| FHLB stock purchased/owned as part of the agreement |
|
$ |
137,938 |
|
|
$ |
160,188 |
|
| Collateral pledged to the FHLB |
|
|
3,185,216 |
|
|
|
3,099,800 |
|
| Borrowing capacity currently available |
|
|
5,865,876 |
|
|
|
6,764,980 |
|
| Agreement General Account |
|
|
|
|
|
|
|
|
| Assets |
|
|
2,568,722 |
|
|
|
2,499,839 |
|
| Liabilities |
|
|
1,975,268 |
|
|
|
2,475,393 |
|
The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $2,545,786 and $1,848,101 as of
December 31, 2012 and 2011, 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, 2012 and 2011.
As of December 31, 2012 and 2011, 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 $470 and $490, 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.
113
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company is a party to legal proceedings involving a variety of issues incidental to its business,
including class actions. Lawsuits may be brought in nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services
companies. The Company’s legal proceedings are subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and
punitive damages, and injunctive relief, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.
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 policy’s 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 Company’s balance sheet. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of
Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of
$26,107 and $33,490 and an offsetting premium tax benefit of $5,044 and $4,744 at December 31, 2012 and 2011, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty
fund (benefit) expense was $(4,325), $(3,645) and $2,465, for the years ended December 31, 2012, 2011 and 2010, respectively.
14.
Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities
The Company has recorded liabilities of $89,724 and
$88,828 for municipal repurchase agreements as of December 31, 2012 and 2011, respectively. The repurchase agreements are primarily collateralized by investment-grade corporate bonds with book values of $85,713 and $94,288, respectively, and
fair values of $92,872 and $99,880, respectively, as of December 31, 2012 and 2011. These securities have maturity dates that range from 2013 to 2025.
114
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
For repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk
management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine
scenarios are refreshed monthly. The results of these projections on time horizons ranging from 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.
At December 31, 2012, the Company had dollar repurchase agreements outstanding in the amount of $82,026. The Company did not participate
in dollar repurchase agreements at December 31, 2011.
The contractual maturities of the dollar repurchase agreement positions are as
follows:
|
|
|
|
|
| |
|
Fair Value |
|
| Open |
|
$ |
85,269 |
|
| 30 days or less |
|
|
— |
|
| 31 to 60 days |
|
|
— |
|
| 61 to 90 days |
|
|
— |
|
| Greater than 90 days |
|
|
— |
|
|
|
|
|
|
| Total |
|
|
85,269 |
|
| Securities received |
|
|
— |
|
|
|
|
|
|
| Total collateral received |
|
$ |
85,269 |
|
|
|
|
|
|
In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date
to enhance the Company’s yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2012 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 |
|
|
4 |
|
|
$ |
6,827 |
|
|
$ |
7,041 |
|
|
$ |
240 |
|
| NAIC 4 |
|
|
12 |
|
|
|
17,865 |
|
|
|
18,792 |
|
|
|
949 |
|
| NAIC 5 |
|
|
4 |
|
|
|
5,756 |
|
|
|
5,759 |
|
|
|
(28 |
) |
| NAIC 6 |
|
|
1 |
|
|
|
1,020 |
|
|
|
1,023 |
|
|
|
(40 |
) |
115
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
15. Subsequent Events
The financial statements are adjusted to reflect events that occurred between the balance sheet date and the date when the financial statements are issued, provided they give evidence of conditions that
existed at the balance sheet date (Type I). Events that are indicative of conditions that arose after the balance sheet date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has not
identified any Type I or Type II subsequent events for the year ended December 31, 2012 through the date the financial statements are issued.
116
Transamerica Life Insurance Company
Summary of Investments – Other Than
Investments in Related Parties
(Dollars in Thousands)
December 31, 2012
SCHEDULE I
|
|
|
|
|
|
|
|
|
|
|
|
|
| Type of Investment |
|
Cost (1) |
|
|
Fair Value |
|
|
Amount at
Which Shown
in the Balance
Sheet (2) |
|
| Fixed maturities |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
| United States government and government agencies and authorities |
|
$ |
3,944,595 |
|
|
$ |
4,798,184 |
|
|
$ |
3,944,753 |
|
| States, municipalities and political subdivisions |
|
|
765,707 |
|
|
|
838,916 |
|
|
|
765,556 |
|
| Foreign governments |
|
|
527,762 |
|
|
|
574,808 |
|
|
|
527,762 |
|
| Hybrid securities |
|
|
933,577 |
|
|
|
792,433 |
|
|
|
930,882 |
|
| All other corporate bonds |
|
|
30,667,839 |
|
|
|
33,740,350 |
|
|
|
30,512,613 |
|
| Preferred stocks |
|
|
111,506 |
|
|
|
111,258 |
|
|
|
111,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fixed maturities |
|
|
36,950,986 |
|
|
|
40,855,949 |
|
|
|
36,793,037 |
|
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
| Industrial, miscellaneous and all other |
|
|
167,843 |
|
|
|
218,026 |
|
|
|
218,026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity securities |
|
|
167,843 |
|
|
|
218,026 |
|
|
|
218,026 |
|
| Mortgage loans on real estate |
|
|
5,730,665 |
|
|
|
|
|
|
|
5,730,665 |
|
| Real estate |
|
|
83,054 |
|
|
|
|
|
|
|
83,054 |
|
| Policy loans |
|
|
708,794 |
|
|
|
|
|
|
|
708,794 |
|
| Other long-term investments |
|
|
1,318,082 |
|
|
|
|
|
|
|
1,318,082 |
|
| Receivable for Securities |
|
|
4,475 |
|
|
|
|
|
|
|
4,475 |
|
| Securities Lending |
|
|
2,160,218 |
|
|
|
|
|
|
|
2,160,218 |
|
| Cash, cash equivalents and short-term investments |
|
|
3,974,902 |
|
|
|
|
|
|
|
3,974,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investments |
|
$ |
51,099,019 |
|
|
|
|
|
|
$ |
50,991,253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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.
|
| (2) |
United States government, state, municipal and political, hybrid and corporate bonds of $115,527 are held at fair value rather than amortized cost due to having an NAIC
6 rating. A preferred stock security is held at its fair value of $0 due to having an NAIC 6 rating. |
117
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, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individual life |
|
$ |
13,805,986 |
|
|
$ |
— |
|
|
$ |
197,787 |
|
|
$ |
1,058,471 |
|
|
$ |
803,205 |
|
|
$ |
1,731,950 |
|
|
$ |
(1,363,563 |
) |
| Individual health |
|
|
3,154,346 |
|
|
|
95,888 |
|
|
|
126,252 |
|
|
|
457,502 |
|
|
|
218,644 |
|
|
|
458,994 |
|
|
|
68,566 |
|
| Group life and health |
|
|
1,452,548 |
|
|
|
13,761 |
|
|
|
61,621 |
|
|
|
342,755 |
|
|
|
117,963 |
|
|
|
267,986 |
|
|
|
164,138 |
|
| Annuity |
|
|
15,866,274 |
|
|
|
— |
|
|
|
22,285 |
|
|
|
9,948,086 |
|
|
|
1,589,715 |
|
|
|
5,569,306 |
|
|
|
5,850,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
34,279,154 |
|
|
$ |
109,649 |
|
|
$ |
407,945 |
|
|
$ |
11,806,814 |
|
|
$ |
2,729,527 |
|
|
$ |
8,028,236 |
|
|
$ |
4,719,272 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
5,006,408 |
|
|
|
6,597,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
34,858,273 |
|
|
$ |
112,500 |
|
|
$ |
396,619 |
|
|
$ |
9,864,056 |
|
|
$ |
2,615,858 |
|
|
$ |
6,987,361 |
|
|
$ |
7,803,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
5,378,791 |
|
|
|
3,520,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,326,852 |
|
|
$ |
118,067 |
|
|
$ |
517,353 |
|
|
$ |
9,165,119 |
|
|
$ |
2,919,171 |
|
|
$ |
8,036,692 |
|
|
$ |
4,895,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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. |
118
Transamerica Life Insurance Company
Reinsurance
(Dollars in Thousands)
SCHEDULE IV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gross
Amount |
|
|
Ceded to Other
Companies |
|
|
Assumed From
Other
Companies |
|
|
Net Amount |
|
|
Percentage
of Amount
Assumed
to Net |
|
| Year ended December 31, 2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life insurance in force |
|
$ |
455,851,953 |
|
|
$ |
987,454,502 |
|
|
$ |
666,160,317 |
|
|
$ |
134,557,768 |
|
|
|
495 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individual life |
|
|
2,390,267 |
|
|
|
3,106,662 |
|
|
|
1,774,866 |
|
|
|
1,058,471 |
|
|
|
168 |
% |
| Individual health |
|
|
531,328 |
|
|
|
153,252 |
|
|
|
79,426 |
|
|
|
457,502 |
|
|
|
17 |
% |
| Group life and health |
|
|
452,512 |
|
|
|
129,841 |
|
|
|
20,084 |
|
|
|
342,755 |
|
|
|
6 |
% |
| Annuity |
|
|
10,052,831 |
|
|
|
166,570 |
|
|
|
61,825 |
|
|
|
9,948,086 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
13,426,938 |
|
|
$ |
3,556,325 |
|
|
$ |
1,936,201 |
|
|
$ |
11,806,814 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
119
FINANCIAL STATEMENTS
Transamerica Life Insurance Company
Separate Account VA-2L
Years Ended December 31, 2012 and 2011
Transamerica Life Insurance Company
Separate Account VA-2L
Financial Statements
Years Ended December 31, 2012 and 2011
Contents
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 the subaccounts of Transamerica Life Insurance Company Separate Account VA-2L
(the Separate Account), comprised of subaccounts as listed in the accompanying statements of assets and liabilities, as of December 31, 2012, the related statements of operations and changes in net assets for the periods indicated thereon. These
financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration of internal control over
financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012 by correspondence with the fund companies or their transfer agents. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of each of the respective subaccounts of Transamerica Life Insurance Company Separate Account VA-2L, at December 31, 2012, 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
Des Moines, Iowa
April 22, 2013
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December
31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Money Market |
|
|
Appreciation |
|
|
Growth and Income |
|
|
International
Equity |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
62,430,422.270 |
|
|
|
1,275,157.660 |
|
|
|
1,312,751.995 |
|
|
|
659,513.210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
62,430,422 |
|
|
$ |
42,886,378 |
|
|
$ |
26,520,900 |
|
|
$ |
11,924,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
— |
|
|
|
368,640.811 |
|
|
|
320,498.776 |
|
|
|
149,486.324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
$ |
12,819,585 |
|
|
$ |
6,813,612 |
|
|
$ |
2,668,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
62,430,422 |
|
|
$ |
66,443,424 |
|
|
$ |
36,052,255 |
|
|
$ |
13,635,248 |
|
| Receivable for units sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
62,430,422 |
|
|
|
66,443,424 |
|
|
|
36,052,255 |
|
|
|
13,635,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
797 |
|
|
|
5 |
|
|
|
6 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
62,429,625 |
|
|
$ |
66,443,419 |
|
|
$ |
36,052,249 |
|
|
$ |
13,635,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
62,429,625 |
|
|
$ |
66,443,419 |
|
|
$ |
36,052,249 |
|
|
$ |
13,635,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
62,429,625 |
|
|
$ |
66,443,419 |
|
|
$ |
36,052,249 |
|
|
$ |
13,635,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
2
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Money Market |
|
|
Appreciation |
|
|
Growth and Income |
|
|
International
Equity |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
1,023,208 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
43,178,890 |
|
|
|
1,067,156 |
|
|
|
835,163 |
|
|
|
433,239 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
1,830,854 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.031667 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
1.378328 |
|
|
$ |
48.358114 |
|
|
$ |
34.690772 |
|
|
$ |
25.665704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.015560 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.013271 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
0.995542 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
0.990574 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
0.980762 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
0.975882 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
0.975475 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
0.957061 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
0.939161 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
0.921544 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
3
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Money Market |
|
|
Appreciation |
|
|
Growth and Income |
|
|
International
Equity |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
884,949 |
|
|
|
179,388 |
|
|
|
35,205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
— |
|
|
|
255,895 |
|
|
|
184,748 |
|
|
|
81,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
— |
|
|
|
1,124,934 |
|
|
|
511,878 |
|
|
|
249,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
— |
|
|
$ |
1.425566 |
|
|
$ |
1.224607 |
|
|
$ |
1.696605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
— |
|
|
$ |
46.885196 |
|
|
$ |
33.792512 |
|
|
$ |
24.877669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
— |
|
|
$ |
1.403253 |
|
|
$ |
1.205418 |
|
|
$ |
1.669991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
— |
|
|
$ |
1.638337 |
|
|
$ |
1.481757 |
|
|
$ |
2.012505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
— |
|
|
$ |
1.614562 |
|
|
$ |
1.508515 |
|
|
$ |
2.062875 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
— |
|
|
$ |
1.606507 |
|
|
$ |
1.501014 |
|
|
$ |
2.052612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
— |
|
|
$ |
1.590554 |
|
|
$ |
1.486136 |
|
|
$ |
2.032245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
— |
|
|
$ |
1.582667 |
|
|
$ |
1.478697 |
|
|
$ |
2.022123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
— |
|
|
$ |
1.577138 |
|
|
$ |
1.426436 |
|
|
$ |
1.937321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
— |
|
|
$ |
1.547504 |
|
|
$ |
1.399641 |
|
|
$ |
1.900912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
— |
|
|
$ |
1.518493 |
|
|
$ |
1.373370 |
|
|
$ |
1.865237 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
— |
|
|
$ |
1.490069 |
|
|
$ |
1.347654 |
|
|
$ |
1.830304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
4
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
International
Value |
|
|
Quality Bond |
|
|
Opportunistic
Small Cap |
|
|
Dreyfus Stock
Index |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
654,774.657 |
|
|
|
2,467,688.866 |
|
|
|
707,140.410 |
|
|
|
1,340,484.159 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
8,139,992 |
|
|
$ |
27,371,940 |
|
|
$ |
24,762,990 |
|
|
$ |
37,392,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
380,622.137 |
|
|
|
1,369,590.989 |
|
|
|
117,447.075 |
|
|
|
364,317.546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
5,000,405 |
|
|
$ |
15,183,447 |
|
|
$ |
3,878,241 |
|
|
$ |
10,769,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
10,167,596 |
|
|
$ |
47,437,045 |
|
|
$ |
26,044,192 |
|
|
$ |
54,329,555 |
|
| Receivable for units sold |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
10,167,599 |
|
|
|
47,437,045 |
|
|
|
26,044,192 |
|
|
|
54,329,555 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
— |
|
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
10,167,599 |
|
|
$ |
47,437,042 |
|
|
$ |
26,044,190 |
|
|
$ |
54,329,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
10,167,599 |
|
|
$ |
47,437,042 |
|
|
$ |
26,044,190 |
|
|
$ |
54,329,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
10,167,599 |
|
|
$ |
47,437,042 |
|
|
$ |
26,044,190 |
|
|
$ |
54,329,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
5
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
International
Value |
|
|
Quality Bond |
|
|
Opportunistic
Small Cap |
|
|
Dreyfus Stock
Index |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
384,193 |
|
|
|
1,113,078 |
|
|
|
259,758 |
|
|
|
805,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
16.736088 |
|
|
$ |
27.446405 |
|
|
$ |
86.188169 |
|
|
$ |
52.996760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
International
Value |
|
|
Quality Bond |
|
|
Opportunistic
Small Cap |
|
|
Dreyfus Stock
Index |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
203,405 |
|
|
|
1,151,331 |
|
|
|
149,781 |
|
|
|
440,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
181,757 |
|
|
|
465,481 |
|
|
|
37,032 |
|
|
|
190,998 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
396,434 |
|
|
|
1,938,234 |
|
|
|
428,476 |
|
|
|
913,640 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.270039 |
|
|
$ |
1.469150 |
|
|
$ |
0.984482 |
|
|
$ |
1.348154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
16.416338 |
|
|
$ |
26.623196 |
|
|
$ |
83.535962 |
|
|
$ |
51.391203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.250137 |
|
|
$ |
1.446148 |
|
|
$ |
0.969034 |
|
|
$ |
1.327016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.597104 |
|
|
$ |
1.346005 |
|
|
$ |
1.270116 |
|
|
$ |
1.568348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
1.535903 |
|
|
$ |
1.387085 |
|
|
$ |
1.310224 |
|
|
$ |
1.615300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
1.528260 |
|
|
$ |
1.380173 |
|
|
$ |
1.303689 |
|
|
$ |
1.607266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
1.513061 |
|
|
$ |
1.366510 |
|
|
$ |
1.290791 |
|
|
$ |
1.591297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
1.505549 |
|
|
$ |
1.359714 |
|
|
$ |
1.284367 |
|
|
$ |
1.583357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
1.537456 |
|
|
$ |
1.295753 |
|
|
$ |
1.222637 |
|
|
$ |
1.509849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
1.508537 |
|
|
$ |
1.271417 |
|
|
$ |
1.199613 |
|
|
$ |
1.481449 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
1.480235 |
|
|
$ |
1.247546 |
|
|
$ |
1.177128 |
|
|
$ |
1.453651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
1.452520 |
|
|
$ |
1.224180 |
|
|
$ |
1.155076 |
|
|
$ |
1.426438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
7
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
The Dreyfus
Socially
Responsible
Growth |
|
|
Core Value |
|
|
MidCap Stock |
|
|
Technology
Growth |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
335,469.690 |
|
|
|
687,129.150 |
|
|
|
760,788.064 |
|
|
|
909,387.148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
9,894,752 |
|
|
$ |
10,402,340 |
|
|
$ |
9,864,853 |
|
|
$ |
7,721,092 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
60,931.803 |
|
|
|
794,200.123 |
|
|
|
516,856.614 |
|
|
|
174,238.655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
1,531,930 |
|
|
$ |
12,930,181 |
|
|
$ |
6,918,614 |
|
|
$ |
1,557,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
13,162,371 |
|
|
$ |
21,201,034 |
|
|
$ |
20,017,963 |
|
|
$ |
14,929,428 |
|
| Receivable for units sold |
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
13,162,371 |
|
|
|
21,201,034 |
|
|
|
20,017,969 |
|
|
|
14,929,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
2 |
|
|
|
5 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
13,162,369 |
|
|
$ |
21,201,029 |
|
|
$ |
20,017,969 |
|
|
$ |
14,929,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
13,162,369 |
|
|
$ |
21,201,029 |
|
|
$ |
20,017,969 |
|
|
$ |
14,929,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
13,162,369 |
|
|
$ |
21,201,029 |
|
|
$ |
20,017,969 |
|
|
$ |
14,929,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
8
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
The Dreyfus
Socially
Responsible
Growth |
|
|
Core Value |
|
|
MidCap Stock |
|
|
Technology
Growth |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
334,168 |
|
|
|
706,008 |
|
|
|
667,335 |
|
|
|
1,369,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
33.369462 |
|
|
$ |
13.898150 |
|
|
$ |
17.875820 |
|
|
$ |
9.190440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
The Dreyfus
Socially
Responsible
Growth |
|
|
Core Value |
|
|
MidCap Stock |
|
|
Technology
Growth |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
81,691 |
|
|
|
396,824 |
|
|
|
338,155 |
|
|
|
80,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
55,453 |
|
|
|
669,990 |
|
|
|
374,689 |
|
|
|
221,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
99,959 |
|
|
|
1,436,156 |
|
|
|
652,465 |
|
|
|
175,781 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.200889 |
|
|
$ |
1.240729 |
|
|
$ |
1.543218 |
|
|
$ |
1.462361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
32.371351 |
|
|
$ |
13.645748 |
|
|
$ |
17.550138 |
|
|
$ |
8.903238 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.182058 |
|
|
$ |
1.221285 |
|
|
$ |
1.519033 |
|
|
$ |
1.439435 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.506296 |
|
|
$ |
1.494350 |
|
|
$ |
1.830820 |
|
|
$ |
1.835022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
1.515636 |
|
|
$ |
1.513117 |
|
|
$ |
1.913858 |
|
|
$ |
2.017195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
1.508056 |
|
|
$ |
1.505596 |
|
|
$ |
1.904301 |
|
|
$ |
2.007155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
1.493123 |
|
|
$ |
1.490639 |
|
|
$ |
1.885453 |
|
|
$ |
1.987252 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
1.485758 |
|
|
$ |
1.483250 |
|
|
$ |
1.876100 |
|
|
$ |
1.977394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
1.450044 |
|
|
$ |
1.438533 |
|
|
$ |
1.762418 |
|
|
$ |
1.766490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
1.422803 |
|
|
$ |
1.411444 |
|
|
$ |
1.729318 |
|
|
$ |
1.733274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
1.396103 |
|
|
$ |
1.385022 |
|
|
$ |
1.696868 |
|
|
$ |
1.700738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
1.369973 |
|
|
$ |
1.359058 |
|
|
$ |
1.665072 |
|
|
$ |
1.668911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
10
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA WMC
Diversified
Growth |
|
|
TA AEGON
Tactical Vanguard
ETF - Balanced - SC |
|
|
TA AEGON
Tactical Vanguard
ETF -
Conservative - SC |
|
|
TA AEGON
Tactical Vanguard
ETF - Growth - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
410,452.293 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
9,294,260 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
— |
|
|
|
26,833.411 |
|
|
|
10,626.877 |
|
|
|
311.645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
$ |
275,309 |
|
|
$ |
110,911 |
|
|
$ |
3,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
9,969,886 |
|
|
$ |
281,214 |
|
|
$ |
111,370 |
|
|
$ |
3,191 |
|
| Receivable for units sold |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
9,969,887 |
|
|
|
281,214 |
|
|
|
111,370 |
|
|
|
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
9,969,887 |
|
|
$ |
281,214 |
|
|
$ |
111,370 |
|
|
$ |
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
9,969,887 |
|
|
$ |
281,214 |
|
|
$ |
111,370 |
|
|
$ |
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
9,969,887 |
|
|
$ |
281,214 |
|
|
$ |
111,370 |
|
|
$ |
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
11
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA WMC
Diversified
Growth |
|
|
TA AEGON Tactical Vanguard
ETF - Balanced -
SC |
|
|
TA AEGON
Tactical Vanguard
ETF -
Conservative - SC |
|
|
TA AEGON
Tactical Vanguard
ETF - Growth - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
20,619 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
657,089 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
91,611 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.484781 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
14.922463 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.461475 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.621091 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
1.735697 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
1.727104 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
1.709962 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
1.701475 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
1.560518 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
1.531217 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
1.502451 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
1.474365 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
12
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA WMC
Diversified
Growth |
|
|
TA AEGON
Tactical Vanguard
ETF - Balanced - SC |
|
|
TA AEGON
Tactical Vanguard
ETF -
Conservative - SC |
|
|
TA AEGON
Tactical Vanguard
ETF - Growth - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
— |
|
|
|
270,361 |
|
|
|
109,312 |
|
|
|
3,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
— |
|
|
|
5,243 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
— |
|
|
$ |
1.021034 |
|
|
$ |
1.019500 |
|
|
$ |
1.024980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
— |
|
|
$ |
1.020360 |
|
|
$ |
1.018822 |
|
|
$ |
1.024308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
— |
|
|
$ |
1.020022 |
|
|
$ |
1.018486 |
|
|
$ |
1.023963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
— |
|
|
$ |
1.019685 |
|
|
$ |
1.018152 |
|
|
$ |
1.023631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
— |
|
|
$ |
1.018679 |
|
|
$ |
1.017143 |
|
|
$ |
1.022618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
— |
|
|
$ |
1.018341 |
|
|
$ |
1.016813 |
|
|
$ |
1.022284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
— |
|
|
$ |
1.017676 |
|
|
$ |
1.016144 |
|
|
$ |
1.021615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
— |
|
|
$ |
1.017346 |
|
|
$ |
1.015807 |
|
|
$ |
1.021278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
— |
|
|
$ |
1.017003 |
|
|
$ |
1.015477 |
|
|
$ |
1.020948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
— |
|
|
$ |
1.015674 |
|
|
$ |
1.014150 |
|
|
$ |
1.019603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
— |
|
|
$ |
1.014343 |
|
|
$ |
1.012824 |
|
|
$ |
1.018273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
— |
|
|
$ |
1.013026 |
|
|
$ |
1.011500 |
|
|
$ |
1.016940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
13
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Legg Mason
Dynamic
Allocation - Balanced - SC |
|
|
TA Legg Mason
Dynamic
Allocation - Growth - SC |
|
|
TA Vanguard ETF
Index - Balanced - SC |
|
|
TA Vanguard ETF
Index -
Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
1,897.738 |
|
|
|
312.260 |
|
|
|
53,073.979 |
|
|
|
7,351.966 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
19,351 |
|
|
$ |
3,154 |
|
|
$ |
564,627 |
|
|
$ |
84,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
19,338 |
|
|
$ |
3,166 |
|
|
$ |
571,607 |
|
|
$ |
85,944 |
|
| Receivable for units sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
19,338 |
|
|
|
3,166 |
|
|
|
571,607 |
|
|
|
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
19,338 |
|
|
$ |
3,166 |
|
|
$ |
571,606 |
|
|
$ |
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
19,338 |
|
|
$ |
3,166 |
|
|
$ |
571,606 |
|
|
$ |
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
19,338 |
|
|
$ |
3,166 |
|
|
$ |
571,606 |
|
|
$ |
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
14
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Legg Mason
Dynamic
Allocation - Balanced - SC |
|
|
TA Legg Mason
Dynamic
Allocation - Growth - SC |
|
|
TA Vanguard ETF
Index - Balanced - SC |
|
|
TA Vanguard ETF
Index -
Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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.
15
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Legg Mason
Dynamic
Allocation - Balanced - SC |
|
|
TA Legg Mason
Dynamic
Allocation - Growth - SC |
|
|
TA Vanguard ETF
Index - Balanced -
SC |
|
|
TA Vanguard ETF
Index -
Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
19,155 |
|
|
|
3,152 |
|
|
|
559,093 |
|
|
|
80,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.010238 |
|
|
$ |
1.005291 |
|
|
$ |
1.023061 |
|
|
$ |
1.019619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
1.009577 |
|
|
$ |
1.004616 |
|
|
$ |
1.022380 |
|
|
$ |
1.018952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.009242 |
|
|
$ |
1.004290 |
|
|
$ |
1.022044 |
|
|
$ |
1.018610 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.008908 |
|
|
$ |
1.003956 |
|
|
$ |
1.021710 |
|
|
$ |
1.018279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
1.007913 |
|
|
$ |
1.002962 |
|
|
$ |
1.020696 |
|
|
$ |
1.017271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
1.007584 |
|
|
$ |
1.002635 |
|
|
$ |
1.020362 |
|
|
$ |
1.016943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
1.006923 |
|
|
$ |
1.001982 |
|
|
$ |
1.019701 |
|
|
$ |
1.016267 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
1.006593 |
|
|
$ |
1.001649 |
|
|
$ |
1.019364 |
|
|
$ |
1.015940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
1.006254 |
|
|
$ |
1.001328 |
|
|
$ |
1.019031 |
|
|
$ |
1.015605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
1.004946 |
|
|
$ |
1.000015 |
|
|
$ |
1.017689 |
|
|
$ |
1.014269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
1.003631 |
|
|
$ |
0.998700 |
|
|
$ |
1.016364 |
|
|
$ |
1.012944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
1.002319 |
|
|
$ |
0.997398 |
|
|
$ |
1.015031 |
|
|
$ |
1.011623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
16
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Vanguard ETF
Index - Growth -
SC |
|
|
TA Market
Participation
Strategy - SC |
|
|
TA PIMCO
Tactical - Balanced - SC |
|
|
TA PIMCO
Tactical - Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment in securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Initial |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Number of shares - Service |
|
|
— |
|
|
|
— |
|
|
|
3,650.740 |
|
|
|
311.334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,777 |
|
|
$ |
3,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,785 |
|
|
$ |
3,157 |
|
| Receivable for units sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
— |
|
|
|
— |
|
|
|
37,785 |
|
|
|
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Payable for units redeemed |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,785 |
|
|
$ |
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,785 |
|
|
$ |
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total net assets |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,785 |
|
|
$ |
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
17
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Vanguard ETF
Index - Growth -
SC |
|
|
TA Market
Participation
Strategy - SC |
|
|
TA PIMCO
Tactical - Balanced - SC |
|
|
TA PIMCO
Tactical - Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 - Initial: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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.
18
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Vanguard ETF
Index - Growth -
SC |
|
|
TA Market
Participation
Strategy - SC |
|
|
TA PIMCO
Tactical - Balanced - SC |
|
|
TA PIMCO
Tactical - Conservative - SC |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
|
— |
|
|
|
— |
|
|
|
38,047 |
|
|
|
3,170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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% |
|
$ |
1.027195 |
|
|
$ |
0.990317 |
|
|
$ |
0.993410 |
|
|
$ |
0.996292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
1.026515 |
|
|
$ |
0.990036 |
|
|
$ |
0.993131 |
|
|
$ |
0.996015 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
1.026180 |
|
|
$ |
0.989890 |
|
|
$ |
0.992993 |
|
|
$ |
0.995871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
1.025846 |
|
|
$ |
0.989747 |
|
|
$ |
0.992854 |
|
|
$ |
0.995730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
1.024831 |
|
|
$ |
0.989330 |
|
|
$ |
0.992428 |
|
|
$ |
0.995308 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
1.024489 |
|
|
$ |
0.989191 |
|
|
$ |
0.992290 |
|
|
$ |
0.995161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
1.023820 |
|
|
$ |
0.988910 |
|
|
$ |
0.992006 |
|
|
$ |
0.994882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
1.023484 |
|
|
$ |
0.988770 |
|
|
$ |
0.991871 |
|
|
$ |
0.994744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
1.023148 |
|
|
$ |
0.988629 |
|
|
$ |
0.991729 |
|
|
$ |
0.994601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
1.021802 |
|
|
$ |
0.988077 |
|
|
$ |
0.991172 |
|
|
$ |
0.994035 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
1.020467 |
|
|
$ |
0.987515 |
|
|
$ |
0.990610 |
|
|
$ |
0.993481 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
1.019139 |
|
|
$ |
0.986966 |
|
|
$ |
0.990058 |
|
|
$ |
0.992925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
19
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
| |
|
TA PIMCO
Tactical - Growth - SC |
|
| |
|
Subaccount |
|
| Assets |
|
|
|
|
| Investment in securities: |
|
|
|
|
| Number of shares - Initial |
|
|
— |
|
|
|
|
|
|
| Cost |
|
$ |
— |
|
|
|
|
|
|
| Number of shares - Service |
|
|
323.474 |
|
|
|
|
|
|
| Cost |
|
$ |
3,154 |
|
|
|
|
|
|
| Investments in mutual funds, Level 1 quoted prices at net asset value |
|
$ |
3,173 |
|
| Receivable for units sold |
|
|
— |
|
|
|
|
|
|
| Total assets |
|
|
3,173 |
|
|
|
|
|
|
| Liabilities |
|
|
|
|
| Payable for units redeemed |
|
|
— |
|
|
|
|
|
|
| Total net assets |
|
$ |
3,173 |
|
|
|
|
|
|
| Net Assets: |
|
|
|
|
| Deferred annuity contracts terminable by owners |
|
$ |
3,173 |
|
|
|
|
|
|
| Total net assets |
|
$ |
3,173 |
|
|
|
|
|
|
See accompanying notes.
20
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
| |
|
TA PIMCO
Tactical - Growth - SC |
|
| |
|
Subaccount |
|
| Accumulation units outstanding - Initial: |
|
|
|
|
| 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 - Initial: |
|
|
|
|
| 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.
21
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2012
|
|
|
|
|
| |
|
TA PIMCO
Tactical - Growth - SC |
|
| |
|
Subaccount |
|
| Accumulation units outstanding - Service: |
|
|
|
|
| M&E - 1.30% |
|
|
— |
|
|
|
|
|
|
| M&E - 1.40% |
|
|
3,212 |
|
|
|
|
|
|
| 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% |
|
$ |
0.988238 |
|
|
|
|
|
|
| M&E - 1.40% |
|
$ |
0.987957 |
|
|
|
|
|
|
| M&E - 1.45% |
|
$ |
0.987812 |
|
|
|
|
|
|
| M&E - 1.50% |
|
$ |
0.987676 |
|
|
|
|
|
|
| M&E - 1.65% |
|
$ |
0.987256 |
|
|
|
|
|
|
| M&E - 1.70% |
|
$ |
0.987114 |
|
|
|
|
|
|
| M&E - 1.80% |
|
$ |
0.986837 |
|
|
|
|
|
|
| M&E - 1.85% |
|
$ |
0.986697 |
|
|
|
|
|
|
| M&E - 1.90% |
|
$ |
0.986557 |
|
|
|
|
|
|
| M&E - 2.10% |
|
$ |
0.985997 |
|
|
|
|
|
|
| M&E - 2.30% |
|
$ |
0.985444 |
|
|
|
|
|
|
| M&E - 2.50% |
|
$ |
0.984897 |
|
|
|
|
|
|
See accompanying notes.
22
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Money Market |
|
|
Appreciation |
|
|
Growth and Income |
|
|
International Equity |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Net Assets as of January 1, 2011 |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
25 |
|
|
|
2,508,353 |
|
|
|
508,159 |
|
|
|
54,092 |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
955,363 |
|
|
|
986,142 |
|
|
|
516,915 |
|
|
|
191,906 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
(955,338 |
) |
|
|
1,522,211 |
|
|
|
(8,756 |
) |
|
|
(137,814 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
— |
|
|
|
763,649 |
|
|
|
(291,629 |
) |
|
|
(507,869 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
— |
|
|
|
763,649 |
|
|
|
(291,629 |
) |
|
|
(507,869 |
) |
| Net change in unrealized appreciation (depreciation) |
|
|
— |
|
|
|
3,787,236 |
|
|
|
5,893,510 |
|
|
|
3,307,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
— |
|
|
|
4,550,885 |
|
|
|
5,601,881 |
|
|
|
2,799,559 |
|
| Increase (decrease) in net assets from operations |
|
|
(955,338 |
) |
|
|
6,073,096 |
|
|
|
5,593,125 |
|
|
|
2,661,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
(10,531,091 |
) |
|
|
(9,478,894 |
) |
|
|
(4,914,034 |
) |
|
|
(2,362,034 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
(11,486,429 |
) |
|
|
(3,405,798 |
) |
|
|
679,091 |
|
|
|
299,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
62,429,625 |
|
|
$ |
66,443,419 |
|
|
$ |
36,052,249 |
|
|
$ |
13,635,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
23
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
International Value |
|
|
Quality Bond |
|
|
Opportunistic Small
Cap |
|
|
Dreyfus Stock Index |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Net Assets as of January 1, 2011 |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
292,105 |
|
|
|
1,419,413 |
|
|
|
— |
|
|
|
1,116,721 |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
142,993 |
|
|
|
682,400 |
|
|
|
362,790 |
|
|
|
799,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
149,112 |
|
|
|
737,013 |
|
|
|
(362,790 |
) |
|
|
317,145 |
|
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,819,414 |
|
| Realized gain (loss) on investments |
|
|
(1,677,524 |
) |
|
|
657,520 |
|
|
|
(759,356 |
) |
|
|
(86,722 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
(1,677,524 |
) |
|
|
657,520 |
|
|
|
(759,356 |
) |
|
|
2,732,692 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
2,615,744 |
|
|
|
1,182,951 |
|
|
|
5,556,117 |
|
|
|
4,549,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
938,220 |
|
|
|
1,840,471 |
|
|
|
4,796,761 |
|
|
|
7,282,145 |
|
| Increase (decrease) in net assets from operations |
|
|
1,087,332 |
|
|
|
2,577,484 |
|
|
|
4,433,971 |
|
|
|
7,599,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
(1,405,741 |
) |
|
|
(5,089,840 |
) |
|
|
(2,969,744 |
) |
|
|
(8,803,566 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
(318,409 |
) |
|
|
(2,512,356 |
) |
|
|
1,464,227 |
|
|
|
(1,204,276 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
10,167,599 |
|
|
$ |
47,437,042 |
|
|
$ |
26,044,190 |
|
|
$ |
54,329,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
24
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
The Dreyfus
Socially Responsible
Growth |
|
|
Core Value |
|
|
MidCap Stock |
|
|
Technology Growth |
|
| |
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
|
Subaccount |
|
| Net Assets as of January 1, 2011 |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
107,778 |
|
|
|
166,099 |
|
|
|
75,707 |
|
|
|
— |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
195,844 |
|
|
|
296,842 |
|
|
|
289,146 |
|
|
|
224,141 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
(88,066 |
) |
|
|
(130,743 |
) |
|
|
(213,439 |
) |
|
|
(224,141 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
(24,943 |
) |
|
|
(1,578,247 |
) |
|
|
(663,695 |
) |
|
|
923,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
(24,943 |
) |
|
|
(1,578,247 |
) |
|
|
(663,695 |
) |
|
|
923,347 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
1,520,798 |
|
|
|
4,961,639 |
|
|
|
4,252,368 |
|
|
|
1,406,650 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
1,495,855 |
|
|
|
3,383,392 |
|
|
|
3,588,673 |
|
|
|
2,329,997 |
|
| Increase (decrease) in net assets from operations |
|
|
1,407,789 |
|
|
|
3,252,649 |
|
|
|
3,375,234 |
|
|
|
2,105,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
(1,847,614 |
) |
|
|
(2,916,601 |
) |
|
|
(3,404,379 |
) |
|
|
(2,422,959 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
(439,825 |
) |
|
|
336,048 |
|
|
|
(29,145 |
) |
|
|
(317,103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
13,162,369 |
|
|
$ |
21,201,029 |
|
|
$ |
20,017,969 |
|
|
$ |
14,929,432 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
25
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA WMC
Diversified Growth |
|
|
TA AEGON
Tactical Vanguard
ETF - Balanced - SC |
|
|
TA AEGON
Tactical Vanguard ETF - Conservative - SC |
|
|
TA AEGON
Tactical Vanguard
ETF - Growth - SC |
|
| |
|
Subaccount |
|
|
Subaccount (1) |
|
|
Subaccount (1) |
|
|
Subaccount (1) |
|
| Net Assets as of January 1, 2011 |
|
$ |
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 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
33,317 |
|
|
|
176 |
|
|
|
— |
|
|
|
— |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
152,169 |
|
|
|
1,025 |
|
|
|
314 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
(118,852 |
) |
|
|
(849 |
) |
|
|
(314 |
) |
|
|
(3 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
133 |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
257,619 |
|
|
|
20 |
|
|
|
(4 |
) |
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
257,619 |
|
|
|
153 |
|
|
|
(4 |
) |
|
|
(6 |
) |
| Net change in unrealized appreciation (depreciation) |
|
|
1,058,078 |
|
|
|
5,905 |
|
|
|
459 |
|
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
1,315,697 |
|
|
|
6,058 |
|
|
|
455 |
|
|
|
31 |
|
| Increase (decrease) in net assets from operations |
|
|
1,196,845 |
|
|
|
5,209 |
|
|
|
141 |
|
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
(1,620,237 |
) |
|
|
276,005 |
|
|
|
111,229 |
|
|
|
3,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
(423,392 |
) |
|
|
281,214 |
|
|
|
111,370 |
|
|
|
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
9,969,887 |
|
|
$ |
281,214 |
|
|
$ |
111,370 |
|
|
$ |
3,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
26
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Legg Mason
Dynamic Allocation - Balanced - SC |
|
|
TA Legg Mason
Dynamic Allocation - Growth - SC |
|
|
TA Vanguard ETF
Index - Balanced -
SC |
|
|
TA Vanguard ETF
Index - Conservative - SC |
|
| |
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
| Net Assets as of January 1, 2011 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net change in unrealized appreciation (depreciation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Increase (decrease) in net assets from operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2011 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
— |
|
|
|
— |
|
|
|
2,451 |
|
|
|
341 |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
15 |
|
|
|
3 |
|
|
|
1,949 |
|
|
|
362 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
(15 |
) |
|
|
(3 |
) |
|
|
502 |
|
|
|
(21 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
4,992 |
|
|
|
305 |
|
| Realized gain (loss) on investments |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
47 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
5,039 |
|
|
|
310 |
|
| Net change in unrealized appreciation (depreciation) |
|
|
(13 |
) |
|
|
12 |
|
|
|
6,980 |
|
|
|
1,458 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
(15 |
) |
|
|
8 |
|
|
|
12,019 |
|
|
|
1,768 |
|
| Increase (decrease) in net assets from operations |
|
|
(30 |
) |
|
|
5 |
|
|
|
12,521 |
|
|
|
1,747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
19,368 |
|
|
|
3,161 |
|
|
|
559,085 |
|
|
|
84,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
19,338 |
|
|
|
3,166 |
|
|
|
571,606 |
|
|
|
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
19,338 |
|
|
$ |
3,166 |
|
|
$ |
571,606 |
|
|
$ |
85,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
27
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
TA Vanguard ETF
Index - Growth - SC |
|
|
TA Market
Participation
Strategy - SC |
|
|
TA PIMCO Tactical
- Balanced - SC |
|
|
TA PIMCO Tactical
- Conservative - SC |
|
| |
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
|
Subaccount
(1) |
|
| Net Assets as of January 1, 2011 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Net change in unrealized appreciation (depreciation) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Increase (decrease) in net assets from operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2011 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Investment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortality and expense risk and other charges |
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income (loss) |
|
|
— |
|
|
|
— |
|
|
|
(84 |
) |
|
|
(3 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital gain distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Realized gain (loss) on investments |
|
|
(7 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
(7 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
| Net change in unrealized appreciation (depreciation) |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
(7 |
) |
|
|
— |
|
|
|
7 |
|
|
|
3 |
|
| Increase (decrease) in net assets from operations |
|
|
(7 |
) |
|
|
— |
|
|
|
(77 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
7 |
|
|
|
— |
|
|
|
37,862 |
|
|
|
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
— |
|
|
|
— |
|
|
|
37,785 |
|
|
|
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
37,785 |
|
|
$ |
3,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
28
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Changes in Net Assets
Years Ended December
31, 2011 and 2012, Except as Noted
|
|
|
|
|
| |
|
TA PIMCO Tactical
- Growth - SC |
|
| |
|
Subaccount (1) |
|
| Net Assets as of January 1, 2011 |
|
$ |
— |
|
|
|
|
|
|
| Investment income: |
|
|
|
|
| Dividends |
|
|
— |
|
| Investment expenses: |
|
|
|
|
| Mortality and expense risk and other charges |
|
|
— |
|
|
|
|
|
|
| Net investment income (loss) |
|
|
— |
|
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
| Capital gain distributions |
|
|
— |
|
| Realized gain (loss) on investments |
|
|
— |
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
— |
|
| Net change in unrealized appreciation (depreciation) |
|
|
— |
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
— |
|
| Increase (decrease) in net assets from operations |
|
|
— |
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
— |
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
|
|
|
|
|
|
|
| Net Assets as of December 31, 2011 |
|
$ |
— |
|
|
|
|
|
|
| Investment income: |
|
|
|
|
| Dividends |
|
|
— |
|
| Investment expenses: |
|
|
|
|
| Mortality and expense risk and other charges |
|
|
3 |
|
|
|
|
|
|
| Net investment income (loss) |
|
|
(3 |
) |
| Net realized and unrealized gains (losses) on investments: |
|
|
|
|
| Capital gain distributions |
|
|
— |
|
| Realized gain (loss) on investments |
|
|
(1 |
) |
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
|
(1 |
) |
| Net change in unrealized appreciation (depreciation) |
|
|
19 |
|
|
|
|
|
|
| Net gain (loss) on investment |
|
|
18 |
|
| Increase (decrease) in net assets from operations |
|
|
15 |
|
|
|
|
|
|
| Increase (decrease) in net assets from contract transactions |
|
|
3,158 |
|
|
|
|
|
|
| Total increase (decrease) in net assets |
|
|
3,173 |
|
|
|
|
|
|
| Net Assets as of December 31, 2012 |
|
$ |
3,173 |
|
|
|
|
|
|
See accompanying notes.
29
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31,
2012
1. Organization and Summary of Significant Accounting Policies
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 |
| 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. |
|
Dreyfus Stock Index Fund, Inc. |
| Dreyfus Stock Index* |
|
Dreyfus Stock Index Fund, Inc. |
| The Dreyfus Socially Responsible Growth Fund, Inc. |
|
The Dreyfus Socially Responsible Growth Fund, Inc. |
| The Dreyfus Socially Responsible Growth* |
|
The Dreyfus Socially Responsible Growth Fund, Inc. |
| Dreyfus Investment Portfolios |
|
Dreyfus Investment Portfolios |
| Core Value* |
|
Core Value Portfolio |
| MidCap Stock* |
|
MidCap Stock Portfolio |
| Technology Growth* |
|
Technology Growth Portfolio |
| Transamerica Series Trust - Initial Class |
|
Transamerica Series Trust - Initial Class |
| TA WMC Diversified Growth |
|
Transamerica WMC Diversified Growth VP |
| Transamerica Series Trust - Service Class |
|
Transamerica Series Trust - Service Class |
| TA AEGON Tactical Vanguard ETF - Balanced - SC |
|
Transamerica AEGON Active Asset Allocation - Moderate VP |
| TA AEGON Tactical Vanguard ETF - Conservative - SC |
|
Transamerica AEGON Active Asset Allocation - Conservative VP |
| TA AEGON Tactical Vanguard ETF - Growth - SC |
|
Transamerica AEGON Active Asset Allocation - Moderate Growth VP |
| TA Legg Mason Dynamic Allocation - Balanced - SC |
|
Transamerica Legg Mason Dynamic Allocation - Balanced VP |
| TA Legg Mason Dynamic Allocation - Growth - SC |
|
Transamerica Legg Mason Dynamic Allocation - Growth VP |
| TA Vanguard ETF Index - Balanced - SC |
|
Transamerica Index 50 VP |
| TA Vanguard ETF Index - Conservative - SC |
|
Transamerica Index 35 VP |
| TA Vanguard ETF Index - Growth - SC |
|
Transamerica Index 75 VP |
| TA Market Participation Strategy - SC |
|
Transamerica Market Participation Strategy VP |
| TA PIMCO Tactical - Balanced - SC |
|
Transamerica PIMCO Tactical - Balanced VP |
| TA PIMCO Tactical - Conservative - SC |
|
Transamerica PIMCO Tactical - Conservative VP |
| TA PIMCO Tactical - Growth - SC |
|
Transamerica PIMCO Tactical - Growth VP |
| * |
Multiple share classes are combined on the financial statement pages. |
30
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
1. Organization and Summary of Significant Accounting Policies (continued)
Each period reported on reflects a full twelve month period except as follows:
|
|
|
| Subaccount |
|
Inception Date |
| TA Market Participation Strategy - SC |
|
September 17, 2012 |
| TA PIMCO Tactical - Balanced - SC |
|
September 17, 2012 |
| TA PIMCO Tactical - Conservative - SC |
|
September 17, 2012 |
| TA PIMCO Tactical - Growth - SC |
|
September 17, 2012 |
| TA AEGON Tactical Vanguard ETF - Balanced - SC |
|
May 1, 2012 |
| TA AEGON Tactical Vanguard ETF - Conservative - SC |
|
May 1, 2012 |
| TA AEGON Tactical Vanguard ETF - Growth - SC |
|
May 1, 2012 |
| TA Legg Mason Dynamic Allocation - Balanced - SC |
|
May 1, 2012 |
| TA Legg Mason Dynamic Allocation - Growth - SC |
|
May 1, 2012 |
| TA Vanguard ETF Index - Balanced - SC |
|
May 1, 2012 |
| TA Vanguard ETF Index - Conservative - SC |
|
May 1, 2012 |
| TA Vanguard ETF Index - Growth - SC |
|
May 1, 2012 |
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, 2012.
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.
In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure
Requirements in U.S. GAAP and IFRSs, authoritative guidance that clarifies and changes fair value measurement and disclosure requirements. This guidance expands existing disclosure requirements for fair value measurements and includes other
amendments but does not require additional fair value measurements. This guidance is effective for annual periods beginning on or after December 15, 2011, which for the Separate Account was January 1, 2012. The adoption did not have a
material impact on the financial statements.
31
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
2. Investments
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2012 were as follows:
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Purchases |
|
|
Sales |
|
| Money Market |
|
$ |
2,576,907 |
|
|
$ |
14,062,367 |
|
| Appreciation |
|
|
2,990,356 |
|
|
|
10,947,034 |
|
| Growth and Income |
|
|
1,089,800 |
|
|
|
6,012,583 |
|
| International Equity |
|
|
831,255 |
|
|
|
3,331,107 |
|
| International Value |
|
|
655,317 |
|
|
|
1,911,949 |
|
| Quality Bond |
|
|
4,356,552 |
|
|
|
8,709,373 |
|
| Opportunistic Small Cap |
|
|
539,719 |
|
|
|
3,872,253 |
|
| Dreyfus Stock Index |
|
|
4,805,480 |
|
|
|
10,472,487 |
|
| The Dreyfus Socially Responsible Growth |
|
|
367,130 |
|
|
|
2,302,811 |
|
| Core Value |
|
|
580,122 |
|
|
|
3,627,457 |
|
| MidCap Stock |
|
|
439,782 |
|
|
|
4,057,608 |
|
| Technology Growth |
|
|
255,945 |
|
|
|
2,903,049 |
|
| TA WMC Diversified Growth |
|
|
424,378 |
|
|
|
2,163,468 |
|
| TA AEGON Tactical Vanguard ETF - Balanced - SC |
|
|
276,350 |
|
|
|
1,061 |
|
| TA AEGON Tactical Vanguard ETF - Conservative - SC |
|
|
111,668 |
|
|
|
753 |
|
| TA AEGON Tactical Vanguard ETF - Growth - SC |
|
|
3,276 |
|
|
|
116 |
|
| TA Legg Mason Dynamic Allocation - Balanced - SC |
|
|
19,486 |
|
|
|
133 |
|
| TA Legg Mason Dynamic Allocation - Growth - SC |
|
|
3,277 |
|
|
|
119 |
|
| TA Vanguard ETF Index - Balanced - SC |
|
|
566,777 |
|
|
|
2,197 |
|
| TA Vanguard ETF Index - Conservative - SC |
|
|
84,942 |
|
|
|
461 |
|
| TA Vanguard ETF Index - Growth - SC |
|
|
120 |
|
|
|
113 |
|
| TA Market Participation Strategy - SC |
|
|
120 |
|
|
|
120 |
|
| TA PIMCO Tactical - Balanced - SC |
|
|
38,100 |
|
|
|
322 |
|
| TA PIMCO Tactical - Conservative - SC |
|
|
3,277 |
|
|
|
123 |
|
| TA PIMCO Tactical - Growth - SC |
|
|
3,277 |
|
|
|
122 |
|
32
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, |
|
| |
|
2012 |
|
|
2011 |
|
| 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 |
|
|
688,221 |
|
|
|
(8,395,722 |
) |
|
|
(7,707,501 |
) |
|
|
832,582 |
|
|
|
(10,293,264 |
) |
|
|
(9,460,682 |
) |
| Appreciation |
|
|
16,746 |
|
|
|
(710,614 |
) |
|
|
(693,868 |
) |
|
|
11,527 |
|
|
|
(809,941 |
) |
|
|
(798,414 |
) |
| Growth and Income |
|
|
7,687 |
|
|
|
(351,233 |
) |
|
|
(343,546 |
) |
|
|
6,308 |
|
|
|
(320,173 |
) |
|
|
(313,865 |
) |
| International Equity |
|
|
18,428 |
|
|
|
(133,700 |
) |
|
|
(115,272 |
) |
|
|
27,353 |
|
|
|
(176,336 |
) |
|
|
(148,983 |
) |
| International Value |
|
|
9,342 |
|
|
|
(130,634 |
) |
|
|
(121,292 |
) |
|
|
9,920 |
|
|
|
(138,478 |
) |
|
|
(128,558 |
) |
| Quality Bond |
|
|
19,509 |
|
|
|
(754,760 |
) |
|
|
(735,251 |
) |
|
|
34,358 |
|
|
|
(844,318 |
) |
|
|
(809,960 |
) |
| Opportunistic Small Cap |
|
|
3,775 |
|
|
|
(57,875 |
) |
|
|
(54,100 |
) |
|
|
1,856 |
|
|
|
(165,798 |
) |
|
|
(163,942 |
) |
| Dreyfus Stock Index |
|
|
18,452 |
|
|
|
(523,404 |
) |
|
|
(504,952 |
) |
|
|
20,117 |
|
|
|
(656,318 |
) |
|
|
(636,201 |
) |
| The Dreyfus Socially Responsible Growth |
|
|
2,863 |
|
|
|
(79,561 |
) |
|
|
(76,698 |
) |
|
|
3,808 |
|
|
|
(79,288 |
) |
|
|
(75,480 |
) |
| Core Value |
|
|
28,851 |
|
|
|
(629,010 |
) |
|
|
(600,159 |
) |
|
|
26,780 |
|
|
|
(667,367 |
) |
|
|
(640,587 |
) |
| MidCap Stock |
|
|
21,561 |
|
|
|
(322,399 |
) |
|
|
(300,838 |
) |
|
|
21,892 |
|
|
|
(399,276 |
) |
|
|
(377,384 |
) |
| Technology Growth |
|
|
13,859 |
|
|
|
(277,614 |
) |
|
|
(263,755 |
) |
|
|
15,035 |
|
|
|
(271,262 |
) |
|
|
(256,227 |
) |
| TA WMC Diversified Growth |
|
|
12,089 |
|
|
|
(115,983 |
) |
|
|
(103,894 |
) |
|
|
8,651 |
|
|
|
(73,329 |
) |
|
|
(64,678 |
) |
| TA AEGON Tactical Vanguard ETF - Balanced - SC |
|
|
12 |
|
|
|
275,592 |
|
|
|
275,604 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA AEGON Tactical Vanguard ETF - Conservative - SC |
|
|
12 |
|
|
|
109,300 |
|
|
|
109,312 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA AEGON Tactical Vanguard ETF - Growth - SC |
|
|
12 |
|
|
|
3,104 |
|
|
|
3,116 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Legg Mason Dynamic Allocation - Balanced - SC |
|
|
12 |
|
|
|
19,143 |
|
|
|
19,155 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Legg Mason Dynamic Allocation - Growth - SC |
|
|
12 |
|
|
|
3,140 |
|
|
|
3,152 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Vanguard ETF Index - Balanced - SC |
|
|
12 |
|
|
|
559,081 |
|
|
|
559,093 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Vanguard ETF Index - Conservative - SC |
|
|
12 |
|
|
|
84,335 |
|
|
|
84,347 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Vanguard ETF Index - Growth - SC |
|
|
12 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA Market Participation Strategy - SC |
|
|
12 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Balanced - SC |
|
|
12 |
|
|
|
38,035 |
|
|
|
38,047 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Conservative - SC |
|
|
12 |
|
|
|
3,158 |
|
|
|
3,170 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Growth - SC |
|
|
12 |
|
|
|
3,200 |
|
|
|
3,212 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
33
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
4. Financial Highlights
The Separate Account offers various death benefit options, which have differing fees that are charges against the contract owner’s account balance. These charges are discussed in more detail in the
individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios and total returns.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year Ended |
|
Units |
|
|
Unit Fair Value
Corresponding to
Lowest to Highest
Exp Ration |
|
|
Net Assets |
|
|
Investment
Income
Ratio* |
|
|
Expense Ratio
Lowest to
Highest ** |
|
|
Total Return
Corresponding to
Lowest to Hightest
Expense Ratio *** |
|
| Money Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
46,032,952 |
|
|
$ |
1.03 |
|
|
|
to |
|
|
$ |
0.92 |
|
|
$ |
62,429,625 |
|
|
|
— |
% |
|
|
1.30 |
% |
|
|
to |
|
|
|
2.50 |
% |
|
|
(1.30 |
)% |
|
|
to |
|
|
|
(2.45 |
)% |
|
|
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 |
|
| Appreciation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
3,332,934 |
|
|
|
1.43 |
|
|
|
to |
|
|
|
1.49 |
|
|
|
66,443,419 |
|
|
|
3.56 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
8.72 |
|
|
|
to |
|
|
|
7.44 |
|
|
|
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 |
) |
| Growth and Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
1,711,177 |
|
|
|
1.22 |
|
|
|
to |
|
|
|
1.35 |
|
|
|
36,052,249 |
|
|
|
1.38 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.25 |
|
|
|
to |
|
|
|
14.88 |
|
|
|
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 |
) |
| International Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
800,361 |
|
|
|
1.70 |
|
|
|
to |
|
|
|
1.83 |
|
|
|
13,635,251 |
|
|
|
0.39 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
21.25 |
|
|
|
to |
|
|
|
19.82 |
|
|
|
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 |
) |
| International Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
1,165,789 |
|
|
|
1.27 |
|
|
|
to |
|
|
|
1.45 |
|
|
|
10,167,599 |
|
|
|
2.85 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
10.97 |
|
|
|
to |
|
|
|
9.67 |
|
|
|
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 |
) |
| Quality Bond |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
4,668,124 |
|
|
|
1.47 |
|
|
|
to |
|
|
|
1.22 |
|
|
|
47,437,042 |
|
|
|
2.90 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
5.32 |
|
|
|
to |
|
|
|
4.08 |
|
|
|
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 |
) |
34
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
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 Hightest
Expense Ratio *** |
|
| Opportunistic Small Cap |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
875,047 |
|
|
$ |
0.98 |
|
|
|
to |
|
|
$ |
1.16 |
|
|
$ |
26,044,190 |
|
|
|
— |
% |
|
|
1.30 |
% |
|
|
to |
|
|
|
2.50 |
% |
|
|
18.69 |
% |
|
|
to |
|
|
|
17.29 |
% |
|
|
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 |
) |
| Dreyfus Stock Index |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
2,350,881 |
|
|
|
1.35 |
|
|
|
to |
|
|
|
1.43 |
|
|
|
54,329,553 |
|
|
|
1.96 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.98 |
|
|
|
to |
|
|
|
12.64 |
|
|
|
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 |
) |
| The Dreyfus Socially Responsible Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
571,271 |
|
|
|
1.20 |
|
|
|
to |
|
|
|
1.37 |
|
|
|
13,162,369 |
|
|
|
0.77 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
10.26 |
|
|
|
to |
|
|
|
8.96 |
|
|
|
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 |
) |
| Core Value |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
3,208,978 |
|
|
|
1.24 |
|
|
|
to |
|
|
|
1.36 |
|
|
|
21,201,029 |
|
|
|
0.78 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.50 |
|
|
|
to |
|
|
|
15.13 |
|
|
|
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 |
) |
| MidCap Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
2,032,644 |
|
|
|
1.54 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
20,017,969 |
|
|
|
0.37 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
17.80 |
|
|
|
to |
|
|
|
16.41 |
|
|
|
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 |
) |
| Technology Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
1,847,126 |
|
|
|
1.46 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
14,929,432 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.86 |
|
|
|
to |
|
|
|
12.52 |
|
|
|
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 |
) |
35
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
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 Hightest
Expense Ratio *** |
|
| TA WMC Diversified Growth |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2012 |
|
|
769,319 |
|
|
$ |
1.48 |
|
|
|
to |
|
|
$ |
1.47 |
|
|
$ |
9,969,887 |
|
|
|
0.31 |
% |
|
|
1.30 |
% |
|
|
to |
|
|
|
2.50 |
% |
|
|
11.71 |
% |
|
|
to |
|
|
|
10.39 |
% |
|
|
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 |
) |
| TA AEGON Tactical Vanguard ETF - Balanced - SC |
|
|
|
12/31/2012(1) |
|
|
275,604 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.01 |
|
|
|
281,214 |
|
|
|
0.13 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA AEGON Tactical Vanguard ETF - Conservative - SC |
|
|
|
12/31/2012(1) |
|
|
109,312 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.01 |
|
|
|
111,370 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA AEGON Tactical Vanguard ETF - Growth - SC |
|
|
|
12/31/2012(1) |
|
|
3,116 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.02 |
|
|
|
3,191 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Legg Mason Dynamic Allocation - Balanced - SC |
|
|
|
12/31/2012(1) |
|
|
19,155 |
|
|
|
1.01 |
|
|
|
to |
|
|
|
1.00 |
|
|
|
19,338 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Legg Mason Dynamic Allocation - Growth - SC |
|
|
|
12/31/2012(1) |
|
|
3,152 |
|
|
|
1.01 |
|
|
|
to |
|
|
|
1.00 |
|
|
|
3,166 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF Index - Balanced - SC |
|
|
|
12/31/2012(1) |
|
|
559,093 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.02 |
|
|
|
571,606 |
|
|
|
1.03 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF Index - Conservative - SC |
|
|
|
12/31/2012(1) |
|
|
84,347 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.01 |
|
|
|
85,945 |
|
|
|
0.73 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF Index - Growth - SC |
|
|
|
12/31/2012(1) |
|
|
— |
|
|
|
1.03 |
|
|
|
to |
|
|
|
1.02 |
|
|
|
— |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Market Participation Strategy - SC |
|
|
|
12/31/2012(1) |
|
|
— |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
— |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA PIMCO Tactical - Balanced - SC |
|
|
|
12/31/2012(1) |
|
|
38,047 |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
37,785 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA PIMCO Tactical - Conservative - SC |
|
|
|
12/31/2012(1) |
|
|
3,170 |
|
|
|
1.00 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
3,157 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA PIMCO Tactical - Growth - SC |
|
|
|
12/31/2012(1) |
|
|
3,212 |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.98 |
|
|
|
3,173 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
36
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
4. Financial Highlights (continued)
| * |
These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the
fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units.
The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest. |
| ** |
These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These
ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded. |
| *** |
These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of
unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for
each period indicated or from the effective date through the end of the reporting period. Effective 2012, total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may
not be indicative of a full year return. Effective 2011, expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return. |
37
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
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 |
|
2012 Total Return Range |
|
| Appreciation |
|
|
7.44 |
% |
|
|
to |
|
|
|
8.90 |
% |
| Growth and Income |
|
|
14.88 |
|
|
|
to |
|
|
|
16.44 |
|
| International Equity |
|
|
19.82 |
|
|
|
to |
|
|
|
21.44 |
|
| International Value |
|
|
9.67 |
|
|
|
to |
|
|
|
11.10 |
|
| Quality Bond |
|
|
4.08 |
|
|
|
to |
|
|
|
5.51 |
|
| Opportunistic Small Cap |
|
|
17.29 |
|
|
|
to |
|
|
|
18.89 |
|
| Dreyfus Stock Index |
|
|
12.64 |
|
|
|
to |
|
|
|
14.13 |
|
| The Dreyfus Socially Responsible Growth |
|
|
8.96 |
|
|
|
to |
|
|
|
10.42 |
|
| Core Value |
|
|
15.13 |
|
|
|
to |
|
|
|
16.70 |
|
| MidCap Stock |
|
|
16.41 |
|
|
|
to |
|
|
|
18.01 |
|
| Technology Growth |
|
|
12.52 |
|
|
|
to |
|
|
|
14.02 |
|
|
|
| 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 |
|
38
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
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 |
) |
39
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
5. Administrative and Mortality and Expense Risk Charges
TLIC deducts a daily administrative charge equal to an annual rate of .15% of the daily net assets value of each subaccount for administrative
expenses. TLIC also deducts an annual charge during accumulation phase, 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 TLIC’s assumption of certain mortality and expense risks incurred in connection with the contract. The charge is assessed daily based on the net asset value of the Mutual Fund.
Charges for administrative and mortality and expense risk are an expense of the subaccount. 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.
40
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2012
8. Fair Value Measurements and Fair Value Hierarchy
The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value
hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
The
Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets
for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level
input that is significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded at fair value on the
Statements of Assets and Liabilities are categorized as follows:
Level 1. Unadjusted quoted prices for identical assets or liabilities in an
active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for
substantially the full term of the asset or liability. Level 2 inputs include the following:
| |
a) |
Quoted prices for similar assets or liabilities in active markets |
| |
b) |
Quoted prices for identical or similar assets or liabilities in non-active markets |
| |
c) |
Inputs other than quoted market prices that are observable |
| |
d) |
Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They
reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
All
investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon daily unadjusted quoted prices, therefore are considered Level 1.
9. Subsequent Events
The Separate
Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition or disclosure in the financial statements.
41
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a |
)(6) |
|
Amended and Restated Principal Underwriting Agreement. Note 19. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
(b |
)(8) |
|
Summary Prospectus Amendment (TST). Note 17. |
|
|
|
|
|
|
|
|
|
|
|
|
(b |
)(9) |
|
Amendment No. 48 to Participation Agreement. Note 18 |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
) |
|
Participation Agreement (TST). Note 19. |
|
|
|
|
|
|
|
|
|
(9) |
|
|
(a |
) |
|
Opinion and Consent of Counsel. Note 19. |
|
|
|
|
|
|
|
|
|
|
|
|
(b |
) |
|
Consent of Counsel. Note 17. |
|
|
|
|
|
|
|
|
|
(10) |
|
|
(a |
) |
|
Consent of Independent Registered Public Accounting Firm. Note 19. |
|
|
|
|
|
|
|
|
|
(11) |
|
|
|
|
|
Not applicable. |
|
|
|
|
|
|
|
|
|
(12) |
|
|
|
|
|
Not applicable. |
|
|
|
|
|
|
|
|
|
(13) |
|
|
|
|
|
Powers of Attorney. (Craig D. Vermie, Arthur Schneider, Eric J. Martin, Brenda K. Clancy, Mark Mullin and C. Michiel van Katwijk). Note 19. |
|
|
|
| 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 with Post-Effective Amendment No. 4 to form N-4 Registration Statement (File No. 333-153773) dated April 17, 2012. |
|
|
| Note 18. |
|
Filed with Post-Effective Amendment No. 4 (File No. 333-153773) dated April 17, 2012. |
|
|
| Note 19. |
|
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 |
|
|
| Mark W. Mullin 4333 Edgewood
Road, N.E. Cedar Rapids, Iowa 52499-0001 |
|
Director and Chairman of the Board |
|
|
| C. Michiel van Katwijk 4333
Edgewood Road, N.E. Cedar Rapids, Iowa 52499-0001 |
|
Director, Senior Vice President |
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 |
|
Sole Member: Yarra Rapids, LLC |
|
Real estate investments |
|
|
|
|
| 239 West 20th Street, LLC |
|
Delaware |
|
Sole Member: Yarra Rapids, LLC |
|
Real estate investments |
|
|
|
|
| 313 East 95th Street, LLC |
|
Delaware |
|
Sole Member: Yarra Rapids, LLC |
|
Real estate investments |
|
|
|
|
| 319 East 95th Street, LLC |
|
Delaware |
|
Sole Member: Yarra Rapids, LLC |
|
Real estate investments |
|
|
|
|
| AEGON Alliances, Inc. |
|
Virginia |
|
100% Commonwealth General Corporation |
|
Insurance company marketing support |
|
|
|
|
| AEGON Asset Management Services, Inc. |
|
Delaware |
|
100% AUSA Holding Company |
|
Registered investment advisor |
|
|
|
|
| AEGON Assignment Corporation |
|
Illinois |
|
100% AEGON Financial Services Group, Inc. |
|
Administrator of structured settlements |
|
|
|
|
| AEGON Assignment Corporation of Kentucky |
|
Kentucky |
|
100% AEGON Financial Services Group, Inc. |
|
Administrator of structured settlements |
|
|
|
|
| AEGON Canada ULC |
|
Canada |
|
AEGON Canada Holding B.V. owns 174,588,712 shares of Common Stock; 1,500 shares of Series II Preferred stock; 2 shares of Series III Preferred stock. TIHI Canada Holding, LLC owns
1,441,941.26 shares of Class B -Series I Preferred stock. |
|
Holding company |
|
|
|
|
| AEGON Capital Management Inc. |
|
Canada |
|
100% AEGON Asset Management (Canada) B.V. |
|
Portfolio management company/investment advisor |
|
|
|
|
| AEGON-CMF GP, LLC |
|
Delaware |
|
Transamerica Realty Services, Inc. is sole Member |
|
Investment in commercial mortgage loans |
|
|
|
|
| AEGON Core Mortgage Fund, LP |
|
Delaware |
|
Partners: AEGON USA Realty Advisors, LLC (99%); AEGON-CMF GP, LLC (1%) |
|
Investment in mortgages |
|
|
|
|
| AEGON Direct & Affinity Marketing Services Australia Pty Limited |
|
Australia |
|
100% Transamerica Direct Marketing Asia Pacific Pty Ltd. |
|
Marketing/operations company |
|
|
|
|
| AEGON Direct & Affinity Marketing Services Co., Ltd. |
|
Japan |
|
100% AEGON DMS Holding B.V. |
|
Marketing company |
|
|
|
|
| AEGON Direct & Affinity Marketing Services Limited |
|
Hong Kong |
|
100% AEGON DMS Holding B.V. |
|
Provide consulting services ancillary to the marketing of insurance products overseas. |
|
|
|
|
| AEGON Direct & Affinity Marketing Services (Thailand) Limited |
|
Thailand |
|
97% Transamerica International Direct Marketing Consultants, LLC; remaining 3% held by various AEGON employees |
|
Marketing of insurance products in Thailand |
|
|
|
|
| AEGON Direct Marketing Services, Inc. |
|
Maryland |
|
Monumental Life Insurance Company owns 103,324 shares; Commonwealth General Corporation owns 37,161 shares |
|
Marketing company |
|
|
|
|
| AEGON Direct Marketing Services Europe Ltd. |
|
United Kingdom |
|
100% Cornerstone International Holdings, Ltd. |
|
Marketing |
|
|
|
|
| AEGON Direct Marketing Services Insurance Broker (HK) Limited |
|
Hong Kong |
|
100% AEGON Direct Marketing Services Hong Kong Limited |
|
Brokerage company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AEGON Direct Marketing Services International, Inc. |
|
Maryland |
|
100% AUSA Holding Company |
|
Marketing arm for sale of mass marketed insurance coverage |
|
|
|
|
| AEGON Direct Marketing Services Korea Co., Ltd. |
|
Korea |
|
100% AEGON DMS Holding B.V. |
|
Provide consulting services ancillary to the marketing of insurance products overseas. |
|
|
|
|
| AEGON Direct Marketing Services Mexico, S.A. de C.V. |
|
Mexico |
|
100% AEGON DMS Holding B.V. |
|
Provide management advisory and technical consultancy services. |
|
|
|
|
| AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V. |
|
Mexico |
|
100% AEGON DMS Holding B.V. |
|
Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies. |
|
|
|
|
| AEGON Direct Marketing Services, Inc. |
|
Taiwan |
|
100% AEGON DMS Holding B.V. |
|
Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business
requiring special permission of government. |
|
|
|
|
| AEGON Financial Services Group, Inc. |
|
Minnesota |
|
100% Transamerica Life Insurance Company |
|
Marketing |
|
|
|
|
| AEGON Fund Management Inc. |
|
Canada |
|
100% AEGON Asset Management (Canada) B.V. |
|
Mutual fund manager |
|
|
|
|
| AEGON Funding Company, LLC. |
|
Delaware |
|
100% AEGON USA, LLC |
|
Issue debt securities-net proceeds used to make loans to affiliates |
|
|
|
|
| AEGON Institutional Markets, Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Provider of investment, marketing and administrative services to insurance companies |
|
|
|
|
| AEGON Life Insurance Agency Inc. |
|
Taiwan |
|
100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled) |
|
Life insurance |
|
|
|
|
| AEGON Managed Enhanced Cash, LLC |
|
Delaware |
|
Members: Transamerica Life Insurance Company (86.0457%) ; Monumental Life Insurance Company (13.9543%) |
|
Investment vehicle for securities lending cash collateral |
|
|
|
|
| AEGON Management Company |
|
Indiana |
|
100% AEGON U.S. Holding Corporation |
|
Holding company |
|
|
|
|
| AEGON N.V. |
|
Netherlands |
|
22.446% of Vereniging AEGON Netherlands Membership Association |
|
Holding company |
|
|
|
|
| AEGON Structured Settlements, Inc. |
|
Kentucky |
|
100% Commonwealth General Corporation |
|
Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies. |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AEGON USA Realty Advisors of California, Inc. |
|
Iowa |
|
100% AEGON USA Realty Advisors, Inc. |
|
Investments |
|
|
|
|
| AEGON USA, LLC |
|
Iowa |
|
100% AEGON U.S. Holding Corporation |
|
Holding company |
|
|
|
|
| AFSG Securities Corporation |
|
Pennsylvania |
|
100% Commonwealth General Corporation |
|
Inactive |
|
|
|
|
| ALH Properties Eight LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Eleven LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Four LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Nine LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Seven LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Seventeen LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Sixteen LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Ten LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Twelve LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Two LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| American Bond Services LLC |
|
Iowa |
|
100% Transamerica Life Insurance Company (sole member) |
|
Limited liability company |
|
|
|
|
| AMTAX HOLDINGS 308, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 347, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 388, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 483, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 546, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 559, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 561, LLC |
|
Ohio |
|
TAHP Fund VII, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AMTAX HOLDINGS 567, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 588, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 613, LLC |
|
Ohio |
|
Garnet LIHTC Fund VII, LLC - 99% member; Cupples State LIHTC Investors, LLC - 1% member; TAH Pentagon Funds, LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 639, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 649, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 672, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| AMTAX HOLDINGS 713, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
affordable housing |
|
|
|
|
| ARC Reinsurance Corporation |
|
Hawaii |
|
100% Transamerica Corporation |
|
Property & Casualty Insurance |
|
|
|
|
| ARV Pacific Villas, A California Limited Partnership |
|
California |
|
Partners: Transamerica Affordable Housing - 0.05% General Partner; non-AEGON affiliate, Jamboree Housing Corporation - 0.05% Managing General Partner; Transamerica Life Insurance
Company - 67% Limited Partner; Monumental Life Insurance Company - 32% Limited Partner |
|
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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
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, LP |
|
California |
|
Partners: 69.995% Transamerica Life Insurance Company; 29.995% Monumental Life Insurance Company; 0.01% Transamerica Affordable Housing, Inc. |
|
Investments in low income housing tax credit properties |
|
|
|
|
| Bay State Community Investments I, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments in low income housing tax credit properties |
|
|
|
|
| Bay State Community Investments II, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments in low income housing tax credit properties |
|
|
|
|
| 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 Life Insurance Company |
|
Canada |
|
100% Transamerica Life Canada |
|
Insurance company |
|
|
|
|
| CBC Insurance Revenue Securitization, LLC |
|
Delaware |
|
100% Clark Consulting, LLC |
|
Special purpose |
|
|
|
|
| Cedar Funding, Ltd. |
|
Cayman Islands |
|
100% Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Clark/Bardes (Bermuda) Ltd. |
|
Bermuda |
|
100% Clark Consulting, LLC |
|
Insurance agency |
|
|
|
|
| Clark, LLC |
|
Delaware |
|
Sole Member - Diversified Retirement Corporation |
|
Holding company |
|
|
|
|
| Clark Consulting, LLC |
|
Delaware |
|
100% Clark, LLC |
|
Financial consulting firm |
|
|
|
|
| Clark Investment Strategies, inc. |
|
Delaware |
|
100% Clark Consulting, LLC |
|
Registered investment advisor |
|
|
|
|
| Clark Securities, Inc. |
|
California |
|
100% Clark Consulting, LLC |
|
Broker-Dealer |
|
|
|
|
| Commonwealth General Corporation |
|
Delaware |
|
100% AEGONUSA, LLC |
|
Holding company |
|
|
|
|
| Consumer Membership Services Canada Inc. |
|
Canada |
|
100% AEGON Canada ULC |
|
Marketing of credit card protection membership services in Canada |
|
|
|
|
| Cornerstone International Holdings Ltd. |
|
UK |
|
100% AEGON DMS Holding B.V. |
|
Holding company |
|
|
|
|
| CRG Insurance Agency, Inc. |
|
California |
|
100% Clark Consulting, Inc. |
|
Insurance agency |
|
|
|
|
| Creditor Resources, Inc. |
|
Michigan |
|
100% AUSA Holding Company |
|
Credit insurance |
|
|
|
|
| CRI Canada Inc. |
|
Canada |
|
100% Creditor Resources, Inc. |
|
Holding company |
|
|
|
|
| CRI Solutions Inc. |
|
Maryland |
|
100% Creditor Resources, Inc. |
|
Sales of reinsurance and credit insurance |
|
|
|
|
| Cupples State LIHTC Investors, LLC |
|
Delaware |
|
100% Garnet LIHTC Fund VIII, LLC |
|
Investments |
|
|
|
|
| Diversified Investment Advisors, Inc. |
|
Delaware |
|
100% Diversified Retirement Corporation |
|
Investment advisor |
|
|
|
|
| Diversified Investors Securities Corp. |
|
Delaware |
|
100% Diversified Investment Advisors, Inc. |
|
Broker-Dealer |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Erfahrungsschatz GmbH |
|
Germany |
|
100% Cornerstone International Holdings, Ltd. |
|
Marketing/membership |
|
|
|
|
| FD TLIC, Limited Liability Company |
|
New York |
|
100% Transamerica Life Insurance Company |
|
Broadway production |
|
|
|
|
| FD TLIC Ltd. |
|
United Kingdom |
|
100% FD TLIC, LLC |
|
Theatre production |
|
|
|
|
| FGH Realty Credit LLC |
|
Delaware |
|
100% FGH USA, LLC |
|
Real estate |
|
|
|
|
| FGH USA LLC |
|
Delaware |
|
100% RCC North America LLC |
|
Real estate |
|
|
|
|
| FGP 90 West Street LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| FGP West Mezzanine LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| FGP West Street LLC |
|
Delaware |
|
100% FGP West Mezzanine LLC |
|
Real estate |
|
|
|
|
| FGP West Street Two LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Fifth FGP LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Financial Planning Services, Inc. |
|
District of Columbia |
|
100% Commonwealth General Corporation |
|
Special-purpose subsidiary |
|
|
|
|
| First FGP LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Fong LCS Associates, LLC |
|
Delaware |
|
100% Investors Warranty of America, Inc. |
|
Investments |
|
|
|
|
| Fourth & 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet Community Investments V, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments VI, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments VII, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments VIII, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments IX, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments X, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XI, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XII, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XVIII, LLC |
|
Delaware |
|
100% Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XX, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXIV, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Real estate investments |
|
|
|
|
| Garnet Community Investments XXV, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investment XXVI, LLC |
|
Delaware |
|
100% Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXVII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investment XXVIII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXIX, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXX, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXI, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXIII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet Community Investments XXXIV, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXV, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXVI, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet LIHTC Fund XVIII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XIX, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XX, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XX, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXI, LLC |
|
Delaware |
|
100% Garnet Community Investments, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXII, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXIII, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXIV, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXIV, LLC (0.01% as Managing Member); Transamerica Life Insurance Company (21.26%); non-affiliates of AEGON: New York Life Insurance Company
(25.51%), New York Life Insurance and Annuity Corporation (21.3%) and Principal Life Insurance Company (31.49%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXV, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable Housing I LLC
(1%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXVI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXVII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company
(30.2856%); New York Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Brank and Trust Company (18.1714%) |
|
Investments |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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 |
|
Garnet Community Investments XXX, LLC (0.01%); non-affiliate of AEGON, New York Life Insurance Company (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable Housing I, LLC (1%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXII, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXXII, LLC (0.01%); non-affiliates of AEGON: New York Life Insurance Company (50.38%); New York Life Insurance Annuity Corporation
(49.61%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXIII, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXXIII, LLC (0.01%); non-affiliate of AEGON, NorLease, Inc. (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXIV, LLC |
|
Delaware |
|
Members: non-AEGON affiliate, U.S. Bancorp Community Development Corporation (99.99%); Garnet Community Investments XXXIV, LLC (.01%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXV, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXXV, LLC (0.01%); non-affiliate of AEGON, Microsoft Corporation (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXVI, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XXXVI, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXVII, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XXXIII, LLC |
|
Investments |
|
|
|
|
| Global Preferred Re Limited |
|
Bermuda |
|
100% AEGON USA, LLC |
|
Reinsurance |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Hadley Apartments, LLC |
|
Massachusetts |
|
Members: Garnet LIHTC Fund XV, LLC (99.99% investor member); Transamerica Affordable Housing, Inc. (non-owner manager); Main South Community Development
Corporation , a non-affiliate of AEGON (.01% special member) |
|
affordable housing |
|
|
|
|
| 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 |
|
|
|
|
| Imani Fe, LP |
|
California |
|
Partners: Garnet LIHTC Fund XIV, LL (99.99% investor limited partner); Transamerica Affordable Housing, Inc. (non-owner manager); non-affiliates of AEGON: ABS Imani Fe, LLC (.0034%
class A limited partner); Central Valley Coalition for Affordable Housing (.0033% co-managing general partner); Grant Housing and Economic Development Corporation (.0033% managing partner) |
|
affordable housing |
|
|
|
|
| Intersecurities Insurance Agency, Inc. |
|
California |
|
100% Western Reserve Life Assurance Co. of Ohio |
|
Insurance agency |
|
|
|
|
| Interstate North Office Park GP, LLC |
|
Delaware |
|
100% Interstate North Office Park Owner, LLC |
|
Investments |
|
|
|
|
| Interstate North Office Park, LP |
|
Delaware |
|
100% Interstate North Office Park Owner, LLC |
|
Investments |
|
|
|
|
| Interstate North Office Park Owner, LLC |
|
Delaware |
|
100% Investors Warranty of America, Inc. |
|
Investments |
|
|
|
|
| Interstate North Office Park (Land) GP, LLC |
|
Delaware |
|
100% Interstate North Office Park Owner, LLC |
|
Investments |
|
|
|
|
| Interstate North Office Park (Land) LP |
|
Delaware |
|
100% Interstate North Office Park Owner, LLC |
|
Investments |
|
|
|
|
| Investors Warranty of America, Inc. |
|
Iowa |
|
100% AUSA Holding Company |
|
Leases business equipment |
|
|
|
|
| IWA Commercial Venture, LLC |
|
Georgia |
|
Members: Investors Warranty of America, Inc. (99.9%); non-AEGON affiliate, Rooker/Commerce 962, LLC |
|
Maintain property tax abatement |
|
|
|
|
| LCS Associates, LLC |
|
Delaware |
|
100% Investors Warranty of America, Inc. |
|
Investments |
|
|
|
|
| Legacy General Insurance Company |
|
Canada |
|
100% AEGON Canada ULC |
|
Insurance company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Life Investors Alliance LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Purchase, own, and hold the equity interest of other entities |
|
|
|
|
| LIICA Holdings, LLC |
|
Delaware |
|
Sole Member: Transamerica Life Insurance Company |
|
To form and capitalize LIICA Re I, Inc. |
|
|
|
|
| LIICA Re I, Inc. |
|
Vermont |
|
100% LIICA Holdings, LLC |
|
Captive insurance company |
|
|
|
|
| LIICA Re II, Inc. |
|
Vermont |
|
100% Transamerica Life Insurance Company |
|
Captive insurance company |
|
|
|
|
| Massachusetts Fidelity Trust Company |
|
Iowa |
|
100% AUSA Holding Company |
|
Trust company |
|
|
|
|
| McDonald Corporate Tax Credit Fund IV Limited Partnership |
|
Delaware |
|
Partners: Monumental Life Insurance Company - 99.9% General Partner; TAH-McD IV, LLC - 0.10% General Partner |
|
Tax credit fund |
|
|
|
|
| MLIC Re I, Inc. |
|
Vermont |
|
100% Stonebridge Life Insurance Company |
|
Captive insurance company |
|
|
|
|
| Money Services, Inc. |
|
Delaware |
|
100% AUSA Holding Company |
|
Provides financial counseling for employees and agents of affiliated companies |
|
|
|
|
| Monumental Financial Services, Inc. |
|
Maryland |
|
100% AEGON USA, LLC |
|
DBA in the State of West 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 |
|
|
|
|
| New Markets Community Investment Fund, LLC |
|
Iowa |
|
50% AEGON Institutional Markets, Inc.; 50% AEGON USA Realty Advisors, Inc. |
|
Community development entity |
|
|
|
|
| Oncor Insurance Services, LLC |
|
Iowa |
|
Sole Member - Life Investors Financial Group, Inc. |
|
Direct sales of term life insurance |
|
|
|
|
| Pearl Holdings, Inc. I |
|
Delaware |
|
100% AEGON USA Asset Management Holding, LLC |
|
Holding company |
|
|
|
|
| Pearl Holdings, Inc. II |
|
Delaware |
|
100% AEGON USA Asset Management Holding, LLC |
|
Holding company |
|
|
|
|
| Peoples Benefit Services, LLC |
|
Pennsylvania |
|
Sole Member - Stonebridge Life Insurance Company |
|
Special-purpose subsidiary |
|
|
|
|
| Pine Falls Re, Inc. |
|
Vermont |
|
100% Stonebridge Life Insurance Company |
|
Captive insurance company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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. |
|
|
|
|
| PSL Acquisitions Operating, LLC |
|
Iowa |
|
Sole Member: Investors Warranty of America, Inc. |
|
Owner of Core subsidiary entities |
|
|
|
|
| Pyramid Insurance Company, Ltd. |
|
Hawaii |
|
100% Transamerica Corporation |
|
Property & Casualty Insurance |
|
|
|
|
| RCC North America LLC |
|
Delaware |
|
100% AEGON USA, LLC |
|
Real estate |
|
|
|
|
| Real Estate Alternatives Portfolio 1 LLC |
|
Delaware |
|
Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 2 LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA
Realty Advisors, Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 3 LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors,
Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 3A, Inc. |
|
Delaware |
|
Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance
Company (1%) |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 4 HR, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment |
|
|
|
|
| Real Estate Alternatives Portfolio 4 MR, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common
investment |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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 |
|
|
|
|
| Selient Inc. |
|
Canada |
|
100% AEGON Canada ULC |
|
Application service provider providing loan origination platforms to Canadian credit unions. |
|
|
|
|
| Seventh FGP LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Short Hills Management Company |
|
New Jersey |
|
100% AEGON U.S. Holding Corporation |
|
Dormant |
|
|
|
|
| Southwest Equity Life Insurance Company |
|
Arizona |
|
Voting common stock is allocated 75% of total cumulative vote - AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is
allocated 25% of total cumulative vote. |
|
Insurance |
|
|
|
|
| St. Lucie West Development Company, LLC |
|
Florida |
|
Sole Member - PSL Acquisitions Operating, LLC |
|
Development company |
|
|
|
|
| Stonebridge Benefit Services, Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Health discount plan |
|
|
|
|
| Stonebridge Casualty Insurance Company |
|
Ohio |
|
100% AEGON USA, LLC |
|
Insurance company |
|
|
|
|
| Stonebridge 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| TAH-MCD IV, LLC |
|
Iowa |
|
Sole Member - Transamerica Affordable Housing, Inc. |
|
Serve as the general partner for McDonald Corporate Tax Credit Fund IV Limited Partnership |
|
|
|
|
| TAH Pentagon Funds, LLC |
|
Iowa |
|
Sole Member - Transamerica Affordable Housing, Inc. |
|
Serve as a general partner in a lower-tier tax credit entity |
|
|
|
|
| TAHP Fund I, LLC |
|
Delaware |
|
Sole Member - Monumental Life Insurance Company |
|
Real estate investments |
|
|
|
|
| TAHP Fund II, LLC |
|
Delaware |
|
Sole Member - Garnet LIHTC Fund VIII, LLC |
|
Low incoming housing tax credit |
|
|
|
|
| TAHP Fund VII, LLC |
|
Delaware |
|
Investor Member: Garnet LIHTC Fund XIX, LLC |
|
Real estatement investments |
|
|
|
|
| TCF Asset Management Corporation |
|
Colorado |
|
100% TCFC Asset Holdings, Inc. |
|
A depository for foreclosed real and personal property |
|
|
|
|
| TCFC Air Holdings, Inc. |
|
Delaware |
|
100% Transamerica Commercial Finance Corporation, I |
|
Holding company |
|
|
|
|
| TCFC Asset Holdings, Inc. |
|
Delaware |
|
100% Transamerica Commercial Finance Corporation, I |
|
Holding company |
|
|
|
|
| The AEGON Trust Advisory Board: Mark W. Mullin, Alexander R. Wynaendts, and Craig D. Vermie |
|
Delaware |
|
AEGON International B.V. |
|
Voting Trust |
|
|
|
|
| The RCC Group, Inc. |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| THH Acquisitions, LLC |
|
Iowa |
|
Sole Member - Investors Waranty of America, Inc. |
|
Acquirer of Core South Carolina mortgage loans from Investors Warranty of America, Inc. and holder of foreclosed real estate. |
|
|
|
|
| TIHI Canada Holding, LLC |
|
Iowa |
|
Sole Member - Transamerica International Holdings, Inc. |
|
Holding company |
|
|
|
|
| TIHI Mexico, S. de R.L. de C.V. |
|
Mexico |
|
95% Transamerica International Holdings, Inc.; 5% Transamerica Life Insurance Company |
|
To render and receive all kind of administrative, accountant, mercantile and financial counsel and assistance to and from any other Mexican or foreign corporation, whether or not
this company is a shareholder of them |
|
|
|
|
| TLIC Riverwood Reinsurance, Inc. |
|
Iowa |
|
100% Transamerica Life Insurance Company |
|
Limited purpose subsidiary life insurance company |
|
|
|
|
| Tradition Development Company, LLC |
|
Florida |
|
Sole Member - PSL Acquisitions Operating, LLC |
|
Development company |
|
|
|
|
| Tradition Irrigation Company, LLC |
|
Florida |
|
Sole Member-PSL Acquisitions Operating, LLC |
|
Irrigation company |
|
|
|
|
| Tradition Land Company, LLC |
|
Iowa |
|
Sole Member: Investors Warranty of America, Inc. |
|
Aquirer of Core Florida mortgage loans from Investors Warranty and holder of foreclosed read estate. |
|
|
|
|
| Transamerica Accounts Holding Corporation |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Holding company |
|
|
|
|
| Transamerica Advisors Life Insurance Company |
|
Arkansas |
|
100% AEGON USA, LLC |
|
Insurance company |
|
|
|
|
| Transamerica Advisors Life Insurance Company of New York |
|
New York |
|
100% AEGON USA, LLC |
|
Insurance company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Transamerica Affinity Marketing Corretora de Seguros Ltda. |
|
Brazil |
|
749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V. |
|
Brokerage company |
|
|
|
|
| Transamerica Affinity Services, Inc. |
|
Maryland |
|
100% AEGON Direct Marketing Services, Inc. |
|
Marketing company |
|
|
|
|
| Transamerica Affordable Housing, Inc. |
|
California |
|
100% Transamerica Realty Services, LLC |
|
General partner LHTC Partnership |
|
|
|
|
| Transamerica Agency Network, Inc. |
|
Iowa |
|
100% AUSA Holding Company |
|
Special purpose subsidiary |
|
|
|
|
| Transamerica Annuity Service Corporation |
|
New Mexico |
|
100% Transamerica International Holdings, Inc. |
|
Performs services required for structured settlements |
|
|
|
|
| Transamerica Asset Management, Inc. |
|
Florida |
|
Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%. |
|
Fund advisor |
|
|
|
|
| Transamerica Aviation LLC |
|
Delaware |
|
100% TCFC Air Holdings, Inc. |
|
Special purpose corporation |
|
|
|
|
| Transamerica Capital, Inc. |
|
California |
|
100% AUSA Holding Company |
|
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 Private Limited |
|
India |
|
99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05% |
|
Marketing consultant |
|
|
|
|
| Transamerica Distribution Finance - Overseas, Inc. |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Commercial Finance |
|
|
|
|
| Transamerica Finance Corporation |
|
Delaware |
|
100% Transamerica Corporation |
|
Commercial & Consumer Lending & equipment leasing |
|
|
|
|
| Transamerica Financial Advisors, Inc. |
|
Delaware |
|
1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc. |
|
Broker/Dealer |
|
|
|
|
| Transamerica Financial Life Insurance Company |
|
New York |
|
87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company |
|
Insurance |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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 Canada |
|
Canada |
|
100% AEGON Canada ULC |
|
Life insurance company |
|
|
|
|
| Transamerica Life Insurance Company |
|
Iowa |
|
676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock
owned by AEGON USA, LLC |
|
Insurance |
|
|
|
|
| Transamerica Life (Bermuda) Ltd. |
|
Bermuda |
|
100% Transamerica Life Insurance Company |
|
Long-term life insurer in Bermuda - will primarily write fixed universal life and term insurance |
|
|
|
|
| Transamerica Oakmont Corporation |
|
California |
|
100% Transamerica International Holdings, Inc. |
|
General partner retirement properties |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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. |
|
To provide education and information regarding retirement and economic issues. |
|
|
|
|
| Transamerica Retirement Solutions Corporation |
|
Delaware |
|
100% AUSA Holding Company |
|
Retirement Plan Services |
|
|
|
|
| Transamerica Small Business Capital, Inc. |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Holding company |
|
|
|
|
| Transamerica Stable Value Solutions Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts. |
|
|
|
|
| Transamerica Travel and Conference Services, LLC |
|
Iowa |
|
100% Money Services, Inc. |
|
Travel and conference services |
|
|
|
|
| Transamerica Vendor Financial Services Corporation |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Provides commercial leasing |
|
|
|
|
| United Financial Services, Inc. |
|
Maryland |
|
100% AEGON USA, LLC |
|
General agency |
|
|
|
|
| Universal Benefits, LLC |
|
Iowa |
|
100% AUSA Holding Company |
|
Third party administrator |
|
|
|
|
| Western Reserve Life Assurance Co. of Ohio |
|
Ohio |
|
100% AEGON USA, LLC |
|
Insurance |
|
|
|
|
| WFG China Holdings, Inc. |
|
Delaware |
|
100% World Financial Group, Inc. |
|
Hold interest in Insurance Agency located in Peoples Republic of China |
|
|
|
|
| WFG Insurance Agency of Puerto Rico, Inc. |
|
Puerto Rico |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| WFG Properties Holdings, LLC |
|
Georgia |
|
100% World Financial Group, Inc. |
|
Marketing |
|
|
|
|
| WFG Reinsurance Limited |
|
Bermuda |
|
51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd. |
|
Reinsurance |
|
|
|
|
| WFG Securities of Canada, Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada, Inc. |
|
Mutual fund dealer |
|
|
|
|
| World Financial Group Canada Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada Inc. |
|
Marketing |
|
|
|
|
| World Financial Group Holding Company of Canada Inc. |
|
Canada |
|
100% Transamerica International Holdings, Inc. |
|
Holding company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| World Financial Group, Inc. |
|
Delaware |
|
100% AEGON Asset Management Services, Inc. |
|
Marketing |
|
|
|
|
| World Financial Group Insurance Agency of Canada Inc. |
|
Ontario |
|
50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Hawaii, Inc. |
|
Hawaii |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Massachusetts, Inc. |
|
Massachusetts |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Wyoming, Inc. |
|
Wyoming |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency, Inc. |
|
California |
|
100% Western Reserve Life Assurance Co. of Ohio |
|
Insurance agency |
|
|
|
|
| World Financial Group Subholding Company of Canada Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada, Inc. |
|
Holding company |
|
|
|
|
| Yarra Rapids, LLC |
|
Delaware |
|
Yarra Rapids Management, LLC is the non-owner Manager |
|
Real estate investments |
|
|
|
|
| Yarra Rapids Management, LLC |
|
Delaware |
|
Sole Member: AEGON USA Realty Advisors, LLC |
|
Company organized for the intention of real estate investments but no business at this time |
|
|
|
|
| Zahorik Company, Inc. |
|
California |
|
100% AUSA Holding Company |
|
Inactive |
|
|
|
|
| Zero Beta Fund, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA
Investment Management LLC |
|
Aggregating vehicle formed to hold various fund investments. |
| Item 27. |
Number of Contract Owners |
As of
February 28, 2013, there were 7,895 Contract owners.
The Iowa Code
(Sections 490.850 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies procedures for determining
when indemnification payments can be made.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a
director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
| Item 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 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 P, Separate Account VA Q, Separate Account VA
R, Separate Account VA S, Separate Account VA FF, Separate Account VA HH, Separate Account VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate
Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate
Account VUL-6, Separate Account VUL-A, and Variable Life Account A. These accounts are separate accounts of Transamerica Life Insurance Company.
Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA BNY, Separate Account VA QNY, Separate Account VA QQ, 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, Transamerica Investors, Inc., Transamerica Partners Funds Group, Transamerica Partners
Funds Group II, Transamerica Partners Portfolios, and Transamerica Asset Allocation Variable Funds.
| (b) |
Directors and Officers of Transamerica Capital, Inc.: |
|
|
|
|
|
| Name |
|
Principal
Business Address |
|
Position and Offices with Underwriter |
| 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 |
|
|
|
| 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. |
|
$ |
316,765 |
|
|
|
0 |
|
|
|
0 |
|
|
|
0 |
|
| 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.
| (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 hereby certifies that this Amendment to the Registration Statement meets the requirements for effectiveness
pursuant to paragraph (b) of Securities Act Rule 485 and has caused this Registration Statement to be signed on its behalf, by the undersigned in the City of Cedar Rapids, State of Iowa on this 24th day of April, 2013.
|
| SEPARATE ACCOUNT VA-2L |
|
| TRANSAMERICA LIFE |
| INSURANCE COMPANY |
| (DEPOSITOR) |
|
| * |
| Brenda K. Clancy |
| President |
As required by the Securities Act of 1933, this Registration Statement has been signed by the following persons in
the capacities and on the date indicated.
|
|
|
|
|
| Signatures |
|
Titles |
|
Date |
|
|
|
| * |
|
Director, Senior Vice President |
|
, 2013 |
| C. Michiel van Katwijk |
|
|
|
|
|
| * |
|
Director and Chairman of the Board |
|
, 2013 |
| Mark W. Mullin |
|
|
|
|
|
| * |
|
Director and President |
|
, 2013 |
| Brenda K. Clancy |
|
|
|
|
|
| * |
|
Director, Senior Vice President, Secretary and General Counsel |
|
, 2013 |
| Craig D. Vermie |
|
|
|
|
|
| * |
|
Director, Chief Tax Officer and Senior Vice President |
|
, 2013 |
| Arthur Schneider |
|
|
|
|
|
| * |
|
Corporate Controller and Senior Vice President |
|
, 2013 |
| Eric J. Martin |
|
|
|
|
|
| /s/ Darin D. Smith |
|
Managing Assistant General Counsel, Vice President and Assistant Secretary |
|
April 24, 2013 |
| *By: Darin D. Smith |
|
|
| * |
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)(a)(6) |
|
Amended and Restated Principal Underwriting Agreement |
|
|
|
|
|
| (8)(c) |
|
Participation Agreement (TST) |
|
|
|
|
|
| (9)(a) |
|
Opinion and Consent of Counsel |
|
|
|
|
|
| (10)(a) |
|
Consent of Independent Registered Public Accounting Firm |
|
|
|
|
|
| (13) |
|
Powers of Attorney |
|
|
| * |
Page numbers included only in manually executed original. |
Group