485BPOS
As filed with the Securities and Exchange Commission on April 28, 2014
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. 7 |
and
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 40
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, 2014 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, 2014
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, 2014. 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
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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.
Administrative Office—Transamerica Life Insurance Company, Attn: Customer Care Group, 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499,
800-525-6205.
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.
Good Order—An instruction that Transamerica receives that is sufficiently complete and clear – along with all necessary forms,
information and supporting legal documentation, including any required spousal or joint owner’s consents – so that Transamerica does not need to exercise any discretion to follow such instruction. All requests for a partial or full
withdrawal, a transfer, a death benefit, or other transaction or change, must be in good order.
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.
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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.
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.
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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.
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, or any other means acceptable to the
Company. 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
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you decide to purchase this contract through a 1035 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 |
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| 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% |
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| Administrative Charge |
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0.15% |
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| Total Variable Account Annual Expenses |
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1.30% |
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| Optional Variable Account Expenses: |
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| Double Enhanced Death Benefit(6) |
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0.80% |
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| Annual Step-Up Death Benefit(7) |
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0.20% |
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| Liquidity Rider(8) |
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0.40% |
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| Premium Accelerator(9) |
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0.20% |
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| Total Variable Account Annual Expenses with Highest Optional Variable
Account Expenses(10) |
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2.50% |
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| Annual Optional Rider
Fees(11): |
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| Additional Death Benefit Rider(12) |
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0.25% |
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| Additional Death Benefit Rider II(13) |
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0.55% |
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| Guaranteed Minimum Benefit Rider(14) No Longer Available |
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0.45% |
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The next items shows the lowest and highest total operating expenses charged by underlying fund portfolios for the
year ended December 31, 2013 (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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0.54% |
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1.50% |
The following Example is intended to help you compare the cost of investing in the contract with the cost of
investing in other variable annuity contracts. These costs include contract owner transaction expenses, contract fees, variable account annual expenses, and portfolio fees and expenses.
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The Example assumes that you invest $10,000 in the contract for the time periods indicated. The Example
also assumes that your investment has a 5% return each year, the highest expenses of any of the portfolios for the year ended December 31, 2013, 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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$1095 |
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$1939 |
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$2289 |
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$4490 |
| 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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$462 |
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$1392 |
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$2289 |
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$4490 |
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) |
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) |
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, 2013 (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 require prior approval of any 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 require prior approval of any 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,
by telephone or any other means acceptable to the Company, 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 usually 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.
14
The general public may not purchase shares of these underlying fund portfolios. The name and investment
objectives and policies may be similar to other portfolios and managed by the same investment adviser or manager that are sold directly to the public. You should not expect the investment results of the underlying fund portfolios to be the same as
those of other underlying fund portfolios.
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.
15
Addition, Deletion, or Substitution of Investments
Transamerica cannot and does not guarantee that any of the subaccounts will always be available for purchase payments, allocations, or transfers.
Transamerica retains the right, subject to any applicable law, to make certain changes in the variable account and its investments. Transamerica reserves the right to eliminate the shares of any portfolio held by a subaccount2 and to substitute
shares of another underlying fund portfolios, or of another registered open-end management investment company for the shares of any portfolio, if the shares of the portfolio are no longer available for investment or if, in 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 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 investments. Any subsequent purchase payments
(including dollar cost averaging transactions) or transfers (including asset rebalance program transactions) into a closed subaccount will be re-allocated to the remaining available investment choices according to the investment allocation
instructions you previously provided. If your previous
investment allocation instructions do not include any available investment choices, Transamerica will require new instructions. If Transamerica does not receive new instructions, the requested
transaction will be canceled and any purchase payment will be returned. Under asset rebalance programs the value remaining in the closed subaccount will be excluded from any future rebalancing. The value of the closed subaccount will continue to
fluctuate due to portfolio performance, and may exceed the original rebalance percentages you requested. As you consider your overall investment strategy within your contract, you should also consider whether or not to re-allocate the value
remaining in the closed subaccount to another investment choice. If you decide to re-allocate the value of the closed subaccount, you will need to provide us with instructions to achieve your goal. Under certain situations involving annuitizations
(e.g., contract reached maximum annuity commencement date) if an investment choice is closed to new investment, the amount that would have been allocated thereto will instead be used to purchase annuity units pro-rata in the other investment choices
you have purchased annuity units in and which are open to new investment. Moreover, in certain situations involving death benefit adjustments for continued contracts, if an investment choice is closed to new investment, the amount that would have
been allocated thereto will instead be allocated pro-rata to the other investment choices you have value allocated to and which are open to new investment.
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
16
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 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
|
17
| |
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.
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 annuity
was not designed to accommodate market timing or frequent or large transfers among the subaccounts or between the subaccounts and the fixed account. (Both frequent and large transfers may be considered disruptive.)
Market timing and disruptive trading can adversely affect you, other owners, beneficiaries and
underlying fund portfolios. The adverse effects may 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 seek or 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 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 potentially disruptive trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive
trading or have concerns about our inability to detect or prevent any such trading.
Detection. We employ various means
in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other insurance companies (and retirement plans) with different
policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer harm from market timing and disruptive trading among subaccounts
of variable products issued by these other insurance companies or retirement plans.
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Deterrence. If we determine that you or anyone acting on your behalf is engaged in market timing
or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that your exercise of the transfer privilege
may disadvantage or potentially harm the rights or interests of other 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 also restrict the transfer privileges of others acting on your behalf, including your registered representative or an asset allocation or investment advisory service.
We reserve the right to reject any premium payment or transfer request from any person without prior notice, if, in our judgment, (1) the premium
payment or transfer, or series of premium payments or transfers, would have a negative impact on an underlying fund portfolio’s operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has
instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any 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 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 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 trades or variable insurance products that we believe are connected by
owner or persons engaged in trading on behalf of owners.
In addition, transfers for multiple policies invested in the Transamerica Series
Trust underlying fund portfolios which are submitted together may be disruptive at certain levels. At the present time, such aggregated transactions likely will not cause disruption if less than one million dollars total is being transferred with
respect to any one underlying fund portfolio (a smaller amount may apply to smaller portfolios). Please note that transfers of less than one million dollars may be disruptive in some circumstances and this general amount may change quickly.
Please note: If you engage a third party investment adviser for asset allocation services, then you may be subject to these transfer
restrictions because of the actions of your investment adviser in providing these services.
In addition to our internal policies and
procedures, we will administer your variable annuity 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
|
19
| |
subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or |
| • |
|
provide a certain number of allowable transfers in a given period. |
Redemption fees, transfer limits, and other procedures or restrictions imposed by the underlying funds or our competitors may be more or less successful than ours in deterring market timing or other
disruptive trading and in preventing or limiting harm from such trading.
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 despite the imposition of 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 disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies
employed by 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 options available under this variable insurance product, there is no
assurance that we will be able to detect or deter market timing or disruptive trading by such owners or intermediaries acting on their behalf. Moreover, our ability to discourage and restrict market timing or disruptive trading may be limited by
decisions of state regulatory bodies and court orders that we cannot predict.
Furthermore, we may revise our policies and procedures in our
sole discretion at any time and without prior notice, as we deem necessary or
appropriate (1) to better detect and deter harmful trading that may adversely affect other 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 options under
the variable insurance product. In addition, we may not honor transfer requests if any variable investment option that would be affected by the transfer is unable to purchase or redeem shares of its corresponding underlying fund portfolio.
Underlying Fund Portfolio Frequent Trading Policies. The underlying fund portfolios may have adopted their own policies and procedures
with respect to frequent purchases and redemptions of their respective shares. Underlying fund portfolios may, for example, assess a redemption fee (which we reserve the right to collect) on shares held for less than a certain period of time. The
prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading
policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Owners should be aware that we do not monitor
transfer requests from owners or persons acting on behalf of owners against, nor do we apply, the frequent trading policies and procedures of the respective underlying fund portfolios that would be affected by the transfers.
Owners should be aware that we are required to provide to an underlying fund portfolio or its payee, promptly upon request, certain information about the
trading activity of individual owners, and to restrict or prohibit further purchases or transfers by specific owners or persons acting on their behalf, identified by an underlying fund portfolio as violating the frequent trading policies established
for the underlying fund portfolio.
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Omnibus Orders. 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 procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage
harmful transfer activity, it may affect other owners of underlying fund portfolio shares, as well as the owners of all of the variable annuity or life insurance policies, including ours, whose variable investment options correspond to the affected
underlying fund portfolios. In addition, if an underlying fund portfolio believes that an omnibus order we submit may reflect one or more transfer requests from owners engaged in market timing or 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 a 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.
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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.
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
|
22
| • |
|
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.
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.
23
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.
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
|
24
| |
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 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 2013 we received $147,513,445.97 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.
|
25
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.
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.
26
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.
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 |
27
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). 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.
28
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 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 for all
contracts, all ages, or 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.
29
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.
|
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 (if you pick a variable annuity payment option fees and expenses will apply), or may choose to receive the death benefit via partial withdrawals, or lump sum
withdrawal. The guarantees of these death benefits are based on our claims-paying ability.
We will determine the amount of and pay the death
benefit proceeds, if any are payable on a contract, upon receipt at our Administrative Office of satisfactory proof of the annuitant’s death, 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 will pay the first beneficiary to provide us with due proof of death their share of the death proceeds. We will not pay any
remaining beneficiary their share until we receive due proof of death from that beneficiary. Such beneficiaries continue to bear the investment risk until they submit due proof of death. Please note, we may be required to remit the death
benefit proceeds to a state prior to receiving “due proof of death.” See OTHER INFORMATION—Abandoned or Unclaimed Property.
Please Note: Such due proof of death must be received in good order to avoid a delay in processing the death benefit claim. Due proof requires
selecting a payment option. See OTHER INFORMATION—Sending Forms and Transaction Requests in Good Order.
30
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.
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.
Spousal Continuation
If the sole primary beneficiary is the spouse, upon the owner’s or the annuitant’s death, the beneficiary may elect to continue the contract in his or her own name. Upon the annuitant’s
death if such election is made, the contract value will be adjusted upward (but not downward) to an amount equal to the death benefit amount determined upon such election and receipt of due proof of death of the annuitant. Any excess of the
31
death benefit amount over the contract value will be allocated to each applicable investment option in the ratio that the contract value in the investment option bears to the total contract
value. The terms and conditions of the contract that applied prior to the annuitant’s death will continue to apply, with certain exceptions described in the contract. For purposes of the death benefit on the continued contract, the death
benefit is calculated in the same manner as it was prior to continuation except that all values used to calculate the death benefit are reset on the date the spouse continues the contract. See TAX INFORMATION – Same Sex Relationships for more
information concerning spousal continuation involving same sex spouses.
For these purposes, if the sole primary beneficiary of the policy is
a revocable grantor trust and the spouse of the owner/annuitant is the sole grantor, trustee, and beneficiary of the trust and the trust is using the spouse of the owner/annuitant’s social security number at the time of claim, she or he shall
be treated as the owner/annuitant’s spouse. In those circumstances, the owner/annuitant’s spouse will be treated as the beneficiary of the contract for purposes of applying the spousal continuation provisions of the policy.
For these purposes, if the owner is an individual retirement account within the meaning of IRC sections 408 or 408A, if the annuitant’s spouse is
the sole primary beneficiary of the annuitant’s interest in such account. In those circumstances, the contract will continue after the annuitant’s death and the annuitant’s spouse will be treated as the beneficiary of the contract for
purposes of applying the spousal continuation provisions of the contract.
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 |
| |
• |
|
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.
|
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| 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 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.
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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 living and death benefit options and riders elected may need to be considered in calculating minimum required distributions from a qualified plan/or contract.
We may occasionally enter into settlements with owners and beneficiaries to resolve issues relating to the contact. Such settlements will be reported on
the applicable tax form (e.g., Form 1099) provided to the taxpayer and the taxing authorities.
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 or foreign tax credits attributable to taxes paid by certain underlying funds to foreign
jurisdictions to the extent permitted under federal tax law.
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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.
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
35
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.
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.
It is possible that at certain advanced ages a policy might no longer be treated as an annuity contract if the policy has not been annuitized before that age. You should consult with a tax adviser about
the tax consequences in such circumstances.
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.
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 |
36
| |
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 on 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.
Regarding the disability exception, because the Company cannot verify that the owner is disabled, the Company will report such withdrawals to the IRS as early withdrawals with no known exception.
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.
Non-Qualified Stretch Annuity
In certain instances a non-spousal beneficiary may be permitted to elect a “stretch” annuity option as a means of disbursing death
proceeds from a non-qualified annuity. The only method the Company uses
37
for making distribution payments from a non-qualified “stretch” annuity is the required minimum distribution method as set forth in Revenue Ruling 2002-62. The applicable payments are
calculated using the Single Life Expectancy Table set forth in Treasury Regulation § 1.401(a)(9)-9, A-1.
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 tax provision enacted in 2010, if part of a
non-qualified 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.
38
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. The Company is required to report distributions made
from nonqualified annuity contracts as being potentially subject to this tax. While distributions from qualified contracts are not subject to the tax, such distributions may be includable in income for purposes of determining whether certain
Medicare Tax thresholds have been met. As such, distributions from your qualified contract could cause your other investment income to be subject to the tax. Please consult a tax adviser for more information.
Same Sex Relationships
Section 3
of the Federal Defense of Marriage Act was recently ruled unconstitutional and the Internal Revenue Service adopted a rule in response thereto recognizing the marriage of same sex individuals validly entered into in a jurisdiction that authorizes
same sex marriages, even if the individuals are domiciled in a jurisdiction that does not recognize the marriage. The Internal Revenue Service also ruled that the term “spouse” does not include an individual who has entered into a
registered domestic partnership, civil union, or other similar relationship that is not denominated as a marriage under the laws of that jurisdiction. The Company intends to administer the policy consistent with these rulings until further guidance
is provided. Therefore, exercise of the spousal continuation provisions of this policy or any riders by persons who do not meet the definition of “spouse” under federal law – e.g., domestic and civil union partners—may have
adverse tax consequences.
Please note the jurisdiction where you are domiciled may not recognize same sex marriage which may limit your
ability to take advantage of certain benefits provided to spouses under the Contract. There are several unanswered questions regarding the scope and impact of this ruling and
the subsequent guidance provided by the Internal Revenue Service. Please consult a tax adviser for more information on this subject.
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 living or 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. However, the exceptions applicable for
qualified contracts differ from those provided to nonqualified contracts. You may wish to consult a tax adviser for more information regarding the application of these exceptions to your circumstances. 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.
39
Taxation of Death Benefit Proceeds
Amounts may be distributed from the contract because of your death or 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 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 $5,340,000) 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.
40
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 has 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.
Foreign Account Tax Compliance Act (“FATCA”)
Beginning in July of 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.
41
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 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.
42
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, loans or transfers you request from a 403(b) contract comply with applicable tax requirements before we process your request. We will defer such payments you request until all
information required under the tax law has been received. By requesting a surrender or transfer, you consent to the sharing of confidential information about you, the contract, and transactions under the contract and any other 403(b) contracts or
accounts you have under the 403(b) plan among us, your employer or plan sponsor, any plan administrator or record keeper, and other product providers.
Corporate Pension and Profit-Sharing Plans and H.R. 10 Plans. Sections 401(a) and 403(a) of the Code
permit corporate employers to establish various types of retirement plans for employees and self-employed individuals to establish qualified plans for themselves and their employees. Such retirement plans may permit the purchase of the contracts to
accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the contract is assigned or transferred to any individual as a means to provide benefit payments. 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/H.R.-10 plans and any other types of plans at our sole discretion.
43
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.
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.
44
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 hae selected this option.
The Initial Payment Guarantee uses a 5% assumed investment return to calculate your annuity payments.
This means that the dollar amount of the annuity payments will remain level if the investment return (net of fees and expenses) exactly equals 5%. The payments will increase if actual investment performance (net of fees and expenses) exceeds the
assumed investment return, and decrease if actual performance is below the assumed investment return (but not below the guaranteed level).
Termination. The Initial Payment Guarantee is irrevocable.
The Initial Payment Guarantee may vary for certain contracts and may not be available for all contracts, in all states, or at all times.
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. This rider may not be issued or added to Inherited IRAs (sometimes also referred to as beneficiary IRAs) and/or other “stretch” annuities whose required
distributions are calculated using the Single Life Expectancy Table set forth in Treasury Regulation § 1.401(a)(9)-9, A-1.
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.
45
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
is eligible to and elects to continue the contract as the new owner instead of receiving a death benefit and the ADB Rider Amount, the spouse will generally 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. Certain owners may have the option to continue the rider without receiving the one-time account value increase.
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 |
| • |
|
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, in all states, at all times or
through all financial intermediaries. We may discontinue offering this benefit at any time. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly: For more information on the options
available for electing a benefit, please contact your financial intermediary or our Administrative Office.
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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. This rider may not be issued or added to Inherited IRAs (sometimes also referred to as beneficiary IRAs) and/or
other “stretch” annuities whose required distributions are calculated using the Single Life Expectancy Table set forth in Treasury Regulation § 1.401(a)(9)-9, A-1.
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 is eligible and elects to continue the
contract as the new owner instead of receiving the death benefit and additional benefit, the spouse will generally 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. Certain owners may have the option to continue the rider without receiving the one-time account value increase.
Rider Fee. A rider fee, currently 0.55% of the account value, is deducted annually on each rider anniversary prior to
annuitization. We will also deduct this fee upon full surrender of the contract or other termination of the rider. The rider fee is deducted pro rata from each investment choice. The fee is deducted even during periods when the rider would not pay
any benefits.
Termination. The rider will remain in effect until:
| • |
|
you cancel it by notifying our service center in writing, |
| • |
|
the contract is annuitized or surrendered, or |
| • |
|
the additional death benefit is paid or added to the account value under a spousal continuation. |
Once terminated, the 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.
47
The ADB-II may vary for certain contracts and may not be available for all contracts, in all states,
at all times or through all financial intermediaries. We may discontinue offering this benefit at any time. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly: For more information on
the options available for electing a benefit, please contact your financial intermediary or our Administrative Office.
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, in all states, at all times or through all financial intermediaries. We may discontinue offering this
benefit at any time. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly: For more information on the options available for electing a benefit, please contact your financial intermediary
or our Administrative Office.
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.
48
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, in all states, at all times or through all financial intermediaries. We may discontinue offering
this benefit at any time. In some cases, a benefit not available through a financial intermediary may be obtained by contacting us directly: For more information on the options available for electing a benefit, please contact your financial
intermediary or our Administrative Office.
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.
The Nursing Care and Terminal Condition Withdrawal Option may vary for certain contracts and may not be available for all contracts, in all states, or at all times.
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.
|
49
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.
The Unemployment Waiver may vary for certain contracts and may not be available for all contracts, in all states or at all times.
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 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 accumulation units when prices are low and fewer 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. A minimum of $500 per transfer is required. The minimum number of transfers is 6 monthly or 4 quarterly, and the maximum is 24 monthly or 8 quarterly. You can elect to transfer from the fixed account, money market or other specified
subaccount. |
| • |
|
Special—You may only elect either a six or twelve month program. Transfers will begin as soon as the program is started. You cannot transfer from
another investment choice into a Special Dollar Cost Averaging program. This program is only available for new purchase payments, requires transfers from a fixed source, and may credit a higher or lower interest rate than a traditional program. A
minimum of $500 per transfer is required ($3,000 or $6,000 to start a 6-month or 12-month program, respectively). |
A Dollar
Cost Averaging program will begin once we have received in good order all necessary information and the minimum required amount. See OTHER
50
INFORMATION—Sending Forms and Transaction Requests in Good Order. Please note, Dollar Cost Averaging programs will not begin on the 29th, 30th, or 31st. If a program would have started on
one of those dates, it will start on the 1st business day of the following month. If we receive additional purchase payments 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:
New Dollar Cost Averaging instructions are required to start a new Dollar Cost Averaging program once the previous Dollar Cost Averaging program has
completed. Additional purchase payments, absent new allocation instructions, received after a Dollar Cost Averaging program has completed, will be allocated according to the current purchase payment allocations at that time but will not reactivate a
completed Dollar Cost Averaging program.
If:
| • |
|
We do not receive all necessary information to begin or restart a Dollar Cost Averaging program. |
Then:
| • |
|
Any amount allocated to a fixed source will be invested in that fixed source but will be transferred to the money market investment option within 30
days of allocation to fixed source if new Dollar Cost Averaging Instructions are not received; |
| • |
|
Any amount allocated to a variable source will be invested in that variable source and will remain in that variable investment option; and
|
| • |
|
New Dollar Cost Averaging instructions will be required to begin a Dollar Cost Averaging program. |
You should consider your ability to continue a Dollar Cost Averaging program during all economic conditions. Transfers from a Dollar Cost Averaging fixed
source are not subject to an excess interest adjustment. A Dollar Cost Averaging program can be
used in conjunction with Asset Rebalancing and a guaranteed lifetime withdrawal benefit (subject to any investment restrictions involving the source). 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, in all states or at all
times. 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.
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
51
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 Glossary of
Terms.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.
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.
52
Accordingly no financial institution, brokerage firm or insurance agency is responsible for the financial
obligations of the Company arising under the contracts.
Financial Condition of the Company
Many financial services companies, including insurance companies, have been facing challenges in this unprecedented economic and market environment, and
we are not immune to those challenges. It is important for you to understand the impact these events may have, not only on your Policy Value, but also on our ability to meet the guarantees under your Policy.
Assets in the Separate Account. You assume all of the investment risk for your Policy Value that is allocated to the Subaccounts of the
Separate Account. Your Policy Value in those Subaccounts constitutes a portion of the assets of the Separate Account. These assets are segregated and insulated from our general account, and may not be charged with liabilities arising from any other
business that we may conduct.
Assets in the General Account. You also may be permitted to make allocations to
Guaranteed Period Options of the fixed account, which are supported by the assets in our general account. Any guarantees under a policy that exceed policy value, such as those associated with any lifetime withdrawal benefit riders and any optional
death benefits, are paid from our general account (and not the Separate Account). Therefore, any amounts that we may be obligated to pay under the Policy in excess of Policy Value are subject to our financial strength and claims-paying ability and
our long-term ability to make such payments. The assets of the Separate Account, however, are also available to cover the liabilities of our general account, but only to the extent that the Separate Account assets exceed the Separate Account
liabilities arising under the Policies supported by it.
We issue other types of insurance policies and financial products as
well, and we also pay our obligations under these products from our assets in the general account.
Our Financial Condition. As an insurance company, we are required by state insurance
regulation to hold a specified amount of reserves in order to meet all the contractual obligations of our general account. In order to meet our claims-paying obligations, we monitor our reserves so that we hold sufficient amounts to cover actual or
expected policy and claims payments. However, it is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and that there are risks to purchasing any insurance product.
State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion in the
event that the insurer suffers a financial impairment, based on the inherent risks in the 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
53
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 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
54
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 were offered
to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws and state insurance laws, and that sold the contracts 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 contracts which is not passed through to the selling firms and paid 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 servicing of the contracts.
We have discontinued new sales of the contracts. You may, however, continue to make purchase payments to fund your contract pursuant to its terms, and exercise all other rights and options under your
contract—such as reallocating your account value among investment choices, making partial surrenders, surrender your contract, and making changes of ownership of your contract.
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 havepaid selling firms additional amounts for: (1) “preferred product” treatment of the contracts in their marketing programs, which may include marketing services and
increased access to their sales representatives; (2) sales promotions relating to the contracts; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses
incurred by them and their representatives. We and/or TCI may make payments to selling firms based on aggregate sales of our variable insurance contracts 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 the 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.
|
55
Other incentives or payments, like commissions, are not charged to the contract owners or the separate
account.
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 have resulted in or may result in additional payments to beneficiaries, escheatment of funds deemed abandoned, administrative penalties and changes in our procedures for the
identification of unreported claims and handling of escheatable property. We do not believe that any regulatory actions or agreements that have resulted from or will result from these examinations has had or will have a material adverse impact on
the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the policy.
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
56
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. |
57
|
|
|
|
|
| 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 |
|
Transamerica Vanguard ETF Portfolio – Balanced VP |
|
Aegon USA Investment Management,
LLC |
| Investment Objective: Balance
capital appreciation and income. |
| TA Vanguard ETF – Conservative |
|
Transamerica Vanguard ETF Portfolio – Conservative VP |
|
Aegon USA Investment Management,
LLC |
| Investment Objective: Current
income and preservation of capital. |
| TA Vanguard ETF – Growth |
|
Transamerica Vanguard ETF Portfolio – Growth VP |
|
Aegon USA Investment Management,
LLC |
| Investment Objective: Capital
appreciation as a primary objective and income as a secondary objective. |
| Transamerica Series Trust - Initial
Class |
|
|
| TA WMC Diversified Growth |
|
Transamerica WMC Diversified Growth VP |
|
Wellington Management Company,
LLP |
| Investment Objective: Maximize long-term growth. |
| |
| |
| (1) As of January 22, 2001, new contract owners may only invest in the Service Class sub-accounts, with the exception of
the Money Market Sub-account and the TA WMC Diversified Growth Sub-account. The Initial Class sub-accounts (other than the Money Market Sub-account and TA WMC Diversified Growth Sub-account) are only available to contract owners that purchased the
contract before January 22, 2001. |
| (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. |
58
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, 2013. 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 |
|
2013
2012 |
|
$1.013026
$0.000000 |
|
$1.098169
$1.013026 |
|
0.000
0.000 |
| TA Aegon Tactical Vanguard ETF – Conservative – Service
Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.011500
$0.000000 |
|
$1.056613
$1.011500 |
|
0.000
0.000 |
| TA Aegon Tactical Vanguard ETF – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.016940
$0.000000 |
|
$1.155903
$1.016940 |
|
0.000
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service
Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.002319
$0.000000 |
|
$1.069549
$1.002319 |
|
0.000
0.000 |
| TA Legg Mason Dynamic Allocation – Growth – Service
Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$0.997398
$0.000000 |
|
$1.124954
$0.997398 |
|
0.000
0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account inception
September 17, 2012 |
|
2013
2012 |
|
$0.986966
$0.000000 |
|
$1.100542
$0.986966 |
|
0.000
0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2013
2012 |
|
$0.990058
$0.000000 |
|
$1.080345
$0.990058 |
|
0.000
0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2013
2012 |
|
$0.992925
$0.000000 |
|
$1.047710
$0.992925 |
|
0.000
0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2013
2012 |
|
$0.984897
$0.000000 |
|
$1.122352
$0.984897 |
|
0.000
0.000 |
| TA Vanguard ETF – Balanced – Service Class
Sub-Account inception
May 1, 2012 |
|
2013
2012 |
|
$1.015031
$0.000000 |
|
$1.103486
$1.015031 |
|
0.000
0.000 |
| TA Vanguard ETF – Conservative – Service Class
Sub-Account
inception May 1, 2012 |
|
2013
2012 |
|
$1.011623
$0.000000 |
|
$1.060662
$1.011623 |
|
0.000
0.000 |
| TA Vanguard ETF – Growth – Service Class
Sub-Account inception
May 1, 2012 |
|
2013
2012 |
|
$1.019139
$0.000000 |
|
$1.181033
$1.019139 |
|
0.000
0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception
May 4, 1998 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.474365
$1.335537 $1.422934
$1.237108 $0.981483
$1.863447 $1.642755
$1.548751 $1.362102
$1.205665 $1.000000 |
|
$1.905408
$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
0.000 |
59
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Appreciation Portfolio – Service Class
Sub-Account inception April 5,
1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.490069
$1.386915 $1.307255
$1.164695 $0.976695
$1.424649 $1.366806
$1.205500 $1.186683
$1.160764 $1.000000 |
|
$1.756492
$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 0.000 |
| Opportunistic Small Cap Portfolio – Service Class
Sub-Account
inception January 4, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.155076
$0.984789 $1.174493
$0.920236 $0.750021
$1.235564 $1.427691
$1.413529 $1.372503
$1.266961 $1.000000 |
|
$1.670321
$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 0.000 |
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.347654
$1.173120 $1.239478
$1.073949 $0.857056
$1.477374 $1.399814
$1.255088 $1.246372
$1.191613 $1.000000 |
|
$1.793745
$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 0.000 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.830304
$1.527489 $1.840057
$1.718665 $1.410603
$2.508614 $2.201016
$1.833214 $1.641669
$1.354955 $1.000000 |
|
$2.096944
$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 0.000 |
| International Value Portfolio – Service Class
Sub-Account inception
May 1, 1996 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.452520
$1.324506 $1.671152
$1.643594 $1.289430
$2.114222 $2.085516
$1.746545 $1.602717
$1.370969 $1.000000 |
|
$1.738664
$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 0.000 |
| Quality Bond Portfolio – Service Class
Sub-Account inception January
4, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.224180
$1.176200 $1.128949
$1.069454 $0.956306
$1.026025 $1.018191
$1.004393 $1.006681
$1.001382 $1.000000 |
|
$1.172857
$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 0.000 |
60
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
2.50% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Money Market Portfolio – Initial Class
Sub-Account inception January
4, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$0.921544
$0.944718 $0.968219
$0.992351 $1.015837
$1.015488 $0.992672
$0.972772 $0.971215
$0.987637 $1.000000 |
|
$.899070
$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 0.000 |
| Dreyfus Stock Index Fund, Inc. – Service Class
Sub-Account inception
January 4, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.426438
$1.266325 $1.277224
$1.142982 $0.929474
$1.520159 $1.484296
$1.320501 $1.295964
$1.203814 $1.000000 |
|
$1.832903
$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 0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service Class
Sub-Account inception October 7, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.369973
$1.257314 $1.280339
$1.145668 $0.880023
$1.379038 $1.315139
$1.237124 $1.226842
$1.187097 $1.000000 |
|
$1.790953
$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 0.000 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.359058
$1.180467 $1.287518
$1.168534 $1.015423
$1.624791 $1.620485
$1.370792 $1.334826
$1.227797 $1.000000 |
|
$1.823467
$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 0.000 |
| MidCap Stock Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.665072
$1.430290 $1.463082
$1.181307 $0.894755
$1.540180 $1.557298
$1.482349 $1.394676
$1.251541 $1.000000 |
|
$1.665072
$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 0.000 |
| Technology Growth Portfolio – Service Class
Sub-Account inception
October 1, 1999 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.668911
$1.483177 $1.653173
$1.306906 $0.852831
$1.487945 $1.332880
$1.313126 $1.300592
$1.330119 $1.000000 |
|
$2.157234
$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 0.000 |
61
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| TA Aegon Tactical Vanguard ETF – Balanced – Service Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.021034
$0.000000 |
|
$1.119968
$1.021034 |
|
0.000 0.000 |
| TA Aegon Tactical Vanguard ETF – Conservative – Service Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.019500
$0.000000 |
|
$1.077581
$1.019500 |
|
0.000 0.000 |
| TA Aegon Tactical Vanguard ETF – Growth – Service Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.024980
$0.000000 |
|
$1.178848
$1.024980 |
|
0.000 0.000 |
| TA Legg Mason Dynamic Allocation - Balanced – Service Class
Sub-Account inception May 1, 2012 |
|
2013
2012 |
|
$1.010238
$0.000000 |
|
$1.090765
$1.010238 |
|
0.000 0.000 |
| TA Legg Mason Dynamic Allocation - Growth – Service Class
Sub-Account
inception May 1, 2012 |
|
2013
2012 |
|
$1.005291
$0.000000 |
|
$1.147282
$1.005291 |
|
0.000 0.000 |
| TA Market Participation Strategy – Service Class
Sub-Account
inception September 17, 2012 |
|
2013
2012 |
|
$0.990317
$0.000000 |
|
$1.117353
$0.990317 |
|
0.000 0.000 |
| TA PIMCO Tactical – Balanced – Service Class
Sub-Account
inception September 17, 2012 |
|
2013
2012 |
|
$0.993410
$0.000000 |
|
$1.096839
$0.993410 |
|
0.000 0.000 |
| TA PIMCO Tactical – Conservative – Service Class
Sub-Account
inception September 17, 2012 |
|
2013
2012 |
|
$0.996292
$0.000000 |
|
$1.063716
$0.996292 |
|
0.000 0.000 |
| TA PIMCO Tactical – Growth – Service Class
Sub-Account inception
September 17, 2012 |
|
2013
2012 |
|
$0.988238
$0.000000 |
|
$1.139510
$0.988238 |
|
0.000 0.000 |
| TA Vanguard ETF – Balanced – Service Class
Sub-Account inception
May 1, 2012 |
|
2013
2012 |
|
$1.023061
$0.000000 |
|
$1.125389
$1.023061 |
|
0.000 0.000 |
| TA Vanguard ETF – Conservative – Service Class
Sub-Account
inception May 1, 2012 |
|
2013
2012 |
|
$1.019619
$0.000000 |
|
$1.081714
$1.019619 |
|
0.000 0.000 |
| TA Vanguard ETF – Growth – Service Class
Sub-Account inception
May 1, 2012 |
|
2013
2012 |
|
$1.027195
$0.000000 |
|
$1.204465
$1.027195 |
|
0.000 0.000 |
| TA WMC Diversified Growth – Initial Class
Sub-Account inception May
4, 1998 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.484781
$1.329149 $1.398595
$1.202573 $0.942915
$1.769136 $1.541267
$1.436101 $1.248282
$1.091940 $0.842931 |
|
$1.941581
$1.484781
$1.329149
$1.398595
$1.202573
$0.942915
$1.769136
$1.541267
$1.436101
$1.248282
$1.091940 |
|
20,517.318 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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.425566
$1.311266 $1.221521
$1.075574 $0.891412
$1.284966 $1.218288
$1.061961 $1.033187
$0.998754 $0.837329 |
|
$1.700350
$1.425566
$1.311266
$1.221521
$1.075574
$0.891412
$1.284966
$1.218288
$1.061961
$1.033187
$0.998754 |
|
674,084.333 884,949.337
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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$0.984482
$0.829461 $0.977679
$0.757075 $0.609812
$0.992750 $1.133591
$1.109241 $1.064476
$0.971085 $0.748900 |
|
$1.440474
$0.984482
$0.829461
$0.977679
$0.757075
$0.609812
$0.992750
$1.133591
$1.109241
$1.064476
$0.971085 |
|
137,418.923 149,781.358
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 |
62
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| Growth and Income Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.224607
$1.053470 $1.100052
$0.942007 $0.742957
$1.265618 $1.185061
$1.050136 $1.030669
$0.973826 $0.780676 |
|
$1.649270
$1.224607
$1.053470
$1.100052
$0.942007
$0.742957
$1.265618
$1.185061
$1.050136
$1.030669
$0.973826 |
|
115,104.543 179,387.531
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 |
| International Equity Portfolio – Service Class
Sub-Account inception
December 15, 1994 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.696605
$1.399254 $1.665856
$1.537756 $1.247347
$2.192161 $1.900731
$1.564621 $1.384779
$1.129519 $0.802572 |
|
$1.966784
$1.696605
$1.399254
$1.665856
$1.537756
$1.247347
$2.192161
$1.900731
$1.564621
$1.384779
$1.129519 |
|
21,736.084 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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.270039
$1.144476 $1.427103
$1.387156 $1.075498
$1.742696 $1.698797
$1.406073 $1.275222
$1.078034 $0.801301 |
|
$1.538243
$1.270039
$1.144476
$1.427103
$1.387156
$1.075498
$1.742696
$1.698797
$1.406073
$1.275222
$1.078034 |
|
185,421.987 203,405.177
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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.469150
$1.394951 $1.323281
$1.238867 $1.094832
$1.160859 $1.138430
$1.109887 $1.099429
$1.080807 $1.044870 |
|
$1.424236
$1.469150
$1.394951
$1.323281
$1.238867
$1.094832
$1.160859
$1.138430
$1.109887
$1.099429
$1.080807 |
|
939,849.505 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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.031667
$1.045205 $1.058682
$1.072358 $1.084873
$1.071773 $1.035356
$1.002764 $0.989478
$0.994396 $1.000352 |
|
$1.018481
$1.031667
$1.045205
$1.058682
$1.072358
$1.084873
$1.071773
$1.035356
$1.002764
$0.989478
$0.994396 |
|
971,894.524 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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.348154
$1.182755 $1.179004
$1.042741 $0.838028
$1.354472 $1.306942
$1.149142 $1.114620
$1.023219 $0.809430 |
|
$1.752805
$1.348154
$1.182755
$1.179004
$1.042741
$0.838028
$1.354472
$1.306942
$1.149142
$1.114620
$1.023219 |
|
377,016.189 440,385.789
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 |
63
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year
|
|
1.30% |
| |
|
Beginning AUV |
|
Ending
AUV |
|
# Units
|
| The Dreyfus Socially Responsible Growth Fund, Inc. – Service
Class
Sub-Account inception October 7, 1993 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.200889
$1.089166 $1.096162
$0.969400 $0.735914
$1.139638 $1.074032
$0.998515 $0.978656
$0.935828 $0.753859 |
|
$1.588502
$1.200889
$1.089166
$1.096162
$0.969400
$0.735914
$1.139638
$1.074032
$0.998515
$0.978656
$0.935828 |
|
78,952.643 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 |
| Core Value Portfolio – Service Class
Sub-Account inception May 1,
1998 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.240729
$1.065003 $1.148009
$1.029738 $0.884328
$1.398348 $1.378233
$1.152258 $1.108933
$1.008051 $0.796894 |
|
$1.684391
$1.240729
$1.065003
$1.148009
$1.029738
$0.884328
$1.398348
$1.378233
$1.152258
$1.108933
$1.008051 |
|
361,206.163 396,823.841
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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.543218
$1.310014 $1.324376
$1.056815 $0.791082
$1.345693 $1.344626
$1.264968 $1.176271
$1.043162 $0.803700 |
|
$2.052010
$1.543218
$1.310014
$1.324376
$1.056815
$0.791082
$1.345693
$1.344626
$1.264968
$1.176271
$1.043162 |
|
239,360.728 338,155.271
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 |
|
2013
2012 2011
2010 2009
2008 2007
2006 2005
2004 2003 |
|
$1.462361
$1.284316 $1.414790
$1.105381 $0.712882
$1.229139 $1.088089
$1.059442 $1.037076
$1.048150 $0.704948 |
|
$1.912641
$1.462361
$1.284316
$1.414790
$1.105381
$0.712882
$1.229139
$1.088089
$1.059442
$1.037076
$1.048150 |
|
77,742.915 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 |
64
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 |
65
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 |
66
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 |
67
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.
68
The Guaranteed Minimum Income Benefit payment options are:
| • |
|
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.
69
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.
70
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 cannot 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 rider 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.
71
DREYFUS/TRANSAMERICA TRIPLE ADVANTAGE VARIABLE ANNUITY
Issued by
TRANSAMERICA
LIFE INSURANCE COMPANY
Separate Account VA-2L
Supplement Dated May 1, 2014
to the
Prospectus
dated May 1, 2014
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, 2014
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, 2014 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, 2014
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.
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.
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
15
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:
| (a) |
is the variable annuity unit value for the subaccount on the immediately preceding business day; |
17
| (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 |
18
Then, the variable annuity unit value is:
$X * Y * Z = $Q
Formula and Illustration for
Determining Amount of
First Monthly Variable Annuity Payment
|
|
|
|
|
| First monthly variable annuity payment = |
|
A * B |
|
|
|
|
$1,000 |
|
|
Where:
|
|
|
|
|
| A = |
|
The adjusted account value as of the annuity date. |
|
|
Assume = $X |
|
|
| B = |
|
The Annuity purchase rate per $1,000 of adjusted account value based upon the option
selected, the gender and adjusted age of the annuitant according to the tables contained in
the contract. |
|
|
Assume = $Y |
|
|
|
|
|
|
|
| Then, the first monthly variable annuity payment = |
|
$X * $Y = $Z |
|
|
|
|
1,000 |
|
|
Formula and Illustration for Determining the Number of Variable Annuity Units
Represented by Each Monthly Variable Annuity Payment
|
|
|
|
|
| Number of variable annuity units = |
|
A |
|
|
|
|
B |
|
|
Where:
|
|
|
|
|
| A = |
|
The dollar amount of the first monthly variable annuity payment. |
|
|
Assume = $X |
|
|
| B = |
|
The variable annuity unit value for the valuation date on which the first monthly payment is due. |
|
|
Assume = $Y |
|
|
|
|
|
| Then, the number of variable annuity units = |
|
$X = Z |
|
|
|
|
$Y |
|
|
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
19
include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to
the following formula:
Current Yield = ((NCS * ES)/UV) * (365/7)
Where:
|
|
|
|
|
| NCS |
|
= |
|
The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable
to a hypothetical account having a balance of 1 subaccount unit. |
| ES |
|
= |
|
Per unit expenses of the subaccount for the 7-day period. |
| UV |
|
= |
|
The unit value on the first day of the 7-day period. |
Because of the charges and deductions imposed under a contract, the yield for the Money Market Subaccount will be lower than
the yield for the Money Market Portfolio. The yield calculations do not reflect the effect of any premium taxes or surrender charges that may be applicable to a particular contract. Surrender charges range from 7% to 0% of the amount of purchase
payments surrendered based on the number of years since the purchase payment was made. However, surrender charges will not be assessed after the seventh contract year.
Transamerica may also disclose the effective yield of the Money Market Subaccount for the same 7-day period, determined on a compounded basis. The effective
yield is calculated by compounding the base period return according to the following formula:
Effective Yield = (1 + ((NCS - ES)/UV))365/7 - 1
Where:
|
|
|
|
|
| NCS |
|
= |
|
The net change in the value of the portfolio (exclusive of realized gains and losses on the sale of securities and unrealized appreciation and depreciation and income other than investment income) for the 7-day period attributable
to a hypothetical account having a balance of 1 subaccount unit. |
| ES |
|
= |
|
Per unit expenses of the subaccount for the 7-day period. |
| UV |
|
= |
|
The unit value on the first day of the 7-day period. |
The yield on amounts held in the Money Market Subaccount normally will fluctuate on a daily basis. Therefore, the disclosed
yield for any given past period is not an indication or representation of future yields or rates of return. The Money Market 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
21
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 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
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
2013, 2012 and 2011, respectively, $304,309, $370,286 and $333,155 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, 2013 and for the periods disclosed in the financial statements, and the statutory-basis
financial statements and schedules of Transamerica at December 31, 2013 and 2012, and for each of the three years in the period ended December 31, 2013, appearing herein, have been audited by Ernst & Young LLP, 801 Grand Avenue,
Suite 3000, Des Moines, Iowa 50309, Independent Registered Public Accounting Firm, as set forth in 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.
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.50% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.013026 |
|
$1.098169 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.013026 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.011500 |
|
$1.056613 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011500 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.016940 |
|
$1.155903 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016940 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.002319 |
|
$1.069549 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002319 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$0.997398 |
|
$1.124954 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$0.997398 |
|
0.000 |
| TA Market Participation Strategy - Service Class |
|
2013 |
|
$0.986966 |
|
$1.100542 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.986966 |
|
0.000 |
| TA PIMCO Tactical - Balanced - Service Class |
|
2013 |
|
$0.990058 |
|
$1.080345 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.990058 |
|
0.000 |
| TA PIMCO Tactical - Conservative - Service Class |
|
2013 |
|
$0.992925 |
|
$1.047710 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.992925 |
|
0.000 |
| TA PIMCO Tactical - Growth - Service Class |
|
2013 |
|
$0.984897 |
|
$1.122352 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.984897 |
|
0.000 |
| TA Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.015031 |
|
$1.103486 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015031 |
|
0.000 |
| TA Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.011623 |
|
1.060662 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.011623 |
|
0.000 |
| TA Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.019139 |
|
$1.181033 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019139 |
|
0.000 |
| TA WMC Diversified Growth - Initial Class |
|
2013 |
|
$1.474365 |
|
$1.905408 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.335537 |
|
$1.474365 |
|
0.000 |
| |
|
2011 |
|
$1.422934 |
|
$1.335537 |
|
0.000 |
| |
|
2010 |
|
$1.237108 |
|
$1.422934 |
|
0.000 |
| |
|
2009 |
|
$0.981483 |
|
$1.237108 |
|
0.000 |
| |
|
2008 |
|
$1.863447 |
|
$0.981483 |
|
0.000 |
| |
|
2007 |
|
$1.642755 |
|
$1.863447 |
|
0.000 |
| |
|
2006 |
|
$1.548751 |
|
$1.642755 |
|
0.000 |
| |
|
2005 |
|
$1.362102 |
|
$1.548751 |
|
0.000 |
| |
|
2004 |
|
$1.205665 |
|
$1.362102 |
|
0.000 |
25
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.50% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Appreciation Portfolio - Service Class |
|
2013 |
|
$1.490069 |
|
$1.756492 |
|
0.000 |
| Sub-Account inception April 5, 1993 |
|
2012 |
|
$1.386915 |
|
$1.490069 |
|
0.000 |
| |
|
2011 |
|
$1.307255 |
|
$1.386915 |
|
0.000 |
| |
|
2010 |
|
$1.164695 |
|
$1.307255 |
|
0.000 |
| |
|
2009 |
|
$0.976695 |
|
$1.164695 |
|
0.000 |
| |
|
2008 |
|
$1.424649 |
|
$0.976695 |
|
0.000 |
| |
|
2007 |
|
$1.366806 |
|
$1.424649 |
|
0.000 |
| |
|
2006 |
|
$1.205500 |
|
$1.366806 |
|
0.000 |
| |
|
2005 |
|
$1.186683 |
|
$1.205500 |
|
0.000 |
| |
|
2004 |
|
$1.160764 |
|
$1.186683 |
|
0.000 |
| Opportunistic Small Cap Portfolio - Service Class |
|
2013 |
|
$1.155076 |
|
$1.670321 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.984789 |
|
$1.155076 |
|
0.000 |
| |
|
2011 |
|
$1.174493 |
|
$0.984789 |
|
0.000 |
| |
|
2010 |
|
$0.920236 |
|
$1.174493 |
|
0.000 |
| |
|
2009 |
|
$0.750021 |
|
$0.920236 |
|
0.000 |
| |
|
2008 |
|
$1.235564 |
|
$0.750021 |
|
0.000 |
| |
|
2007 |
|
$1.427691 |
|
$1.235564 |
|
0.000 |
| |
|
2006 |
|
$1.413529 |
|
$1.427691 |
|
0.000 |
| |
|
2005 |
|
$1.372503 |
|
$1.413529 |
|
0.000 |
| |
|
2004 |
|
$1.266961 |
|
$1.372503 |
|
0.000 |
26
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.50% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Growth and Income Portfolio - Service Class |
|
2013 |
|
$1.347654 |
|
$1.793745 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.173120 |
|
$1.347654 |
|
0.000 |
| |
|
2011 |
|
$1.239478 |
|
$1.173120 |
|
0.000 |
| |
|
2010 |
|
$1.073949 |
|
$1.239478 |
|
0.000 |
| |
|
2009 |
|
$0.857056 |
|
$1.073949 |
|
0.000 |
| |
|
2008 |
|
$1.477374 |
|
$0.857056 |
|
0.000 |
| |
|
2007 |
|
$1.399814 |
|
$1.477374 |
|
0.000 |
| |
|
2006 |
|
$1.255088 |
|
$1.399814 |
|
0.000 |
| |
|
2005 |
|
$1.246372 |
|
$1.255088 |
|
0.000 |
| |
|
2004 |
|
$1.191613 |
|
$1.246372 |
|
0.000 |
| International Equity Portfolio - Service Class |
|
2013 |
|
$1.830304 |
|
$2.096944 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.527489 |
|
$1.830304 |
|
0.000 |
| |
|
2011 |
|
$1.840057 |
|
$1.527489 |
|
0.000 |
| |
|
2010 |
|
$1.718665 |
|
$1.840057 |
|
0.000 |
| |
|
2009 |
|
$1.410603 |
|
$1.718665 |
|
0.000 |
| |
|
2008 |
|
$2.508614 |
|
$1.410603 |
|
0.000 |
| |
|
2007 |
|
$2.201016 |
|
$2.508614 |
|
0.000 |
| |
|
2006 |
|
$1.833214 |
|
$2.201016 |
|
0.000 |
| |
|
2005 |
|
$1.641669 |
|
$1.833214 |
|
0.000 |
| |
|
2004 |
|
$1.354955 |
|
$1.641669 |
|
0.000 |
| International Value Portfolio - Service Class |
|
2013 |
|
$1.452520 |
|
$1.738664 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.324506 |
|
$1.452520 |
|
0.000 |
| |
|
2011 |
|
$1.671152 |
|
$1.324506 |
|
0.000 |
| |
|
2010 |
|
$1.643594 |
|
$1.671152 |
|
0.000 |
| |
|
2009 |
|
$1.289430 |
|
$1.643594 |
|
0.000 |
| |
|
2008 |
|
$2.114222 |
|
$1.289430 |
|
0.000 |
| |
|
2007 |
|
$2.085516 |
|
$2.114222 |
|
0.000 |
| |
|
2006 |
|
$1.746545 |
|
$2.085516 |
|
0.000 |
| |
|
2005 |
|
$1.602717 |
|
$1.746545 |
|
0.000 |
| |
|
2004 |
|
$1.370969 |
|
$1.602717 |
|
0.000 |
| Quality Bond Portfolio - Service Class |
|
2013 |
|
$1.224180 |
|
$1.172857 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.176200 |
|
$1.224180 |
|
0.000 |
| |
|
2011 |
|
$1.128949 |
|
$1.176200 |
|
0.000 |
| |
|
2010 |
|
$1.069454 |
|
$1.128949 |
|
0.000 |
| |
|
2009 |
|
$0.956306 |
|
$1.069454 |
|
0.000 |
| |
|
2008 |
|
$1.026025 |
|
$0.956306 |
|
0.000 |
| |
|
2007 |
|
$1.018191 |
|
$1.026025 |
|
0.000 |
| |
|
2006 |
|
$1.004393 |
|
$1.018191 |
|
0.000 |
| |
|
2005 |
|
$1.006681 |
|
$1.004393 |
|
0.000 |
| |
|
2004 |
|
$1.001382 |
|
$1.006681 |
|
0.000 |
| Money Market Portfolio - Initial Class |
|
2013 |
|
$0.921544 |
|
$0.899070 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.944718 |
|
$0.921544 |
|
0.000 |
| |
|
2011 |
|
$0.968219 |
|
$0.944718 |
|
0.000 |
| |
|
2010 |
|
$0.992351 |
|
$0.968219 |
|
0.000 |
| |
|
2009 |
|
$1.015837 |
|
$0.992351 |
|
0.000 |
| |
|
2008 |
|
$1.015488 |
|
$1.015837 |
|
0.000 |
| |
|
2007 |
|
$0.992672 |
|
$1.015488 |
|
0.000 |
| |
|
2006 |
|
$0.972772 |
|
$0.992672 |
|
0.000 |
| |
|
2005 |
|
$0.971215 |
|
$0.972772 |
|
0.000 |
| |
|
2004 |
|
$0.987637 |
|
$0.971215 |
|
0.000 |
| Dreyfus Stock Index Fund, Inc. - Service Class |
|
2013 |
|
$1.426438 |
|
$1.832903 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.266325 |
|
$1.426438 |
|
0.000 |
| |
|
2011 |
|
$1.277224 |
|
$1.266325 |
|
0.000 |
| |
|
2010 |
|
$1.142982 |
|
$1.277224 |
|
0.000 |
| |
|
2009 |
|
$0.929474 |
|
$1.142982 |
|
0.000 |
| |
|
2008 |
|
$1.520159 |
|
$0.929474 |
|
0.000 |
| |
|
2007 |
|
$1.484296 |
|
$1.520159 |
|
0.000 |
| |
|
2006 |
|
$1.320501 |
|
$1.484296 |
|
0.000 |
| |
|
2005 |
|
$1.295964 |
|
$1.320501 |
|
0.000 |
| |
|
2004 |
|
$1.203814 |
|
$1.295964 |
|
0.000 |
27
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.50% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.369973 |
|
$1.790953 |
|
0.000 |
| Sub-Account inception October 7, 1993 |
|
2012 |
|
$1.257314 |
|
$1.369973 |
|
0.000 |
| |
|
2011 |
|
$1.280339 |
|
$1.257314 |
|
0.000 |
| |
|
2010 |
|
$1.145668 |
|
$1.280339 |
|
0.000 |
| |
|
2009 |
|
$0.880023 |
|
$1.145668 |
|
0.000 |
| |
|
2008 |
|
$1.379038 |
|
$0.880023 |
|
0.000 |
| |
|
2007 |
|
$1.315139 |
|
$1.379038 |
|
0.000 |
| |
|
2006 |
|
$1.237124 |
|
$1.315139 |
|
0.000 |
| |
|
2005 |
|
$1.226842 |
|
$1.237124 |
|
0.000 |
| |
|
2004 |
|
$1.187097 |
|
$1.226842 |
|
0.000 |
| Core Value Portfolio - Service Class |
|
2013 |
|
$1.359058 |
|
$1.823467 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.180467 |
|
$1.359058 |
|
0.000 |
| |
|
2011 |
|
$1.287518 |
|
$1.180467 |
|
0.000 |
| |
|
2010 |
|
$1.168534 |
|
$1.287518 |
|
0.000 |
| |
|
2009 |
|
$1.015423 |
|
$1.168534 |
|
0.000 |
| |
|
2008 |
|
$1.624791 |
|
$1.015423 |
|
0.000 |
| |
|
2007 |
|
$1.620485 |
|
$1.624791 |
|
0.000 |
| |
|
2006 |
|
$1.370792 |
|
$1.620485 |
|
0.000 |
| |
|
2005 |
|
$1.334826 |
|
$1.370792 |
|
0.000 |
| |
|
2004 |
|
$1.227797 |
|
$1.334826 |
|
0.000 |
| MidCap Stock Portfolio - Service Class |
|
2013 |
|
$1.665072 |
|
$2.188143 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.430290 |
|
$1.665072 |
|
0.000 |
| |
|
2011 |
|
$1.463082 |
|
$1.430290 |
|
0.000 |
| |
|
2010 |
|
$1.181307 |
|
$1.463082 |
|
0.000 |
| |
|
2009 |
|
$0.894755 |
|
$1.181307 |
|
0.000 |
| |
|
2008 |
|
$1.540180 |
|
$0.894755 |
|
0.000 |
| |
|
2007 |
|
$1.557298 |
|
$1.540180 |
|
0.000 |
| |
|
2006 |
|
$1.482349 |
|
$1.557298 |
|
0.000 |
| |
|
2005 |
|
$1.394676 |
|
$1.482349 |
|
0.000 |
| |
|
2004 |
|
$1.251541 |
|
$1.394676 |
|
0.000 |
| Technology Growth Portfolio - Service Class |
|
2013 |
|
$1.668911 |
|
$2.157234 |
|
0.000 |
| Sub-Account inception October 1, 1999 |
|
2012 |
|
$1.483177 |
|
$1.668911 |
|
0.000 |
| |
|
2011 |
|
$1.653173 |
|
$1.483177 |
|
0.000 |
| |
|
2010 |
|
$1.306906 |
|
$1.653173 |
|
0.000 |
| |
|
2009 |
|
$0.852831 |
|
$1.306906 |
|
0.000 |
| |
|
2008 |
|
$1.487945 |
|
$0.852831 |
|
0.000 |
| |
|
2007 |
|
$1.332880 |
|
$1.487945 |
|
0.000 |
| |
|
2006 |
|
$1.313126 |
|
$1.332880 |
|
0.000 |
| |
|
2005 |
|
$1.300592 |
|
$1.313126 |
|
0.000 |
| |
|
2004 |
|
$1.330119 |
|
$1.300592 |
|
0.000 |
28
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.30% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.014343 |
|
$1.101751 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014343 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.012824 |
|
$1.060052 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.012824 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.018273 |
|
$1.159691 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018273 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.003631 |
|
$1.073038 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.003631 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$0.998700 |
|
$1.128630 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$0.998700 |
|
0.000 |
| TA Market Participation Strategy - Service Class |
|
2013 |
|
$0.987515 |
|
$1.103301 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.987515 |
|
0.000 |
| TA PIMCO Tactical - Balanced - Service Class |
|
2013 |
|
$0.990610 |
|
$1.083062 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.990610 |
|
0.000 |
| TA PIMCO Tactical - Conservative - Service Class |
|
2013 |
|
$0.993481 |
|
$1.050343 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.993481 |
|
0.000 |
| TA PIMCO Tactical - Growth - Service Class |
|
2013 |
|
$0.985444 |
|
$1.125176 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.985444 |
|
0.000 |
| TA Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.016364 |
|
$1.107094 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016364 |
|
0.000 |
| TA Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.012944 |
|
$1.064136 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.012944 |
|
0.000 |
| TA Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.020467 |
|
$1.184867 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020467 |
|
0.000 |
| TA WMC Diversified Growth - Initial Class |
|
2013 |
|
$1.502451 |
|
$1.945490 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.358312 |
|
$1.502451 |
|
0.000 |
| |
|
2011 |
|
$1.443374 |
|
$1.358312 |
|
0.000 |
| |
|
2010 |
|
$1.253320 |
|
$1.443374 |
|
0.000 |
| |
|
2009 |
|
$0.992414 |
|
$1.253320 |
|
0.000 |
| |
|
2008 |
|
$1.880510 |
|
$0.992414 |
|
0.000 |
| |
|
2007 |
|
$1.654554 |
|
$1.880510 |
|
0.000 |
| |
|
2006 |
|
$1.556843 |
|
$1.654554 |
|
0.000 |
| |
|
2005 |
|
$1.36552 |
|
$1.556843 |
|
0.000 |
| |
|
2004 |
|
$1.207241 |
|
$1.36552 |
|
0.000 |
| Appreciation Portfolio - Service Class |
|
2013 |
|
$1.518493 |
|
$1.793507 |
|
0.000 |
| Sub-Account inception April 5, 1993 |
|
2012 |
|
$1.410595 |
|
$1.518493 |
|
0.000 |
| |
|
2011 |
|
$1.326990 |
|
$1.410595 |
|
0.000 |
| |
|
2010 |
|
$1.179968 |
|
$1.326990 |
|
0.000 |
| |
|
2009 |
|
$0.987577 |
|
$1.179968 |
|
0.000 |
| |
|
2008 |
|
$1.437700 |
|
$0.987577 |
|
0.000 |
| |
|
2007 |
|
$1.376622 |
|
$1.437700 |
|
0.000 |
| |
|
2006 |
|
$1.211799 |
|
$1.376622 |
|
0.000 |
| |
|
2005 |
|
$1.190571 |
|
$1.211799 |
|
0.000 |
| |
|
2004 |
|
$1.162282 |
|
$1.190571 |
|
0.000 |
| Opportunistic Small Cap Portfolio - Service Class |
|
2013 |
|
$1.177128 |
|
$1.705531 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.001620 |
|
$1.177128 |
|
0.000 |
| |
|
2011 |
|
$1.192238 |
|
$1.001620 |
|
0.000 |
| |
|
2010 |
|
$0.932321 |
|
$1.192238 |
|
0.000 |
| |
|
2009 |
|
$0.758381 |
|
$0.932321 |
|
0.000 |
| |
|
2008 |
|
$1.246881 |
|
$0.758381 |
|
0.000 |
| |
|
2007 |
|
$1.437931 |
|
$1.246881 |
|
0.000 |
| |
|
2006 |
|
$1.420894 |
|
$1.437931 |
|
0.000 |
| |
|
2005 |
|
$1.376971 |
|
$1.420894 |
|
0.000 |
| |
|
2004 |
|
$1.268600 |
|
$1.376971 |
|
0.000 |
| Growth and Income Portfolio - Service Class |
|
2013 |
|
$1.373370 |
|
$1.831553 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.193161 |
|
$1.373370 |
|
0.000 |
| |
|
2011 |
|
$1.258191 |
|
$1.193161 |
|
0.000 |
| |
|
2010 |
|
$1.088052 |
|
$1.258191 |
|
0.000 |
| |
|
2009 |
|
$0.866624 |
|
$1.088052 |
|
0.000 |
| |
|
2008 |
|
$1.490939 |
|
$0.866624 |
|
0.000 |
| |
|
2007 |
|
$1.409888 |
|
$1.490939 |
|
0.000 |
| |
|
2006 |
|
$1.261655 |
|
$1.409888 |
|
0.000 |
| |
|
2005 |
|
$1.250459 |
|
$1.261655 |
|
0.000 |
| |
|
2004 |
|
$1.193173 |
|
$1.250459 |
|
0.000 |
29
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.30% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International Equity Portfolio - Service Class |
|
2013 |
|
$1.865237 |
|
$2.141124 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.553588 |
|
$1.865237 |
|
0.000 |
| |
|
2011 |
|
$1.867834 |
|
$1.553588 |
|
0.000 |
| |
|
2010 |
|
$1.741199 |
|
$1.867834 |
|
0.000 |
| |
|
2009 |
|
$1.426325 |
|
$1.741199 |
|
0.000 |
| |
|
2008 |
|
$2.531609 |
|
$1.426325 |
|
0.000 |
| |
|
2007 |
|
$2.216829 |
|
$2.531609 |
|
0.000 |
| |
|
2006 |
|
$1.842784 |
|
$2.216829 |
|
0.000 |
| |
|
2005 |
|
$1.647027 |
|
$1.842784 |
|
0.000 |
| |
|
2004 |
|
$1.356725 |
|
$1.647027 |
|
0.000 |
| International Value Portfolio - Service Class |
|
2013 |
|
$1.480235 |
|
$1.775315 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.347124 |
|
$1.480235 |
|
0.000 |
| |
|
2011 |
|
$1.696375 |
|
$1.347124 |
|
0.000 |
| |
|
2010 |
|
$1.665148 |
|
$1.696375 |
|
0.000 |
| |
|
2009 |
|
$1.303790 |
|
$1.665148 |
|
0.000 |
| |
|
2008 |
|
$2.133570 |
|
$1.303790 |
|
0.000 |
| |
|
2007 |
|
$2.100476 |
|
$2.133570 |
|
0.000 |
| |
|
2006 |
|
$1.755651 |
|
$2.100476 |
|
0.000 |
| |
|
2005 |
|
$1.607947 |
|
$1.755651 |
|
0.000 |
| |
|
2004 |
|
$1.372760 |
|
$1.607947 |
|
0.000 |
| Quality Bond Portfolio - Service Class |
|
2013 |
|
$1.247546 |
|
$1.197580 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.196297 |
|
$1.247546 |
|
0.000 |
| |
|
2011 |
|
$1.146000 |
|
$1.196297 |
|
0.000 |
| |
|
2010 |
|
$1.083481 |
|
$1.146000 |
|
0.000 |
| |
|
2009 |
|
$0.966965 |
|
$1.083481 |
|
0.000 |
| |
|
2008 |
|
$1.035423 |
|
$0.966965 |
|
0.000 |
| |
|
2007 |
|
$1.025499 |
|
$1.035423 |
|
0.000 |
| |
|
2006 |
|
$1.009634 |
|
$1.025499 |
|
0.000 |
| |
|
2005 |
|
$1.009963 |
|
$1.009634 |
|
0.000 |
| |
|
2004 |
|
$1.002692 |
|
$1.009963 |
|
0.000 |
| Money Market Portfolio - Initial Class |
|
2013 |
|
$0.939161 |
|
$0.918059 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.960898 |
|
$0.939161 |
|
0.000 |
| |
|
2011 |
|
$0.982868 |
|
$0.960898 |
|
0.000 |
| |
|
2010 |
|
$1.005338 |
|
$0.982868 |
|
0.000 |
| |
|
2009 |
|
$1.027131 |
|
$1.005338 |
|
0.000 |
| |
|
2008 |
|
$1.024775 |
|
$1.027131 |
|
0.000 |
| |
|
2007 |
|
$0.999780 |
|
$1.024775 |
|
0.000 |
| |
|
2006 |
|
$0.977841 |
|
$0.999780 |
|
0.000 |
| |
|
2005 |
|
$0.974387 |
|
$0.977841 |
|
0.000 |
| |
|
2004 |
|
$0.988926 |
|
$0.974387 |
|
0.000 |
| Dreyfus Stock Index Fund, Inc. - Service Class |
|
2013 |
|
$1.453651 |
|
$1.871503 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.287957 |
|
$1.453651 |
|
0.000 |
| |
|
2011 |
|
$1.296518 |
|
$1.287957 |
|
0.000 |
| |
|
2010 |
|
$1.157978 |
|
$1.296518 |
|
0.000 |
| |
|
2009 |
|
$0.939835 |
|
$1.157978 |
|
0.000 |
| |
|
2008 |
|
$1.534083 |
|
$0.939835 |
|
0.000 |
| |
|
2007 |
|
$1.494948 |
|
$1.534083 |
|
0.000 |
| |
|
2006 |
|
$1.327396 |
|
$1.494948 |
|
0.000 |
| |
|
2005 |
|
$1.300188 |
|
$1.327396 |
|
0.000 |
| |
|
2004 |
|
$1.205386 |
|
$1.300188 |
|
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.396103 |
|
$1.828681 |
|
0.000 |
| Sub-Account inception October 7, 1993 |
|
2012 |
|
$1.278787 |
|
$1.396103 |
|
0.000 |
| |
|
2011 |
|
$1.299673 |
|
$1.278787 |
|
0.000 |
| |
|
2010 |
|
$1.160716 |
|
$1.299673 |
|
0.000 |
| |
|
2009 |
|
$0.889840 |
|
$1.160716 |
|
0.000 |
| |
|
2008 |
|
$1.391685 |
|
$0.889840 |
|
0.000 |
| |
|
2007 |
|
$1.324610 |
|
$1.391685 |
|
0.000 |
| |
|
2006 |
|
$1.243603 |
|
$1.324610 |
|
0.000 |
| |
|
2005 |
|
$1.230861 |
|
$1.243603 |
|
0.000 |
| |
|
2004 |
|
$1.188647 |
|
$1.230861 |
|
0.000 |
30
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.30% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value Portfolio - Service Class |
|
2013 |
|
$1.385022 |
|
$1.861929 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.200650 |
|
$1.385022 |
|
0.000 |
| |
|
2011 |
|
$1.306977 |
|
$1.200650 |
|
0.000 |
| |
|
2010 |
|
$1.183887 |
|
$1.306977 |
|
0.000 |
| |
|
2009 |
|
$1.026749 |
|
$1.183887 |
|
0.000 |
| |
|
2008 |
|
$1.639663 |
|
$1.026749 |
|
0.000 |
| |
|
2007 |
|
$1.632105 |
|
$1.639663 |
|
0.000 |
| |
|
2006 |
|
$1.377930 |
|
$1.632105 |
|
0.000 |
| |
|
2005 |
|
$1.339173 |
|
$1.377930 |
|
0.000 |
| |
|
2004 |
|
$1.016838 |
|
$1.339173 |
|
0.000 |
| MidCap Stock Portfolio - Service Class |
|
2013 |
|
$1.696868 |
|
$2.234274 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.454740 |
|
$1.696868 |
|
0.000 |
| |
|
2011 |
|
$1.485187 |
|
$1.454740 |
|
0.000 |
| |
|
2010 |
|
$1.196818 |
|
$1.485187 |
|
0.000 |
| |
|
2009 |
|
$0.904731 |
|
$1.196818 |
|
0.000 |
| |
|
2008 |
|
$1.554302 |
|
$0.904731 |
|
0.000 |
| |
|
2007 |
|
$1.568485 |
|
$1.554302 |
|
0.000 |
| |
|
2006 |
|
$1.490090 |
|
$1.568485 |
|
0.000 |
| |
|
2005 |
|
$1.399235 |
|
$1.490090 |
|
0.000 |
| |
|
2004 |
|
$1.253178 |
|
$1.399235 |
|
0.000 |
| Technology Growth Portfolio - Service Class |
|
2013 |
|
$1.700738 |
|
$2.202681 |
|
0.000 |
| Sub-Account inception October 1, 1999 |
|
2012 |
|
$1.508494 |
|
$1.700738 |
|
0.000 |
| |
|
2011 |
|
$1.678114 |
|
$1.508494 |
|
0.000 |
| |
|
2010 |
|
$1.324036 |
|
$1.678114 |
|
0.000 |
| |
|
2009 |
|
$0.862326 |
|
$1.324036 |
|
0.000 |
| |
|
2008 |
|
$1.501576 |
|
$0.862326 |
|
0.000 |
| |
|
2007 |
|
$1.342459 |
|
$1.501576 |
|
0.000 |
| |
|
2006 |
|
$1.319990 |
|
$1.342459 |
|
0.000 |
| |
|
2005 |
|
$1.304581 |
|
$1.319990 |
|
0.000 |
| |
|
2004 |
|
$1.331857 |
|
$1.304581 |
|
0.000 |
31
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.10% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.015674 |
|
$1.105353 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015674 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.014150 |
|
$1.063526 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014150 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.019603 |
|
$1.163470 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019603 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.004946 |
|
$1.076542 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004946 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.000015 |
|
$1.132321 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.000015 |
|
0.000 |
| TA Market Participation Strategy - Service Class |
|
2013 |
|
$0.988077 |
|
$1.106095 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.988077 |
|
0.000 |
| TA PIMCO Tactical - Balanced - Service Class |
|
2013 |
|
$0.991172 |
|
$1.085801 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.991172 |
|
0.000 |
| TA PIMCO Tactical - Conservative - Service Class |
|
2013 |
|
$0.994035 |
|
$1.052998 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.994035 |
|
0.000 |
| TA PIMCO Tactical - Growth - Service Class |
|
2013 |
|
$0.985997 |
|
$1.128003 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.985997 |
|
0.000 |
| TA Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.017689 |
|
$1.110702 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017689 |
|
0.000 |
| TA Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.014269 |
|
$1.067625 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.014269 |
|
0.000 |
| TA Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.021802 |
|
$1.188743 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021802 |
|
0.000 |
| TA WMC Diversified Growth - Initial Class |
|
2013 |
|
$1.531217 |
|
$1.986620 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.381595 |
|
$1.531217 |
|
0.000 |
| |
|
2011 |
|
$1.465242 |
|
$1.381595 |
|
0.000 |
| |
|
2010 |
|
$1.269820 |
|
$1.465242 |
|
0.000 |
| |
|
2009 |
|
$1.003507 |
|
$1.269820 |
|
0.000 |
| |
|
2008 |
|
$1.897776 |
|
$1.003507 |
|
0.000 |
| |
|
2007 |
|
$1.666461 |
|
$1.897776 |
|
0.000 |
| |
|
2006 |
|
$1.564987 |
|
$1.666461 |
|
0.000 |
| |
|
2005 |
|
$1.371033 |
|
$1.564987 |
|
0.000 |
| |
|
2004 |
|
$1.208820 |
|
$1.371033 |
|
0.000 |
| Appreciation Portfolio - Service Class |
|
2013 |
|
$1.547504 |
|
$1.831332 |
|
0.000 |
| Sub-Account inception April 5, 1993 |
|
2012 |
|
$1.434719 |
|
$1.547504 |
|
0.000 |
| |
|
2011 |
|
$1.347053 |
|
$1.434719 |
|
0.000 |
| |
|
2010 |
|
$1.195470 |
|
$1.347053 |
|
0.000 |
| |
|
2009 |
|
$0.998590 |
|
$1.195470 |
|
20,698.991 |
| |
|
2008 |
|
$1.450884 |
|
$0.998590 |
|
21,073.694 |
| |
|
2007 |
|
$1.386521 |
|
$1.450884 |
|
18,751.122 |
| |
|
2006 |
|
$1.218126 |
|
$1.386521 |
|
19,554.377 |
| |
|
2005 |
|
$1.194458 |
|
$1.218126 |
|
20,273.000 |
| |
|
2004 |
|
$1.163795 |
|
$1.194458 |
|
20,811.000 |
| Opportunistic Small Cap Portfolio - Service Class |
|
2013 |
|
$1.199613 |
|
$1.741506 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.018748 |
|
$1.199613 |
|
0.000 |
| |
|
2011 |
|
$1.210263 |
|
$1.018748 |
|
0.000 |
| |
|
2010 |
|
$0.944575 |
|
$1.210263 |
|
0.000 |
| |
|
2009 |
|
$0.766852 |
|
$0.944575 |
|
14,036.335 |
| |
|
2008 |
|
$1.258335 |
|
$0.766852 |
|
14,862.220 |
| |
|
2007 |
|
$1.448285 |
|
$1.258335 |
|
10,843.655 |
| |
|
2006 |
|
$1.428330 |
|
$1.448285 |
|
9,299.996 |
| |
|
2005 |
|
$1.381479 |
|
$1.428330 |
|
8,846.000 |
| |
|
2004 |
|
$1.270261 |
|
$1.381479 |
|
8,792.000 |
32
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.10% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Growth and Income Portfolio - Service Class |
|
2013 |
|
$1.399641 |
|
$1.870236 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.213586 |
|
$1.399641 |
|
0.000 |
| |
|
2011 |
|
$1.277233 |
|
$1.213586 |
|
0.000 |
| |
|
2010 |
|
$1.102358 |
|
$1.277233 |
|
0.000 |
| |
|
2009 |
|
$0.876295 |
|
$1.102358 |
|
0.000 |
| |
|
2008 |
|
$1.504614 |
|
$0.876295 |
|
0.000 |
| |
|
2007 |
|
$1.420027 |
|
$1.504614 |
|
0.000 |
| |
|
2006 |
|
$1.254536 |
|
$1.420027 |
|
0.000 |
| |
|
2005 |
|
$1.254536 |
|
$1.254536 |
|
0.000 |
| |
|
2004 |
|
$1.194729 |
|
$1.254536 |
|
0.000 |
| International Equity Portfolio - Service Class |
|
2013 |
|
$1.900912 |
|
$2.186360 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.580199 |
|
$1.900912 |
|
0.000 |
| |
|
2011 |
|
$1.896121 |
|
$1.580199 |
|
0.000 |
| |
|
2010 |
|
$1.764124 |
|
$1.896121 |
|
0.000 |
| |
|
2009 |
|
$1.442269 |
|
$1.764124 |
|
0.000 |
| |
|
2008 |
|
$2.554864 |
|
$1.442269 |
|
0.000 |
| |
|
2007 |
|
$2.232799 |
|
$2.554864 |
|
0.000 |
| |
|
2006 |
|
$1.852440 |
|
$2.232799 |
|
0.000 |
| |
|
2005 |
|
$1.652425 |
|
$1.852440 |
|
0.000 |
| |
|
2004 |
|
$1.358506 |
|
$1.652425 |
|
0.000 |
| International Value Portfolio - Service Class |
|
2013 |
|
$1.508537 |
|
$1.812794 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.370188 |
|
$1.508537 |
|
0.000 |
| |
|
2011 |
|
$1.722046 |
|
$1.370188 |
|
0.000 |
| |
|
2010 |
|
$1.687044 |
|
$1.722046 |
|
0.000 |
| |
|
2009 |
|
$1.318349 |
|
$1.687044 |
|
0.000 |
| |
|
2008 |
|
$2.153161 |
|
$1.318349 |
|
0.000 |
| |
|
2007 |
|
$2.115603 |
|
$2.153161 |
|
0.000 |
| |
|
2006 |
|
$1.764851 |
|
$2.115603 |
|
0.000 |
| |
|
2005 |
|
$1.613213 |
|
$1.764851 |
|
0.000 |
| |
|
2004 |
|
$1.374554 |
|
$1.613213 |
|
0.000 |
| Quality Bond Portfolio - Service Class |
|
2013 |
|
$1.271417 |
|
$1.222878 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.216780 |
|
$1.271417 |
|
0.000 |
| |
|
2011 |
|
$1.163365 |
|
$1.216780 |
|
0.000 |
| |
|
2010 |
|
$1.097752 |
|
$1.163365 |
|
0.000 |
| |
|
2009 |
|
$0.977778 |
|
$1.097752 |
|
33,415.163 |
| |
|
2008 |
|
$1.044956 |
|
$0.977778 |
|
30,452.102 |
| |
|
2007 |
|
$1.032912 |
|
$1.044956 |
|
39,072.204 |
| |
|
2006 |
|
$1.013293 |
|
$1.032912 |
|
38,409.348 |
| |
|
2005 |
|
$1.013293 |
|
$1.013293 |
|
37,290.000 |
| |
|
2004 |
|
$1.004010 |
|
$1.013293 |
|
36,232.000 |
| Money Market Portfolio - Initial Class |
|
2013 |
|
$0.957061 |
|
$.937382 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.977283 |
|
$0.957061 |
|
0.000 |
| |
|
2011 |
|
$0.997698 |
|
$0.977283 |
|
0.000 |
| |
|
2010 |
|
$1.018560 |
|
$0.997698 |
|
0.000 |
| |
|
2009 |
|
$1.038604 |
|
$1.018560 |
|
12,092.574 |
| |
|
2008 |
|
$1.034183 |
|
$1.038604 |
|
9,328.489 |
| |
|
2007 |
|
$1.006965 |
|
$1.034183 |
|
13,256.719 |
| |
|
2006 |
|
$0.982963 |
|
$1.006965 |
|
0.000 |
| |
|
2005 |
|
$0.977572 |
|
$0.982963 |
|
0.000 |
| |
|
2004 |
|
$0.990215 |
|
$0.977572 |
|
0.000 |
| Dreyfus Stock Index Fund, Inc. - Service Class |
|
2013 |
|
$1.481449 |
|
$1.911030 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.310000 |
|
$1.481449 |
|
0.000 |
| |
|
2011 |
|
$1.316126 |
|
$1.310000 |
|
0.000 |
| |
|
2010 |
|
$1.173202 |
|
$1.316126 |
|
0.000 |
| |
|
2009 |
|
$0.950335 |
|
$1.173202 |
|
21,398.612 |
| |
|
2008 |
|
$1.548179 |
|
$0.950335 |
|
22,593.675 |
| |
|
2007 |
|
$1.505708 |
|
$1.548179 |
|
17,650.269 |
| |
|
2006 |
|
$1.334334 |
|
$1.505708 |
|
17,888.899 |
| |
|
2005 |
|
$1.304435 |
|
$1.334334 |
|
18,624.000 |
| |
|
2004 |
|
$1.206951 |
|
$1.304435 |
|
19,071.000 |
33
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
2.10% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.422803 |
|
$1.867296 |
|
0.000 |
| Sub-Account inception October 7, 1993 |
|
2012 |
|
$1.300679 |
|
$1.422803 |
|
0.000 |
| |
|
2011 |
|
$1.319345 |
|
$1.300679 |
|
0.000 |
| |
|
2010 |
|
$1.175979 |
|
$1.319345 |
|
0.000 |
| |
|
2009 |
|
$0.899783 |
|
$1.175979 |
|
0.000 |
| |
|
2008 |
|
$1.404474 |
|
$0.899783 |
|
0.000 |
| |
|
2007 |
|
$1.334148 |
|
$1.404474 |
|
0.000 |
| |
|
2006 |
|
$1.250108 |
|
$1.334148 |
|
0.000 |
| |
|
2005 |
|
$1.234886 |
|
$1.250108 |
|
0.000 |
| |
|
2004 |
|
$1.190202 |
|
$1.234886 |
|
0.000 |
| Core Value Portfolio - Service Class |
|
2013 |
|
$1.411444 |
|
$1.901164 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.221157 |
|
$1.411444 |
|
0.000 |
| |
|
2011 |
|
$1.326711 |
|
$1.221157 |
|
0.000 |
| |
|
2010 |
|
$1.199415 |
|
$1.326711 |
|
0.000 |
| |
|
2009 |
|
$1.038182 |
|
$1.199415 |
|
0.000 |
| |
|
2008 |
|
$1.654667 |
|
$1.038182 |
|
0.000 |
| |
|
2007 |
|
$1.643808 |
|
$1.654667 |
|
0.000 |
| |
|
2006 |
|
$1.385118 |
|
$1.643808 |
|
0.000 |
| |
|
2005 |
|
$1.347963 |
|
$1.385118 |
|
0.000 |
| |
|
2004 |
|
$1.230996 |
|
$1.347963 |
|
0.000 |
| MidCap Stock Portfolio - Service Class |
|
2013 |
|
$1.729318 |
|
$2.281464 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.479652 |
|
$1.729318 |
|
0.000 |
| |
|
2011 |
|
$1.507665 |
|
$1.479652 |
|
0.000 |
| |
|
2010 |
|
$1.212561 |
|
$1.507665 |
|
0.000 |
| |
|
2009 |
|
$0.914827 |
|
$1.212561 |
|
0.000 |
| |
|
2008 |
|
$1.568550 |
|
$0.914827 |
|
0.000 |
| |
|
2007 |
|
$1.579753 |
|
$1.568550 |
|
0.000 |
| |
|
2006 |
|
$1.497874 |
|
$1.579753 |
|
0.000 |
| |
|
2005 |
|
$1.403803 |
|
$1.497874 |
|
0.000 |
| |
|
2004 |
|
$1.254809 |
|
$1.403803 |
|
0.000 |
| Technology Growth Portfolio - Service Class |
|
2013 |
|
$1.733274 |
|
$2.249212 |
|
0.000 |
| Sub-Account inception October 1, 1999 |
|
2012 |
|
$1.534331 |
|
$1.733274 |
|
0.000 |
| |
|
2011 |
|
$1.703531 |
|
$1.534331 |
|
0.000 |
| |
|
2010 |
|
$1.341475 |
|
$1.703531 |
|
0.000 |
| |
|
2009 |
|
$0.871977 |
|
$1.341475 |
|
9,813.898 |
| |
|
2008 |
|
$1.515386 |
|
$0.871977 |
|
12,346.244 |
| |
|
2007 |
|
$1.352134 |
|
$1.515386 |
|
9,081.160 |
| |
|
2006 |
|
$1.326904 |
|
$1.352134 |
|
9,764.723 |
| |
|
2005 |
|
$1.309118 |
|
$1.326904 |
|
0.000 |
| |
|
2004 |
|
$8,474.073 |
|
$1.309118 |
|
9,337.000 |
34
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.90% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.017003 |
|
$1.108978 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017003 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.015477 |
|
$1.067010 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015477 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.020948 |
|
$1.167298 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020948 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.006254 |
|
$1.080070 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006254 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.001328 |
|
$1.136037 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001328 |
|
0.000 |
| TA Market Participation Strategy - Service Class |
|
2013 |
|
$0.988629 |
|
$1.108890 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.988629 |
|
0.000 |
| TA PIMCO Tactical - Balanced - Service Class |
|
2013 |
|
$0.991729 |
|
$1.088536 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.991729 |
|
0.000 |
| TA PIMCO Tactical - Conservative - Service Class |
|
2013 |
|
$0.994601 |
|
$1.055660 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.994601 |
|
0.000 |
| TA PIMCO Tactical - Growth - Service Class |
|
2013 |
|
$0.986557 |
|
$1.130861 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.986557 |
|
0.000 |
| TA Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.019031 |
|
$1.114348 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019031 |
|
0.000 |
| TA Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.015605 |
|
$1.071119 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015605 |
|
0.000 |
| TA Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.023148 |
|
$1.192636 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023148 |
|
0.000 |
| TA WMC Diversified Growth - Initial Class |
|
2013 |
|
$1.560518 |
|
$2.028606 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.405269 |
|
$1.560518 |
|
0.000 |
| |
|
2011 |
|
$1.487435 |
|
$1.405269 |
|
0.000 |
| |
|
2010 |
|
$1.286537 |
|
$1.487435 |
|
0.000 |
| |
|
2009 |
|
$1.014732 |
|
$1.286537 |
|
0.000 |
| |
|
2008 |
|
$1.915237 |
|
$1.014732 |
|
0.000 |
| |
|
2007 |
|
$1.678485 |
|
$1.915237 |
|
0.000 |
| |
|
2006 |
|
$1.573198 |
|
$1.678485 |
|
0.000 |
| |
|
2005 |
|
$1.375524 |
|
$1.573198 |
|
0.000 |
| |
|
2004 |
|
$1.210396 |
|
$1.375524 |
|
0.000 |
| Appreciation Portfolio - Service Class |
|
2013 |
|
$1.577138 |
|
$1.870052 |
|
0.000 |
| Sub-Account inception April 5, 1993 |
|
2012 |
|
$1.459314 |
|
$1.577138 |
|
0.000 |
| |
|
2011 |
|
$1.367467 |
|
$1.459314 |
|
0.000 |
| |
|
2010 |
|
$1.211212 |
|
$1.367467 |
|
0.000 |
| |
|
2009 |
|
$1.009766 |
|
$1.211212 |
|
0.000 |
| |
|
2008 |
|
$1.464231 |
|
$1.009766 |
|
0.000 |
| |
|
2007 |
|
$1.396514 |
|
$1.464231 |
|
0.000 |
| |
|
2006 |
|
$1.224510 |
|
$1.396514 |
|
0.000 |
| |
|
2005 |
|
$1.198366 |
|
$1.224510 |
|
0.000 |
| |
|
2004 |
|
$1.165308 |
|
$1.198366 |
|
0.000 |
| Opportunistic Small Cap Portfolio - Service Class |
|
2013 |
|
$1.222637 |
|
$1.778422 |
|
0.000 |
| Sub-Account inception January 22, 2001 |
|
2012 |
|
$1.036256 |
|
$1.222637 |
|
0.000 |
| |
|
2011 |
|
$1.228648 |
|
$1.036256 |
|
0.000 |
| |
|
2010 |
|
$0.957047 |
|
$1.228648 |
|
0.000 |
| |
|
2009 |
|
$0.775446 |
|
$0.957047 |
|
0.000 |
| |
|
2008 |
|
$1.269919 |
|
$0.775446 |
|
0.000 |
| |
|
2007 |
|
$1.458741 |
|
$1.269919 |
|
0.000 |
| |
|
2006 |
|
$1.435829 |
|
$1.458741 |
|
0.000 |
| |
|
2005 |
|
$1.386018 |
|
$1.435829 |
|
0.000 |
| |
|
2004 |
|
$1.271926 |
|
$1.386018 |
|
0.000 |
| Growth and Income Portfolio - Service Class |
|
2013 |
|
$1.426436 |
|
$1.909780 |
|
0.000 |
| Sub-Account inception January 22, 2001 |
|
2012 |
|
$1.234388 |
|
$1.426436 |
|
0.000 |
| |
|
2011 |
|
$1.296587 |
|
$1.234388 |
|
0.000 |
| |
|
2010 |
|
$1.116867 |
|
$1.296587 |
|
0.000 |
| |
|
2009 |
|
$0.886096 |
|
$1.116867 |
|
0.000 |
| |
|
2008 |
|
$1.518450 |
|
$0.886096 |
|
0.000 |
| |
|
2007 |
|
$1.430274 |
|
$1.518450 |
|
0.000 |
| |
|
2006 |
|
$1.274906 |
|
$1.430274 |
|
0.000 |
| |
|
2005 |
|
$1.258666 |
|
$1.274906 |
|
0.000 |
| |
|
2004 |
|
$1.196302 |
|
$1.258666 |
|
0.000 |
35
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.90% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International Equity Portfolio - Service Class |
|
2013 |
|
$1.937321 |
|
$2.232605 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.607287 |
|
$1.937321 |
|
0.000 |
| |
|
2011 |
|
$1.924848 |
|
$1.607287 |
|
0.000 |
| |
|
2010 |
|
$1.787338 |
|
$1.924848 |
|
0.000 |
| |
|
2009 |
|
$1.458389 |
|
$1.787338 |
|
0.000 |
| |
|
2008 |
|
$2.578338 |
|
$1.458389 |
|
0.000 |
| |
|
2007 |
|
$2.248876 |
|
$2.578338 |
|
0.000 |
| |
|
2006 |
|
$1.862141 |
|
$2.248876 |
|
0.000 |
| |
|
2005 |
|
$1.657837 |
|
$1.862141 |
|
0.000 |
| |
|
2004 |
|
$1.360279 |
|
$1.657837 |
|
0.000 |
| International Value Portfolio - Service Class |
|
2013 |
|
$1.537456 |
|
$1.851177 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.393710 |
|
$1.537456 |
|
0.000 |
| |
|
2011 |
|
$1.748178 |
|
$1.393710 |
|
0.000 |
| |
|
2010 |
|
$1.709296 |
|
$1.748178 |
|
0.000 |
| |
|
2009 |
|
$1.333124 |
|
$1.709296 |
|
0.000 |
| |
|
2008 |
|
$2.172995 |
|
$1.333124 |
|
0.000 |
| |
|
2007 |
|
$2.130878 |
|
$2.172995 |
|
0.000 |
| |
|
2006 |
|
$1.774112 |
|
$2.130878 |
|
0.000 |
| |
|
2005 |
|
$1.618509 |
|
$1.774112 |
|
0.000 |
| |
|
2004 |
|
$1.376355 |
|
$1.618509 |
|
0.000 |
| Quality Bond Portfolio - Service Class |
|
2013 |
|
$1.295753 |
|
$1.248755 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.237641 |
|
$1.295753 |
|
0.000 |
| |
|
2011 |
|
$1.180989 |
|
$1.237641 |
|
0.000 |
| |
|
2010 |
|
$1.112198 |
|
$1.180989 |
|
0.000 |
| |
|
2009 |
|
$0.988707 |
|
$1.112198 |
|
0.000 |
| |
|
2008 |
|
$1.054571 |
|
$0.988707 |
|
0.000 |
| |
|
2007 |
|
$1.040344 |
|
$1.054571 |
|
0.000 |
| |
|
2006 |
|
$1.020255 |
|
$1.040344 |
|
0.000 |
| |
|
2005 |
|
$1.016607 |
|
$1.020255 |
|
0.000 |
| |
|
2004 |
|
$1.005320 |
|
$1.016607 |
|
0.000 |
| Money Market Portfolio - Initial Class |
|
2013 |
|
$0.975475 |
|
$.957276 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.994118 |
|
$0.975475 |
|
0.000 |
| |
|
2011 |
|
$1.012897 |
|
$0.994118 |
|
0.000 |
| |
|
2010 |
|
$1.032009 |
|
$1.012897 |
|
0.000 |
| |
|
2009 |
|
$1.050259 |
|
$1.032009 |
|
0.000 |
| |
|
2008 |
|
$1.043729 |
|
$1.050259 |
|
0.000 |
| |
|
2007 |
|
$1.014273 |
|
$1.043729 |
|
0.000 |
| |
|
2006 |
|
$0.988145 |
|
$1.014273 |
|
0.000 |
| |
|
2005 |
|
$0.980802 |
|
$0.988145 |
|
0.000 |
| |
|
2004 |
|
$0.991521 |
|
$0.980802 |
|
0.000 |
| Dreyfus Stock Index Fund, Inc. - Service Class |
|
2013 |
|
$1.509849 |
|
$1.951489 |
|
0.000 |
| Sub-Account inception January 22, 2001 |
|
2012 |
|
$1.332499 |
|
$1.509849 |
|
0.000 |
| |
|
2011 |
|
$1.336111 |
|
$1.332499 |
|
0.000 |
| |
|
2010 |
|
$1.188683 |
|
$1.336111 |
|
0.000 |
| |
|
2009 |
|
$0.960971 |
|
$1.188683 |
|
0.000 |
| |
|
2008 |
|
$1.562417 |
|
$0.960971 |
|
0.000 |
| |
|
2007 |
|
$1.516569 |
|
$1.562417 |
|
0.000 |
| |
|
2006 |
|
$1.341336 |
|
$1.516569 |
|
0.000 |
| |
|
2005 |
|
$1.308726 |
|
$1.341336 |
|
0.000 |
| |
|
2004 |
|
$1.208543 |
|
$1.308726 |
|
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.450044 |
|
$1.906784 |
|
0.000 |
| Sub-Account inception October 7, 1993 |
|
2012 |
|
$1.322974 |
|
$1.450044 |
|
0.000 |
| |
|
2011 |
|
$1.339340 |
|
$1.322974 |
|
0.000 |
| |
|
2010 |
|
$1.191461 |
|
$1.339340 |
|
0.000 |
| |
|
2009 |
|
$0.909843 |
|
$1.191461 |
|
0.000 |
| |
|
2008 |
|
$1.417390 |
|
$0.909843 |
|
0.000 |
| |
|
2007 |
|
$1.343760 |
|
$1.417390 |
|
0.000 |
| |
|
2006 |
|
$1.256661 |
|
$1.343760 |
|
0.000 |
| |
|
2005 |
|
$1.238934 |
|
$1.256661 |
|
0.000 |
| |
|
2004 |
|
$1.191759 |
|
$1.238934 |
|
0.000 |
36
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.90% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value Portfolio - Service Class |
|
2013 |
|
$1.438533 |
|
$1.941454 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.242138 |
|
$1.438533 |
|
0.000 |
| |
|
2011 |
|
$1.346853 |
|
$1.242138 |
|
0.000 |
| |
|
2010 |
|
$1.215236 |
|
$1.346853 |
|
0.000 |
| |
|
2009 |
|
$1.049823 |
|
$1.215236 |
|
0.000 |
| |
|
2008 |
|
$1.669925 |
|
$1.049823 |
|
0.000 |
| |
|
2007 |
|
$1.655701 |
|
$1.669925 |
|
0.000 |
| |
|
2006 |
|
$1.392408 |
|
$1.655701 |
|
0.000 |
| |
|
2005 |
|
$1.347963 |
|
$1.392408 |
|
0.000 |
| |
|
2004 |
|
$1.232613 |
|
$1.347963 |
|
0.000 |
| MidCap Stock Portfolio - Service Class |
|
2013 |
|
$1.762418 |
|
$2.329694 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.505001 |
|
$1.762418 |
|
0.000 |
| |
|
2011 |
|
$1.530503 |
|
$1.505001 |
|
0.000 |
| |
|
2010 |
|
$1.228524 |
|
$1.530503 |
|
0.000 |
| |
|
2009 |
|
$0.925061 |
|
$1.228524 |
|
0.000 |
| |
|
2008 |
|
$1.582978 |
|
$0.925061 |
|
0.000 |
| |
|
2007 |
|
$1.591143 |
|
$1.582978 |
|
0.000 |
| |
|
2006 |
|
$1.505724 |
|
$1.591143 |
|
0.000 |
| |
|
2005 |
|
$1.408405 |
|
$1.505724 |
|
0.000 |
| |
|
2004 |
|
$1.256448 |
|
$1.408405 |
|
0.000 |
| Technology Growth Portfolio - Service Class |
|
2013 |
|
$1.766490 |
|
$2.296814 |
|
0.000 |
| Sub-Account inception October 1, 1999 |
|
2012 |
|
$1.560653 |
|
$1.766490 |
|
0.000 |
| |
|
2011 |
|
$1.729372 |
|
$1.560653 |
|
0.000 |
| |
|
2010 |
|
$1.359161 |
|
$1.729372 |
|
0.000 |
| |
|
2009 |
|
$0.881738 |
|
$1.359161 |
|
0.000 |
| |
|
2008 |
|
$1.529336 |
|
$0.881738 |
|
0.000 |
| |
|
2007 |
|
$1.361895 |
|
$1.529336 |
|
0.000 |
| |
|
2006 |
|
$1.333871 |
|
$1.361895 |
|
0.000 |
| |
|
2005 |
|
$1.313424 |
|
$1.333871 |
|
0.000 |
| |
|
2004 |
|
$1.335341 |
|
$1.313424 |
|
0.000 |
37
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.85% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.017346 |
|
$1.109889 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017346 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.015807 |
|
$1.067877 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015807 |
|
0.000 |
| TA Aegon Tactical Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.021278 |
|
$1.168248 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021278 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.006593 |
|
$1.080957 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006593 |
|
0.000 |
| TA Legg Mason Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.001649 |
|
$1.136951 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001649 |
|
0.000 |
| TA Market Participation Strategy - Service Class |
|
2013 |
|
$0.988770 |
|
$1.109592 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.988770 |
|
0.000 |
| TA PIMCO Tactical - Balanced - Service Class |
|
2013 |
|
$0.991871 |
|
$1.089237 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.991871 |
|
0.000 |
| TA PIMCO Tactical - Conservative - Service Class |
|
2013 |
|
$0.994744 |
|
$1.056325 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.994744 |
|
0.000 |
| TA PIMCO Tactical - Growth - Service Class |
|
2013 |
|
$0.986697 |
|
$1.131589 |
|
0.000 |
| Sub-Account inception September 17,
2012 |
|
2012 |
|
$0.000000 |
|
$0.986697 |
|
0.000 |
| TA Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.019364 |
|
$1.115265 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019364 |
|
0.000 |
| TA Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.015940 |
|
$1.071989 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.015940 |
|
0.000 |
| TA Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.023484 |
|
$1.193624 |
|
0.000 |
| Sub-Account inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023484 |
|
0.000 |
| TA WMC Diversified Growth - Initial Class |
|
2013 |
|
$1.701475 |
|
$2.212937 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.531443 |
|
$1.701475 |
|
0.000 |
| |
|
2011 |
|
$1.620193 |
|
$1.531443 |
|
0.000 |
| |
|
2010 |
|
$1.400669 |
|
$1.620193 |
|
0.000 |
| |
|
2009 |
|
$1.104201 |
|
$1.400669 |
|
0.000 |
| |
|
2008 |
|
$2.083069 |
|
$1.104201 |
|
0.000 |
| |
|
2007 |
|
$1.824664 |
|
$2.083069 |
|
0.000 |
| |
|
2006 |
|
$1.709367 |
|
$1.824664 |
|
0.000 |
| |
|
2005 |
|
$1.493861 |
|
$1.709367 |
|
0.000 |
| |
|
2004 |
|
$1.313882 |
|
$1.493861 |
|
0.000 |
| Appreciation Portfolio - Service Class |
|
2013 |
|
$1.582667 |
|
$1.877543 |
|
0.000 |
| Sub-Account inception April 5, 1993 |
|
2012 |
|
$1.463721 |
|
$1.582667 |
|
0.000 |
| |
|
2011 |
|
$1.370932 |
|
$1.463721 |
|
0.000 |
| |
|
2010 |
|
$1.213679 |
|
$1.370932 |
|
0.000 |
| |
|
2009 |
|
$1.011334 |
|
$1.213679 |
|
0.000 |
| |
|
2008 |
|
$1.465780 |
|
$1.011334 |
|
0.000 |
| |
|
2007 |
|
$1.397314 |
|
$1.465780 |
|
0.000 |
| |
|
2006 |
|
$1.224601 |
|
$1.397314 |
|
0.000 |
| |
|
2005 |
|
$1.204998 |
|
$1.224601 |
|
0.000 |
| |
|
2004 |
|
$1.164242 |
|
$1.204998 |
|
0.000 |
| Opportunistic Small Cap Portfolio - Service Class |
|
2013 |
|
$1.284367 |
|
$1.869109 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.088039 |
|
$1.284367 |
|
0.000 |
| |
|
2011 |
|
$1.289408 |
|
$1.088039 |
|
0.000 |
| |
|
2010 |
|
$1.003881 |
|
$1.289408 |
|
0.000 |
| |
|
2009 |
|
$0.812987 |
|
$1.003881 |
|
0.000 |
| |
|
2008 |
|
$1.330747 |
|
$0.812987 |
|
0.000 |
| |
|
2007 |
|
$1.527850 |
|
$1.330747 |
|
0.000 |
| |
|
2006 |
|
$1.503119 |
|
$1.527850 |
|
0.000 |
| |
|
2005 |
|
$1.450263 |
|
$1.503119 |
|
0.000 |
| |
|
2004 |
|
$1.330242 |
|
$1.450263 |
|
0.000 |
| Growth and Income Portfolio - Service Class |
|
2013 |
|
$1.478697 |
|
$1.980728 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.278981 |
|
$1.478697 |
|
0.000 |
| |
|
2011 |
|
$1.342771 |
|
$1.278981 |
|
0.000 |
| |
|
2010 |
|
$1.156091 |
|
$1.342771 |
|
0.000 |
| |
|
2009 |
|
$0.916776 |
|
$1.156091 |
|
0.000 |
| |
|
2008 |
|
$1.570253 |
|
$0.916776 |
|
0.000 |
| |
|
2007 |
|
$1.478330 |
|
$1.570253 |
|
0.000 |
| |
|
2006 |
|
$1.317097 |
|
$1.478330 |
|
0.000 |
| |
|
2005 |
|
$1.299686 |
|
$1.317097 |
|
0.000 |
| |
|
2004 |
|
$1.234690 |
|
$1.299686 |
|
0.000 |
38
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.85% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International Equity Portfolio - Service Class |
|
2013 |
|
$2.022123 |
|
$2.331475 |
|
0.000 |
| Sub-Account inception December 15, 1994 |
|
2012 |
|
$1.676813 |
|
$2.022123 |
|
0.000 |
| |
|
2011 |
|
$2.007130 |
|
$1.676813 |
|
0.000 |
| |
|
2010 |
|
$1.862829 |
|
$2.007130 |
|
0.000 |
| |
|
2009 |
|
$1.519240 |
|
$1.862829 |
|
0.000 |
| |
|
2008 |
|
$2.684602 |
|
$1.519240 |
|
0.000 |
| |
|
2007 |
|
$2.340402 |
|
$2.684602 |
|
0.000 |
| |
|
2006 |
|
$1.936975 |
|
$2.340402 |
|
0.000 |
| |
|
2005 |
|
$1.578705 |
|
$1.936975 |
|
0.000 |
| |
|
2004 |
|
$1.413562 |
|
$1.578705 |
|
0.000 |
| International Value Portfolio - Service Class |
|
2013 |
|
$1.505549 |
|
$1.813641 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.364113 |
|
$1.505549 |
|
0.000 |
| |
|
2011 |
|
$1.710215 |
|
$1.364113 |
|
0.000 |
| |
|
2010 |
|
$1.671358 |
|
$1.710215 |
|
0.000 |
| |
|
2009 |
|
$1.302895 |
|
$1.671358 |
|
0.000 |
| |
|
2008 |
|
$2.122673 |
|
$1.302895 |
|
0.000 |
| |
|
2007 |
|
$2.080511 |
|
$2.122673 |
|
0.000 |
| |
|
2006 |
|
$1.731335 |
|
$2.080511 |
|
0.000 |
| |
|
2005 |
|
$1.578705 |
|
$1.731335 |
|
0.000 |
| |
|
2004 |
|
$1.341858 |
|
$1.578705 |
|
0.000 |
| Quality Bond Portfolio - Service Class |
|
2013 |
|
$1.359714 |
|
$1.311022 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.298084 |
|
$1.359714 |
|
0.000 |
| |
|
2011 |
|
$1.238054 |
|
$1.298084 |
|
0.000 |
| |
|
2010 |
|
$1.165371 |
|
$1.238054 |
|
0.000 |
| |
|
2009 |
|
$1.035471 |
|
$1.165371 |
|
0.000 |
| |
|
2008 |
|
$1.103899 |
|
$1.035471 |
|
0.000 |
| |
|
2007 |
|
$1.088476 |
|
$1.103899 |
|
0.000 |
| |
|
2006 |
|
$1.066931 |
|
$1.088476 |
|
0.000 |
| |
|
2005 |
|
$1.062592 |
|
$1.066931 |
|
0.000 |
| |
|
2004 |
|
$1.050275 |
|
$1.062592 |
|
0.000 |
| Money Market Portfolio - Initial Class |
|
2013 |
|
$0.975882 |
|
$.958152 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$0.994036 |
|
$0.975882 |
|
0.000 |
| |
|
2011 |
|
$1.012293 |
|
$0.994036 |
|
0.000 |
| |
|
2010 |
|
$1.030925 |
|
$1.012293 |
|
0.000 |
| |
|
2009 |
|
$1.048619 |
|
$1.030925 |
|
0.000 |
| |
|
2008 |
|
$1.041587 |
|
$1.048619 |
|
0.000 |
| |
|
2007 |
|
$1.011691 |
|
$1.041587 |
|
0.000 |
| |
|
2006 |
|
$0.985157 |
|
$1.011691 |
|
0.000 |
| |
|
2005 |
|
$0.977374 |
|
$0.985157 |
|
0.000 |
| |
|
2004 |
|
$0.987580 |
|
$0.977374 |
|
0.000 |
| Dreyfus Stock Index Fund, Inc. - Service Class |
|
2013 |
|
$1.583357 |
|
$2.047498 |
|
0.000 |
| Sub-Account inception January 4, 1993 |
|
2012 |
|
$1.396673 |
|
$1.583357 |
|
0.000 |
| |
|
2011 |
|
$1.399781 |
|
$1.396673 |
|
0.000 |
| |
|
2010 |
|
$1.244716 |
|
$1.399781 |
|
0.000 |
| |
|
2009 |
|
$1.005793 |
|
$1.244716 |
|
0.000 |
| |
|
2008 |
|
$1.634494 |
|
$1.005793 |
|
0.000 |
| |
|
2007 |
|
$1.585757 |
|
$1.634494 |
|
0.000 |
| |
|
2006 |
|
$1.401851 |
|
$1.585757 |
|
0.000 |
| |
|
2005 |
|
$1.367104 |
|
$1.401851 |
|
0.000 |
| |
|
2004 |
|
$1.261826 |
|
$1.367104 |
|
0.000 |
| The Dreyfus Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.485758 |
|
$1.954702 |
|
0.000 |
| Sub-Account inception October 7, 1993 |
|
2012 |
|
$1.354880 |
|
$1.485758 |
|
0.000 |
| |
|
2011 |
|
$1.370959 |
|
$1.354880 |
|
0.000 |
| |
|
2010 |
|
$1.218984 |
|
$1.370959 |
|
0.000 |
| |
|
2009 |
|
$0.930400 |
|
$1.218984 |
|
0.000 |
| |
|
2008 |
|
$1.448686 |
|
$0.930400 |
|
0.000 |
| |
|
2007 |
|
$1.372749 |
|
$1.448686 |
|
0.000 |
| |
|
2006 |
|
$1.283144 |
|
$1.372749 |
|
0.000 |
| |
|
2005 |
|
$1.264427 |
|
$1.283144 |
|
0.000 |
| |
|
2004 |
|
$1.215676 |
|
$1.264427 |
|
0.000 |
39
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| |
|
|
|
1.85% |
| Subaccount |
|
Year |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value Portfolio - Service Class |
|
2013 |
|
$1.483250 |
|
$2.002784 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.280124 |
|
$1.483250 |
|
0.000 |
| |
|
2011 |
|
$1.387368 |
|
$1.280124 |
|
0.000 |
| |
|
2010 |
|
$1.251182 |
|
$1.387368 |
|
0.000 |
| |
|
2009 |
|
$1.080340 |
|
$1.251182 |
|
0.000 |
| |
|
2008 |
|
$1.717619 |
|
$1.080340 |
|
0.000 |
| |
|
2007 |
|
$1.702143 |
|
$1.717619 |
|
0.000 |
| |
|
2006 |
|
$1.430759 |
|
$1.702143 |
|
0.000 |
| |
|
2005 |
|
$1.384409 |
|
$1.430759 |
|
0.000 |
| |
|
2004 |
|
$1.265323 |
|
$1.384409 |
|
0.000 |
| MidCap Stock Portfolio - Service Class |
|
2013 |
|
$1.876100 |
|
$2.481189 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.601291 |
|
$1.876100 |
|
0.000 |
| |
|
2011 |
|
$1.627623 |
|
$1.601291 |
|
0.000 |
| |
|
2010 |
|
$1.305835 |
|
$1.627623 |
|
0.000 |
| |
|
2009 |
|
$0.982793 |
|
$1.305835 |
|
0.000 |
| |
|
2008 |
|
$1.680930 |
|
$0.982793 |
|
0.000 |
| |
|
2007 |
|
$1.688770 |
|
$1.680930 |
|
0.000 |
| |
|
2006 |
|
$1.597324 |
|
$1.688770 |
|
0.000 |
| |
|
2005 |
|
$1.493350 |
|
$1.597324 |
|
0.000 |
| |
|
2004 |
|
$1.331565 |
|
$1.493350 |
|
0.000 |
| Technology Growth Portfolio - Service Class |
|
2013 |
|
$1.977394 |
|
$2.572293 |
|
0.000 |
| Sub-Account inception October 1, 1999 |
|
2012 |
|
$1.746120 |
|
$1.977394 |
|
0.000 |
| |
|
2011 |
|
$1.933930 |
|
$1.746120 |
|
0.000 |
| |
|
2010 |
|
$1.519173 |
|
$1.933930 |
|
0.000 |
| |
|
2009 |
|
$0.985063 |
|
$1.519173 |
|
0.000 |
| |
|
2008 |
|
$1.707701 |
|
$0.985063 |
|
0.000 |
| |
|
2007 |
|
$1.519971 |
|
$1.707701 |
|
0.000 |
| |
|
2006 |
|
$1.487968 |
|
$1.519971 |
|
0.000 |
| |
|
2005 |
|
$1.464455 |
|
$1.487968 |
|
0.000 |
| |
|
2004 |
|
$1.488164 |
|
$1.464455 |
|
0.000 |
40
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.80% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.017676 |
|
$1.110811 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017676 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.016144 |
|
1.068753 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016144 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.021615 |
|
1.169214 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021615 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.006923 |
|
$1.081846 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.006923 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.001982 |
|
$1.137899 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.001982 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.988910 |
|
$1.110286 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988910 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.992006 |
|
$1.089914 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992006 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.994882 |
|
$1.056999 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.994882 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.986837 |
|
$1.132301 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.986837 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.019701 |
|
$1.116181 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019701 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.016267 |
|
$1.072872 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016267 |
|
0.000 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.023820 |
|
$1.194599 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023820 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.709962 |
|
$2.225054 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.538326 |
|
$1.709962 |
|
0.000 |
| |
|
2011 |
|
$1.626675 |
|
$1.538326 |
|
0.000 |
| |
|
2010 |
|
$1.405581 |
|
$1.626675 |
|
0.000 |
| |
|
2009 |
|
$1.107532 |
|
$1.405581 |
|
0.000 |
| |
|
2008 |
|
$2.088323 |
|
$1.107532 |
|
0.000 |
| |
|
2007 |
|
$1.828365 |
|
$2.088323 |
|
0.000 |
| |
|
2006 |
|
$1.712013 |
|
$1.828365 |
|
0.000 |
| |
|
2005 |
|
$1.495442 |
|
$1.712013 |
|
0.000 |
| |
|
2004 |
|
$1.314625 |
|
$1.495442 |
|
0.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.590554 |
|
$1.887835 |
|
0.000 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.470280 |
|
$1.590554 |
|
0.000 |
| |
|
2011 |
|
$1.376400 |
|
$1.470280 |
|
0.000 |
| |
|
2010 |
|
$1.217919 |
|
$1.376400 |
|
0.000 |
| |
|
2009 |
|
$1.014361 |
|
$1.217919 |
|
52,299.662 |
| |
|
2008 |
|
$1.469444 |
|
$1.014361 |
|
141,814.560 |
| |
|
2007 |
|
$1.400111 |
|
$1.469444 |
|
154,365.984 |
| |
|
2006 |
|
$1.226465 |
|
$1.400111 |
|
154,609.583 |
| |
|
2005 |
|
$1.199111 |
|
$1.226465 |
|
153,649.000 |
| |
|
2004 |
|
$1.164893 |
|
$1.199111 |
|
163,693.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$1.290791 |
|
$1.879378 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.092935 |
|
$1.290791 |
|
0.000 |
| |
|
2011 |
|
$1.294579 |
|
$1.092935 |
|
0.000 |
| |
|
2010 |
|
$1.007413 |
|
$1.294579 |
|
0.000 |
| |
|
2009 |
|
$0.815457 |
|
$1.007413 |
|
0.000 |
| |
|
2008 |
|
$1.334120 |
|
$0.815457 |
|
0.000 |
| |
|
2007 |
|
$1.530966 |
|
$1.334120 |
|
0.000 |
| |
|
2006 |
|
$1.505448 |
|
$1.530966 |
|
0.000 |
| |
|
2005 |
|
$1.451797 |
|
$1.505448 |
|
0.000 |
| |
|
2004 |
|
$1.330986 |
|
$1.451797 |
|
0.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.486136 |
|
$1.991668 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.284776 |
|
$1.486136 |
|
0.000 |
| |
|
2011 |
|
$1.348194 |
|
$1.284776 |
|
0.000 |
| |
|
2010 |
|
$1.160190 |
|
$1.348194 |
|
0.000 |
| |
|
2009 |
|
$0.919553 |
|
$1.160190 |
|
0.000 |
| |
|
2008 |
|
$1.574236 |
|
$0.919553 |
|
0.000 |
| |
|
2007 |
|
$1.481347 |
|
$1.574236 |
|
0.000 |
| |
|
2006 |
|
$1.319148 |
|
$1.481347 |
|
0.000 |
| |
|
2005 |
|
$1.301064 |
|
$1.319148 |
|
0.000 |
| |
|
2004 |
|
$1.235390 |
|
$1.301064 |
|
0.000 |
41
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.80% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$2.032245 |
|
$2.344298 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.684382 |
|
$2.032245 |
|
0.000 |
| |
|
2011 |
|
$2.015197 |
|
$1.684382 |
|
0.000 |
| |
|
2010 |
|
$1.869406 |
|
$2.015197 |
|
0.000 |
| |
|
2009 |
|
$1.523853 |
|
$1.869406 |
|
0.000 |
| |
|
2008 |
|
$2.691402 |
|
$1.523853 |
|
9,488.324 |
| |
|
2007 |
|
$2.345178 |
|
$2.691402 |
|
10,190.773 |
| |
|
2006 |
|
$1.939982 |
|
$2.345178 |
|
9,446.647 |
| |
|
2005 |
|
$1.725444 |
|
$1.939982 |
|
11,015.000 |
| |
|
2004 |
|
$1.414355 |
|
$1.725444 |
|
12,526.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.513061 |
|
$1.823592 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.370237 |
|
$1.513061 |
|
0.000 |
| |
|
2011 |
|
$1.717053 |
|
$1.370237 |
|
0.000 |
| |
|
2010 |
|
$1.677223 |
|
$1.717053 |
|
0.000 |
| |
|
2009 |
|
$1.306827 |
|
$1.677223 |
|
0.000 |
| |
|
2008 |
|
$2.128035 |
|
$1.306827 |
|
10,981.402 |
| |
|
2007 |
|
$2.084724 |
|
$2.128035 |
|
11,794.385 |
| |
|
2006 |
|
$1.733998 |
|
$2.084724 |
|
10,973.832 |
| |
|
2005 |
|
$1.580366 |
|
$1.733998 |
|
11,998.000 |
| |
|
2004 |
|
$1.342603 |
|
$1.580366 |
|
13,070.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.366510 |
|
$1.318231 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.303932 |
|
$1.366510 |
|
0.000 |
| |
|
2011 |
|
$1.243024 |
|
$1.303932 |
|
0.000 |
| |
|
2010 |
|
$1.169470 |
|
$1.243024 |
|
0.000 |
| |
|
2009 |
|
$1.038599 |
|
$1.169470 |
|
0.000 |
| |
|
2008 |
|
$1.106686 |
|
$1.038599 |
|
19,372.979 |
| |
|
2007 |
|
$1.090681 |
|
$1.106686 |
|
20,807.221 |
| |
|
2006 |
|
$1.068577 |
|
$1.090681 |
|
19,307.757 |
| |
|
2005 |
|
$1.063714 |
|
$1.068577 |
|
18,246.000 |
| |
|
2004 |
|
$1.050868 |
|
$1.063714 |
|
16,973.000 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$0.980762 |
|
$0.963420 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$0.998509 |
|
$0.980762 |
|
0.000 |
| |
|
2011 |
|
$1.016382 |
|
$0.998509 |
|
0.000 |
| |
|
2010 |
|
$1.034530 |
|
$1.016382 |
|
0.000 |
| |
|
2009 |
|
$1.051803 |
|
$1.034530 |
|
95,114.822 |
| |
|
2008 |
|
$1.044238 |
|
$1.051803 |
|
157,175.405 |
| |
|
2007 |
|
$1.013760 |
|
$1.044238 |
|
177,561.350 |
| |
|
2006 |
|
$0.986677 |
|
$1.013760 |
|
0.000 |
| |
|
2005 |
|
$0.978394 |
|
$0.986677 |
|
0.000 |
| |
|
2004 |
|
$0.988127 |
|
$0.978394 |
|
0.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.591297 |
|
$2.058770 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.402980 |
|
$1.591297 |
|
0.000 |
| |
|
2011 |
|
$1.405409 |
|
$1.402980 |
|
0.000 |
| |
|
2010 |
|
$1.249102 |
|
$1.405409 |
|
0.000 |
| |
|
2009 |
|
$1.008832 |
|
$1.249102 |
|
0.000 |
| |
|
2008 |
|
$1.638614 |
|
$1.008832 |
|
0.000 |
| |
|
2007 |
|
$1.588964 |
|
$1.638614 |
|
0.000 |
| |
|
2006 |
|
$1.403995 |
|
$1.588964 |
|
0.000 |
| |
|
2005 |
|
$1.368526 |
|
$1.403995 |
|
0.000 |
| |
|
2004 |
|
$1.262528 |
|
$1.368526 |
|
0.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.493123 |
|
$1.965359 |
|
0.000 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$1.360933 |
|
$1.493123 |
|
0.000 |
| |
|
2011 |
|
$1.376404 |
|
$1.360933 |
|
0.000 |
| |
|
2010 |
|
$1.223245 |
|
$1.376404 |
|
0.000 |
| |
|
2009 |
|
$0.933196 |
|
$1.223245 |
|
0.000 |
| |
|
2008 |
|
$1.452325 |
|
$0.933196 |
|
0.000 |
| |
|
2007 |
|
$1.375524 |
|
$1.452325 |
|
0.000 |
| |
|
2006 |
|
$1.285100 |
|
$1.375524 |
|
0.000 |
| |
|
2005 |
|
$1.265741 |
|
$1.285100 |
|
0.000 |
| |
|
2004 |
|
$1.216341 |
|
$1.265741 |
|
0.000 |
42
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.80% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.490639 |
|
$2.013752 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.285870 |
|
$1.490639 |
|
0.000 |
| |
|
2011 |
|
$1.392914 |
|
$1.285870 |
|
0.000 |
| |
|
2010 |
|
$1.255571 |
|
$1.392914 |
|
0.000 |
| |
|
2009 |
|
$1.083601 |
|
$1.255571 |
|
0.000 |
| |
|
2008 |
|
$1.721957 |
|
$1.083601 |
|
0.000 |
| |
|
2007 |
|
$1.705606 |
|
$1.721957 |
|
0.000 |
| |
|
2006 |
|
$1.432970 |
|
$1.705606 |
|
0.000 |
| |
|
2005 |
|
$1.385876 |
|
$1.432970 |
|
0.000 |
| |
|
2004 |
|
$1.266034 |
|
$1.385876 |
|
0.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.885453 |
|
$2.494775 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.608473 |
|
$1.885453 |
|
0.000 |
| |
|
2011 |
|
$1.634119 |
|
$1.608473 |
|
0.000 |
| |
|
2010 |
|
$1.310406 |
|
$1.634119 |
|
0.000 |
| |
|
2009 |
|
$0.985744 |
|
$1.310406 |
|
54,765.046 |
| |
|
2008 |
|
$1.685145 |
|
$0.985744 |
|
37,404.929 |
| |
|
2007 |
|
$1.692166 |
|
$1.685145 |
|
38,382.605 |
| |
|
2006 |
|
$1.599759 |
|
$1.692166 |
|
41,536.873 |
| |
|
2005 |
|
$1.494902 |
|
$1.599759 |
|
47,600.000 |
| |
|
2004 |
|
$1.332293 |
|
$1.494902 |
|
52,199.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$1.987252 |
|
$2.586380 |
|
0.000 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.753955 |
|
$1.987252 |
|
0.000 |
| |
|
2011 |
|
$1.941660 |
|
$1.753955 |
|
0.000 |
| |
|
2010 |
|
$1.524501 |
|
$1.941660 |
|
0.000 |
| |
|
2009 |
|
$0.988039 |
|
$1.524501 |
|
0.000 |
| |
|
2008 |
|
$1.712011 |
|
$0.988039 |
|
0.000 |
| |
|
2007 |
|
$1.523057 |
|
$1.712011 |
|
0.000 |
| |
|
2006 |
|
$1.490264 |
|
$1.523057 |
|
0.000 |
| |
|
2005 |
|
$1.465997 |
|
$1.490264 |
|
0.000 |
| |
|
2004 |
|
$1.489000 |
|
$1.465997 |
|
0.000 |
43
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.70% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.018341 |
|
$1.112609 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018341 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.016813 |
|
$1.070511 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016813 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.022284 |
|
$1.171123 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022284 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.007584 |
|
$1.083621 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.007584 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.002635 |
|
$1.139762 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002635 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.989191 |
|
$1.111689 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989191 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.992290 |
|
$1.091304 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992290 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.995161 |
|
$1.058329 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995161 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.987114 |
|
$1.133726 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987114 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.020362 |
|
$1.118006 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020362 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.016943 |
|
$1.074640 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.016943 |
|
0.000 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.024489 |
|
$1.196562 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024489 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.727104 |
|
$2.249579 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.552212 |
|
$1.727104 |
|
0.000 |
| |
|
2011 |
|
$1.639741 |
|
$1.552212 |
|
0.000 |
| |
|
2010 |
|
$1.415484 |
|
$1.639741 |
|
0.000 |
| |
|
2009 |
|
$1.114246 |
|
$1.415484 |
|
0.000 |
| |
|
2008 |
|
$2.098894 |
|
$1.114246 |
|
0.000 |
| |
|
2007 |
|
$1.835803 |
|
$2.098894 |
|
0.000 |
| |
|
2006 |
|
$1.717288 |
|
$1.835803 |
|
0.000 |
| |
|
2005 |
|
$1.498570 |
|
$1.717288 |
|
0.000 |
| |
|
2004 |
|
$1.316080 |
|
$1.498570 |
|
0.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.606507 |
|
$1.908634 |
|
0.000 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.483552 |
|
$1.606507 |
|
0.000 |
| |
|
2011 |
|
$1.387455 |
|
$1.483552 |
|
0.000 |
| |
|
2010 |
|
$1.226514 |
|
$1.387455 |
|
0.000 |
| |
|
2009 |
|
$1.020513 |
|
$1.226514 |
|
0.000 |
| |
|
2008 |
|
$1.476900 |
|
$1.020513 |
|
0.000 |
| |
|
2007 |
|
$1.405827 |
|
$1.476900 |
|
0.000 |
| |
|
2006 |
|
$1.230267 |
|
$1.405827 |
|
0.000 |
| |
|
2005 |
|
$1.201648 |
|
$1.230267 |
|
0.000 |
| |
|
2004 |
|
$1.166204 |
|
$1.201648 |
|
0.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$1.303689 |
|
$1.900036 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.102765 |
|
$1.303689 |
|
0.000 |
| |
|
2011 |
|
$1.304935 |
|
$1.102765 |
|
0.000 |
| |
|
2010 |
|
$1.014474 |
|
$1.304935 |
|
0.000 |
| |
|
2009 |
|
$0.820374 |
|
$1.014474 |
|
0.000 |
| |
|
2008 |
|
$1.340847 |
|
$0.820374 |
|
0.000 |
| |
|
2007 |
|
$1.537164 |
|
$1.340847 |
|
0.000 |
| |
|
2006 |
|
$1.511006 |
|
$1.537164 |
|
0.000 |
| |
|
2005 |
|
$1.454830 |
|
$1.511006 |
|
0.000 |
| |
|
2004 |
|
$1.332452 |
|
$1.454830 |
|
0.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.501014 |
|
$2.013581 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.296365 |
|
$1.501014 |
|
0.000 |
| |
|
2011 |
|
$1.359021 |
|
$1.296365 |
|
0.000 |
| |
|
2010 |
|
$1.168355 |
|
$1.359021 |
|
0.000 |
| |
|
2009 |
|
$0.925115 |
|
$1.168355 |
|
0.000 |
| |
|
2008 |
|
$1.582195 |
|
$0.925115 |
|
0.000 |
| |
|
2007 |
|
$1.487367 |
|
$1.582195 |
|
0.000 |
| |
|
2006 |
|
$1.323199 |
|
$1.487367 |
|
0.000 |
| |
|
2005 |
|
$1.303791 |
|
$1.323199 |
|
0.000 |
| |
|
2004 |
|
$1.236770 |
|
$1.303791 |
|
0.000 |
44
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.70% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$2.052612 |
|
$2.370125 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.699579 |
|
$2.052612 |
|
0.000 |
| |
|
2011 |
|
$2.031378 |
|
$1.699579 |
|
0.000 |
| |
|
2010 |
|
$1.882564 |
|
$2.031378 |
|
0.000 |
| |
|
2009 |
|
$1.533068 |
|
$1.882564 |
|
0.000 |
| |
|
2008 |
|
$2.705010 |
|
$1.533068 |
|
0.000 |
| |
|
2007 |
|
$2.354710 |
|
$2.705010 |
|
0.000 |
| |
|
2006 |
|
$1.945955 |
|
$2.354710 |
|
0.000 |
| |
|
2005 |
|
$1.729064 |
|
$1.945955 |
|
0.000 |
| |
|
2004 |
|
$1.415928 |
|
$1.729064 |
|
0.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.528260 |
|
$1.843716 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.382634 |
|
$1.528260 |
|
0.000 |
| |
|
2011 |
|
$1.730874 |
|
$1.382634 |
|
0.000 |
| |
|
2010 |
|
$1.689055 |
|
$1.730874 |
|
0.000 |
| |
|
2009 |
|
$1.314754 |
|
$1.689055 |
|
0.000 |
| |
|
2008 |
|
$2.138828 |
|
$1.314754 |
|
0.000 |
| |
|
2007 |
|
$2.093231 |
|
$2.138828 |
|
0.000 |
| |
|
2006 |
|
$1.739364 |
|
$2.093231 |
|
0.000 |
| |
|
2005 |
|
$1.583710 |
|
$1.739364 |
|
0.000 |
| |
|
2004 |
|
$1.344107 |
|
$1.583710 |
|
0.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.380173 |
|
$1.332730 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.315674 |
|
$1.380173 |
|
0.000 |
| |
|
2011 |
|
$1.252979 |
|
$1.315674 |
|
0.000 |
| |
|
2010 |
|
$1.177685 |
|
$1.252979 |
|
0.000 |
| |
|
2009 |
|
$1.044876 |
|
$1.177685 |
|
0.000 |
| |
|
2008 |
|
$1.112274 |
|
$1.044876 |
|
0.000 |
| |
|
2007 |
|
$1.095114 |
|
$1.112274 |
|
0.000 |
| |
|
2006 |
|
$1.071870 |
|
$1.095114 |
|
0.000 |
| |
|
2005 |
|
$1.065953 |
|
$1.071870 |
|
0.000 |
| |
|
2004 |
|
$1.052044 |
|
$1.065953 |
|
0.000 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$0.990574 |
|
$.974024 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.007485 |
|
$0.990574 |
|
0.000 |
| |
|
2011 |
|
$1.024554 |
|
$1.007485 |
|
0.000 |
| |
|
2010 |
|
$1.041848 |
|
$1.024554 |
|
0.000 |
| |
|
2009 |
|
$1.058170 |
|
$1.041848 |
|
0.000 |
| |
|
2008 |
|
$1.049530 |
|
$1.058170 |
|
0.000 |
| |
|
2007 |
|
$1.017894 |
|
$1.049530 |
|
0.000 |
| |
|
2006 |
|
$0.989733 |
|
$1.017894 |
|
0.000 |
| |
|
2005 |
|
$0.980468 |
|
$0.989733 |
|
0.000 |
| |
|
2004 |
|
$0.989235 |
|
$0.980468 |
|
0.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.607266 |
|
$2.081475 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.415663 |
|
$1.607266 |
|
0.000 |
| |
|
2011 |
|
$1.416723 |
|
$1.415663 |
|
0.000 |
| |
|
2010 |
|
$1.257929 |
|
$1.416723 |
|
0.000 |
| |
|
2009 |
|
$1.014971 |
|
$1.257929 |
|
0.000 |
| |
|
2008 |
|
$1.646956 |
|
$1.014971 |
|
0.000 |
| |
|
2007 |
|
$1.595466 |
|
$1.646956 |
|
0.000 |
| |
|
2006 |
|
$1.408349 |
|
$1.595466 |
|
0.000 |
| |
|
2005 |
|
$1.371412 |
|
$1.408349 |
|
0.000 |
| |
|
2004 |
|
$1.263942 |
|
$1.371412 |
|
0.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.508056 |
|
$1.986963 |
|
0.000 |
| Sub-Account inception January 22,
2001 |
|
2012 |
|
$1.373183 |
|
$1.508056 |
|
0.000 |
| |
|
2011 |
|
$1.387442 |
|
$1.373183 |
|
0.000 |
| |
|
2010 |
|
$1.231833 |
|
$1.387442 |
|
0.000 |
| |
|
2009 |
|
$0.938838 |
|
$1.231833 |
|
0.000 |
| |
|
2008 |
|
$1.459673 |
|
$0.938838 |
|
0.000 |
| |
|
2007 |
|
$1.381125 |
|
$1.459673 |
|
0.000 |
| |
|
2006 |
|
$1.289073 |
|
$1.381125 |
|
0.000 |
| |
|
2005 |
|
$1.268404 |
|
$1.289073 |
|
0.000 |
| |
|
2004 |
|
$1.217703 |
|
$1.268404 |
|
0.000 |
45
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.70% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.505596 |
|
$2.035941 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.297483 |
|
$1.505596 |
|
0.000 |
| |
|
2011 |
|
$1.404114 |
|
$1.297483 |
|
0.000 |
| |
|
2010 |
|
$1.264422 |
|
$1.404114 |
|
0.000 |
| |
|
2009 |
|
$1.090166 |
|
$1.264422 |
|
0.000 |
| |
|
2008 |
|
$1.730677 |
|
$1.090166 |
|
0.000 |
| |
|
2007 |
|
$1.712550 |
|
$1.730677 |
|
0.000 |
| |
|
2006 |
|
$1.437395 |
|
$1.712550 |
|
0.000 |
| |
|
2005 |
|
$1.388793 |
|
$1.437395 |
|
0.000 |
| |
|
2004 |
|
$1.267446 |
|
$1.388793 |
|
0.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.904301 |
|
$2.522196 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.622949 |
|
$1.904301 |
|
0.000 |
| |
|
2011 |
|
$1.647212 |
|
$1.622949 |
|
0.000 |
| |
|
2010 |
|
$1.319618 |
|
$1.647212 |
|
0.000 |
| |
|
2009 |
|
$0.991702 |
|
$1.319618 |
|
0.000 |
| |
|
2008 |
|
$1.693656 |
|
$0.991702 |
|
0.00 |
| |
|
2007 |
|
$1.699035 |
|
$1.693656 |
|
0.000 |
| |
|
2006 |
|
$1.604676 |
|
$1.699035 |
|
0.000 |
| |
|
2005 |
|
$1.498031 |
|
$1.604676 |
|
0.000 |
| |
|
2004 |
|
$1.333778 |
|
$1.498031 |
|
0.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$2.007155 |
|
$2.614862 |
|
0.000 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.769782 |
|
$2.007155 |
|
0.000 |
| |
|
2011 |
|
$1.957258 |
|
$1.769782 |
|
0.000 |
| |
|
2010 |
|
$1.535245 |
|
$1.957258 |
|
0.000 |
| |
|
2009 |
|
$0.994020 |
|
$1.535245 |
|
0.000 |
| |
|
2008 |
|
$1.720677 |
|
$0.994020 |
|
0.000 |
| |
|
2007 |
|
$1.529264 |
|
$1.720677 |
|
0.000 |
| |
|
2006 |
|
$1.494862 |
|
$1.529264 |
|
0.000 |
| |
|
2005 |
|
$1.469064 |
|
$1.494862 |
|
0.000 |
| |
|
2004 |
|
$1.490650 |
|
$1.469064 |
|
0.000 |
46
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.65% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.018679 |
|
$1.113529 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018679 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.017143 |
|
$1.071382 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017143 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.022618 |
|
$1.172095 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022618 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.007913 |
|
$1.084499 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.007913 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.002962 |
|
$1.140694 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.002962 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.989330 |
|
$1.112403 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989330 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.992428 |
|
$1.091981 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992428 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.995308 |
|
$1.059003 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995308 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.987256 |
|
$1.134449 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987256 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.020696 |
|
$1.118924 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020696 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.017271 |
|
$1.075506 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.017271 |
|
0.000 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.024831 |
|
$1.197544 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024831 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.735697 |
|
$2.261878 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.559158 |
|
$1.735697 |
|
0.000 |
| |
|
2011 |
|
$1.646277 |
|
$1.559158 |
|
0.000 |
| |
|
2010 |
|
$1.420437 |
|
$1.646277 |
|
0.000 |
| |
|
2009 |
|
$1.117599 |
|
$1.420437 |
|
0.000 |
| |
|
2008 |
|
$2.104177 |
|
$1.117599 |
|
0.000 |
| |
|
2007 |
|
$1.839517 |
|
$2.104177 |
|
0.000 |
| |
|
2006 |
|
$1.719916 |
|
$1.839517 |
|
0.000 |
| |
|
2005 |
|
$1.500132 |
|
$1.719916 |
|
0.000 |
| |
|
2004 |
|
$1.316807 |
|
$1.500132 |
|
0.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.614562 |
|
$1.919145 |
|
0.000 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.490260 |
|
$1.614562 |
|
0.000 |
| |
|
2011 |
|
$1.393054 |
|
$1.490260 |
|
0.000 |
| |
|
2010 |
|
$1.230844 |
|
$1.393054 |
|
0.000 |
| |
|
2009 |
|
$1.023622 |
|
$1.230844 |
|
0.000 |
| |
|
2008 |
|
$1.480675 |
|
$1.023622 |
|
0.000 |
| |
|
2007 |
|
$1.408715 |
|
$1.480675 |
|
0.000 |
| |
|
2006 |
|
$1.232176 |
|
$1.408715 |
|
0.000 |
| |
|
2005 |
|
$1.202921 |
|
$1.232176 |
|
0.000 |
| |
|
2004 |
|
$1.166849 |
|
$1.202921 |
|
0.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$1.310224 |
|
$1.910492 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.107748 |
|
$1.310224 |
|
0.000 |
| |
|
2011 |
|
$1.310194 |
|
$1.107748 |
|
0.000 |
| |
|
2010 |
|
$1.018060 |
|
$1.310194 |
|
0.000 |
| |
|
2009 |
|
$0.822861 |
|
$1.018060 |
|
0.000 |
| |
|
2008 |
|
$1.344242 |
|
$0.822861 |
|
0.000 |
| |
|
2007 |
|
$1.540287 |
|
$1.344242 |
|
0.000 |
| |
|
2006 |
|
$1.512386 |
|
$1.540287 |
|
0.000 |
| |
|
2005 |
|
$1.456356 |
|
$1.512386 |
|
0.000 |
| |
|
2004 |
|
$1.333202 |
|
$1.456356 |
|
0.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.508515 |
|
$2.024647 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.302196 |
|
$1.508515 |
|
0.000 |
| |
|
2011 |
|
$1.364465 |
|
$1.302196 |
|
0.000 |
| |
|
2010 |
|
$1.172458 |
|
$1.364465 |
|
0.000 |
| |
|
2009 |
|
$0.927916 |
|
$1.172458 |
|
0.000 |
| |
|
2008 |
|
$1.586196 |
|
$0.927916 |
|
0.000 |
| |
|
2007 |
|
$1.490397 |
|
$1.586196 |
|
0.000 |
| |
|
2006 |
|
$1.325245 |
|
$1.490397 |
|
0.000 |
| |
|
2005 |
|
$1.305162 |
|
$1.325245 |
|
0.000 |
| |
|
2004 |
|
$1.237454 |
|
$1.305162 |
|
0.000 |
47
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.65% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$2.062875 |
|
$2.383149 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.707240 |
|
$2.062875 |
|
0.000 |
| |
|
2011 |
|
$2.039536 |
|
$1.707240 |
|
0.000 |
| |
|
2010 |
|
$1.889202 |
|
$2.039536 |
|
0.000 |
| |
|
2009 |
|
$1.537718 |
|
$1.889202 |
|
0.000 |
| |
|
2008 |
|
$2.711871 |
|
$1.537718 |
|
0.000 |
| |
|
2007 |
|
$2.359503 |
|
$2.711871 |
|
0.000 |
| |
|
2006 |
|
$1.948966 |
|
$2.359503 |
|
0.000 |
| |
|
2005 |
|
$1.730892 |
|
$1.948966 |
|
0.000 |
| |
|
2004 |
|
$1.416724 |
|
$1.730892 |
|
0.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.535903 |
|
$1.853843 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.388863 |
|
$1.535903 |
|
0.000 |
| |
|
2011 |
|
$1.737814 |
|
$1.388863 |
|
0.000 |
| |
|
2010 |
|
$1.694996 |
|
$1.737814 |
|
0.000 |
| |
|
2009 |
|
$1.318722 |
|
$1.694996 |
|
0.000 |
| |
|
2008 |
|
$2.144206 |
|
$1.318722 |
|
0.000 |
| |
|
2007 |
|
$2.097468 |
|
$2.144206 |
|
0.000 |
| |
|
2006 |
|
$1.742036 |
|
$2.097468 |
|
0.000 |
| |
|
2005 |
|
$1.585358 |
|
$1.742036 |
|
0.000 |
| |
|
2004 |
|
$1.344852 |
|
$1.585358 |
|
0.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.387085 |
|
$1.340050 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.321604 |
|
$1.387085 |
|
0.000 |
| |
|
2011 |
|
$1.258022 |
|
$1.321604 |
|
0.000 |
| |
|
2010 |
|
$1.181834 |
|
$1.258022 |
|
0.000 |
| |
|
2009 |
|
$1.048038 |
|
$1.181834 |
|
0.000 |
| |
|
2008 |
|
$1.115095 |
|
$1.048038 |
|
0.000 |
| |
|
2007 |
|
$1.097349 |
|
$1.115095 |
|
0.000 |
| |
|
2006 |
|
$1.073519 |
|
$1.097349 |
|
0.000 |
| |
|
2005 |
|
$1.067065 |
|
$1.073519 |
|
0.000 |
| |
|
2004 |
|
$1.052625 |
|
$1.067065 |
|
0.000 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$0.995542 |
|
$0.979398 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.012057 |
|
$0.995542 |
|
0.000 |
| |
|
2011 |
|
$1.028645 |
|
$1.012057 |
|
0.000 |
| |
|
2010 |
|
$1.045507 |
|
$1.028645 |
|
0.000 |
| |
|
2009 |
|
$1.061361 |
|
$1.045507 |
|
0.000 |
| |
|
2008 |
|
$1.052176 |
|
$1.061361 |
|
0.000 |
| |
|
2007 |
|
$1.019962 |
|
$1.052176 |
|
0.000 |
| |
|
2006 |
|
$0.991250 |
|
$1.019962 |
|
0.000 |
| |
|
2005 |
|
$0.981486 |
|
$0.991250 |
|
0.000 |
| |
|
2004 |
|
$0.989783 |
|
$0.981486 |
|
0.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.615300 |
|
$2.092913 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.422044 |
|
$1.615300 |
|
0.000 |
| |
|
2011 |
|
$1.422419 |
|
$1.422044 |
|
0.000 |
| |
|
2010 |
|
$1.262357 |
|
$1.422419 |
|
0.000 |
| |
|
2009 |
|
$1.018036 |
|
$1.262357 |
|
0.000 |
| |
|
2008 |
|
$1.651111 |
|
$1.018036 |
|
0.000 |
| |
|
2007 |
|
$1.598712 |
|
$1.651111 |
|
0.000 |
| |
|
2006 |
|
$1.410528 |
|
$1.598712 |
|
0.000 |
| |
|
2005 |
|
$1.372873 |
|
$1.410528 |
|
0.000 |
| |
|
2004 |
|
$1.264655 |
|
$1.372873 |
|
0.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.515636 |
|
$1.997938 |
|
0.000 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$1.379402 |
|
$1.515636 |
|
0.000 |
| |
|
2011 |
|
$1.393041 |
|
$1.379402 |
|
0.000 |
| |
|
2010 |
|
$1.236209 |
|
$1.393041 |
|
0.000 |
| |
|
2009 |
|
$0.941703 |
|
$1.236209 |
|
0.000 |
| |
|
2008 |
|
$1.463387 |
|
$0.941703 |
|
0.000 |
| |
|
2007 |
|
$1.383940 |
|
$1.463387 |
|
0.000 |
| |
|
2006 |
|
$1.291059 |
|
$1.383940 |
|
0.000 |
| |
|
2005 |
|
$1.269731 |
|
$1.291059 |
|
0.000 |
| |
|
2004 |
|
$1.218374 |
|
$1.269731 |
|
0.000 |
48
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.65% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.513117 |
|
$2.047122 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.303328 |
|
$1.513117 |
|
0.000 |
| |
|
2011 |
|
$1.409749 |
|
$1.303328 |
|
0.000 |
| |
|
2010 |
|
$1.268871 |
|
$1.409749 |
|
0.000 |
| |
|
2009 |
|
$1.093462 |
|
$1.268871 |
|
0.000 |
| |
|
2008 |
|
$1.735055 |
|
$1.093462 |
|
0.000 |
| |
|
2007 |
|
$1.716029 |
|
$1.735055 |
|
0.000 |
| |
|
2006 |
|
$1.439609 |
|
$1.716029 |
|
0.000 |
| |
|
2005 |
|
$1.390256 |
|
$1.439609 |
|
0.000 |
| |
|
2004 |
|
$1.268159 |
|
$1.390256 |
|
0.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.913858 |
|
$2.536090 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.630295 |
|
$1.913858 |
|
0.000 |
| |
|
2011 |
|
$1.653853 |
|
$1.630295 |
|
0.000 |
| |
|
2010 |
|
$1.324821 |
|
$1.653853 |
|
0.000 |
| |
|
2009 |
|
$0.994724 |
|
$1.324821 |
|
0.000 |
| |
|
2008 |
|
$1.697974 |
|
$0.994724 |
|
0.000 |
| |
|
2007 |
|
$1.702520 |
|
$1.697974 |
|
0.000 |
| |
|
2006 |
|
$1.607185 |
|
$1.702520 |
|
0.000 |
| |
|
2005 |
|
$1.499628 |
|
$1.607185 |
|
0.000 |
| |
|
2004 |
|
$1.334534 |
|
$1.499628 |
|
0.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$2.017195 |
|
$2.629232 |
|
0.000 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.777749 |
|
$2.017195 |
|
0.000 |
| |
|
2011 |
|
$1.965100 |
|
$1.777749 |
|
0.000 |
| |
|
2010 |
|
$1.540639 |
|
$1.965100 |
|
0.000 |
| |
|
2009 |
|
$0.997021 |
|
$1.540639 |
|
0.000 |
| |
|
2008 |
|
$1.725023 |
|
$0.997021 |
|
0.000 |
| |
|
2007 |
|
$1.532367 |
|
$1.725023 |
|
0.000 |
| |
|
2006 |
|
$1.497167 |
|
$1.532367 |
|
0.000 |
| |
|
2005 |
|
$1.470618 |
|
$1.497167 |
|
0.000 |
| |
|
2004 |
|
$1.491485 |
|
$1.470618 |
|
0.000 |
49
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.50% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.019685 |
|
$1.116284 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019685 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.018152 |
|
$1.074038 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018152 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.023631 |
|
$1.174978 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023631 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.008908 |
|
$1.087191 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.008908 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.003956 |
|
$1.143507 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.003956 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.989747 |
|
$1.114515 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989747 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.992854 |
|
$1.094062 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992854 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.995730 |
|
$1.061028 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995730 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.987676 |
|
$1.136605 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987676 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.021710 |
|
$1.121692 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021710 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.018279 |
|
$1.078171 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018279 |
|
0.000 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.025846 |
|
$1.200504 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.025846 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.621091 |
|
$2.115653 |
|
0.000 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.454049 |
|
$1.621091 |
|
0.000 |
| |
|
2011 |
|
$1.533038 |
|
$1.454049 |
|
0.000 |
| |
|
2010 |
|
$1.320771 |
|
$1.533038 |
|
0.000 |
| |
|
2009 |
|
$1.037642 |
|
$1.320771 |
|
0.000 |
| |
|
2008 |
|
$1.950729 |
|
$1.037642 |
|
0.000 |
| |
|
2007 |
|
$1.702838 |
|
$1.950729 |
|
0.000 |
| |
|
2006 |
|
$1.589777 |
|
$1.702838 |
|
0.000 |
| |
|
2005 |
|
$1.384583 |
|
$1.589777 |
|
0.000 |
| |
|
2004 |
|
$1.213582 |
|
$1.384583 |
|
0.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.638337 |
|
$1.950284 |
|
0.000 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.509954 |
|
$1.638337 |
|
0.000 |
| |
|
2011 |
|
$1.409392 |
|
$1.509954 |
|
0.000 |
| |
|
2010 |
|
$1.243453 |
|
$1.409392 |
|
0.000 |
| |
|
2009 |
|
$1.032574 |
|
$1.243453 |
|
0.000 |
| |
|
2008 |
|
$1.491400 |
|
$1.032574 |
|
0.000 |
| |
|
2007 |
|
$1.416816 |
|
$1.491400 |
|
7,942.783 |
| |
|
2006 |
|
$1.237448 |
|
$1.416816 |
|
7,949.155 |
| |
|
2005 |
|
$1.206280 |
|
$1.237448 |
|
7,956.000 |
| |
|
2004 |
|
$1.168378 |
|
$1.206280 |
|
7,963.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$1.270116 |
|
$1.854754 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.072241 |
|
$1.270116 |
|
0.000 |
| |
|
2011 |
|
$1.266328 |
|
$1.072241 |
|
0.000 |
| |
|
2010 |
|
$0.982520 |
|
$1.266328 |
|
0.000 |
| |
|
2009 |
|
$0.792957 |
|
$0.982520 |
|
0.000 |
| |
|
2008 |
|
$1.293463 |
|
$0.792957 |
|
0.000 |
| |
|
2007 |
|
$1.479906 |
|
$1.293463 |
|
0.000 |
| |
|
2006 |
|
$1.450956 |
|
$1.479906 |
|
0.000 |
| |
|
2005 |
|
$1.395136 |
|
$1.450956 |
|
0.000 |
| |
|
2004 |
|
$1.275264 |
|
$1.395136 |
|
0.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.481757 |
|
$1.991661 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.277204 |
|
$1.481757 |
|
0.000 |
| |
|
2011 |
|
$1.336307 |
|
$1.277204 |
|
0.000 |
| |
|
2010 |
|
$1.146576 |
|
$1.336307 |
|
0.000 |
| |
|
2009 |
|
$0.906084 |
|
$1.146576 |
|
0.000 |
| |
|
2008 |
|
$1.546568 |
|
$0.906084 |
|
0.000 |
| |
|
2007 |
|
$1.451013 |
|
$1.546568 |
|
0.000 |
| |
|
2006 |
|
$1.288331 |
|
$1.451013 |
|
0.000 |
| |
|
2005 |
|
$1.266944 |
|
$1.288331 |
|
0.000 |
| |
|
2004 |
|
$1.199436 |
|
$1.266944 |
|
0.000 |
50
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.50% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$2.012505 |
|
$2.328393 |
|
0.000 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.663075 |
|
$2.012505 |
|
0.000 |
| |
|
2011 |
|
$1.983843 |
|
$1.663075 |
|
0.000 |
| |
|
2010 |
|
$1.834912 |
|
$1.983843 |
|
0.000 |
| |
|
2009 |
|
$1.491328 |
|
$1.834912 |
|
0.000 |
| |
|
2008 |
|
$2.626148 |
|
$1.491328 |
|
0.000 |
| |
|
2007 |
|
$2.281539 |
|
$2.626148 |
|
0.000 |
| |
|
2006 |
|
$1.881790 |
|
$2.281539 |
|
0.000 |
| |
|
2005 |
|
$1.668769 |
|
$1.881790 |
|
0.000 |
| |
|
2004 |
|
$1.363860 |
|
$1.668769 |
|
0.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.597104 |
|
$1.930570 |
|
0.000 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.442060 |
|
$1.597104 |
|
0.000 |
| |
|
2011 |
|
$1.801725 |
|
$1.442060 |
|
0.000 |
| |
|
2010 |
|
$1.754738 |
|
$1.801725 |
|
0.000 |
| |
|
2009 |
|
$1.363187 |
|
$1.754738 |
|
0.000 |
| |
|
2008 |
|
$2.213240 |
|
$1.363187 |
|
0.000 |
| |
|
2007 |
|
$2.161778 |
|
$2.213240 |
|
0.000 |
| |
|
2006 |
|
$1.792804 |
|
$2.161778 |
|
0.000 |
| |
|
2005 |
|
$1.629166 |
|
$1.792804 |
|
0.000 |
| |
|
2004 |
|
$1.379972 |
|
$1.629166 |
|
0.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.346005 |
|
$1.302278 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.280567 |
|
$1.346005 |
|
0.000 |
| |
|
2011 |
|
$1.217165 |
|
$1.280567 |
|
13,733.115 |
| |
|
2010 |
|
$1.141773 |
|
$1.217165 |
|
14,453.251 |
| |
|
2009 |
|
$1.011027 |
|
$1.141773 |
|
15,236.215 |
| |
|
2008 |
|
$1.074124 |
|
$1.011027 |
|
28,245.498 |
| |
|
2007 |
|
$1.055454 |
|
$1.074124 |
|
28,947.901 |
| |
|
2006 |
|
$1.031021 |
|
$1.055454 |
|
29,713.000 |
| |
|
2005 |
|
$1.023317 |
|
$1.031021 |
|
30,524.000 |
| |
|
2004 |
|
$1.007968 |
|
$1.023317 |
|
29,228.144 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$1.013271 |
|
$0.998301 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.028573 |
|
$1.013271 |
|
0.000 |
| |
|
2011 |
|
$1.043901 |
|
$1.028573 |
|
17,048.180 |
| |
|
2010 |
|
$1.059440 |
|
$1.043901 |
|
17,942.150 |
| |
|
2009 |
|
$1.073928 |
|
$1.059440 |
|
18,914.143 |
| |
|
2008 |
|
$1.063052 |
|
$1.073928 |
|
26,658.720 |
| |
|
2007 |
|
$1.028971 |
|
$1.063052 |
|
0.000 |
| |
|
2006 |
|
$0.998548 |
|
$1.028971 |
|
0.000 |
| |
|
2005 |
|
$0.987257 |
|
$0.998548 |
|
0.000 |
| |
|
2004 |
|
$0.994129 |
|
$0.987257 |
|
0.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.568348 |
|
$2.035076 |
|
0.000 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.378657 |
|
$1.568348 |
|
0.000 |
| |
|
2011 |
|
$1.376984 |
|
$1.378657 |
|
9,580.267 |
| |
|
2010 |
|
$1.220246 |
|
$1.376984 |
|
10,082.613 |
| |
|
2009 |
|
$0.982625 |
|
$1.220246 |
|
10,628.820 |
| |
|
2008 |
|
$1.591330 |
|
$0.982625 |
|
18,797.718 |
| |
|
2007 |
|
$1.538544 |
|
$1.591330 |
|
19,286.981 |
| |
|
2006 |
|
$1.355452 |
|
$1.538544 |
|
19,820.000 |
| |
|
2005 |
|
$1.317332 |
|
$1.355452 |
|
20,385.000 |
| |
|
2004 |
|
$1.211705 |
|
$1.317332 |
|
|
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.506296 |
|
$1.988546 |
|
0.000 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$1.368877 |
|
$1.506296 |
|
0.000 |
| |
|
2011 |
|
$1.380375 |
|
$1.368877 |
|
0.000 |
| |
|
2010 |
|
$1.223153 |
|
$1.380375 |
|
0.000 |
| |
|
2009 |
|
$0.930379 |
|
$1.223153 |
|
0.000 |
| |
|
2008 |
|
$1.443649 |
|
$0.930379 |
|
0.000 |
| |
|
2007 |
|
$1.363264 |
|
$1.443649 |
|
0.000 |
| |
|
2006 |
|
$1.269909 |
|
$1.363264 |
|
0.000 |
| |
|
2005 |
|
$1.247105 |
|
$1.269909 |
|
0.000 |
| |
|
2004 |
|
$1.194894 |
|
$1.247105 |
|
0.000 |
51
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.50% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.494350 |
|
$2.024727 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.285247 |
|
$1.494350 |
|
0.000 |
| |
|
2011 |
|
$1.388132 |
|
$1.285247 |
|
0.000 |
| |
|
2010 |
|
$1.247570 |
|
$1.388132 |
|
0.000 |
| |
|
2009 |
|
$1.073519 |
|
$1.247570 |
|
0.000 |
| |
|
2008 |
|
$1.700878 |
|
$1.073519 |
|
0.000 |
| |
|
2007 |
|
$1.679723 |
|
$1.700878 |
|
0.000 |
| |
|
2006 |
|
$1.407081 |
|
$1.679723 |
|
0.000 |
| |
|
2005 |
|
$1.356839 |
|
$1.407081 |
|
0.000 |
| |
|
2004 |
|
$1.235847 |
|
$1.356839 |
|
0.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.830820 |
|
$2.429642 |
|
0.000 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.557242 |
|
$1.830820 |
|
0.000 |
| |
|
2011 |
|
$1.577421 |
|
$1.557242 |
|
0.000 |
| |
|
2010 |
|
$1.261216 |
|
$1.577421 |
|
0.000 |
| |
|
2009 |
|
$0.945957 |
|
$1.261216 |
|
0.000 |
| |
|
2008 |
|
$1.612334 |
|
$0.945957 |
|
0.000 |
| |
|
2007 |
|
$1.614251 |
|
$1.612334 |
|
0.000 |
| |
|
2006 |
|
$1.521609 |
|
$1.614251 |
|
0.000 |
| |
|
2005 |
|
$1.417690 |
|
$1.521609 |
|
0.000 |
| |
|
2004 |
|
$1.259751 |
|
$1.417690 |
|
0.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$1.835022 |
|
$2.395319 |
|
0.000 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.614797 |
|
$1.835022 |
|
0.000 |
| |
|
2011 |
|
$1.782349 |
|
$1.614797 |
|
0.000 |
| |
|
2010 |
|
$1.395301 |
|
$1.782349 |
|
0.000 |
| |
|
2009 |
|
$0.901642 |
|
$1.395301 |
|
0.000 |
| |
|
2008 |
|
$1.557678 |
|
$0.901642 |
|
0.000 |
| |
|
2007 |
|
$1.381654 |
|
$1.557678 |
|
0.000 |
| |
|
2006 |
|
$1.347928 |
|
$1.381654 |
|
0.000 |
| |
|
2005 |
|
$1.322071 |
|
$1.347928 |
|
0.000 |
| |
|
2004 |
|
$1.338854 |
|
$1.322071 |
|
0.000 |
52
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.45% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.020022 |
|
$1.117194 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020022 |
|
5,243.207 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.018486 |
|
$1.074914 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018486 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth Service Class |
|
2013 |
|
$1.023963 |
|
$1.175939 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023963 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.009242 |
|
$1.088082 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.009242 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.004290 |
|
1.144447 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004290 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.989890 |
|
$1.115229 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.989890 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.992993 |
|
$1.094774 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.992993 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.995871 |
|
$1.061695 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.995871 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.987812 |
|
$1.137321 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987812 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.022044 |
|
$1.122611 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022044 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.018610 |
|
$1.079052 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018610 |
|
3,412.028 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.026180 |
|
$1.201486 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.026180 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.461475 |
|
$1.908283 |
|
90,300.537 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.310233 |
|
$1.461475 |
|
91,610.941 |
| |
|
2011 |
|
$1.380722 |
|
$1.310233 |
|
83,546.593 |
| |
|
2010 |
|
$1.188963 |
|
$1.380722 |
|
82,592.498 |
| |
|
2009 |
|
$0.933628 |
|
$1.188963 |
|
76,119.394 |
| |
|
2008 |
|
$1.754316 |
|
$0.933628 |
|
108,045.201 |
| |
|
2007 |
|
$1.530621 |
|
$1.754316 |
|
83,284.344 |
| |
|
2006 |
|
$1.428284 |
|
$1.530621 |
|
66,801.248 |
| |
|
2005 |
|
$1.243330 |
|
$1.428284 |
|
85,107.000 |
| |
|
2004 |
|
$1.089233 |
|
$1.243330 |
|
81,161.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.403253 |
|
$1.671260 |
|
1,020,986.141 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.292660 |
|
$1.403253 |
|
1,124,934.332 |
| |
|
2011 |
|
$1.205969 |
|
$1.292660 |
|
1,302,969.784 |
| |
|
2010 |
|
$1.063449 |
|
$1.205969 |
|
1,677,501.290 |
| |
|
2009 |
|
$0.882662 |
|
$1.063449 |
|
2,029,790.364 |
| |
|
2008 |
|
$1.274242 |
|
$0.882662 |
|
2,535,890.763 |
| |
|
2007 |
|
$1.209918 |
|
$1.274242 |
|
2,851,753.008 |
| |
|
2006 |
|
$1.056224 |
|
$1.209918 |
|
3,434,030.061 |
| |
|
2005 |
|
$1.029121 |
|
$1.056224 |
|
3,955,556.000 |
| |
|
2004 |
|
$0.996304 |
|
$1.029121 |
|
4,493,384.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$0.969034 |
|
$1.415776 |
|
399,001.063 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$0.817665 |
|
$0.969034 |
|
428,475.872 |
| |
|
2011 |
|
$0.965205 |
|
$0.817665 |
|
429,259.871 |
| |
|
2010 |
|
$0.748519 |
|
$0.965205 |
|
471,919.344 |
| |
|
2009 |
|
$0.603818 |
|
$0.748519 |
|
559,978.796 |
| |
|
2008 |
|
$0.984456 |
|
$0.603818 |
|
594,958.516 |
| |
|
2007 |
|
$1.125799 |
|
$0.984456 |
|
643,780.412 |
| |
|
2006 |
|
$1.103236 |
|
$1.125799 |
|
622,742.195 |
| |
|
2005 |
|
$1.090274 |
|
$1.103236 |
|
721,936.000 |
| |
|
2004 |
|
$0.968686 |
|
$1.090274 |
|
765,068.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.205418 |
|
$1.621024 |
|
463,268.196 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.038502 |
|
$1.205418 |
|
511,878.313 |
| |
|
2011 |
|
$1.086021 |
|
$1.038502 |
|
542,517.716 |
| |
|
2010 |
|
$0.931360 |
|
$1.086021 |
|
671,829.311 |
| |
|
2009 |
|
$0.735653 |
|
$0.931360 |
|
748,472.028 |
| |
|
2008 |
|
$1.255043 |
|
$0.735653 |
|
831,736.409 |
| |
|
2007 |
|
$1.176916 |
|
$1.255043 |
|
1,109,382.144 |
| |
|
2006 |
|
$1.044440 |
|
$1.176916 |
|
1,241,898.670 |
| |
|
2005 |
|
$1.026593 |
|
$1.044440 |
|
1,188,180.000 |
| |
|
2004 |
|
$0.971411 |
|
$1.026593 |
|
1,279,084.000 |
53
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.45% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$1.669991 |
|
$1.933076 |
|
218,560.946 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.379347 |
|
$1.669991 |
|
249,968.563 |
| |
|
2011 |
|
$1.644585 |
|
$1.379347 |
|
256,013.785 |
| |
|
2010 |
|
$1.520365 |
|
$1.644585 |
|
295,400.969 |
| |
|
2009 |
|
$1.235067 |
|
$1.520365 |
|
374,227.881 |
| |
|
2008 |
|
$2.173818 |
|
$1.235067 |
|
431,088.782 |
| |
|
2007 |
|
$1.887627 |
|
$2.173818 |
|
427,112.833 |
| |
|
2006 |
|
$1.556126 |
|
$1.887627 |
|
329,639.367 |
| |
|
2005 |
|
$1.379292 |
|
$1.556126 |
|
239,869.000 |
| |
|
2004 |
|
$1.126730 |
|
$1.379292 |
|
227,167.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.250137 |
|
$1.511901 |
|
354,725.832 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.128216 |
|
$1.250137 |
|
396,434.367 |
| |
|
2011 |
|
$1.408911 |
|
$1.128216 |
|
412,705.162 |
| |
|
2010 |
|
$1.371494 |
|
$1.408911 |
|
434,224.617 |
| |
|
2009 |
|
$1.064934 |
|
$1.371494 |
|
539,834.265 |
| |
|
2008 |
|
$1.728144 |
|
$1.064934 |
|
588,904.565 |
| |
|
2007 |
|
$1.687119 |
|
$1.728144 |
|
633,907.236 |
| |
|
2006 |
|
$1.398470 |
|
$1.687119 |
|
558,867.086 |
| |
|
2005 |
|
$1.270199 |
|
$1.398470 |
|
478,504.000 |
| |
|
2004 |
|
$1.075381 |
|
$1.270199 |
|
480,389.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.446148 |
|
$1.399863 |
|
1,779,407.836 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.375157 |
|
$1.446148 |
|
1,938,234.089 |
| |
|
2011 |
|
$1.306433 |
|
$1.375157 |
|
2,025,809.754 |
| |
|
2010 |
|
$1.224894 |
|
$1.306433 |
|
2,150,926.851 |
| |
|
2009 |
|
$1.084087 |
|
$1.224894 |
|
2,452,231.441 |
| |
|
2008 |
|
$1.151170 |
|
$1.084087 |
|
2,810,198.473 |
| |
|
2007 |
|
$1.130604 |
|
$1.151170 |
|
2,995,330.527 |
| |
|
2006 |
|
$1.103888 |
|
$1.130604 |
|
2,824,960.719 |
| |
|
2005 |
|
$1.095092 |
|
$1.103888 |
|
3,133,273.000 |
| |
|
2004 |
|
$1.078138 |
|
$1.095092 |
|
3,355,387.000 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$1.015560 |
|
$1.001001 |
|
1,686,886.815 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.030346 |
|
$1.015560 |
|
1,830,854.316 |
| |
|
2011 |
|
$1.045217 |
|
$1.030346 |
|
2,167,246.948 |
| |
|
2010 |
|
$1.060254 |
|
$1.045217 |
|
2,498,062.404 |
| |
|
2009 |
|
$1.074234 |
|
$1.060254 |
|
3,900,836.605 |
| |
|
2008 |
|
$1.062833 |
|
$1.074234 |
|
4,655,205.245 |
| |
|
2007 |
|
$1.028248 |
|
$1.062833 |
|
4,877,228.676 |
| |
|
2006 |
|
$0.997350 |
|
$1.028248 |
|
439,314.977 |
| |
|
2005 |
|
$0.985577 |
|
$0.997350 |
|
541,274.000 |
| |
|
2004 |
|
$0.991945 |
|
$0.985577 |
|
574,496.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.327016 |
|
$1.722778 |
|
829,738.926 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.165944 |
|
$1.327016 |
|
913,639.972 |
| |
|
2011 |
|
$1.163959 |
|
$1.165944 |
|
984,971.666 |
| |
|
2010 |
|
$1.030960 |
|
$1.163959 |
|
1,091,717.814 |
| |
|
2009 |
|
$0.829791 |
|
$1.030960 |
|
1,452,137.117 |
| |
|
2008 |
|
$1.343140 |
|
$0.829791 |
|
1,621,793.280 |
| |
|
2007 |
|
$1.297948 |
|
$1.343140 |
|
2,014,618.361 |
| |
|
2006 |
|
$1.142925 |
|
$1.297948 |
|
2,151,271.493 |
| |
|
2005 |
|
$1.110229 |
|
$1.142925 |
|
2,434,092.000 |
| |
|
2004 |
|
$1.020708 |
|
$1.110229 |
|
2,658,462.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.182058 |
|
$1.561283 |
|
95,476.052 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$1.073682 |
|
$1.182058 |
|
99,958.818 |
| |
|
2011 |
|
$1.082161 |
|
$1.073682 |
|
102,992.378 |
| |
|
2010 |
|
$0.958433 |
|
$1.082161 |
|
124,157.449 |
| |
|
2009 |
|
$0.728667 |
|
$0.958433 |
|
142,072.539 |
| |
|
2008 |
|
$1.130107 |
|
$0.728667 |
|
154,432.358 |
| |
|
2007 |
|
$1.066649 |
|
$1.130107 |
|
159,915.041 |
| |
|
2006 |
|
$0.993117 |
|
$1.066649 |
|
143,182.391 |
| |
|
2005 |
|
$0.0974799 |
|
$0.993117 |
|
140,126.000 |
| |
|
2004 |
|
$0.933524 |
|
$0.0974799 |
|
142,197.000 |
54
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.45% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.221285 |
|
$1.655559 |
|
1,283,155.539 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.049880 |
|
$1.221285 |
|
1,436,156.159 |
| |
|
2011 |
|
$1.133372 |
|
$1.049880 |
|
1,691,733.403 |
| |
|
2010 |
|
$1.018107 |
|
$1.133372 |
|
1,879,849.739 |
| |
|
2009 |
|
$0.875632 |
|
$1.018107 |
|
2,085,506.871 |
| |
|
2008 |
|
$1.386653 |
|
$0.875632 |
|
2,636,863.949 |
| |
|
2007 |
|
$1.368734 |
|
$1.386653 |
|
2,950,643.951 |
| |
|
2006 |
|
$1.146008 |
|
$1.368734 |
|
3,010,425.780 |
| |
|
2005 |
|
$1.104555 |
|
$1.146008 |
|
3,198,004.000 |
| |
|
2004 |
|
$1.005558 |
|
$1.104555 |
|
3,431,452.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.519033 |
|
$2.016875 |
|
614,172.943 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.291406 |
|
$1.519033 |
|
652,464.854 |
| |
|
2011 |
|
$1.307496 |
|
$1.291406 |
|
684,918.044 |
| |
|
2010 |
|
$1.044890 |
|
$1.307496 |
|
779,687.321 |
| |
|
2009 |
|
$0.783316 |
|
$1.044890 |
|
1,098,819.075 |
| |
|
2008 |
|
$1.334454 |
|
$0.783316 |
|
1,269,795.818 |
| |
|
2007 |
|
$1.335380 |
|
$1.334454 |
|
1,347,582.506 |
| |
|
2006 |
|
$1.258126 |
|
$1.335380 |
|
1,379,284.323 |
| |
|
2005 |
|
$1.171625 |
|
$1.258126 |
|
1,535,223.000 |
| |
|
2004 |
|
$1.040589 |
|
$1.171625 |
|
1,471,094.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$1.439435 |
|
$1.879870 |
|
157,001.061 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.266058 |
|
$1.439435 |
|
175,781.306 |
| |
|
2011 |
|
$1.396741 |
|
$1.266058 |
|
171,297.557 |
| |
|
2010 |
|
$1.092884 |
|
$1.396741 |
|
196,536.501 |
| |
|
2009 |
|
$0.705872 |
|
$1.092884 |
|
261,106.974 |
| |
|
2008 |
|
$1.218857 |
|
$0.705872 |
|
370,471.989 |
| |
|
2007 |
|
$1.080591 |
|
$1.218857 |
|
334,244.916 |
| |
|
2006 |
|
$1.053691 |
|
$1.080591 |
|
411,102.698 |
| |
|
2005 |
|
$1.032968 |
|
$1.053691 |
|
499,041.000 |
| |
|
2004 |
|
$1.045556 |
|
$1.032968 |
|
484,458.000 |
55
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$46.885196 |
|
$55.867465 |
|
226,185.019 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$43.168679 |
|
$46.885196 |
|
255,894.563 |
| |
|
2011 |
|
$40.253890 |
|
$43.168679 |
|
302,278.964 |
| |
|
2010 |
|
$35.479401 |
|
$40.253890 |
|
377,961.953 |
| |
|
2009 |
|
$29.433395 |
|
$35.479401 |
|
445,173.472 |
| |
|
2008 |
|
$42.470068 |
|
$29.433395 |
|
528,806.748 |
| |
|
2007 |
|
$40.306158 |
|
$42.470068 |
|
709,007.637 |
| |
|
2006 |
|
$35.168825 |
|
$40.306158 |
|
788,575.077 |
| |
|
2005 |
|
$34.249546 |
|
$35.168825 |
|
946,178.000 |
| |
|
2004 |
|
$33.140811 |
|
$34.249546 |
|
1,078,182.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$83.535962 |
|
$122.107345 |
|
35,861.137 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$70.452281 |
|
$83.535962 |
|
37,031.502 |
| |
|
2011 |
|
$83.122829 |
|
$70.452281 |
|
39,750.634 |
| |
|
2010 |
|
$64.430450 |
|
$83.122829 |
|
43,217.253 |
| |
|
2009 |
|
$51.948583 |
|
$64.430450 |
|
49,905.335 |
| |
|
2008 |
|
$84.654356 |
|
$51.948583 |
|
53,459.812 |
| |
|
2007 |
|
$96.760742 |
|
$84.654356 |
|
62,247.149 |
| |
|
2006 |
|
$94.774944 |
|
$96.760742 |
|
66,611.595 |
| |
|
2005 |
|
$91.039643 |
|
$94.774944 |
|
76,936.000 |
| |
|
2004 |
|
$83.135053 |
|
$91.039643 |
|
89,304.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$33.792512 |
|
$45.466011 |
|
148,117.059 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$29.098660 |
|
$33.792512 |
|
184,748.224 |
| |
|
2011 |
|
$30.415222 |
|
$29.098660 |
|
207,601.330 |
| |
|
2010 |
|
$26.071071 |
|
$30.415222 |
|
247,021.716 |
| |
|
2009 |
|
$20.582516 |
|
$26.071071 |
|
299,246.619 |
| |
|
2008 |
|
$35.096982 |
|
$20.582516 |
|
384,507.512 |
| |
|
2007 |
|
$32.895597 |
|
$35.096982 |
|
482,532.287 |
| |
|
2006 |
|
$29.178756 |
|
$32.895597 |
|
484,707.551 |
| |
|
2005 |
|
$28.666082 |
|
$29.178756 |
|
586,839.000 |
| |
|
2004 |
|
$27.111778 |
|
$28.666082 |
|
706,302.000 |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$24.877669 |
|
$28.810885 |
|
70,445.507 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$20.537874 |
|
$24.877669 |
|
81,948.309 |
| |
|
2011 |
|
$24.475076 |
|
$20.537874 |
|
104,295.079 |
| |
|
2010 |
|
$22.615282 |
|
$24.475076 |
|
119,026.844 |
| |
|
2009 |
|
$18.362436 |
|
$22.615282 |
|
148,073.996 |
| |
|
2008 |
|
$32.303332 |
|
$18.362436 |
|
176,050.880 |
| |
|
2007 |
|
$28.036634 |
|
$32.303332 |
|
252,231.146 |
| |
|
2006 |
|
$23.101628 |
|
$28.036634 |
|
201,039.327 |
| |
|
2005 |
|
$20.466423 |
|
$23.101628 |
|
190,530.000 |
| |
|
2004 |
|
$16.710433 |
|
$20.466423 |
|
158,242.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$16.416338 |
|
$19.863449 |
|
135,692.636 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$14.808050 |
|
$16.416338 |
|
181,756.826 |
| |
|
2011 |
|
$18.483083 |
|
$14.808050 |
|
209,929.199 |
| |
|
2010 |
|
$17.983369 |
|
$18.483083 |
|
231,294.076 |
| |
|
2009 |
|
$13.956824 |
|
$17.983369 |
|
258,557.118 |
| |
|
2008 |
|
$22.637498 |
|
$13.956824 |
|
299,833.690 |
| |
|
2007 |
|
$22.089225 |
|
$22.637498 |
|
393,280.565 |
| |
|
2006 |
|
$18.300986 |
|
$22.089225 |
|
320,774.821 |
| |
|
2005 |
|
$16.614190 |
|
$18.300986 |
|
359,670.000 |
| |
|
2004 |
|
$14.059011 |
|
$16.614190 |
|
370,544.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$26.623196 |
|
$25.783844 |
|
374,793.488 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$25.303693 |
|
$26.623196 |
|
465,481.299 |
| |
|
2011 |
|
$24.027250 |
|
$25.303693 |
|
564,336.084 |
| |
|
2010 |
|
$22.516700 |
|
$24.027250 |
|
606,964.387 |
| |
|
2009 |
|
$19.918508 |
|
$22.516700 |
|
720,802.839 |
| |
|
2008 |
|
$21.140604 |
|
$19.918508 |
|
918,221.609 |
| |
|
2007 |
|
$20.752654 |
|
$21.140604 |
|
1,198,899.915 |
| |
|
2006 |
|
$20.25229 |
|
$20.752654 |
|
1,115,399.767 |
| |
|
2005 |
|
$20.081126 |
|
$20.25229 |
|
1,361,676.000 |
| |
|
2004 |
|
$19.760442 |
|
$20.081126 |
|
1,719,663.000 |
56
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$51.391203 |
|
$66.750724 |
|
153,566.996 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$45.130686 |
|
$51.391203 |
|
190,997.809 |
| |
|
2011 |
|
$45.031550 |
|
$45.130686 |
|
238,373.512 |
| |
|
2010 |
|
$39.866339 |
|
$45.031550 |
|
273,332.768 |
| |
|
2009 |
|
$32.071532 |
|
$39.866339 |
|
322,849.189 |
| |
|
2008 |
|
$51.886998 |
|
$32.071532 |
|
419,015.501 |
| |
|
2007 |
|
$50.115920 |
|
$51.886998 |
|
532,668.805 |
| |
|
2006 |
|
$44.108437 |
|
$50.115920 |
|
597,574.721 |
| |
|
2005 |
|
$42.825485 |
|
$44.108437 |
|
735,083.000 |
| |
|
2004 |
|
$39.352722 |
|
$42.825485 |
|
851,824.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$32.371351 |
|
$42.777534 |
|
48,034.594 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$29.388865 |
|
$32.371351 |
|
55,453.323 |
| |
|
2011 |
|
$29.606617 |
|
$29.388865 |
|
62,013.661 |
| |
|
2010 |
|
$26.208705 |
|
$29.606617 |
|
71,146.210 |
| |
|
2009 |
|
$19.915761 |
|
$26.208705 |
|
87,970.974 |
| |
|
2008 |
|
$30.872354 |
|
$19.915761 |
|
103,531.451 |
| |
|
2007 |
|
$29.124184 |
|
$30.872354 |
|
129,171.181 |
| |
|
2006 |
|
$27.103038 |
|
$29.124184 |
|
153,854.662 |
| |
|
2005 |
|
$26.590087 |
|
$27.103038 |
|
204,055.000 |
| |
|
2004 |
|
$25.451736 |
|
$26.590087 |
|
266,754.000 |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$13.654748 |
|
$18.507084 |
|
602,019.239 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$11.724710 |
|
$13.654748 |
|
669,990.426 |
| |
|
2011 |
|
$12.650901 |
|
$11.724710 |
|
776,804.145 |
| |
|
2010 |
|
$11.358706 |
|
$12.650901 |
|
954,113.358 |
| |
|
2009 |
|
$9.764400 |
|
$11.358706 |
|
1,122,183.381 |
| |
|
2008 |
|
$15.455384 |
|
$9.764400 |
|
1,376,461.630 |
| |
|
2007 |
|
$15.248072 |
|
$15.455384 |
|
1,741,007.141 |
| |
|
2006 |
|
$12.760567 |
|
$15.248072 |
|
1,913,691.367 |
| |
|
2005 |
|
$12.292854 |
|
$12.760567 |
|
2,262,553.000 |
| |
|
2004 |
|
$11.185612 |
|
$12.292854 |
|
2,610,969.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$17.550138 |
|
$23.313372 |
|
337,134.202 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$14.912862 |
|
$17.550138 |
|
374,689.167 |
| |
|
2011 |
|
$15.091228 |
|
$14.912862 |
|
447,634.238 |
| |
|
2010 |
|
$12.054245 |
|
$15.091228 |
|
526,771.443 |
| |
|
2009 |
|
$9.032163 |
|
$12.054245 |
|
594,438.275 |
| |
|
2008 |
|
$15.379636 |
|
$9.032163 |
|
703,687.373 |
| |
|
2007 |
|
$15.382701 |
|
$15.379636 |
|
898,116.093 |
| |
|
2006 |
|
$14.485637 |
|
$15.382701 |
|
984,212.009 |
| |
|
2005 |
|
$13.483092 |
|
$14.485637 |
|
1,135,340.000 |
| |
|
2004 |
|
$11.969158 |
|
$13.483092 |
|
1,272,820.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$8.903238 |
|
$11.633175 |
|
190,454.566 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$7.826996 |
|
$8.903238 |
|
221,616.019 |
| |
|
2011 |
|
$8.630650 |
|
$7.826996 |
|
245,313.347 |
| |
|
2010 |
|
$6.749803 |
|
$8.630650 |
|
283,632.099 |
| |
|
2009 |
|
$4.357392 |
|
$6.749803 |
|
331,452.797 |
| |
|
2008 |
|
$7.520377 |
|
$4.357392 |
|
402,817.341 |
| |
|
2007 |
|
$6.663957 |
|
$7.520377 |
|
509,777.732 |
| |
|
2006 |
|
$6.494902 |
|
$6.663957 |
|
589,483.687 |
| |
|
2005 |
|
$6.364074 |
|
$6.494902 |
|
725,916.000 |
| |
|
2004 |
|
$6.438464 |
|
$6.364074 |
|
947,014.000 |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.020360 |
|
$1.118123 |
|
893,175.502 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.020360 |
|
270,361.403 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.018822 |
|
$1.075810 |
|
206,075.085 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018822 |
|
109,312.239 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.024308 |
|
$1.176920 |
|
30,461.280 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024308 |
|
3,115.513 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.009577 |
|
$1.0889982 |
|
360,102.865 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.009577 |
|
19,154.537 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.004616 |
|
$1.145382 |
|
207,350.072 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.004616 |
|
3,151.790 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.990036 |
|
$1.115933 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990036 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.993131 |
|
$1.095446 |
|
217,235.645 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993131 |
|
38,046.515 |
57
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.996015 |
|
$1.062377 |
|
50,840.669 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.996015 |
|
3,169.590 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.987957 |
|
$1.138050 |
|
6,634.748 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.987957 |
|
3,211.943 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.022380 |
|
$1.123539 |
|
855,896.567 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.022380 |
|
559,093.397 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.018952 |
|
$1.079949 |
|
154,224.002 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.018952 |
|
80,935.351 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.026515 |
|
$1.202463 |
|
153,904.668 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.026515 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$14.922463 |
|
$19.494177 |
|
586,759.283 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$13.371588 |
|
$14.922463 |
|
657,088.945 |
| |
|
2011 |
|
$14.084089 |
|
$13.371588 |
|
766,807.294 |
| |
|
2010 |
|
$12.122085 |
|
$14.084089 |
|
829,433.388 |
| |
|
2009 |
|
$9.514146 |
|
$12.122085 |
|
911,145.971 |
| |
|
2008 |
|
$17.868537 |
|
$9.514146 |
|
1,016,376.630 |
| |
|
2007 |
|
$15.582415 |
|
$17.868537 |
|
1,191,380.144 |
| |
|
2006 |
|
$14.533536 |
|
$15.582415 |
|
1,418,734.009 |
| |
|
2005 |
|
$12.645276 |
|
$14.533536 |
|
1,706,680.000 |
| |
|
2004 |
|
$11.072522 |
|
$12.645276 |
|
1,944,521.000 |
| Appreciation
Portfolio - Initial Class |
|
2013 |
|
$48.358114 |
|
$57.754992 |
|
947,989.156 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$44.406829 |
|
$48.358114 |
|
1,067,155.570 |
| |
|
2011 |
|
$41.304761 |
|
$44.406829 |
|
1,205,243.214 |
| |
|
2010 |
|
$36.319470 |
|
$41.304761 |
|
1,311,865.696 |
| |
|
2009 |
|
$30.049175 |
|
$36.319470 |
|
1,504,536.765 |
| |
|
2008 |
|
$43.253484 |
|
$30.049175 |
|
1,722,711.179 |
| |
|
2007 |
|
$40.942145 |
|
$43.253484 |
|
2,123,526.288 |
| |
|
2006 |
|
$35.641053 |
|
$40.942145 |
|
2,719,350.369 |
| |
|
2005 |
|
$34.622873 |
|
$35.641053 |
|
3,470,665.000 |
| |
|
2004 |
|
$33.422396 |
|
$34.622873 |
|
4,340,754.000 |
| Opportunistic
Small Cap Portfolio - Initial Class |
|
2013 |
|
$86.188169 |
|
$126.264622 |
|
230,351.952 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$72.493648 |
|
$86.188169 |
|
259,757.957 |
| |
|
2011 |
|
$85.320344 |
|
$72.493648 |
|
293,686.209 |
| |
|
2010 |
|
$65.965689 |
|
$85.320344 |
|
325,419.363 |
| |
|
2009 |
|
$53.071075 |
|
$65.965689 |
|
359,247.029 |
| |
|
2008 |
|
$86.236431 |
|
$53.071075 |
|
416,440.736 |
| |
|
2007 |
|
$98.325236 |
|
$86.236431 |
|
495,096.316 |
| |
|
2006 |
|
$96.076039 |
|
$98.325236 |
|
665,893.583 |
| |
|
2005 |
|
$92.075988 |
|
$96.076039 |
|
820,661.000 |
| |
|
2004 |
|
$83.858469 |
|
$92.075988 |
|
1,053,370.000 |
| Growth and Income
Portfolio - Initial Class |
|
2013 |
|
$34.690772 |
|
$46.796240 |
|
736,673.416 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$29.794109 |
|
$34.690772 |
|
835,162.610 |
| |
|
2011 |
|
$31.078753 |
|
$29.794109 |
|
953,161.505 |
| |
|
2010 |
|
$26.569722 |
|
$31.078753 |
|
1,056,891.136 |
| |
|
2009 |
|
$20.919753 |
|
$26.569722 |
|
1,178,151.680 |
| |
|
2008 |
|
$35.600677 |
|
$20.919753 |
|
1,352,960.167 |
| |
|
2007 |
|
$33.290226 |
|
$35.600677 |
|
1,652,549.563 |
| |
|
2006 |
|
$29.477130 |
|
$33.290226 |
|
2,007,269.480 |
| |
|
2005 |
|
$28.919251 |
|
$29.477130 |
|
2,501,194.000 |
| |
|
2004 |
|
$27.287406 |
|
$28.919251 |
|
3,208,623.000 |
| International
Equity Portfolio - Initial Class |
|
2013 |
|
$25.665704 |
|
$29.800591 |
|
380,974.813 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$21.134050 |
|
$25.665704 |
|
433,239.392 |
| |
|
2011 |
|
$25.17446 |
|
$21.134050 |
|
509,930.273 |
| |
|
2010 |
|
$23.147124 |
|
$25.17446 |
|
573,945.094 |
| |
|
2009 |
|
$18.737202 |
|
$23.147124 |
|
654,031.304 |
| |
|
2008 |
|
$32.885347 |
|
$18.737202 |
|
736,893.047 |
| |
|
2007 |
|
$28.474959 |
|
$32.885347 |
|
920,168.013 |
| |
|
2006 |
|
$23.415907 |
|
$28.474959 |
|
1,039,764.625 |
| |
|
2005 |
|
$20.689400 |
|
$23.415907 |
|
1,171,431.000 |
| |
|
2004 |
|
$16.840959 |
|
$20.689400 |
|
1,341,234.000 |
58
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Value Portfolio - Initial Class |
|
2013 |
|
$16.736088 |
|
$20.300252 |
|
344,141.791 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$15.063618 |
|
$16.736088 |
|
384,193.033 |
| |
|
2011 |
|
$18.737000 |
|
$15.063618 |
|
441,931.086 |
| |
|
2010 |
|
$18.188838 |
|
$18.737000 |
|
512,528.072 |
| |
|
2009 |
|
$14.081857 |
|
$18.188838 |
|
554,069.713 |
| |
|
2008 |
|
$22.782630 |
|
$14.081857 |
|
606,563.844 |
| |
|
2007 |
|
$22.181979 |
|
$22.782630 |
|
801,713.510 |
| |
|
2006 |
|
$18.346912 |
|
$22.181979 |
|
810,624.991 |
| |
|
2005 |
|
$16.625294 |
|
$18.346912 |
|
927,170.000 |
| |
|
2004 |
|
$14.046184 |
|
$16.625294 |
|
972,539.000 |
| Quality Bond
Portfolio - Initial Class |
|
2013 |
|
$27.446405 |
|
$26.649657 |
|
910,764.670 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$26.012697 |
|
$27.446405 |
|
1,113,078.038 |
| |
|
2011 |
|
$24.643048 |
|
$26.012697 |
|
1,176,366.380 |
| |
|
2010 |
|
$23.056812 |
|
$24.643048 |
|
1,397,680.744 |
| |
|
2009 |
|
$20.337536 |
|
$23.056812 |
|
1,523,774.555 |
| |
|
2008 |
|
$21.522606 |
|
$20.337536 |
|
1,614,734.586 |
| |
|
2007 |
|
$21.078909 |
|
$21.522606 |
|
1,846,588.028 |
| |
|
2006 |
|
$20.505219 |
|
$21.078909 |
|
1,928,763.709 |
| |
|
2005 |
|
$20.288656 |
|
$20.505219 |
|
2,466,082.000 |
| |
|
2004 |
|
$19.903122 |
|
$20.288656 |
|
3,046,514.000 |
| Money Market -
Initial Class |
|
2013 |
|
$1.378328 |
|
$1.359325 |
|
36,904,524.184 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.397759 |
|
$1.378328 |
|
43,178,890.203 |
| |
|
2011 |
|
$1.417193 |
|
$1.397759 |
|
50,427,638.489 |
| |
|
2010 |
|
$1.436867 |
|
$1.417193 |
|
59,256,596.524 |
| |
|
2009 |
|
$1.455100 |
|
$1.436867 |
|
73,742,355.997 |
| |
|
2008 |
|
$1.438946 |
|
$1.455100 |
|
98,490,663.865 |
| |
|
2007 |
|
$1.391426 |
|
$1.438946 |
|
126,221,534.582 |
| |
|
2006 |
|
$1.348960 |
|
$1.391426 |
|
32,839,018.722 |
| |
|
2005 |
|
$1.332390 |
|
$1.348960 |
|
35,907,831.000 |
| |
|
2004 |
|
$1.340330 |
|
$1.332390 |
|
40,261,346.000 |
| Dreyfus Stock
Index Fund, Inc. - Initial Class |
|
2013 |
|
$52.996760 |
|
$69.004685 |
|
705,114.937 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$46.434698 |
|
$52.996760 |
|
805,857.248 |
| |
|
2011 |
|
$46.215710 |
|
$46.434698 |
|
921,432.618 |
| |
|
2010 |
|
$40.807235 |
|
$46.215710 |
|
1,027,290.312 |
| |
|
2009 |
|
$32.753237 |
|
$40.807235 |
|
1,135,235.790 |
| |
|
2008 |
|
$52.839247 |
|
$32.753237 |
|
1,284,939.623 |
| |
|
2007 |
|
$50.907734 |
|
$52.839247 |
|
1,629,949.922 |
| |
|
2006 |
|
$44.692069 |
|
$50.907734 |
|
2,061,312.563 |
| |
|
2005 |
|
$43.285226 |
|
$44.692069 |
|
2,516,402.000 |
| |
|
2004 |
|
$39.671542 |
|
$43.285226 |
|
3,149,253.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Initial Class |
|
2013 |
|
$33.369462 |
|
$44.211158 |
|
300,566.889 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$30.220215 |
|
$33.369462 |
|
334,168.147 |
| |
|
2011 |
|
$30.368746 |
|
$30.220215 |
|
382,515.375 |
| |
|
2010 |
|
$26.820037 |
|
$30.368746 |
|
425,307.233 |
| |
|
2009 |
|
$20.332233 |
|
$26.820037 |
|
476,595.565 |
| |
|
2008 |
|
$31.441964 |
|
$20.332233 |
|
535,988.424 |
| |
|
2007 |
|
$29.581501 |
|
$31.441964 |
|
660,378.026 |
| |
|
2006 |
|
$27.467342 |
|
$29.581501 |
|
909,845.859 |
| |
|
2005 |
|
$26.878966 |
|
$27.467342 |
|
1,125,864.000 |
| |
|
2004 |
|
$25.662502 |
|
$26.878966 |
|
1,388,317.000 |
| Core Value
Portfolio - Initial Class |
|
2013 |
|
$13.898150 |
|
$18.897209 |
|
631,031.076 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$11.909565 |
|
$13.898150 |
|
706,007.721 |
| |
|
2011 |
|
$12.821784 |
|
$11.909565 |
|
788,719.684 |
| |
|
2010 |
|
$11.484012 |
|
$12.821784 |
|
902,879.903 |
| |
|
2009 |
|
$9.853790 |
|
$11.484012 |
|
999,486.098 |
| |
|
2008 |
|
$15.591518 |
|
$9.853790 |
|
1,273,607.269 |
| |
|
2007 |
|
$15.350987 |
|
$15.591518 |
|
1,619,592.985 |
| |
|
2006 |
|
$12.831642 |
|
$15.350987 |
|
1,668,932.256 |
| |
|
2005 |
|
$12.340986 |
|
$12.831642 |
|
2,014,296.000 |
| |
|
2004 |
|
$11.213553 |
|
$12.340986 |
|
2,409,688.000 |
59
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.40% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| MidCap Stock
Portfolio - Initial Class |
|
2013 |
|
$17.875820 |
|
$23.798095 |
|
611,087.672 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$15.147146 |
|
$17.875820 |
|
667,334.901 |
| |
|
2011 |
|
$15.398411 |
|
$15.147146 |
|
788,737.507 |
| |
|
2010 |
|
$12.205179 |
|
$15.398411 |
|
909,686.364 |
| |
|
2009 |
|
$9.133016 |
|
$12.205179 |
|
1,004,334.417 |
| |
|
2008 |
|
$15.544555 |
|
$9.133016 |
|
1,069,976.541 |
| |
|
2007 |
|
$15.530866 |
|
$15.544555 |
|
1,305,589.291 |
| |
|
2006 |
|
$14.615194 |
|
$15.530866 |
|
1,788,353.701 |
| |
|
2005 |
|
$13.574236 |
|
$14.615194 |
|
2,244,785.000 |
| |
|
2004 |
|
$12.024296 |
|
$13.574236 |
|
2,549,132.000 |
| Technology Growth
Portfolio - Initial Class |
|
2013 |
|
$9.190440 |
|
$12.036785 |
|
1,243,278.101 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$8.060566 |
|
$9.190440 |
|
1,369,457.970 |
| |
|
2011 |
|
$8.862844 |
|
$8.060566 |
|
1,613,520.343 |
| |
|
2010 |
|
$6.916586 |
|
$8.862844 |
|
1,776,156.774 |
| |
|
2009 |
|
$4.448190 |
|
$6.916586 |
|
1,937,555.827 |
| |
|
2008 |
|
$7.669115 |
|
$4.448190 |
|
2,004,358.631 |
| |
|
2007 |
|
$6.778873 |
|
$7.669115 |
|
2,361,039.682 |
| |
|
2006 |
|
$6.590565 |
|
$6.778873 |
|
3,161,588.743 |
| |
|
2005 |
|
$6.437911 |
|
$6.590565 |
|
3,927,283.000 |
| |
|
2004 |
|
$6.498373 |
|
$6.437911 |
|
5,095,148.000 |
60
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.30% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| TA Aegon Tactical
Vanguard ETF - Balanced - Service Class |
|
2013 |
|
$1.021034 |
|
$1.119968 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.021034 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Conservative - Service Class |
|
2013 |
|
$1.019500 |
|
$1.077581 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019500 |
|
0.000 |
| TA Aegon Tactical
Vanguard ETF - Growth - Service Class |
|
2013 |
|
$1.024980 |
|
$1.178848 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.024980 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Balanced - Service Class |
|
2013 |
|
$1.010238 |
|
$1.090765 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.010238 |
|
0.000 |
| TA Legg Mason
Dynamic Allocation - Growth - Service Class |
|
2013 |
|
$1.005291 |
|
$1.147282 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.005291 |
|
0.000 |
| TA Market
Participation Strategy - Service Class |
|
2013 |
|
$0.990317 |
|
$1.117353 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.990317 |
|
0.000 |
| TA PIMCO Tactical
- Balanced - Service Class |
|
2013 |
|
$0.993410 |
|
$1.096839 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.993410 |
|
0.000 |
| TA PIMCO Tactical
- Conservative - Service Class |
|
2013 |
|
$0.996292 |
|
$1.063716 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.996292 |
|
0.000 |
| TA PIMCO Tactical
- Growth - Service Class |
|
2013 |
|
$0.988238 |
|
$1.139510 |
|
0.000 |
| Sub-Account
inception September 17, 2012 |
|
2012 |
|
$0.000000 |
|
$0.988238 |
|
0.000 |
| TA Vanguard ETF -
Balanced - Service Class |
|
2013 |
|
$1.023061 |
|
$1.125389 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.023061 |
|
0.000 |
| TA Vanguard ETF -
Conservative - Service Class |
|
2013 |
|
$1.019619 |
|
$1.081714 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.019619 |
|
0.000 |
| TA Vanguard ETF -
Growth - Service Class |
|
2013 |
|
$1.027195 |
|
$1.204465 |
|
0.000 |
| Sub-Account
inception May 1, 2012 |
|
2012 |
|
$0.000000 |
|
$1.027195 |
|
0.000 |
| TA WMC Diversified
Growth - Initial Class |
|
2013 |
|
$1.484781 |
|
$1.941581 |
|
20,517.318 |
| Sub-Account inception May 4, 1998 |
|
2012 |
|
$1.329149 |
|
$1.484781 |
|
20,619.307 |
| |
|
2011 |
|
$1.398595 |
|
$1.329149 |
|
22,858.504 |
| |
|
2010 |
|
$1.202573 |
|
$1.398595 |
|
25,865.608 |
| |
|
2009 |
|
$0.942915 |
|
$1.202573 |
|
44,782.601 |
| |
|
2008 |
|
$1.769136 |
|
$0.942915 |
|
47,290.861 |
| |
|
2007 |
|
$1.541267 |
|
$1.769136 |
|
69,299.643 |
| |
|
2006 |
|
$1.436101 |
|
$1.541267 |
|
113,676.706 |
| |
|
2005 |
|
$1.248282 |
|
$1.436101 |
|
72,960.000 |
| |
|
2004 |
|
$1.091940 |
|
$1.248282 |
|
47,357.000 |
| Appreciation
Portfolio - Service Class |
|
2013 |
|
$1.425566 |
|
$1.700350 |
|
674,084.333 |
| Sub-Account inception April 5,
1993 |
|
2012 |
|
$1.311266 |
|
$1.425566 |
|
884,949.337 |
| |
|
2011 |
|
$1.221521 |
|
$1.311266 |
|
1,216,310.458 |
| |
|
2010 |
|
$1.075574 |
|
$1.221521 |
|
1,457,887.151 |
| |
|
2009 |
|
$0.891412 |
|
$1.075574 |
|
1,812,757.421 |
| |
|
2008 |
|
$1.284966 |
|
$0.891412 |
|
2,167,202.449 |
| |
|
2007 |
|
$1.218288 |
|
$1.284966 |
|
2,407,320.669 |
| |
|
2006 |
|
$1.061961 |
|
$1.218288 |
|
2,695,398.530 |
| |
|
2005 |
|
$1.033187 |
|
$1.061961 |
|
3,041,573.000 |
| |
|
2004 |
|
$0.998754 |
|
$1.033187 |
|
3,211,030.000 |
| Opportunistic
Small Cap Portfolio - Service Class |
|
2013 |
|
$0.984482 |
|
$1.440474 |
|
137,418.923 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$0.829461 |
|
$0.984482 |
|
149,781.358 |
| |
|
2011 |
|
$0.977679 |
|
$0.829461 |
|
166,450.234 |
| |
|
2010 |
|
$0.757075 |
|
$0.977679 |
|
252,534.188 |
| |
|
2009 |
|
$0.609812 |
|
$0.757075 |
|
303,541.078 |
| |
|
2008 |
|
$0.992750 |
|
$0.609812 |
|
385,410.368 |
| |
|
2007 |
|
$1.133591 |
|
$0.992750 |
|
446,760.263 |
| |
|
2006 |
|
$1.109241 |
|
$1.133591 |
|
601,316.426 |
| |
|
2005 |
|
$1.064476 |
|
$1.109241 |
|
671,516.000 |
| |
|
2004 |
|
$0.971085 |
|
$1.064476 |
|
662,380.000 |
| Growth and Income
Portfolio - Service Class |
|
2013 |
|
$1.224607 |
|
$1.649270 |
|
115,104.543 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.053470 |
|
$1.224607 |
|
179,387.531 |
| |
|
2011 |
|
$1.100052 |
|
$1.053470 |
|
351,441.550 |
| |
|
2010 |
|
$0.942007 |
|
$1.100052 |
|
392,846.224 |
| |
|
2009 |
|
$0.742957 |
|
$0.942007 |
|
461,651.396 |
| |
|
2008 |
|
$1.265618 |
|
$0.742957 |
|
570,086.410 |
| |
|
2007 |
|
$1.185061 |
|
$1.265618 |
|
605,783.934 |
| |
|
2006 |
|
$1.050136 |
|
$1.185061 |
|
451,803.920 |
| |
|
2005 |
|
$1.030669 |
|
$1.050136 |
|
566,172.000 |
| |
|
2004 |
|
$0.973826 |
|
$1.030669 |
|
576,194.000 |
61
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.30% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| International
Equity Portfolio - Service Class |
|
2013 |
|
$1.696605 |
|
$1.966784 |
|
21,736.084 |
| Sub-Account inception December 15,
1994 |
|
2012 |
|
$1.399254 |
|
$1.696605 |
|
35,205.283 |
| |
|
2011 |
|
$1.665856 |
|
$1.399254 |
|
45,393.771 |
| |
|
2010 |
|
$1.537756 |
|
$1.665856 |
|
76,242.927 |
| |
|
2009 |
|
$1.247347 |
|
$1.537756 |
|
129,123.493 |
| |
|
2008 |
|
$2.192161 |
|
$1.247347 |
|
175,403.084 |
| |
|
2007 |
|
$1.900731 |
|
$2.192161 |
|
193,194.949 |
| |
|
2006 |
|
$1.564621 |
|
$1.900731 |
|
188,094.544 |
| |
|
2005 |
|
$1.384779 |
|
$1.564621 |
|
154,923.000 |
| |
|
2004 |
|
$1.129519 |
|
$1.384779 |
|
134,601.000 |
| International
Value Portfolio - Service Class |
|
2013 |
|
$1.270039 |
|
$1.538243 |
|
185,421.987 |
| Sub-Account inception May 1, 1996 |
|
2012 |
|
$1.144476 |
|
$1.270039 |
|
203,405.177 |
| |
|
2011 |
|
$1.427103 |
|
$1.144476 |
|
222,516.127 |
| |
|
2010 |
|
$1.387156 |
|
$1.427103 |
|
237,592.163 |
| |
|
2009 |
|
$1.075498 |
|
$1.387156 |
|
273,493.440 |
| |
|
2008 |
|
$1.742696 |
|
$1.075498 |
|
406,686.599 |
| |
|
2007 |
|
$1.698797 |
|
$1.742696 |
|
411,957.056 |
| |
|
2006 |
|
$1.406073 |
|
$1.698797 |
|
386,132.186 |
| |
|
2005 |
|
$1.275222 |
|
$1.406073 |
|
403,033.000 |
| |
|
2004 |
|
$1.078034 |
|
$1.275222 |
|
392,995.000 |
| Quality Bond
Portfolio - Service Class |
|
2013 |
|
$1.469150 |
|
$1.424236 |
|
939,849.505 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.394951 |
|
$1.469150 |
|
1,151,331.088 |
| |
|
2011 |
|
$1.323281 |
|
$1.394951 |
|
1,636,862.753 |
| |
|
2010 |
|
$1.238867 |
|
$1.323281 |
|
2,044,029.576 |
| |
|
2009 |
|
$1.094832 |
|
$1.238867 |
|
2,410,268.013 |
| |
|
2008 |
|
$1.160859 |
|
$1.094832 |
|
3,283,676.869 |
| |
|
2007 |
|
$1.138430 |
|
$1.160859 |
|
3,669,557.399 |
| |
|
2006 |
|
$1.109887 |
|
$1.138430 |
|
3,616,035.980 |
| |
|
2005 |
|
$1.099429 |
|
$1.109887 |
|
4,195,283.000 |
| |
|
2004 |
|
$1.080807 |
|
$1.099429 |
|
4,757,185.000 |
| Money Market
Portfolio - Initial Class |
|
2013 |
|
$1.031667 |
|
$1.018481 |
|
971,894.524 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.045205 |
|
$1.031667 |
|
1,023,207.714 |
| |
|
2011 |
|
$1.058682 |
|
$1.045205 |
|
1,145,568.311 |
| |
|
2010 |
|
$1.072358 |
|
$1.058682 |
|
1,429,428.138 |
| |
|
2009 |
|
$1.084873 |
|
$1.072358 |
|
1,738,166.819 |
| |
|
2008 |
|
$1.071773 |
|
$1.084873 |
|
2,710,390.000 |
| |
|
2007 |
|
$1.035356 |
|
$1.071773 |
|
3,512,649.911 |
| |
|
2006 |
|
$1.002764 |
|
$1.035356 |
|
758,300.759 |
| |
|
2005 |
|
$0.989478 |
|
$1.002764 |
|
523,734.000 |
| |
|
2004 |
|
$0.994396 |
|
$0.989478 |
|
518,366.000 |
| Dreyfus Stock
Index Fund, Inc. - Service Class |
|
2013 |
|
$1.348154 |
|
$1.752805 |
|
377,016.189 |
| Sub-Account inception January 4,
1993 |
|
2012 |
|
$1.182755 |
|
$1.348154 |
|
440,385.789 |
| |
|
2011 |
|
$1.179004 |
|
$1.182755 |
|
711,053.806 |
| |
|
2010 |
|
$1.042741 |
|
$1.179004 |
|
1,090,113.295 |
| |
|
2009 |
|
$0.838028 |
|
$1.042741 |
|
1,471,600.222 |
| |
|
2008 |
|
$1.354472 |
|
$0.838028 |
|
2,266,979.063 |
| |
|
2007 |
|
$1.306942 |
|
$1.354472 |
|
2,426,889.780 |
| |
|
2006 |
|
$1.149142 |
|
$1.306942 |
|
2,708,040.028 |
| |
|
2005 |
|
$1.114620 |
|
$1.149142 |
|
2,723,433.000 |
| |
|
2004 |
|
$1.023219 |
|
$1.114620 |
|
2,767,334.000 |
| The Dreyfus
Socially Responsible Growth Fund, Inc. - Service Class |
|
2013 |
|
$1.200889 |
|
$1.588502 |
|
78,952.643 |
| Sub-Account inception October 7,
1993 |
|
2012 |
|
$1.089166 |
|
$1.200889 |
|
81,691.267 |
| |
|
2011 |
|
$1.096162 |
|
$1.089166 |
|
100,448.225 |
| |
|
2010 |
|
$0.969400 |
|
$1.096162 |
|
102,838.896 |
| |
|
2009 |
|
$0.735914 |
|
$0.969400 |
|
104,640.477 |
| |
|
2008 |
|
$1.139638 |
|
$0.735914 |
|
156,392.518 |
| |
|
2007 |
|
$1.074032 |
|
$1.139638 |
|
153,322.816 |
| |
|
2006 |
|
$0.998515 |
|
$1.074032 |
|
159,276.298 |
| |
|
2005 |
|
$0.978656 |
|
$0.998515 |
|
157,734.000 |
| |
|
2004 |
|
$0.935828 |
|
$0.978656 |
|
232,538.000 |
62
CONDENSED FINANCIAL INFORMATION — (Continued)
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Year |
|
1.30% |
| |
|
Beginning AUV |
|
Ending AUV |
|
# Units |
| Core Value
Portfolio - Service Class |
|
2013 |
|
$1.240729 |
|
$1.684391 |
|
361,206.163 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.065003 |
|
$1.240729 |
|
396,823.841 |
| |
|
2011 |
|
$1.148009 |
|
$1.065003 |
|
551,879.534 |
| |
|
2010 |
|
$1.029738 |
|
$1.148009 |
|
712,880.521 |
| |
|
2009 |
|
$0.884328 |
|
$1.029738 |
|
1,014,209.498 |
| |
|
2008 |
|
$1.398348 |
|
$0.884328 |
|
1,344,338.315 |
| |
|
2007 |
|
$1.378233 |
|
$1.398348 |
|
1,607,192.458 |
| |
|
2006 |
|
$1.152258 |
|
$1.378233 |
|
1,792,437.255 |
| |
|
2005 |
|
$1.108933 |
|
$1.152258 |
|
2,073,521.000 |
| |
|
2004 |
|
$1.008051 |
|
$1.108933 |
|
2,195,500.000 |
| MidCap Stock
Portfolio - Service Class |
|
2013 |
|
$1.543218 |
|
$2.052010 |
|
239,360.728 |
| Sub-Account inception May 1, 1998 |
|
2012 |
|
$1.310014 |
|
$1.543218 |
|
338,155.271 |
| |
|
2011 |
|
$1.324376 |
|
$1.310014 |
|
412,191.915 |
| |
|
2010 |
|
$1.056815 |
|
$1.324376 |
|
494,721.508 |
| |
|
2009 |
|
$0.791082 |
|
$1.056815 |
|
668,775.315 |
| |
|
2008 |
|
$1.345693 |
|
$0.791082 |
|
771,042.170 |
| |
|
2007 |
|
$1.344626 |
|
$1.345693 |
|
844,573.886 |
| |
|
2006 |
|
$1.264968 |
|
$1.344626 |
|
873,328.659 |
| |
|
2005 |
|
$1.176271 |
|
$1.264968 |
|
992,114.000 |
| |
|
2004 |
|
$1.043162 |
|
$1.176271 |
|
1,028,138.000 |
| Technology Growth
Portfolio - Service Class |
|
2013 |
|
$1.462361 |
|
$1.912641 |
|
77,742.915 |
| Sub-Account inception October 1,
1999 |
|
2012 |
|
$1.284316 |
|
$1.462361 |
|
80,270.821 |
| |
|
2011 |
|
$1.414790 |
|
$1.284316 |
|
80,749.852 |
| |
|
2010 |
|
$1.105381 |
|
$1.414790 |
|
110,782.129 |
| |
|
2009 |
|
$0.712882 |
|
$1.105381 |
|
100,345.273 |
| |
|
2008 |
|
$1.229139 |
|
$0.712882 |
|
121,821.043 |
| |
|
2007 |
|
$1.088089 |
|
$1.229139 |
|
134,693.791 |
| |
|
2006 |
|
$1.059442 |
|
$1.088089 |
|
136,396.712 |
| |
|
2005 |
|
$1.037076 |
|
$1.059442 |
|
220,934.000 |
| |
|
2004 |
|
$1.048150 |
|
$1.037076 |
|
262,023.000 |
63
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.
64
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 |
|
|
|
| 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.
65
FINANCIAL STATEMENTS AND SCHEDULES –
STATUTORY BASIS
Transamerica Life Insurance Company
Years Ended December 31, 2013, 2012 and 2011
Transamerica Life Insurance Company
Financial Statements and Schedules – Statutory Basis
Years Ended December 31, 2013, 2012 and 2011
Contents
Report of Independent Auditors
The Board of Directors
Transamerica Life Insurance Company
We have audited the accompanying statutory-basis financial statements of Transamerica Life Insurance Company, which comprise the balance sheets as of
December 31, 2013 and 2012, the related statutory-basis statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2013, and the related notes to the financial
statements. Our audits also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7.
Management’s
Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
conformity with accounting practices prescribed or permitted by the Insurance Division, Department of Commerce, of the State of Iowa. Management also is responsible for the design, implementation and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.
Auditor’s
responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance
with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend
on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 1, to meet the requirements of Iowa the financial statements have been prepared in conformity with accounting practices prescribed or
permitted by the Insurance Division, Department of Commerce, of the State of Iowa, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles are
described in Note 1. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis
financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Transamerica Life Insurance Company at December 31, 2013 and 2012, or the results of its
operations or its cash flows for each of the three years in the period ended December 31, 2013.
Opinion on Statutory-Basis of Accounting
However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of
Transamerica Life Insurance Company at December 31, 2013 and 2012, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting practices prescribed or
permitted by the Insurance Division, Department of Commerce, of the State of Iowa. Also in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole,
present fairly in all material respects the information set forth therein.
/s/ Ernst & Young
April 25, 2014
Transamerica Life Insurance Company
Balance Sheets – Statutory Basis
(Dollars in Thousands, Except per Share Amounts)
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2013 |
|
|
2012 |
|
| Admitted assets |
|
|
|
|
|
|
|
|
| Cash and invested assets: |
|
|
|
|
|
|
|
|
| Cash, cash equivalents and short-term investments |
|
$ |
1,987,142 |
|
|
$ |
4,386,102 |
|
| Bonds: |
|
|
|
|
|
|
|
|
| Affiliated entities |
|
|
34,550 |
|
|
|
40,426 |
|
| Unaffiliated entities |
|
|
36,152,281 |
|
|
|
36,681,566 |
|
| Preferred stocks: |
|
|
|
|
|
|
|
|
| Affiliated entities |
|
|
7,162 |
|
|
|
7,162 |
|
| Unaffiliated entities |
|
|
132,631 |
|
|
|
111,471 |
|
| Common stocks: |
|
|
|
|
|
|
|
|
| Affiliated entities (cost: 2013 - $952,237; 2012 - $961,200) |
|
|
1,453,290 |
|
|
|
1,440,426 |
|
| Unaffiliated entities (cost: 2013 - $124,346; 2012 - $167,843) |
|
|
174,006 |
|
|
|
218,026 |
|
| Mortgage loans on real estate |
|
|
5,636,535 |
|
|
|
5,756,749 |
|
| Real estate, at cost less accumulated depreciation (2013 - $37,450; 2012 - $41,312) |
|
|
|
|
|
|
|
|
| Home office properties |
|
|
68,008 |
|
|
|
70,864 |
|
| Investment properties |
|
|
6,599 |
|
|
|
8,090 |
|
| Properties held for sale |
|
|
3,841 |
|
|
|
4,100 |
|
| Policy loans |
|
|
687,569 |
|
|
|
708,794 |
|
| Receivables for securities |
|
|
135 |
|
|
|
4,475 |
|
| Securities lending reinvested collateral assets |
|
|
3,182,425 |
|
|
|
2,160,218 |
|
| Derivatives |
|
|
364,307 |
|
|
|
557,584 |
|
| Collateral balance |
|
|
6,626 |
|
|
|
6,213 |
|
| Other invested assets |
|
|
2,017,036 |
|
|
|
2,290,392 |
|
|
|
|
|
|
|
|
|
|
| Total cash and invested assets |
|
|
51,914,143 |
|
|
|
54,452,658 |
|
|
|
|
| Accrued investment income |
|
|
451,834 |
|
|
|
465,779 |
|
| Cash surrender value of life insurance policies |
|
|
325,576 |
|
|
|
316,533 |
|
| Premiums deferred and uncollected |
|
|
130,831 |
|
|
|
125,291 |
|
| Current federal income tax recoverable |
|
|
71,861 |
|
|
|
— |
|
| Net deferred income tax asset |
|
|
621,446 |
|
|
|
652,973 |
|
| Reinsurance receivable |
|
|
140,529 |
|
|
|
158,536 |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
30,968 |
|
|
|
51,246 |
|
| Accounts receivable |
|
|
276,529 |
|
|
|
290,758 |
|
| General agents pension fund |
|
|
49,480 |
|
|
|
44,732 |
|
| Reinsurance deposit receivable |
|
|
178,513 |
|
|
|
167,223 |
|
| Amounts incurred under modified coinsurance agreement |
|
|
23,764 |
|
|
|
35,403 |
|
| Goodwill |
|
|
20,484 |
|
|
|
27,968 |
|
| Other assets |
|
|
19,945 |
|
|
|
23,928 |
|
| Separate account assets |
|
|
61,020,160 |
|
|
|
48,684,223 |
|
|
|
|
|
|
|
|
|
|
| Total admitted assets |
|
$ |
115,276,063 |
|
|
$ |
105,497,251 |
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2013 |
|
|
2012 |
|
| Liabilities and capital and surplus |
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Aggregate reserves for policies and contracts: |
|
|
|
|
|
|
|
|
| Life |
|
$ |
15,230,889 |
|
|
$ |
14,844,093 |
|
| Annuity |
|
|
15,055,747 |
|
|
|
15,866,274 |
|
| Accident and health |
|
|
3,813,084 |
|
|
|
3,678,436 |
|
| Policy and contract claim reserves: |
|
|
|
|
|
|
|
|
| Life |
|
|
265,018 |
|
|
|
238,728 |
|
| Accident and health |
|
|
177,536 |
|
|
|
169,217 |
|
| Liability for deposit-type contracts |
|
|
3,722,996 |
|
|
|
5,187,660 |
|
| Other policyholders’ funds |
|
|
21,462 |
|
|
|
21,289 |
|
| Federal income taxes payable |
|
|
— |
|
|
|
6,704 |
|
| Municipal reverse repurchase agreements |
|
|
88,979 |
|
|
|
89,724 |
|
| Remittances and items not allocated |
|
|
421,501 |
|
|
|
445,323 |
|
| Case level liability |
|
|
2,685 |
|
|
|
3,696 |
|
| Payable for derivative cash collateral |
|
|
385,440 |
|
|
|
971,392 |
|
| Asset valuation reserve |
|
|
858,072 |
|
|
|
915,880 |
|
| Interest maintenance reserve |
|
|
787,475 |
|
|
|
840,245 |
|
| Funds held under reinsurance treaties |
|
|
5,363,800 |
|
|
|
5,940,038 |
|
| Reinsurance in unauthorized reinsurers |
|
|
445 |
|
|
|
513 |
|
| Commissions and expense allowances payable on reinsurance assumed |
|
|
39,546 |
|
|
|
46,585 |
|
| Payable to parent, subsidiaries and affiliates |
|
|
20,926 |
|
|
|
7,245 |
|
| Payable for securities |
|
|
16,680 |
|
|
|
10,364 |
|
| Payable for securities lending |
|
|
3,182,425 |
|
|
|
2,160,218 |
|
| Borrowed money |
|
|
209,442 |
|
|
|
85,516 |
|
| Transfers from separate accounts due or accrued (including $(1,230,598) and $(915,131) accrued for expense allowances recognized in
reserves, net of reinsurance allowances at December 31, 2013 and 2012, respectively) |
|
|
(1,206,171 |
) |
|
|
(2,496,726 |
) |
| Amounts withheld or retained |
|
|
184,022 |
|
|
|
157,590 |
|
| Derivatives |
|
|
794,550 |
|
|
|
357,183 |
|
| Bank owned life insurance surrender payable |
|
|
— |
|
|
|
1,610,622 |
|
| Other liabilities |
|
|
201,421 |
|
|
|
260,341 |
|
| Separate account liabilities |
|
|
60,920,240 |
|
|
|
48,608,538 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
110,558,210 |
|
|
|
100,026,688 |
|
|
|
|
| Capital and surplus: |
|
|
|
|
|
|
|
|
| Common stock, $10 per share par value, 1,000,000 shares authorized, 676,190 issued and outstanding at December 31, 2013 and
2012 |
|
|
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, 2013 and 2012; 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, 2013 and 2012 |
|
|
1,597 |
|
|
|
1,597 |
|
| Treasury stock, Series A Preferred, $10 per share par value, 42,500 shares as of December 31, 2013 and 2012 |
|
|
(58,000 |
) |
|
|
(58,000 |
) |
| Surplus notes |
|
|
150,000 |
|
|
|
150,000 |
|
| Paid-in surplus |
|
|
3,374,951 |
|
|
|
3,346,065 |
|
| Unassigned surplus |
|
|
1,242,543 |
|
|
|
2,024,139 |
|
|
|
|
|
|
|
|
|
|
| Total capital and surplus |
|
|
4,717,853 |
|
|
|
5,470,563 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities and capital and surplus |
|
$ |
115,276,063 |
|
|
$ |
105,497,251 |
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
4
Transamerica Life Insurance Company
Statements of Operations – Statutory Basis
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums and other considerations, net of reinsurance: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
|
$ |
1,281,088 |
|
|
$ |
1,147,190 |
|
|
$ |
337,360 |
|
| Annuity |
|
|
13,493,424 |
|
|
|
9,948,086 |
|
|
|
8,845,105 |
|
| Accident and health |
|
|
760,723 |
|
|
|
711,538 |
|
|
|
681,591 |
|
| Net investment income |
|
|
2,394,136 |
|
|
|
2,729,527 |
|
|
|
2,615,858 |
|
| Amortization of interest maintenance reserve |
|
|
43,674 |
|
|
|
31,284 |
|
|
|
71,742 |
|
| Commissions and expense allowances on reinsurance ceded |
|
|
555,759 |
|
|
|
504,373 |
|
|
|
(1,597,611 |
) |
| Income from fees associated with investment management, administration and contract guarantees for separate accounts |
|
|
759,484 |
|
|
|
603,433 |
|
|
|
494,516 |
|
| Reserve adjustment on reinsurance ceded |
|
|
(82,824 |
) |
|
|
(2,160,914 |
) |
|
|
(159,096 |
) |
| IMR adjustment due to reinsurance |
|
|
(1,535 |
) |
|
|
63,262 |
|
|
|
307,904 |
|
| Consideration received on reinsurance recapture and novations |
|
|
244,825 |
|
|
|
43,455 |
|
|
|
— |
|
| Income from administrative service agreement with affilate |
|
|
96,209 |
|
|
|
74,457 |
|
|
|
60,237 |
|
| Other income |
|
|
100,385 |
|
|
|
72,054 |
|
|
|
85,154 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,645,348 |
|
|
|
13,767,745 |
|
|
|
11,742,760 |
|
|
|
|
|
| Benefits and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Benefits paid or provided for: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life benefits |
|
|
1,106,251 |
|
|
|
940,593 |
|
|
|
993,834 |
|
| Accident and health benefits |
|
|
534,396 |
|
|
|
494,903 |
|
|
|
473,566 |
|
| Annuity benefits |
|
|
1,061,005 |
|
|
|
1,067,932 |
|
|
|
1,082,923 |
|
| Surrender benefits |
|
|
6,567,152 |
|
|
|
5,930,279 |
|
|
|
5,703,634 |
|
| Other benefits |
|
|
163,164 |
|
|
|
195,827 |
|
|
|
199,349 |
|
| Increase (decrease) in aggregate reserves for policies and contracts: |
|
|
|
|
|
|
|
|
|
|
|
|
| Life |
|
|
406,341 |
|
|
|
18,775 |
|
|
|
(201,230 |
) |
| Annuity |
|
|
(811,515 |
) |
|
|
(770,871 |
) |
|
|
(1,353,277 |
) |
| Accident and health |
|
|
134,648 |
|
|
|
150,798 |
|
|
|
88,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,161,442 |
|
|
|
8,028,236 |
|
|
|
6,987,361 |
|
|
|
|
|
| Insurance expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Commissions |
|
|
1,273,297 |
|
|
|
1,094,907 |
|
|
|
1,132,581 |
|
| General insurance expenses |
|
|
742,876 |
|
|
|
660,695 |
|
|
|
687,102 |
|
| Taxes, licenses and fees |
|
|
89,585 |
|
|
|
89,428 |
|
|
|
83,034 |
|
| Net transfers to separate accounts |
|
|
7,252,579 |
|
|
|
3,033,966 |
|
|
|
5,167,168 |
|
| Change in case level liability |
|
|
(1,011 |
) |
|
|
(1,284 |
) |
|
|
(2,434 |
) |
| Consideration paid on reinsurance transactions |
|
|
— |
|
|
|
— |
|
|
|
352,463 |
|
| Reinsurance transaction - modco reserve adjustment on reinsurance assumed |
|
|
(234,885 |
) |
|
|
(205,194 |
) |
|
|
(218,566 |
) |
| Other expenses |
|
|
301,162 |
|
|
|
46,754 |
|
|
|
602,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,423,603 |
|
|
|
4,719,272 |
|
|
|
7,803,622 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total benefits and expenses |
|
|
18,585,045 |
|
|
|
12,747,508 |
|
|
|
14,790,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before dividends to policyholders, federal income tax benefit and net realized capital gains (losses) on
investments |
|
$ |
1,060,303 |
|
|
$ |
1,020,237 |
|
|
$ |
(3,048,223 |
) |
5
Transamerica Life Insurance Company
Statements of Operations – Statutory Basis (continued)
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Dividends to policyholders |
|
$ |
8,579 |
|
|
$ |
8,651 |
|
|
$ |
9,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before federal income tax benefit and net realized capital gains (losses) on investments |
|
|
1,051,724 |
|
|
|
1,011,586 |
|
|
|
(3,057,719 |
) |
| Federal income tax benefit |
|
|
(288,531 |
) |
|
|
(162,504 |
) |
|
|
(174,917 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gain (loss) from operations before net realized capital gains (losses) on investments |
|
|
1,340,255 |
|
|
|
1,174,090 |
|
|
|
(2,882,802 |
) |
| Net realized capital (losses) gains on investments (net of related federal income taxes and amounts transferred to/from interest
maintenance reserve) |
|
|
(1,282,720 |
) |
|
|
(382,526 |
) |
|
|
423,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
$ |
57,535 |
|
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2011 |
|
$ |
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 gains/losses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,120 |
) |
|
|
(6,120 |
) |
| Change in net deferred income tax asset |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
136,907 |
|
|
|
136,907 |
|
| Change in other nonadmitted assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,392 |
) |
|
|
(2,392 |
) |
| Change in provision for reinsurance in unauthorized companies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,546 |
) |
|
|
(2,546 |
) |
| Change in asset valuation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16,524 |
|
|
|
16,524 |
|
| Change in surplus in separate accounts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,863 |
) |
|
|
(2,863 |
) |
| Change in surplus as a result of reinsurance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,474,106 |
|
|
|
2,474,106 |
|
| Change in admitted deferred tax asset pursuant to SSAP No. 10R |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(122,355 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(122,355 |
) |
| Capital contribution |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
200,000 |
|
|
|
— |
|
|
|
200,000 |
|
| Dissolution of NEF Investment Company |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,185 |
) |
|
|
(1,185 |
) |
| Long-term incentive compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,158 |
|
|
|
— |
|
|
|
9,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2011 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
432,568 |
|
|
$ |
150,000 |
|
|
$ |
3,326,311 |
|
|
$ |
1,262,404 |
|
|
$ |
5,121,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 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 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8
Transamerica Life Insurance Company
Statements of Changes in Capital and Surplus – Statutory Basis (continued)
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Common
Stock |
|
|
Preferred
Stock |
|
|
Treasury
Stock |
|
|
Surplus
Notes |
|
|
Paid-in
Surplus |
|
|
Unassigned
Surplus |
|
|
Total
Capital and
Surplus |
|
| Balance at December 31, 2012 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
150,000 |
|
|
$ |
3,346,065 |
|
|
$ |
2,024,139 |
|
|
$ |
5,470,563 |
|
| Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
57,535 |
|
|
|
57,535 |
|
| Change in net unrealized capital gains/losses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(332,167 |
) |
|
|
(332,167 |
) |
| Change in net unrealized foreign exchange capital gains/losses, net of tax |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12,070 |
) |
|
|
(12,070 |
) |
| Change in net deferred income tax asset |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,931 |
|
|
|
32,931 |
|
| Change in other nonadmitted assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(252,549 |
) |
|
|
(252,549 |
) |
| Change in provision for reinsurance in unauthorized companies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
68 |
|
|
|
68 |
|
| Change in asset valuation reserve |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
57,808 |
|
|
|
57,808 |
|
| Change in surplus in separate accounts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
23,962 |
|
|
|
23,962 |
|
| Change in surplus as a result of reinsurance |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(172,114 |
) |
|
|
(172,114 |
) |
| Dividends to stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(150,000 |
) |
|
|
(150,000 |
) |
| Correction of error - AG 38 reserve adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(35,000 |
) |
|
|
(35,000 |
) |
| Long-term incentive compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,886 |
|
|
|
— |
|
|
|
28,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2013 |
|
$ |
6,762 |
|
|
$ |
1,597 |
|
|
$ |
(58,000 |
) |
|
$ |
150,000 |
|
|
$ |
3,374,951 |
|
|
$ |
1,242,543 |
|
|
$ |
4,717,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
9
Transamerica Life Insurance Company
Statements of Cash Flow – Statutory Basis
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Operating activities |
|
|
|
|
| Premiums collected, net of reinsurance |
|
$ |
15,526,495 |
|
|
$ |
11,814,188 |
|
|
$ |
9,977,873 |
|
| Net investment income received |
|
|
2,401,849 |
|
|
|
2,671,763 |
|
|
|
2,807,544 |
|
| Miscellaneous income (expense) |
|
|
1,257,207 |
|
|
|
(976,256 |
) |
|
|
1,162,966 |
|
| Benefit and loss related payments |
|
|
(9,398,383 |
) |
|
|
(8,664,812 |
) |
|
|
(9,577,187 |
) |
| Net transfers to separate accounts |
|
|
(5,937,543 |
) |
|
|
(4,796,312 |
) |
|
|
(4,563,220 |
) |
| Commissions, expenses paid and aggregate write-ins for deductions |
|
|
(4,150,135 |
) |
|
|
(278,351 |
) |
|
|
(332,606 |
) |
| Dividends paid to policyholders |
|
|
(8,782 |
) |
|
|
(9,263 |
) |
|
|
(9,884 |
) |
| Federal and foreign income taxes recovered |
|
|
152,345 |
|
|
|
188,989 |
|
|
|
92,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in operating activities |
|
|
(156,947 |
) |
|
|
(50,054 |
) |
|
|
(442,043 |
) |
|
|
| Investing activities |
|
|
|
|
| Proceeds from investments sold, matured or repaid: |
|
|
|
|
| Bonds |
|
|
7,346,483 |
|
|
|
10,121,509 |
|
|
|
16,891,112 |
|
| Common stocks |
|
|
65,723 |
|
|
|
52,538 |
|
|
|
168,476 |
|
| Preferred stocks |
|
|
13,742 |
|
|
|
59,805 |
|
|
|
63,880 |
|
| Mortgage loans |
|
|
1,070,214 |
|
|
|
1,468,644 |
|
|
|
1,466,463 |
|
| Real estate and properties held for sale |
|
|
3,900 |
|
|
|
19,355 |
|
|
|
26,978 |
|
| Other invested assets |
|
|
599,468 |
|
|
|
486,960 |
|
|
|
528,027 |
|
| Receivable for securities |
|
|
10,656 |
|
|
|
24,450 |
|
|
|
13,693 |
|
| Securities lending reinvested collateral assets |
|
|
— |
|
|
|
1,360,086 |
|
|
|
436,576 |
|
| Miscellaneous proceeds |
|
|
24,164 |
|
|
|
27,906 |
|
|
|
321,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investment proceeds |
|
|
9,134,350 |
|
|
|
13,621,253 |
|
|
|
19,916,672 |
|
|
|
| Costs of investments acquired: |
|
|
|
|
| Bonds |
|
|
(6,800,695 |
) |
|
|
(6,763,489 |
) |
|
|
(9,541,749 |
) |
| Common stocks |
|
|
(11,041 |
) |
|
|
(59,779 |
) |
|
|
(292,401 |
) |
| Preferred stocks |
|
|
(36,314 |
) |
|
|
(25,851 |
) |
|
|
(60,610 |
) |
| Mortgage loans |
|
|
(956,947 |
) |
|
|
(373,806 |
) |
|
|
(191,262 |
) |
| Real estate and properties held for sale |
|
|
(2,998 |
) |
|
|
(2,894 |
) |
|
|
(1,343 |
) |
| Other invested assets |
|
|
(191,522 |
) |
|
|
(251,237 |
) |
|
|
(382,939 |
) |
| Derivatives |
|
|
(1,312,329 |
) |
|
|
(508,177 |
) |
|
|
— |
|
| Securities lending reinvested collateral assets |
|
|
(1,022,207 |
) |
|
|
— |
|
|
|
— |
|
| Miscellaneous applications |
|
|
(816 |
) |
|
|
(1,666 |
) |
|
|
(2,145 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total cost of investments acquired |
|
|
(10,334,869 |
) |
|
|
(7,986,899 |
) |
|
|
(10,472,449 |
) |
| Net decrease in policy loans |
|
|
21,225 |
|
|
|
18,890 |
|
|
|
18,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cost of investments acquired |
|
|
(10,313,644 |
) |
|
|
(7,968,009 |
) |
|
|
(10,453,455 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash (used in) provided by investing activities |
|
|
(1,179,294 |
) |
|
|
5,653,244 |
|
|
|
9,463,217 |
|
10
Transamerica Life Insurance Company
Statements of Cash Flow – Statutory Basis (continued)
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Financing and miscellaneous activities |
|
|
|
|
| Net withdrawals on deposit-type contract funds and other liabilities without life or disability contingencies |
|
$ |
(1,558,971 |
) |
|
$ |
(825,256 |
) |
|
$ |
(1,726,008 |
) |
| Borrowed funds |
|
|
123,544 |
|
|
|
85,269 |
|
|
|
— |
|
| Funds held under reinsurance treaties with unauthorized reinsurers |
|
|
(737,894 |
) |
|
|
(2,057,558 |
) |
|
|
(5,531,199 |
) |
| Dividends paid to stockholders |
|
|
(150,000 |
) |
|
|
(300,000 |
) |
|
|
— |
|
| Capital contribution received |
|
|
(1,296 |
) |
|
|
— |
|
|
|
200,000 |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
20,278 |
|
|
|
102,917 |
|
|
|
94,676 |
|
| Payable to parent, subsidiaries and affiliates |
|
|
13,681 |
|
|
|
(235,867 |
) |
|
|
(233,864 |
) |
| Payable for securities lending |
|
|
1,022,207 |
|
|
|
(1,360,086 |
) |
|
|
(436,576 |
) |
| Other cash provided |
|
|
205,732 |
|
|
|
257,041 |
|
|
|
155,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash used in financing and miscellaneous activities |
|
|
(1,062,719 |
) |
|
|
(4,333,540 |
) |
|
|
(7,477,803 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (decrease) increase in cash, cash equivalents and short-term investments |
|
|
(2,398,960 |
) |
|
|
1,269,650 |
|
|
|
1,543,371 |
|
|
|
| Cash, cash equivalents and short-term investments: |
|
|
|
|
| Beginning of year |
|
|
4,386,102 |
|
|
|
3,116,452 |
|
|
|
1,573,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of year |
|
$ |
1,987,142 |
|
|
$ |
4,386,102 |
|
|
$ |
3,116,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes.
11
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis
(Dollars in Thousands, Except per Share amounts)
December 31, 2013
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
12
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory
Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Valuation Office of the NAIC (SVO) or determine the fair value by using a permitted valuation method.
All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment
assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If the fair value of the mortgage-backed/asset-backed security is less than amortized cost, an
entity shall assess whether the impairment is other-than-temporary. An other-than-temporary impairment is considered to have occurred if the fair value of the mortgage-backed/asset-backed security is less than its amortized cost basis and the entity
intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An other-than-temporary impairment is also considered to have occurred if the
discounted estimated future cash flows are less than the amortized cost basis of the security.
If it is determined an other-than-temporary
impairment has occurred as a result of the cash flow analysis, the security is written down to the discounted estimated future cash flows. If an other-than-temporary impairment has occurred due to intent to sell or lack of intent and ability to
hold, the security is written down to fair value.
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.
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
17
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
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-
18
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2013 and 2012 was $45,463 and $49,416, 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, 2013 and 2012, the Company excluded investment income due and accrued of $1,393 and $281, 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.
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
21
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 predetermined 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.
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
23
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory
Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 holds some warrants linked to an Argentina Government GDP
as part of an authorized workout from the Argentina Brady Bonds. The Company was put into these warrants and did not voluntarily transaction into these types of instruments. The Company does not have any downside risk to the warrants, and only
receives a payment if the GDP is above a specific threshold. These swaps are marked to fair value in the balance sheet and the fair value adjustment is recorded in capital and surplus.
Separate Accounts
The majority of the separate accounts
held by the Company, primarily for individual policyholders as well as for group pension plans, do not have any minimum guarantees, and the investment risks associated with fair value changes are borne by the policyholder. The assets in the
accounts, carried at estimated fair value, consist of underlying mutual fund shares, common stocks, long-term bonds and short-term investments.
Certain
other separate accounts held by the Company provide a minimum guaranteed return of 3% of the average investment balance to policyholders. The assets consist of long-term bonds and short-term investments which are carried at amortized cost.
Assets held in trust for purchases of variable universal life and annuity contracts and the Company’s corresponding obligation to the contract owners are
shown separately in the balance
25
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 $12,450,327, $9,341,436 and $9,381,447 in 2013, 2012 and 2011, respectively. In addition, the Company received $759,484, $603,433 and $494,516 in 2013, 2012 and
2011, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.
Aggregate
Reserves for Policies and Contracts
Life, annuity and accident and health benefit reserves are developed by actuarial methods and are determined based
on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum 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 Method. 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 option, on a change in fund basis, according to the Commissioner’s Annuity
Reserve Valuation Method.
Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal
reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.
Tabular interest, tabular less
actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined primarily by formula.
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.
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.
27
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining
either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance
with SSAP No. 50.
Municipal Reverse Repurchase Agreements
Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed
deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest on the contract.
These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.
Premiums and Annuity Considerations
Revenues for
policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Consideration received and benefits paid
for annuity policies without mortality or morbidity risk are recorded using deposit accounting and recorded directly to an appropriate policy reserve account, without recognizing premium revenue.
Claims and Claim Adjustment Expense
Liabilities for
losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing
mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business.
28
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unpaid Claims
Liability
Beginning
of Year |
|
|
Claims
Incurred |
|
|
Claims
Paid |
|
|
Unpaid Claims
Liability End
of Year |
|
| Year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2013 |
|
$ |
— |
|
|
$ |
562,502 |
|
|
$ |
173,599 |
|
|
$ |
388,903 |
|
| 2012 and prior |
|
|
1,016,235 |
|
|
|
16,100 |
|
|
|
352,478 |
|
|
|
679,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,016,235 |
|
|
$ |
578,602 |
|
|
$ |
526,077 |
|
|
|
1,068,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Active life reserve |
|
|
2,831,418 |
|
|
|
|
|
|
|
|
|
|
|
2,921,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total accident and health reserves |
|
$ |
3,847,653 |
|
|
|
|
|
|
|
|
|
|
$ |
3,990,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s unpaid claims reserve was increased by $16,100 and $51,495 for the years ended December 31, 2013 and
2012, respectively, for health claims that occurred prior to those balance sheet dates. The change in 2013 and 2012 resulted primarily from variances in the estimated frequency of claims and claim severity.
The balance in the liability for unpaid accident and health claim adjustment expenses as of December 31, 2013 and 2012 was $27,677 and $26,289,
respectively. The Company incurred $16,738 and paid $15,349 of claim adjustment expenses during 2013, of which $10,398 of the paid amount was attributable to insured or covered events of prior years. The Company incurred $13,288 and paid $13,608 of
claim adjustment expenses during 2012, of which $10,113 of the paid amount was attributable to insured or covered events of prior years. The Company did not increase or decrease the claim adjustment expense provision for insured events of prior
years during 2013 or 2012.
29
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 $28,886, $19,754 and $9,158 for the years ended December 31, 2013, 2012 and 2011, respectively.
Recent Accounting Pronouncements
Effective
December 31, 2013 the Company adopted revisions to SSAP No. 35R, Guaranty Fund and Other Assessments – Revised, which incorporates subsequent event (Type II) disclosures for entities subject to Section 9010 of the Patient
Protection and Affordable Care Act related to assessments payable. The adoption of this revision did not impact the Company’s financial position or results of operations as revisions relate to disclosures only. See Note 15 for further
discussion.
Effective January 1, 2013, the Company adopted SSAP No. 92, Accounting for Postretirement Benefits Other Than Pensions, A
Replacement of SSAP No. 14, and SSAP No. 102, Accounting for Pensions, A Replacement of SSAP No. 89. This guidance impacts accounting for defined benefit pension plans or other postretirement plans, along with related disclosures.
SSAP No. 102 requires recognition of the funded status of the plan based on the projected benefit obligation instead of the accumulated benefit obligation as under SSAP No. 89, Accounting for Pensions, A Replacement of SSAP
No. 8. In addition, SSAP No. 92 and SSAP No. 102 require consideration of non-vested participants. The adoption of these standards did not impact the Company’s results of operations, financial position or disclosures as 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 post retirement plans as sponsored by Aegon.
30
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Effective January 1, 2013, the Company adopted SSAP No. 103, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities, which adopts with modifications the guidance in Accounting Standards Update (ASU) 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of
Financial Assets and supersedes SSAP No. 91R, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. The adoption of this standard did not impact the financial position or results
of operations of the Company.
Effective January 1, 2013, the Company adopted non-substantive revisions to SSAP No. 36, Troubled Debt
Restructuring. These revisions adopt guidance from ASU 2011-02, Receivables – A Creditors’ Determination of Whether a Restructuring is a Troubled Debt Restructuring, which clarifies what constitutes a troubled debt
restructuring and adopts with modification troubled debt restructuring disclosures for creditors from ASU 2010-20: Receivables (Topic 310), Disclosures About the Credit Quality of Financing Receivables and the Allowance for Credit
Losses. The adoption of this revision did not impact the financial position or results of operations of the Company.
Effective December 31,
2012, the Company adopted non-substantive revisions to SSAP No. 86 to require disclosure of embedded credit derivatives within a financial instrument that expose the holder to the possibility of making future payments, and adopted guidance from
Accounting Standards Update (ASU) 2010-11, Derivatives and Hedging – Scope Exception Related to Embedded Credit Derivatives, to clarify that seller credit derivative disclosures do not apply to embedded derivative features related to the
transfer of credit risk that is only in the form of subordination of one financial instrument to another. The adoption of these revisions had no impact to the Company’s results of operations or financial position.
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 86 to move one aspect of the criteria for a hedged forecasted
transaction and incorporate it as criteria for a fair value hedge. The adoption of this revision had no impact to the Company’s results of operations or financial position.
Effective December 31, 2012, the Company adopted non-substantive revisions to SSAP No. 27, Disclosure of Information about Financial Instruments
with Off-Balance-Sheet Risk, Financial Instruments with Concentrations of Credit Risk and Disclosures about Fair Value of Financial Instruments, which clarifies that embedded derivatives, which are not separately recognized as derivatives under
statutory accounting, are included in the disclosures of financial instruments with off-balance-sheet risk. The adoption of this revision had no impact to the Company’s results of operations or financial position.
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
31
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 year ended December 31, 2011, the Company adopted SSAP No. 10R, Income Taxes – Revised, A Temporary Replacement of SSAP
No. 10 (SSAP No. 10R). This statement established statutory accounting principles for current and deferred federal and foreign income taxes and current state income taxes. The SSAP temporarily superseded SSAP No. 10, Income
Taxes. SSAP No. 10R allowed an entity to elect to admit additional deferred tax assets (DTAs) utilizing a three year loss carryback provision, plus the lesser of a look-forward of three years on gross DTAs expected to be realized or 15% of
statutory capital and surplus if the entity’s risk-based capital is above the 250% risk-based capital level where an action level could occur as a result of a trend test utilizing the old SSAP No. 10 provisions to calculate the DTA. Prior
to the adoption of SSAP No. 10R, the admitted DTA was calculated by taking into consideration a one year loss carryback and look-forward on gross DTAs that can be expected to be realized and a 10% capital and surplus limit on the admitted
amount of the DTA. The Company elected to admit additional deferred tax assets pursuant to SSAP No. 10R and as a result, the cumulative effect of the adoption of this standard was the difference between the calculation of the admitted DTA per
SSAP No.10R and the old SSAP No. 10 methodology at December 31, 2011. This change in accounting principle increased surplus by a net amount of $432,568 at December 31, 2011, which has been recorded within the statements of changes in
capital and surplus.
32
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 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
33
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
between AVR and IMR. The revisions clarify that an AVR/IMR bifurcation analysis should be performed when SSAP No. 43R securities are sold (not just as a result of impairment). These changes
were applied on a prospective basis and had no financial impact to the Company upon adoption.
Effective January 1, 2011, the Company adopted
revisions to SSAP No. 43R to clarify the definitions of loan-backed and structured securities. The clarified guidance was applied prospectively and had no financial impact to the Company upon adoption.
Effective January 1, 2014, the Company will adopt SSAP No. 105, Working Capital Finance Investments, which allows working capital finance
investments to be admitted assets if certain criteria are met. The adoption of this standard had no impact to the financial position or results of operations of the Company.
Effective December 31, 2014, the Company will adopt revisions to SSAP No. 104R, Share-Based Payments, which provides guidance for
share-based payments transactions with non-employees. The adoption of this revision will have no impact to the financial position and results of operations of the Company.
Reclassifications
Certain reclassifications have been
made to the 2011 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.
2. Prescribed and Permitted Statutory
Accounting Practices
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.
34
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Net income, State of Iowa basis |
|
$ |
57,535 |
|
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
| 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, NAIC SAP |
|
$ |
57,535 |
|
|
$ |
791,564 |
|
|
$ |
(2,459,266 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory surplus, State of Iowa basis |
|
$ |
4,717,853 |
|
|
$ |
5,470,563 |
|
|
$ |
5,121,642 |
|
| State prescribed practice for parental guarantee |
|
|
(751,027 |
) |
|
|
(724,720 |
) |
|
|
(675,044 |
) |
| State prescribed practice for secondary guarantee reinsurance |
|
|
(3,529,931 |
) |
|
|
(3,364,455 |
) |
|
|
(3,149,987 |
) |
| State permitted practice for valuation of wholly-owned foreign life subsidiary |
|
|
51,123 |
|
|
|
42,539 |
|
|
|
19,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Statutory surplus, NAIC SAP |
|
$ |
488,018 |
|
|
$ |
1,423,927 |
|
|
$ |
1,315,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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
36
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
release similar to a novation, as outlined in paragraphs 53-56 of SSAP No. 61, with direct adjustments to the balance sheet.
3. Accounting Changes and Correction of Errors
During
2013, the Company determined the correct data had not been utilized in the stand-alone asset adequacy analysis as defined under Actuarial Guideline XXXVIII section 8C (AG38 8C). The error resulted in an understatement of the additional asset
adequacy reserve recorded at December 31, 2012 in the amount of $35,000. This was corrected in 2013, and the Company reflected the impact of the correction as a change in unassigned surplus within the statement of capital and surplus.
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.
37
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Determination of fair value
The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses
quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party
pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies
commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.
To understand the
valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs
in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate that the Company can corroborate detailed information such as assumptions, inputs and methodologies used in
pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure that the information is
reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of
pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which
highlight significant price changes, stale prices or un-priced securities.
38
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Fair value hierarchy
The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP
No. 100. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using
methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include
inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:
|
|
|
| Level 1 - |
|
Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date. |
|
|
| Level 2 - |
|
Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: |
|
|
|
|
a) Quoted prices for similar assets or liabilities in active markets |
|
|
|
|
b) Quoted prices for identical or similar assets or liabilities in non-active
markets |
|
|
|
|
c) Inputs other than quoted market prices that are observable |
|
|
|
|
d) Inputs that are derived principally from or corroborated by observable market data through
correlation or other means |
|
|
| Level 3 - |
|
Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would
use in pricing the asset or liability. |
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
39
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
values of bonds and stocks are reported or determined using the following pricing sources: indexes, third party pricing services, brokers, external fund managers and internal models.
Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing
services, which are determined as discussed above in the description of level one and level two values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are
estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current
market rates applicable to the coupon rate, credit and maturity of the investments.
Mortgage Loans on Real Estate: The fair values
for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.
Real estate: Real estate held for sale is typically valued utilizing independent external appraisers in conjunction with reviews by
qualified internal appraisers. Valuations are primarily based on active market prices, adjusted for any difference in the nature, location or condition of the specific property. If such information is not available, other valuation methods are
applied, considering the value that the property’s net earning power will support, the value indicated by recent sales of comparable properties and the current cost of reproducing or replacing the property.
Other Invested Assets: The fair values for other invested assets, which include investments in surplus notes issued by other insurance
companies and fixed or variable rate investments with underlying characteristics of bonds were determined primarily by using indexes, third party pricing services and internal models.
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. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at
amortized cost, then the derivative is also held at amortized cost.
Policy Loans: The fair value of policy loans is equal to the
book value of the loan, which is stated at unpaid principal balance.
40
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 primarily valued either using third party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate
account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities
is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.
Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred
annuities and GICs, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be
the present surrender value.
Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying
balance sheets approximate their fair values.
Surplus Notes: Fair values for surplus notes are estimated using a discounted cash
flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements.
The Company accounts for its
investments in affiliated common stock using the equity method of accounting; as such, they are not included in the following disclosures.
Fair values
for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken
into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance
contracts.
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, 2013 and 2012, respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31 2013 |
|
| |
|
Estimated
Fair Value |
|
|
Admitted Assets |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
|
Not
Practicable
(Carrying
Value) |
|
| Admitted assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash equivalents and short-term investments, other than affiliates |
|
$ |
1,045,232 |
|
|
$ |
1,045,230 |
|
|
$ |
— |
|
|
$ |
1,045,232 |
|
|
$ |
— |
|
|
$ |
— |
|
| Short-term notes receivable from affiliates |
|
|
788,088 |
|
|
|
788,088 |
|
|
|
— |
|
|
|
788,088 |
|
|
|
— |
|
|
|
— |
|
| Bonds |
|
|
38,262,814 |
|
|
|
36,186,831 |
|
|
|
3,972,279 |
|
|
|
33,309,819 |
|
|
|
980,716 |
|
|
|
— |
|
| Preferred stocks, other than affiliates |
|
|
133,646 |
|
|
|
132,631 |
|
|
|
— |
|
|
|
123,216 |
|
|
|
10,430 |
|
|
|
— |
|
| Common stocks, other than affiliates |
|
|
174,006 |
|
|
|
174,006 |
|
|
|
61,276 |
|
|
|
222 |
|
|
|
112,508 |
|
|
|
— |
|
| Mortgage loans on real estate |
|
|
5,973,239 |
|
|
|
5,636,535 |
|
|
|
— |
|
|
|
— |
|
|
|
5,973,239 |
|
|
|
— |
|
| Other invested assets |
|
|
172,399 |
|
|
|
160,190 |
|
|
|
— |
|
|
|
162,183 |
|
|
|
10,216 |
|
|
|
— |
|
| Options |
|
|
143,367 |
|
|
|
140,462 |
|
|
|
— |
|
|
|
132,401 |
|
|
|
10,966 |
|
|
|
— |
|
| Interest rate swaps |
|
|
192,151 |
|
|
|
143,061 |
|
|
|
— |
|
|
|
192,151 |
|
|
|
— |
|
|
|
— |
|
| Currency swaps |
|
|
63,157 |
|
|
|
49,114 |
|
|
|
— |
|
|
|
63,157 |
|
|
|
— |
|
|
|
— |
|
| Credit default swaps |
|
|
30,964 |
|
|
|
14,646 |
|
|
|
— |
|
|
|
30,964 |
|
|
|
— |
|
|
|
— |
|
| Equity swaps |
|
|
17,024 |
|
|
|
17,024 |
|
|
|
— |
|
|
|
17,024 |
|
|
|
— |
|
|
|
— |
|
| Policy loans |
|
|
687,569 |
|
|
|
687,569 |
|
|
|
— |
|
|
|
687,569 |
|
|
|
— |
|
|
|
— |
|
| Securities lending reinvested collateral |
|
|
3,181,767 |
|
|
|
3,182,425 |
|
|
|
— |
|
|
|
3,181,767 |
|
|
|
— |
|
|
|
— |
|
| Receivable from parent, subsidiaries and affiliates |
|
|
30,968 |
|
|
|
30,968 |
|
|
|
— |
|
|
|
30,968 |
|
|
|
— |
|
|
|
— |
|
| Separate account assets |
|
|
61,043,535 |
|
|
|
61,020,158 |
|
|
|
57,359,585 |
|
|
|
3,632,927 |
|
|
|
51,023 |
|
|
|
— |
|
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Investment contract liabilities |
|
|
14,083,069 |
|
|
|
12,886,932 |
|
|
|
— |
|
|
|
345,969 |
|
|
|
13,737,100 |
|
|
|
— |
|
| Options |
|
|
47,437 |
|
|
|
47,437 |
|
|
|
— |
|
|
|
47,437 |
|
|
|
— |
|
|
|
— |
|
| Interest rate swaps |
|
|
39,264 |
|
|
|
475,857 |
|
|
|
— |
|
|
|
(50,065 |
) |
|
|
89,329 |
|
|
|
— |
|
| Currency swaps |
|
|
26,486 |
|
|
|
38,219 |
|
|
|
— |
|
|
|
26,486 |
|
|
|
— |
|
|
|
— |
|
| Credit default swaps |
|
|
(15,305 |
) |
|
|
28,037 |
|
|
|
— |
|
|
|
(15,305 |
) |
|
|
— |
|
|
|
— |
|
| Equity swaps |
|
|
205,000 |
|
|
|
205,000 |
|
|
|
— |
|
|
|
205,000 |
|
|
|
— |
|
|
|
— |
|
| Payable to parent, subsidiaries and affiliates |
|
|
20,926 |
|
|
|
20,926 |
|
|
|
— |
|
|
|
20,926 |
|
|
|
— |
|
|
|
— |
|
| Separate account annuity liabilities |
|
|
53,551,005 |
|
|
|
53,552,968 |
|
|
|
— |
|
|
|
53,429,793 |
|
|
|
121,212 |
|
|
|
— |
|
| Surplus notes |
|
|
160,790 |
|
|
|
150,000 |
|
|
|
— |
|
|
|
160,790 |
|
|
|
— |
|
|
|
— |
|
42
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
— |
|
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, 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2013 |
|
| |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Government |
|
$ |
— |
|
|
$ |
20,830 |
|
|
$ |
— |
|
|
$ |
20,830 |
|
| Industrial and miscellaneous |
|
|
— |
|
|
|
90,121 |
|
|
|
7,084 |
|
|
|
97,205 |
|
| Hybrid securities |
|
|
— |
|
|
|
12,046 |
|
|
|
— |
|
|
|
12,046 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total bonds |
|
|
— |
|
|
|
122,997 |
|
|
|
7,084 |
|
|
|
130,081 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Industrial and miscellaneous |
|
|
— |
|
|
|
— |
|
|
|
164 |
|
|
|
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total common stock |
|
|
— |
|
|
|
— |
|
|
|
164 |
|
|
|
164 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mutual funds |
|
|
1,205 |
|
|
|
69 |
|
|
|
— |
|
|
|
1,274 |
|
| Industrial and miscellaneous |
|
|
60,070 |
|
|
|
154 |
|
|
|
112,508 |
|
|
|
172,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total common stock |
|
|
61,275 |
|
|
|
223 |
|
|
|
112,508 |
|
|
|
174,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Short-term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Government |
|
|
— |
|
|
|
38,498 |
|
|
|
— |
|
|
|
38,498 |
|
| Industrial and miscellaneous |
|
|
— |
|
|
|
650,309 |
|
|
|
— |
|
|
|
650,309 |
|
| Mutual funds |
|
|
— |
|
|
|
343,231 |
|
|
|
— |
|
|
|
343,231 |
|
| Intercompany notes receivable |
|
|
— |
|
|
|
788,088 |
|
|
|
— |
|
|
|
788,088 |
|
| Sweep accounts |
|
|
— |
|
|
|
13,194 |
|
|
|
— |
|
|
|
13,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total short-term investments |
|
|
— |
|
|
|
1,833,320 |
|
|
|
— |
|
|
|
1,833,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative assets |
|
|
— |
|
|
|
366,432 |
|
|
|
10,966 |
|
|
|
377,398 |
|
| Separate account assets |
|
|
57,334,188 |
|
|
|
3,014,655 |
|
|
|
43,120 |
|
|
|
60,391,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
57,395,463 |
|
|
$ |
5,337,627 |
|
|
$ |
173,842 |
|
|
$ |
62,906,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Derivative liabilities |
|
$ |
— |
|
|
$ |
312,514 |
|
|
$ |
89,329 |
|
|
$ |
401,843 |
|
| Separate account liabilities |
|
|
8,054 |
|
|
|
5,147 |
|
|
|
— |
|
|
|
13,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
$ |
8,054 |
|
|
$ |
317,661 |
|
|
$ |
89,329 |
|
|
$ |
415,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2 represents common stock being carried at book value and some warrants that are valued using vendor inputs. 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.
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
45
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
During 2013 and 2012, 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 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Beginning
Balance at
January 1,
2013 |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Government |
|
$ |
— |
|
|
$ |
78 |
|
|
$ |
— |
|
|
$ |
(1 |
) |
|
$ |
(77 |
) |
| RMBS |
|
|
2,192 |
|
|
|
— |
|
|
|
88 |
|
|
|
(1,181 |
) |
|
|
913 |
|
| Other |
|
|
5,955 |
|
|
|
— |
|
|
|
— |
|
|
|
32 |
|
|
|
(1,823 |
) |
| Preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Common stock |
|
|
149,596 |
|
|
|
— |
|
|
|
— |
|
|
|
(83 |
) |
|
|
(44 |
) |
| Derivatives |
|
|
(20,355 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(111,102 |
) |
| Separate account assets |
|
|
807 |
|
|
|
— |
|
|
|
758 |
|
|
|
43,120 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
138,195 |
|
|
$ |
78 |
|
|
$ |
846 |
|
|
$ |
41,887 |
|
|
$ |
(112,134 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Purchases |
|
|
Issuances |
|
|
Sales |
|
|
Settlements |
|
|
Ending
Balance at
December 31,
2013 |
|
| Bonds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Government |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| RMBS |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
1,832 |
|
| Other |
|
|
141 |
|
|
|
1,975 |
|
|
|
159 |
|
|
|
869 |
|
|
|
5,252 |
|
| Preferred stock |
|
|
164 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164 |
|
| Common stock |
|
|
103 |
|
|
|
— |
|
|
|
34,101 |
|
|
|
2,963 |
|
|
|
112,508 |
|
| Derivatives |
|
|
(5,327 |
) |
|
|
3,990 |
|
|
|
— |
|
|
|
(54,431 |
) |
|
|
(78,363 |
) |
| Separate account assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48 |
|
|
|
43,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
(4,919 |
) |
|
$ |
5,965 |
|
|
$ |
34,260 |
|
|
$ |
(50,547 |
) |
|
$ |
84,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
46
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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,
2013 |
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 third party vendor inputs as of December 31, 2012 and 2011, subsequently changing
to being valued using internal models during 2013 and 2012. In addition, transfers in for bonds were the result of securities being carried at amortized cost at December 31, 2012 and 2011, subsequently changing to being carried at fair value
during 2013 and 2012. Transfers in for bonds were also the result of securities being valued using third party vendor inputs as of December 31, 2011, subsequently changing to being valued using broker quotes during 2012.
Transfers out for bonds were partly attributable to securities being valued using broker quotes which utilize unobservable inputs at December 31, 2012
and 2011, subsequently changing to
47
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2013 and 2012. In addition, transfers out for bonds were attributed to securities being carried at
fair value at December 31, 2011, subsequently changing to being carried at amortized cost during 2012. Transfers out for bonds were also the result of securities being valued using internal models at December 31, 2011, subsequently
changing to being valued using vendor inputs during 2012.
In addition, 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. Also, 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.
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.
Transfers out for separate account assets were attributable to securities being valued using broker quotes
which utilize unobservable inputs at December 31, 2012 and 2011, subsequently changing to being valued using third party vendor inputs, thus causing the transfer out of Level 3 during 2013 and 2012.
Nonrecurring fair value measurements
As indicated in
Note 1, real estate held for sale is measured at the lower of carrying amount or fair value less cost to sell. As of December 31, 2013, the Company has several parcels of land that it is exploring the sale of. Therefore, these properties are
carried at fair value less cost to sell, which amounts to $1,496. One parcel of land has a carrying amount less than its fair value and therefore is not carried at fair value as of December 31, 2013.
The Company also had parcels of land that were held for sale as of December 31, 2012. Fair value less cost to sell of these properties was $4,100.
Fair value was determined by utilizing an external appraisal following the sales comparison approach. The fair value measurements are classified in Level 3 as
the comparable sales and adjustments for the specific attributes of these properties are not market observable inputs.
48
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, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unaffiliated bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States Government and agencies |
|
$ |
3,609,781 |
|
|
$ |
169,035 |
|
|
$ |
105 |
|
|
$ |
104,231 |
|
|
$ |
3,674,480 |
|
| State, municipal and other government |
|
|
805,302 |
|
|
|
42,366 |
|
|
|
8,654 |
|
|
|
18,882 |
|
|
|
820,132 |
|
| Hybrid securities |
|
|
451,745 |
|
|
|
18,192 |
|
|
|
33,493 |
|
|
|
1,731 |
|
|
|
434,713 |
|
| Industrial and miscellaneous |
|
|
21,678,122 |
|
|
|
2,190,512 |
|
|
|
57,284 |
|
|
|
143,834 |
|
|
|
23,667,514 |
|
| Mortgage and other asset-backed securities |
|
|
9,607,331 |
|
|
|
437,922 |
|
|
|
345,544 |
|
|
|
71,558 |
|
|
|
9,628,151 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
36,152,281 |
|
|
|
2,858,027 |
|
|
|
445,080 |
|
|
|
340,236 |
|
|
|
38,224,990 |
|
| Unaffiliated preferred stocks |
|
|
132,631 |
|
|
|
8,167 |
|
|
|
5,318 |
|
|
|
1,834 |
|
|
|
133,646 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,284,912 |
|
|
$ |
2,866,194 |
|
|
$ |
450,398 |
|
|
$ |
342,070 |
|
|
$ |
38,358,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2013 and 2012, respectively, for bonds and preferred stocks that have been in a continuous loss position
for greater than or equal to twelve months, the Company held 374 and 430 securities with a carrying amount of $3,611,683 and $4,671,096 and an unrealized loss of $450,398 and $788,942 with an average price of 87.5 and 83.1 (fair value/amortized
cost). Of this portfolio, 64.6% and 52.0% were investment grade with associated unrealized losses of $245,895 and $289,823, respectively.
49
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2013 and 2012, respectively, for bonds and preferred stocks that have been in a
continuous loss position for less than twelve months, the Company held 950 and 231 securities with a carrying amount of $7,498,242 and $1,021,012 and an unrealized loss of $342,071 and $25,078 with an average price of 95.4 and 97.5 (fair
value/amortized cost). Of this portfolio, 95.3% and 85.2% were investment grade with associated unrealized losses of $322,110 and $17,955, respectively.
At December 31, 2013 and 2012, respectively, for common stocks that have been in a continuous loss position for greater than or equal to twelve months,
the Company held 3 and 3 securities with a cost of $15 and $10 and an unrealized loss of $10 and $9 with an average price of 33.4 and 7.2 (fair value/cost).
At December 31, 2013 and 2012, respectively, for common stocks that have been in a continuous loss position for less than twelve months, the Company held
6 and 14 securities with a cost of $1,448 and $12,588 and an unrealized loss of $9 and $263 with an average price of 99.4 and 97.9 (fair value/cost).
The
estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2013 and 2012 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Losses 12
Months or
More |
|
|
Losses Less
Than 12
Months |
|
|
Total |
|
| December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unaffiliated bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
| United States Government and agencies |
|
$ |
5,544 |
|
|
$ |
1,768,737 |
|
|
$ |
1,774,281 |
|
| State, municipal and other government |
|
|
34,613 |
|
|
|
263,662 |
|
|
|
298,275 |
|
| Hybrid securities |
|
|
145,220 |
|
|
|
59,006 |
|
|
|
204,226 |
|
| Industrial and miscellaneous |
|
|
657,577 |
|
|
|
3,483,083 |
|
|
|
4,140,660 |
|
| Mortgage and other asset-backed securities |
|
|
2,297,319 |
|
|
|
1,552,422 |
|
|
|
3,849,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,140,273 |
|
|
|
7,126,910 |
|
|
|
10,267,183 |
|
| Unaffiliated preferred stocks |
|
|
21,013 |
|
|
|
29,262 |
|
|
|
50,275 |
|
| Unaffiliated common stocks |
|
|
5 |
|
|
|
1,439 |
|
|
|
1,444 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,161,291 |
|
|
$ |
7,157,611 |
|
|
$ |
10,318,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
50
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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The carrying amount and estimated fair value of bonds at December 31, 2013, by contractual maturity, is shown below.
Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
|
|
|
|
|
|
|
|
|
| |
|
Carrying
Amount |
|
|
Estimated
Fair
Value |
|
| Due in one year or less |
|
$ |
824,740 |
|
|
$ |
841,476 |
|
| Due after one year through five years |
|
|
7,550,541 |
|
|
|
8,157,453 |
|
| Due after five years through ten years |
|
|
5,945,427 |
|
|
|
6,222,593 |
|
| Due after ten years |
|
|
12,224,242 |
|
|
|
13,375,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
26,544,950 |
|
|
|
28,596,839 |
|
| Mortgage and other asset-backed securities |
|
|
9,607,331 |
|
|
|
9,628,151 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
36,152,281 |
|
|
$ |
38,224,990 |
|
|
|
|
|
|
|
|
|
|
For impairment policies related to non-structured and structured securities, refer to Note 1 under Investments.
Residential Mortgage-Backed Securities (RMBS) Sector
At
December 31, 2013, the Company’s RMBS sector portfolio had investments in an unrealized loss position which had a fair value of $1,212,678 and a carrying value of $1,429,094, resulting in a gross unrealized loss of $216,416. Residential
mortgage-backed securities are securitizations of underlying pools of non-commercial mortgages on real estate. The underlying residential mortgages have varying credit characteristics and are pooled together and sold in tranches. The Company’s
RMBS includes prime jumbo pass-throughs and collateralized
51
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 in the United States that started in 2007. The housing market in the United States has shown signs of improvement as
evidenced by rising home prices and sales volume. Positive trends in the housing market have led to improvements in borrower delinquencies and prepayment rates as well as liquidation timelines. Loss severities on liquidated properties remain
elevated for subprime loans but are starting to show signs of improvement for other RMBS sectors. The improving home prices and credit performance led to credit spread tightening across the asset class.
All RMBS of Aegon USA 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. Aegon’s 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.
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, 2013.
52
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
There were no loan-backed securities with a recognized other-than-temporary impairment (OTTI) due to intent
to sell or lack of intent and ability to hold during the years ended December 31, 2013 and 2012. The following table provides the aggregate totals for loan-backed securities with a recognized OTTI due to intent to sell or lack of intent and
ability to hold, in which the security is written down to fair value during the year ended December 31, 2011.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables provide the aggregate totals for loan-backed securities with a recognized OTTI due to the Company’s
cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized Cost
Before Current
Period OTTI |
|
|
Recognized OTTI |
|
|
Amortized Cost
After OTTI |
|
|
Fair Value |
|
| Year ended December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1st quarter present value of cashflows expected to be less thanthe amortized cost basis |
|
$ |
351,042 |
|
|
$ |
12,627 |
|
|
$ |
338,415 |
|
|
$ |
256,977 |
|
| 2nd quarter present value of cashflows expected to be less thanthe amortized cost basis |
|
|
145,924 |
|
|
|
5,514 |
|
|
|
140,410 |
|
|
|
109,898 |
|
| 3rd quarter present value of cashflows expected to be less thanthe amortized cost basis |
|
|
212,457 |
|
|
|
22,867 |
|
|
|
189,590 |
|
|
|
151,843 |
|
| 4th quarter present value of cashflows expected to be less thanthe amortized cost basis |
|
|
284,290 |
|
|
|
10,202 |
|
|
|
274,088 |
|
|
|
223,193 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggregate total |
|
$ |
993,713 |
|
|
$ |
51,210 |
|
|
$ |
942,503 |
|
|
$ |
741,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53
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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
54
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, 2013, for which an OTTI
was recognized during the current reporting period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CUSIP |
|
Amortized Cost
Before Current
Period OTTI |
|
|
Present Value of
Projected Cash
Flows |
|
|
Recognized
OTTI |
|
|
Amortized Cost
After OTTI |
|
|
Fair Value at
Time of OTTI |
|
|
Quarter in
which
Impairment
Occurred |
|
| 02148YAJ3 |
|
$ |
5,495 |
|
|
$ |
5,357 |
|
|
$ |
138 |
|
|
$ |
5,357 |
|
|
$ |
2,947 |
|
|
|
1Q 2013 |
|
| 02149QAD2 |
|
|
23,455 |
|
|
|
23,148 |
|
|
|
307 |
|
|
|
23,148 |
|
|
|
19,472 |
|
|
|
1Q 2013 |
|
| 026936AA2 |
|
|
121,698 |
|
|
|
117,269 |
|
|
|
4,429 |
|
|
|
117,269 |
|
|
|
89,722 |
|
|
|
1Q 2013 |
|
| 045427AE1 |
|
|
1,448 |
|
|
|
767 |
|
|
|
681 |
|
|
|
767 |
|
|
|
84 |
|
|
|
1Q 2013 |
|
| 05953YAG6 |
|
|
961 |
|
|
|
937 |
|
|
|
24 |
|
|
|
937 |
|
|
|
713 |
|
|
|
1Q 2013 |
|
| 12668ACG8 |
|
|
12,280 |
|
|
|
12,088 |
|
|
|
192 |
|
|
|
12,088 |
|
|
|
9,426 |
|
|
|
1Q 2013 |
|
| 14984WAA8 |
|
|
5,603 |
|
|
|
5,484 |
|
|
|
119 |
|
|
|
5,484 |
|
|
|
5,285 |
|
|
|
1Q 2013 |
|
| 23332UGM0 |
|
|
8,057 |
|
|
|
7,971 |
|
|
|
86 |
|
|
|
7,971 |
|
|
|
6,774 |
|
|
|
1Q 2013 |
|
| 35729PPZ7 |
|
|
12,106 |
|
|
|
10,535 |
|
|
|
1,571 |
|
|
|
10,535 |
|
|
|
614 |
|
|
|
1Q 2013 |
|
| 3622NAAE0 |
|
|
39,998 |
|
|
|
39,654 |
|
|
|
344 |
|
|
|
39,654 |
|
|
|
35,204 |
|
|
|
1Q 2013 |
|
| 39539KAF0 |
|
|
1,319 |
|
|
|
1,268 |
|
|
|
51 |
|
|
|
1,268 |
|
|
|
1,236 |
|
|
|
1Q 2013 |
|
| 40430FAF9 |
|
|
557 |
|
|
|
235 |
|
|
|
322 |
|
|
|
235 |
|
|
|
184 |
|
|
|
1Q 2013 |
|
| 46628SAJ2 |
|
|
6,200 |
|
|
|
5,885 |
|
|
|
315 |
|
|
|
5,885 |
|
|
|
5,991 |
|
|
|
1Q 2013 |
|
| 52108HV84 |
|
|
1,821 |
|
|
|
1,776 |
|
|
|
45 |
|
|
|
1,776 |
|
|
|
1,062 |
|
|
|
1Q 2013 |
|
| 52524YAA1 |
|
|
394 |
|
|
|
1 |
|
|
|
393 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1Q 2013 |
|
| 759676AJ8 |
|
|
5,409 |
|
|
|
5,330 |
|
|
|
79 |
|
|
|
5,330 |
|
|
|
3,962 |
|
|
|
1Q 2013 |
|
| 75970JAJ5 |
|
|
3,713 |
|
|
|
3,658 |
|
|
|
55 |
|
|
|
3,658 |
|
|
|
3,096 |
|
|
|
1Q 2013 |
|
| 75971EAF3 |
|
|
4,821 |
|
|
|
4,728 |
|
|
|
93 |
|
|
|
4,728 |
|
|
|
3,578 |
|
|
|
1Q 2013 |
|
| 759950GY8 |
|
|
8,588 |
|
|
|
8,450 |
|
|
|
138 |
|
|
|
8,450 |
|
|
|
6,775 |
|
|
|
1Q 2013 |
|
| 761118VY1 |
|
|
12,033 |
|
|
|
11,795 |
|
|
|
238 |
|
|
|
11,795 |
|
|
|
9,405 |
|
|
|
1Q 2013 |
|
| 81379EAD4 |
|
|
38 |
|
|
|
— |
|
|
|
38 |
|
|
|
— |
|
|
|
1 |
|
|
|
1Q 2013 |
|
| 86358EZU3 |
|
|
4,226 |
|
|
|
3,651 |
|
|
|
575 |
|
|
|
3,651 |
|
|
|
248 |
|
|
|
1Q 2013 |
|
| 12669FX73 |
|
|
1,873 |
|
|
|
1,840 |
|
|
|
33 |
|
|
|
1,840 |
|
|
|
1,645 |
|
|
|
1Q 2013 |
|
| 41161PKD4 |
|
|
1,995 |
|
|
|
1,967 |
|
|
|
28 |
|
|
|
1,967 |
|
|
|
1,409 |
|
|
|
1Q 2013 |
|
| 36298JAA1 |
|
|
6,390 |
|
|
|
6,017 |
|
|
|
373 |
|
|
|
6,017 |
|
|
|
4,122 |
|
|
|
1Q 2013 |
|
| 3622NAAC4 |
|
|
506 |
|
|
|
502 |
|
|
|
4 |
|
|
|
502 |
|
|
|
444 |
|
|
|
1Q 2013 |
|
| 32113JAE5 |
|
|
905 |
|
|
|
255 |
|
|
|
650 |
|
|
|
255 |
|
|
|
255 |
|
|
|
1Q 2013 |
|
| 32113JAD7 |
|
|
1,289 |
|
|
|
990 |
|
|
|
299 |
|
|
|
990 |
|
|
|
415 |
|
|
|
1Q 2013 |
|
| 12667GCH4 |
|
|
4,871 |
|
|
|
4,726 |
|
|
|
145 |
|
|
|
4,726 |
|
|
|
3,816 |
|
|
|
1Q 2013 |
|
| 59020UTF2 |
|
|
469 |
|
|
|
446 |
|
|
|
23 |
|
|
|
446 |
|
|
|
243 |
|
|
|
1Q 2013 |
|
| 759950FJ2 |
|
|
1,681 |
|
|
|
1,479 |
|
|
|
202 |
|
|
|
1,479 |
|
|
|
409 |
|
|
|
1Q 2013 |
|
| 41161PPQ0 |
|
|
45,925 |
|
|
|
45,402 |
|
|
|
523 |
|
|
|
45,402 |
|
|
|
36,111 |
|
|
|
1Q 2013 |
|
| 32113JAC9 |
|
|
4,918 |
|
|
|
4,804 |
|
|
|
114 |
|
|
|
4,804 |
|
|
|
2,328 |
|
|
|
1Q 2013 |
|
| 026936AA2 |
|
|
115,022 |
|
|
|
112,915 |
|
|
|
2,107 |
|
|
|
112,915 |
|
|
|
94,786 |
|
|
|
2Q 2013 |
|
| 05953YAG6 |
|
|
903 |
|
|
|
890 |
|
|
|
13 |
|
|
|
890 |
|
|
|
666 |
|
|
|
2Q 2013 |
|
| 126694A32 |
|
|
6,158 |
|
|
|
6,114 |
|
|
|
44 |
|
|
|
6,114 |
|
|
|
5,155 |
|
|
|
2Q 2013 |
|
| 14984WAA8 |
|
|
5,350 |
|
|
|
5,261 |
|
|
|
89 |
|
|
|
5,261 |
|
|
|
5,101 |
|
|
|
2Q 2013 |
|
| 24763LDE7 |
|
|
642 |
|
|
|
637 |
|
|
|
5 |
|
|
|
637 |
|
|
|
494 |
|
|
|
2Q 2013 |
|
| 32054YAD5 |
|
|
51 |
|
|
|
— |
|
|
|
51 |
|
|
|
— |
|
|
|
37 |
|
|
|
2Q 2013 |
|
| 40430FAF9 |
|
|
227 |
|
|
|
116 |
|
|
|
111 |
|
|
|
116 |
|
|
|
41 |
|
|
|
2Q 2013 |
|
| 52108HV84 |
|
|
1,703 |
|
|
|
1,288 |
|
|
|
415 |
|
|
|
1,288 |
|
|
|
1,029 |
|
|
|
2Q 2013 |
|
| 68400DAG9 |
|
|
2,339 |
|
|
|
53 |
|
|
|
2,286 |
|
|
|
53 |
|
|
|
11 |
|
|
|
2Q 2013 |
|
| 83611MMM7 |
|
|
7,430 |
|
|
|
7,128 |
|
|
|
302 |
|
|
|
7,128 |
|
|
|
408 |
|
|
|
2Q 2013 |
|
| 86358EZU3 |
|
|
3,632 |
|
|
|
3,609 |
|
|
|
23 |
|
|
|
3,609 |
|
|
|
181 |
|
|
|
2Q 2013 |
|
| 12669FX73 |
|
|
1,774 |
|
|
|
1,753 |
|
|
|
21 |
|
|
|
1,753 |
|
|
|
1,613 |
|
|
|
2Q 2013 |
|
| 59020UTF2 |
|
|
445 |
|
|
|
407 |
|
|
|
38 |
|
|
|
407 |
|
|
|
244 |
|
|
|
2Q 2013 |
|
| 61753NAC4 |
|
|
248 |
|
|
|
239 |
|
|
|
9 |
|
|
|
239 |
|
|
|
132 |
|
|
|
2Q 2013 |
|
| 02146QAB9 |
|
|
48,026 |
|
|
|
46,874 |
|
|
|
1,152 |
|
|
|
46,874 |
|
|
|
38,081 |
|
|
|
3Q 2013 |
|
| 02149QAD2 |
|
|
22,095 |
|
|
|
22,064 |
|
|
|
31 |
|
|
|
22,064 |
|
|
|
18,608 |
|
|
|
3Q 2013 |
|
| 045427AE1 |
|
|
754 |
|
|
|
559 |
|
|
|
195 |
|
|
|
559 |
|
|
|
192 |
|
|
|
3Q 2013 |
|
| 059515AC0 |
|
|
4,993 |
|
|
|
4,753 |
|
|
|
240 |
|
|
|
4,753 |
|
|
|
3,614 |
|
|
|
3Q 2013 |
|
| 05953YAG6 |
|
|
862 |
|
|
|
822 |
|
|
|
40 |
|
|
|
822 |
|
|
|
648 |
|
|
|
3Q 2013 |
|
55
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 |
|
| 12638DAA4 |
|
$ |
44,284 |
|
|
$ |
39,885 |
|
|
$ |
4,399 |
|
|
$ |
39,885 |
|
|
$ |
42,951 |
|
|
|
3Q 2013 |
|
| 35729PPZ7 |
|
|
10,512 |
|
|
|
8,807 |
|
|
|
1,705 |
|
|
|
8,807 |
|
|
|
351 |
|
|
|
3Q 2013 |
|
| 36245RAA7 |
|
|
1,374 |
|
|
|
1,364 |
|
|
|
10 |
|
|
|
1,364 |
|
|
|
1,032 |
|
|
|
3Q 2013 |
|
| 40430FAF9 |
|
|
109 |
|
|
|
102 |
|
|
|
7 |
|
|
|
102 |
|
|
|
33 |
|
|
|
3Q 2013 |
|
| 52108HV84 |
|
|
1,288 |
|
|
|
741 |
|
|
|
547 |
|
|
|
741 |
|
|
|
1,051 |
|
|
|
3Q 2013 |
|
| 61754HAB8 |
|
|
1,499 |
|
|
|
1,453 |
|
|
|
46 |
|
|
|
1,453 |
|
|
|
1,045 |
|
|
|
3Q 2013 |
|
| 68400DAG9 |
|
|
47 |
|
|
|
5 |
|
|
|
42 |
|
|
|
5 |
|
|
|
3 |
|
|
|
3Q 2013 |
|
| 759676AJ8 |
|
|
5,012 |
|
|
|
4,916 |
|
|
|
96 |
|
|
|
4,916 |
|
|
|
4,119 |
|
|
|
3Q 2013 |
|
| 75970JAJ5 |
|
|
3,546 |
|
|
|
3,468 |
|
|
|
78 |
|
|
|
3,468 |
|
|
|
2,916 |
|
|
|
3Q 2013 |
|
| 75970QAH3 |
|
|
4,717 |
|
|
|
4,601 |
|
|
|
116 |
|
|
|
4,601 |
|
|
|
4,030 |
|
|
|
3Q 2013 |
|
| 75971EAF3 |
|
|
4,607 |
|
|
|
4,544 |
|
|
|
63 |
|
|
|
4,544 |
|
|
|
3,649 |
|
|
|
3Q 2013 |
|
| 759950GY8 |
|
|
7,751 |
|
|
|
7,586 |
|
|
|
165 |
|
|
|
7,586 |
|
|
|
6,295 |
|
|
|
3Q 2013 |
|
| 761118VY1 |
|
|
11,024 |
|
|
|
10,873 |
|
|
|
151 |
|
|
|
10,873 |
|
|
|
8,066 |
|
|
|
3Q 2013 |
|
| 83611MMM7 |
|
|
7,118 |
|
|
|
6,863 |
|
|
|
255 |
|
|
|
6,863 |
|
|
|
356 |
|
|
|
3Q 2013 |
|
| 83611XAE4 |
|
|
41 |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
|
|
— |
|
|
|
3Q 2013 |
|
| 86358EZU3 |
|
|
3,591 |
|
|
|
2,144 |
|
|
|
1,447 |
|
|
|
2,144 |
|
|
|
156 |
|
|
|
3Q 2013 |
|
| 12669FX73 |
|
|
1,674 |
|
|
|
1,545 |
|
|
|
129 |
|
|
|
1,545 |
|
|
|
1,523 |
|
|
|
3Q 2013 |
|
| 52524YAF0 |
|
|
8,504 |
|
|
|
7,846 |
|
|
|
658 |
|
|
|
7,846 |
|
|
|
5,605 |
|
|
|
3Q 2013 |
|
| 75970QAD2 |
|
|
4,362 |
|
|
|
4,260 |
|
|
|
102 |
|
|
|
4,260 |
|
|
|
3,782 |
|
|
|
3Q 2013 |
|
| 50180CAH3 |
|
|
12,551 |
|
|
|
1,975 |
|
|
|
10,576 |
|
|
|
1,975 |
|
|
|
2,902 |
|
|
|
3Q 2013 |
|
| 59020UTF2 |
|
|
407 |
|
|
|
136 |
|
|
|
271 |
|
|
|
136 |
|
|
|
253 |
|
|
|
3Q 2013 |
|
| 759950FJ2 |
|
|
1,472 |
|
|
|
1,173 |
|
|
|
299 |
|
|
|
1,173 |
|
|
|
459 |
|
|
|
3Q 2013 |
|
| 61753NAC4 |
|
|
237 |
|
|
|
231 |
|
|
|
6 |
|
|
|
231 |
|
|
|
123 |
|
|
|
3Q 2013 |
|
| 02149QAD2 |
|
|
22,999 |
|
|
|
22,648 |
|
|
|
351 |
|
|
|
22,648 |
|
|
|
20,204 |
|
|
|
4Q 2013 |
|
| 026936AA2 |
|
|
107,095 |
|
|
|
106,470 |
|
|
|
625 |
|
|
|
106,470 |
|
|
|
91,016 |
|
|
|
4Q 2013 |
|
| 045427AE1 |
|
|
553 |
|
|
|
21 |
|
|
|
532 |
|
|
|
21 |
|
|
|
85 |
|
|
|
4Q 2013 |
|
| 12666UAC7 |
|
|
16,308 |
|
|
|
15,968 |
|
|
|
340 |
|
|
|
15,968 |
|
|
|
15,957 |
|
|
|
4Q 2013 |
|
| 126685DZ6 |
|
|
689 |
|
|
|
633 |
|
|
|
56 |
|
|
|
633 |
|
|
|
693 |
|
|
|
4Q 2013 |
|
| 12668WAC1 |
|
|
9,754 |
|
|
|
9,422 |
|
|
|
332 |
|
|
|
9,422 |
|
|
|
8,727 |
|
|
|
4Q 2013 |
|
| 24763LDE7 |
|
|
1,153 |
|
|
|
686 |
|
|
|
467 |
|
|
|
686 |
|
|
|
1,035 |
|
|
|
4Q 2013 |
|
| 35729PPZ7 |
|
|
8,796 |
|
|
|
7,707 |
|
|
|
1,089 |
|
|
|
7,707 |
|
|
|
308 |
|
|
|
4Q 2013 |
|
| 40430FAF9 |
|
|
95 |
|
|
|
47 |
|
|
|
48 |
|
|
|
47 |
|
|
|
37 |
|
|
|
4Q 2013 |
|
| 52524MAW9 |
|
|
7,496 |
|
|
|
6,628 |
|
|
|
868 |
|
|
|
6,628 |
|
|
|
5,047 |
|
|
|
4Q 2013 |
|
| 759676AJ8 |
|
|
4,613 |
|
|
|
4,464 |
|
|
|
149 |
|
|
|
4,464 |
|
|
|
3,973 |
|
|
|
4Q 2013 |
|
| 75970JAJ5 |
|
|
3,419 |
|
|
|
3,263 |
|
|
|
156 |
|
|
|
3,263 |
|
|
|
2,814 |
|
|
|
4Q 2013 |
|
| 75970QAH3 |
|
|
4,550 |
|
|
|
4,335 |
|
|
|
215 |
|
|
|
4,335 |
|
|
|
4,022 |
|
|
|
4Q 2013 |
|
| 75971EAF3 |
|
|
4,469 |
|
|
|
4,265 |
|
|
|
204 |
|
|
|
4,265 |
|
|
|
3,719 |
|
|
|
4Q 2013 |
|
| 759950GY8 |
|
|
7,270 |
|
|
|
6,981 |
|
|
|
289 |
|
|
|
6,981 |
|
|
|
6,183 |
|
|
|
4Q 2013 |
|
| 761118RM2 |
|
|
1,818 |
|
|
|
1,490 |
|
|
|
328 |
|
|
|
1,490 |
|
|
|
1,620 |
|
|
|
4Q 2013 |
|
| 83611MMM7 |
|
|
6,854 |
|
|
|
6,457 |
|
|
|
397 |
|
|
|
6,457 |
|
|
|
757 |
|
|
|
4Q 2013 |
|
| 86358EZU3 |
|
|
2,128 |
|
|
|
835 |
|
|
|
1,293 |
|
|
|
835 |
|
|
|
132 |
|
|
|
4Q 2013 |
|
| 75970QAD2 |
|
|
4,208 |
|
|
|
4,016 |
|
|
|
192 |
|
|
|
4,016 |
|
|
|
3,771 |
|
|
|
4Q 2013 |
|
| 32113JAD7 |
|
|
917 |
|
|
|
804 |
|
|
|
113 |
|
|
|
804 |
|
|
|
400 |
|
|
|
4Q 2013 |
|
| 50180CAH3 |
|
|
1,975 |
|
|
|
1,892 |
|
|
|
83 |
|
|
|
1,892 |
|
|
|
3,157 |
|
|
|
4Q 2013 |
|
| 61915RBB1 |
|
|
14,486 |
|
|
|
14,466 |
|
|
|
20 |
|
|
|
14,466 |
|
|
|
11,849 |
|
|
|
4Q 2013 |
|
| 150794AE5 |
|
|
14,945 |
|
|
|
14,787 |
|
|
|
158 |
|
|
|
14,787 |
|
|
|
1,478 |
|
|
|
4Q 2013 |
|
| 759950FJ2 |
|
|
1,112 |
|
|
|
698 |
|
|
|
414 |
|
|
|
698 |
|
|
|
761 |
|
|
|
4Q 2013 |
|
| 45660LWD7 |
|
|
4,138 |
|
|
|
3,530 |
|
|
|
608 |
|
|
|
3,530 |
|
|
|
5,484 |
|
|
|
4Q 2013 |
|
| 86359DDX2 |
|
|
19,714 |
|
|
|
19,595 |
|
|
|
119 |
|
|
|
19,595 |
|
|
|
19,464 |
|
|
|
4Q 2013 |
|
| 32113JAC9 |
|
|
4,518 |
|
|
|
4,151 |
|
|
|
367 |
|
|
|
4,151 |
|
|
|
2,336 |
|
|
|
4Q 2013 |
|
| 12640WAG5 |
|
|
5,248 |
|
|
|
4,869 |
|
|
|
379 |
|
|
|
4,869 |
|
|
|
5,553 |
|
|
|
4Q 2013 |
|
| 45660LKW8 |
|
|
2,970 |
|
|
|
2,957 |
|
|
|
13 |
|
|
|
2,957 |
|
|
|
2,611 |
|
|
|
4Q 2013 |
|
56
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The unrealized losses of loan-backed and structured securities where fair value is less than cost or
amortized cost for which an OTTI has not been recognized in earnings as of December 31, 2013 and 2012 is as follows:
|
|
|
|
|
|
|
|
|
| |
|
Losses 12
Months or
More |
|
|
Losses Less
Than 12
Months |
|
| Year ended December 31, 2013 |
|
|
|
|
|
|
|
|
| The aggregate amount of unrealized losses |
|
$ |
431,297 |
|
|
$ |
73,616 |
|
| The aggregate related fair value of securities with unrealized losses |
|
|
2,382,851 |
|
|
|
1,567,711 |
|
|
|
|
| |
|
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 |
|
Detail of net investment income (loss) is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds |
|
$ |
1,790,117 |
|
|
$ |
1,905,410 |
|
|
$ |
2,147,304 |
|
| Preferred stocks |
|
|
7,675 |
|
|
|
9,320 |
|
|
|
9,136 |
|
| Common stocks |
|
|
11,539 |
|
|
|
168,713 |
|
|
|
48,828 |
|
| Mortgage loans on real estate |
|
|
386,189 |
|
|
|
411,742 |
|
|
|
469,635 |
|
| Real estate |
|
|
13,737 |
|
|
|
17,328 |
|
|
|
19,488 |
|
| Policy loans |
|
|
46,023 |
|
|
|
48,012 |
|
|
|
46,677 |
|
| Cash, cash equivalents andshort-term investments |
|
|
4,148 |
|
|
|
7,509 |
|
|
|
5,010 |
|
| Derivatives |
|
|
159,548 |
|
|
|
197,183 |
|
|
|
(29,303 |
) |
| Other invested assets |
|
|
58,685 |
|
|
|
35,582 |
|
|
|
6,183 |
|
| Other |
|
|
22,891 |
|
|
|
34,107 |
|
|
|
11,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross investment income |
|
|
2,500,552 |
|
|
|
2,834,906 |
|
|
|
2,734,870 |
|
| Less investment expenses |
|
|
106,416 |
|
|
|
105,379 |
|
|
|
119,012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net investment income |
|
$ |
2,394,136 |
|
|
$ |
2,729,527 |
|
|
$ |
2,615,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57
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 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Proceeds |
|
$ |
6,198,656 |
|
|
$ |
9,180,982 |
|
|
$ |
16,303,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross realized gains |
|
$ |
33,986 |
|
|
$ |
292,804 |
|
|
$ |
581,820 |
|
| Gross realized losses |
|
|
(40,720 |
) |
|
|
(45,003 |
) |
|
|
(85,014 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) |
|
$ |
(6,734 |
) |
|
$ |
247,801 |
|
|
$ |
496,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company had gross realized losses for the years ended December 31, 2013, 2012 and 2011 of $53,495, $88,836 and
$127,005, 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 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Bonds |
|
$ |
(58,782 |
) |
|
$ |
158,547 |
|
|
$ |
370,867 |
|
| Preferred stocks |
|
|
(1,447 |
) |
|
|
418 |
|
|
|
5,557 |
|
| Common stocks |
|
|
4,869 |
|
|
|
(621 |
) |
|
|
22,701 |
|
| Mortgage loans on real estate |
|
|
(9,397 |
) |
|
|
13,802 |
|
|
|
(2,171 |
) |
| Real estate |
|
|
(578 |
) |
|
|
7,190 |
|
|
|
4,287 |
|
| Cash, cash equivalents and short-term investments |
|
|
35 |
|
|
|
9 |
|
|
|
13 |
|
| Derivatives |
|
|
(1,312,329 |
) |
|
|
(508,177 |
) |
|
|
304,713 |
|
| Other invested assets |
|
|
141,926 |
|
|
|
112,293 |
|
|
|
91,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,235,703 |
) |
|
|
(216,539 |
) |
|
|
796,984 |
|
| Federal income tax effect |
|
|
(57,648 |
) |
|
|
(94,705 |
) |
|
|
(185,043 |
) |
| Transfer to interest maintenance reserve |
|
|
10,631 |
|
|
|
(71,282 |
) |
|
|
(188,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net realized capital gains (losses) on investments |
|
$ |
(1,282,720 |
) |
|
$ |
(382,526 |
) |
|
$ |
423,536 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2013 and 2012, the Company had recorded investments in restructured securities of $694 and $8,476,
respectively. The capital gains (losses) taken as a direct result of restructures in 2013, 2012 and 2011 were $(339), $167 and $(4,361), 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.
58
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 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Bonds |
|
$ |
40,651 |
|
|
$ |
108,175 |
|
|
$ |
(143,599 |
) |
| Preferred stocks |
|
|
36 |
|
|
|
3,957 |
|
|
|
(3,816 |
) |
| Common stocks |
|
|
(3,170 |
) |
|
|
21,290 |
|
|
|
(19,959 |
) |
| Affiliated entities |
|
|
21,826 |
|
|
|
(25,164 |
) |
|
|
461,477 |
|
| Mortgage loans on real estate |
|
|
1,106 |
|
|
|
6,270 |
|
|
|
(2,196 |
) |
| Derivatives |
|
|
(602,212 |
) |
|
|
(98,933 |
) |
|
|
239,967 |
|
| Other invested assets |
|
|
1,542 |
|
|
|
14,749 |
|
|
|
103,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized capital gains/losses, before taxes |
|
|
(540,221 |
) |
|
|
30,344 |
|
|
|
635,063 |
|
| Taxes on unrealized capital gains/losses |
|
|
195,984 |
|
|
|
(20,779 |
) |
|
|
(57,633 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change in unrealized capital gains/losses, net of tax |
|
$ |
(344,237 |
) |
|
$ |
9,565 |
|
|
$ |
577,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The credit quality of mortgage loans by type of property for the year ended December 31, 2013 were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Farm |
|
|
Commercial |
|
|
Total |
|
| AAA - AA |
|
$ |
— |
|
|
$ |
3,595,825 |
|
|
$ |
3,595,825 |
|
| A |
|
|
82,523 |
|
|
|
1,603,801 |
|
|
|
1,686,324 |
|
| BBB |
|
|
29,209 |
|
|
|
241,320 |
|
|
|
270,529 |
|
| BB |
|
|
— |
|
|
|
73,145 |
|
|
|
73,145 |
|
| B |
|
|
— |
|
|
|
10,712 |
|
|
|
10,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
111,732 |
|
|
$ |
5,524,803 |
|
|
$ |
5,636,535 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which
assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated
with the Company’s mortgage lending process, taking into account such factors as projected future cash flows, net operating income, and collateral value. The model produces a credit rating score and an associated letter rating which is intended
to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.
59
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
During 2013, the Company issued mortgage loans with a maximum interest rate of 5.30% and a minimum interest
rate of 3.14% 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, 2013 at the time of origination was 93%. 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 2013, the Company reduced the interest rate by 0.6% on one outstanding mortgage loans with statement value of $6,009. During 2012, the Company reduced the interest rate by 1% on two
outstanding mortgages with statement value of $13,326.
The following tables provide the age analysis of mortgage loans aggregated by type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Residential |
|
|
Commercial |
|
|
|
|
|
|
|
| December 31, 2013 |
|
Farm |
|
|
Insured |
|
|
All Other |
|
|
Insured |
|
|
All Other |
|
|
Mezzanine |
|
|
Total |
|
| Recorded Investment (All) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) Current |
|
$ |
111,731 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,417,941 |
|
|
$ |
77,348 |
|
|
$ |
5,607,020 |
|
| (b) 30-59 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
29,515 |
|
|
|
— |
|
|
|
29,515 |
|
| (c) 60-89 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (d) 90-179 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (e) 180+ Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
| |
|
|
|
|
Residential |
|
|
Commercial |
|
|
|
|
|
|
|
| December 31, 2012 |
|
Farm |
|
|
Insured |
|
|
All Other |
|
|
Insured |
|
|
All Other |
|
|
Mezzanine |
|
|
Total |
|
| Recorded Investment (All) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) Current |
|
$ |
191,520 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
5,429,225 |
|
|
$ |
125,263 |
|
|
$ |
5,746,008 |
|
| (b) 30-59 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,468 |
|
|
|
— |
|
|
|
5,468 |
|
| (c) 60-89 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,273 |
|
|
|
— |
|
|
|
5,273 |
|
| (d) 90-179 Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| (e) 180+ Days Past Due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
At December 31, 2013 and 2012, one mortgage loan with a carrying value of $0 was non-income producing for the previous
180 days. There was no accrued interest related to this mortgage loan at December 31, 2013 or 2012. 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, 2013 and
2012 there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.
At December 31, 2013 and 2012,
respectively, the Company held $35,249 and $37,459 in impaired loans with related allowance for credit losses of $1,017 and $2,124. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2013
60
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
and 2012, respectively. The average recorded investment in impaired loans during 2013 and 2012 was $36,488 and $41,959, respectively.
The following table provides a reconciliation of the beginning and ending balances for the allowance for credit losses on mortgage loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Balance at beginning of period |
|
$ |
2,123 |
|
|
$ |
8,394 |
|
|
$ |
6,198 |
|
| Additions, net charged to operations |
|
|
11,194 |
|
|
|
500 |
|
|
|
6,599 |
|
| Recoveries in amounts previously charged off |
|
|
(12,300 |
) |
|
|
(6,770 |
) |
|
|
(4,403 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at end of period |
|
$ |
1,017 |
|
|
$ |
2,124 |
|
|
$ |
8,394 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2013, 2012 and 2011, respectively, the Company
recognized $2,571, $2,879 and $3,701 of interest income on impaired loans. Interest income of $2,710, $2,971 and $3,610, respectively, was recognized on a cash basis for the years ended December 31, 2013, 2012 and 2011.
At December 31, 2013 and 2012, the Company held a mortgage loan loss reserve in the AVR of $73,275 and $54,808, respectively.
The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:
|
|
|
|
|
|
|
|
|
| Geographic Distribution |
|
| |
|
December 31 |
|
| |
|
2013 |
|
|
2012 |
|
| South Atlantic |
|
|
26 |
% |
|
|
25 |
% |
| Pacific |
|
|
24 |
|
|
|
22 |
|
| Middle Atlantic |
|
|
16 |
|
|
|
15 |
|
| Mountain |
|
|
13 |
|
|
|
15 |
|
| E. North Central |
|
|
8 |
|
|
|
9 |
|
| W. North Central |
|
|
5 |
|
|
|
6 |
|
| W. South Central |
|
|
5 |
|
|
|
5 |
|
| E. South Central |
|
|
2 |
|
|
|
2 |
|
| New England |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
| Property Type Distribution |
|
| |
|
December 31 |
|
| |
|
2013 |
|
|
2012 |
|
| Retail |
|
|
28 |
% |
|
|
27 |
% |
| Office |
|
|
25 |
|
|
|
27 |
|
| Apartment |
|
|
24 |
|
|
|
20 |
|
| Industrial |
|
|
14 |
|
|
|
18 |
|
| Other |
|
|
5 |
|
|
|
3 |
|
| Agricultural |
|
|
2 |
|
|
|
3 |
|
| Medical |
|
|
2 |
|
|
|
2 |
|
61
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2013, 2012 and 2011, the Company had mortgage loans with a total net admitted asset
value of $1,918, $2,176 and $2,416, respectively, which had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2013, 2012 and 2011 related
to such restructurings. There were no commitments to lend additional funds to debtors owing receivables at December 31, 2013, 2012 or 2011.
During
2013, the Company recorded an impairment of $2,335 for its investment in Iowa First Capital Fund, L.P. and $6,357 for its investment in VSS Communications Partnership IV, 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. These write-downs are included in net realized capital gains (losses) within the statements of operations.
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.
At December 31, 2013, the Company had ownership interests in forty-four LIHTC investments. The remaining years of unexpired tax credits ranged from one
to eleven, and the properties were not 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 2014 to 2029 is
$3,621. There were no impairment losses, write-downs or reclassifications during the year related to any of these credits.
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 the properties were not subject to regulatory review. The length of time remaining for holding periods ranged
from one to seventeen years. The amount of contingent equity commitments expected to be paid during the years 2013 to 2029 was $23,053. There were no impairment losses, write-downs or reclassifications during 2012 related to any of these credits.
62
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 transferable state tax credits gross of any related tax
liabilities and total unused transferable tax credits by state and in total as of December 31, 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
| Description of State Transferable and Non- transferable Tax Credits |
|
State |
|
|
Carrying Value |
|
|
Unused Amount* |
|
| Low-Income Housing Tax Credits |
|
|
MA |
|
|
$ |
1,133 |
|
|
$ |
3,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
$ |
1,133 |
|
|
$ |
3,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| Description of State Transferable and Non- transferable Tax Credits |
|
State |
|
|
Carrying Value |
|
|
Unused Amount |
|
| Low-Income Housing Tax Credits |
|
|
MA |
|
|
$ |
2,810 |
|
|
$ |
5,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
$ |
2,810 |
|
|
$ |
5,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
The unused amount reflects credits that the Company deems will be realizable in the period from 2014 to 2016. |
The Company had no non-transferable state tax credits.
The
Company estimated the utilization of the remaining state transferable tax credits by projecting a future tax liability based on projected premium, tax rates and tax credits, and comparing the projected future tax liability to the availability of
remaining state transferable tax credits. The Company had no impairment losses related to state transferable tax credits.
Derivatives
The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the
Company’s behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this
counterparty is negative, then the Company is required to post similar assets (cash or securities).
At December 31, 2013 and 2012, the fair value of
all derivative contracts, aggregated at a counterparty level, with a positive fair value amounted to $961,597 and $1,962,723, respectively.
At
December 31, 2013 and 2012, the fair value of all derivative contracts, aggregated at a counterparty level, with a negative fair value amounted to $817,818 and $521,564, respectively.
63
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
For the years ended December 31, 2013 and 2012, the Company has recorded $597,943 and $42,816,
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 2013 and 2012 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, 2013, 2012 or 2011.
For the years ended December 31, 2013, 2012 and 2011, the Company recognized $2,551, $0 and $12,456,
respectively, in capital gains (losses) related to call option transactions.
For the years ended December 31, 2013, 2012 and 2011, the Company
recognized $0, $(226) and $0, respectively, in capital gains (losses) related to put option transactions.
For the years ended December 31, 2013,
2012 and 2011, the Company recognized $(181,425), $0 and $0, respectively, in capital gains (losses) related to collar option transactions.
The maximum
term over which the Company is hedging its exposure to the variability of future cash flows is approximately 30 years for forecasted hedge transactions.
At December 31, 2013 and 2012, 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,
2013 and 2012, the Company has accumulated deferred gains in the amount of $51,025 and $66,410, 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.
For the years ended December 31, 2013, 2012 and 2011, the Company
recognized $(338,457), $(113,293) and $149,614, respectively, in capital gains (losses) related to interest rate swap transactions.
For the years ended
December 31, 2013, 2012 and 2011, the Company recognized $0, $0 and $(2,509), respectively, in capital gains (losses) related to foreign exchange swap transactions.
64
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
For the years ended December 31, 2013, 2012 and 2011, the Company recognized $0, $0 and $(1,641),
respectively, in capital gains (losses) related to foreign currency forward transactions.
For the years ended December 31, 2013, 2012 and 2011, the
Company recognized $(528,893), $(307,838) and $0, respectively, in capital gains (losses) related to total return swap transactions.
For the years ended
December 31, 2013, 2012 and 2011, the Company recognized $1,264, $6,989 and $(390) respectively, in capital gains (losses) related to credit swap transactions, of which are made up primarily replication transactions.
At December 31, 2013, 2012 and 2011, the Company had replicated assets with a fair value of $3,575,011, $3,571,947 and $2,965,038 and credit default and
forward starting interest rate swaps with a fair value of $71,737, $(143,165) and $(195,744), respectively.
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, 2013, credit
default swaps, used in replicating corporate bonds are as follows:
65
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deal, Receive (Pay), Underlying |
|
Maturity
Date |
|
|
Maximum Future
Payout (Estimate) |
|
|
Current Fair
Value |
|
| 50953,SWAP, USD 5 / (USD 0), :912828PC8 |
|
|
12/20/2017 |
|
|
$ |
4,000 |
|
|
|
416 |
|
| 50956,SWAP, USD 5 / (USD 0), :912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
541 |
|
| 50961,SWAP, USD 5 / (USD 0), :912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
480 |
|
| 50965,SWAP, USD 5 / (USD 0), :912828PC8 |
|
|
12/20/2017 |
|
|
|
4,000 |
|
|
|
546 |
|
| 50966,SWAP, USD 5 / (USD 0), :912828PC8 |
|
|
12/20/2017 |
|
|
|
3,500 |
|
|
|
501 |
|
| 50967,SWAP, USD 5 / (USD 0), :912828QN3 |
|
|
12/20/2017 |
|
|
|
500 |
|
|
|
72 |
|
| 43227,SWAP, USD 1 / (USD 0), :912810QK7 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
139 |
|
| 43228,SWAP, USD 1 / (USD 0), :912828JR2 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
136 |
|
| 43229,SWAP, USD 1 / (USD 0), :912810PX0 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
111 |
|
| 43230,SWAP, USD 1 / (USD 0), :912810QK7 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
271 |
|
| 51277,SWAP, USD 1 / (USD 0), :912803DJ9 |
|
|
12/20/2015 |
|
|
|
10,000 |
|
|
|
136 |
|
| 51397,SWAP, USD 1 / (USD 0), :912803BM4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
314 |
|
| 51278,SWAP, USD 1 / (USD 0), :912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
278 |
|
| 51279,SWAP, USD 1 / (USD 0), :912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
253 |
|
| 51398,SWAP, USD 1 / (USD 0), :912803CH4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
266 |
|
| 51399,SWAP, USD 1 / (USD 0), :912803BJ1 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
278 |
|
| 51280,SWAP, USD 1 / (USD 0), :912803DJ9 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
272 |
|
| 51400,SWAP, USD 1 / (USD 0), :912803CH4 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
349 |
|
| 43255,SWAP, USD 1 / (USD 0), :912803DK6 |
|
|
12/20/2015 |
|
|
|
20,000 |
|
|
|
335 |
|
| 43256,SWAP, USD 1 / (USD 0), :912803DJ9 |
|
|
3/20/2016 |
|
|
|
10,000 |
|
|
|
184 |
|
| 43258,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
3/20/2016 |
|
|
|
20,000 |
|
|
|
371 |
|
| 43263,SWAP, USD 1 / (USD 0), :US670346AE56 |
|
|
3/20/2016 |
|
|
|
10,000 |
|
|
|
186 |
|
| 51401,SWAP, USD 1 / (USD 0), :US35671DAS45 |
|
|
6/20/2016 |
|
|
|
20,000 |
|
|
|
278 |
|
| 43266,SWAP, USD 1 / (USD 0), :CDX IG 16 |
|
|
6/20/2016 |
|
|
|
20,000 |
|
|
|
385 |
|
| 43289,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
176 |
|
| 43290,SWAP, USD 1 / (USD 0), :US46513EY48 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
131 |
|
| 43291,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
176 |
|
| 43292,SWAP, USD 1 / (USD 0), :XS0203685788 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
269 |
|
| 43293,SWAP, USD 1 / (USD 0), :XS0113419690 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
216 |
|
| 43294,SWAP, USD 1 / (USD 0), :US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
198 |
|
| 43295,SWAP, USD 1 / (USD 0), :US712219AG90 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
179 |
|
| 43296,SWAP, USD 1 / (USD 0), :USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
113 |
|
| 43297,SWAP, USD 1 / (USD 0), :US168863AS74 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
200 |
|
| 43298,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
264 |
|
| 43300,SWAP, USD 1 / (USD 0), :XS0113419690 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
323 |
|
| 43301,SWAP, USD 1 / (USD 0), :US50064FAD69 |
|
|
3/20/2017 |
|
|
|
5,000 |
|
|
|
99 |
|
| 43309,SWAP, USD 1 / (USD 0), :XS0203685788 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
269 |
|
| 51281,SWAP, USD 1 / (USD 0), :XS0412694647 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
375 |
|
| 51402,SWAP, USD 1 / (USD 0), :US16886AS74 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
133 |
|
| 43313,SWAP, USD 1 / (USD 0), :JP1200551248 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
366 |
|
| 43314,SWAP, USD 1 / (USD 0), :XS0203685788 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
179 |
|
| 43315,SWAP, USD 1 / (USD 0), :XS0113419690 |
|
|
3/20/2017 |
|
|
|
15,000 |
|
|
|
323 |
|
| 43316,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
176 |
|
| 43317,SWAP, USD 1 / (USD 0), :US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
198 |
|
| 51282,SWAP, USD 1 / (USD 0), :US168863AS74 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
133 |
|
| 43320,SWAP, USD 1 / (USD 0), :USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
5,000 |
|
|
|
57 |
|
| 57599,SWAP, USD 1 / (USD 0), :XS0412694647 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
250 |
|
| 43324,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
176 |
|
| 43325,SWAP, USD 1 / (USD 0), :US50064FAD69 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
198 |
|
| 43326,SWAP, USD 1 / (USD 0), :XS0203685788 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
179 |
|
| 43327,SWAP, USD 1 / (USD 0), :JP1200551248 |
|
|
3/20/2017 |
|
|
|
20,000 |
|
|
|
488 |
|
| 43328,SWAP, USD 1 / (USD 0), :XS0412694647 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
250 |
|
66
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deal, Receive (Pay), Underlying |
|
Maturity
Date |
|
|
Maximum Future
Payout (Estimate) |
|
|
Current Fair
Value |
|
| 43333,SWAP, USD 1 / (USD 0), :USY6826RAA06 |
|
|
3/20/2017 |
|
|
|
10,000 |
|
|
|
113 |
|
| 51283,SWAP, USD 1 / (USD 0), :US475070AD04 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
338 |
|
| 47289,SWAP, USD 1 / (USD 0), :US59156RAN89 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
418 |
|
| 51403,SWAP, USD 1 / (USD 0), :US026874AZ07 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
451 |
|
| 51404,SWAP, USD 1 / (USD 0), :US026874AZ07 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
451 |
|
| 47290,SWAP, USD 1 / (USD 0), :US141781AC86 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
247 |
|
| 47291,SWAP, USD 1 / (USD 0), :US141781AC86 |
|
|
6/20/2017 |
|
|
|
5,000 |
|
|
|
124 |
|
| 47292,SWAP, USD 1 / (USD 0), :US42217KAL08 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
113 |
|
| 43366,SWAP, USD 1 / (USD 0), :CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
430 |
|
| 43368,SWAP, USD 1 / (USD 0), :CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
430 |
|
| 57600,SWAP, USD 1 / (USD 0), :CDX IG 18 |
|
|
6/20/2017 |
|
|
|
26,000 |
|
|
|
559 |
|
| 51284,SWAP, USD 1 / (USD 0), :CDX IG 18 |
|
|
6/20/2017 |
|
|
|
20,000 |
|
|
|
430 |
|
| 47293,SWAP, USD 1 / (USD 0), :CDX IG 18 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
537 |
|
| 47294,SWAP, USD 5 / (USD 0), :US345370BX76 |
|
|
6/20/2017 |
|
|
|
25,000 |
|
|
|
3,572 |
|
| 43381,SWAP, USD 1 / (USD 0), :XS0114288789 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
(87 |
) |
| 43382,SWAP, USD 1 / (USD 0), :US105756AL40 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
(169 |
) |
| 43383,SWAP, USD 1 / (USD 0), :XS0203685788 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
174 |
|
| 43384,SWAP, USD 1 / (USD 0), :US715638AP79 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
(6 |
) |
| 43385,SWAP, USD 1 / (USD 0), :XS0412694647 |
|
|
6/20/2017 |
|
|
|
10,000 |
|
|
|
259 |
|
| 43387,SWAP, USD 1 / (USD 0), :US731011AN26 |
|
|
6/20/2017 |
|
|
|
8,000 |
|
|
|
136 |
|
| 56493,SWAP, USD 1 / (USD 0), :JP1200551248 |
|
|
9/20/2017 |
|
|
|
4,000 |
|
|
|
106 |
|
| 43405,SWAP, USD 1 / (USD 0), :XS0114288789 |
|
|
9/20/2017 |
|
|
|
4,500 |
|
|
|
(51 |
) |
| 43602,SWAP, USD 1 / (USD 0), :US836205AJ33 |
|
|
9/20/2017 |
|
|
|
10,600 |
|
|
|
(254 |
) |
| 43604,SWAP, USD 1 / (USD 0), :US88322LAA70 |
|
|
9/20/2017 |
|
|
|
5,100 |
|
|
|
10 |
|
| 51285,SWAP, USD 1 / (USD 0), :US105756AL40 |
|
|
9/20/2017 |
|
|
|
5,700 |
|
|
|
(115 |
) |
| 51211,SWAP, USD 1 / (USD 0), :US715638AP79 |
|
|
9/20/2017 |
|
|
|
9,000 |
|
|
|
(22 |
) |
| 43609,SWAP, USD 1 / (USD 0), :XS0114288789 |
|
|
9/20/2017 |
|
|
|
4,900 |
|
|
|
(56 |
) |
| 43626,SWAP, USD 1 / (USD 0), :US455780AQ93 |
|
|
9/20/2017 |
|
|
|
9,500 |
|
|
|
(251 |
) |
| 45191,SWAP, USD 1 / (USD 0), :XS0114288789 |
|
|
9/20/2017 |
|
|
|
10,000 |
|
|
|
(113 |
) |
| 45193,SWAP, USD 1 / (USD 0), :US91086QAW87 |
|
|
9/20/2017 |
|
|
|
10,000 |
|
|
|
127 |
|
| 45194,SWAP, USD 1 / (USD 0), :US836205AJ33 |
|
|
9/20/2017 |
|
|
|
8,000 |
|
|
|
(192 |
) |
| 45195,SWAP, USD 1 / (USD 0), :US105756AL40 |
|
|
9/20/2017 |
|
|
|
8,000 |
|
|
|
(162 |
) |
| 45858,SWAP, USD 1 / (USD 0), :12624KAD8 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
(352 |
) |
| 46092,SWAP, USD 1 / (USD 0), :46634GAB7 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
176 |
|
| 46906,SWAP, USD 1 / (USD 0), :92936CAJ8 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
(209 |
) |
| 45879,SWAP, USD 1 / (USD 0), :175305EEE1 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
239 |
|
| 46819,SWAP, USD 1 / (USD 0), :17305EDT9 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
(156 |
) |
| 58913,SWAP, USD 1 / (USD 0), :46636DAJ5 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
(42 |
) |
| 46831,SWAP, USD 1 / (USD 0), :36249KAC4 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
— |
|
| 46834,SWAP, USD 1 / (USD 0), :17305EEE1 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
34 |
|
| 46845,SWAP, USD 1 / (USD 0), :36248EAB1 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
89 |
|
| 46951,SWAP, USD 1 / (USD 0), :36248EAB1 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
123 |
|
| 46958,SWAP, USD 1 / (USD 0), :12624PAE5 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
167 |
|
| 47035,SWAP, USD 1 / (USD 0), :92936YAC5 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
319 |
|
| 47036,SWAP, USD 1 / (USD 0), :61761DAD4 |
|
|
12/20/2017 |
|
|
|
5,000 |
|
|
|
107 |
|
| 51286,SWAP, USD 1 / (USD 0), :912803DK6 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
468 |
|
| 47108,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
532 |
|
| 47206,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
12/20/2017 |
|
|
|
27,000 |
|
|
|
575 |
|
| 47220,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
12/20/2017 |
|
|
|
27,000 |
|
|
|
575 |
|
| 47285,SWAP, USD 1 / (USD 0), :912810QV3 |
|
|
12/20/2017 |
|
|
|
15,000 |
|
|
|
319 |
|
| 47286,SWAP, USD 1 / (USD 0), :912803DP5 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
469 |
|
| 47858,SWAP, USD 1 / (USD 0), :92930RBB7 |
|
|
12/20/2017 |
|
|
|
12,500 |
|
|
|
281 |
|
| 47855,SWAP, USD 1 / (USD 0), :912810QH4 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
352 |
|
| 47856,SWAP, USD 1 / (USD 0), :912803DK6 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
335 |
|
| 47857,SWAP, USD 1 / (USD 0), :07401DAD3 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
257 |
|
| 47859,SWAP, USD 1 / (USD 0), :31359MEL3 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
393 |
|
67
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deal, Receive (Pay), Underlying |
|
Maturity
Date |
|
|
Maximum Future
Payout (Estimate) |
|
|
Current Fair
Value |
|
| 47866,SWAP, USD 5 / (USD 0), :912803DS9 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
3,135 |
|
| 47867,SWAP, USD 1 / (USD 0), :20176AB1 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
457 |
|
| 48057,SWAP, USD 1 / (USD 0), :912803DS9 |
|
|
12/20/2017 |
|
|
|
22,000 |
|
|
|
468 |
|
| 48227,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
12/20/2017 |
|
|
|
50,000 |
|
|
|
1,065 |
|
| 48233,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
457 |
|
| 48247,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
317 |
|
| 51440,SWAP, USD 1 / (USD 0), :912803DP5 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
426 |
|
| 51405,SWAP, USD 1 / (USD 0), :BAE2Z99E1 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
532 |
|
| 48458,SWAP, USD 5 / (USD 0), :BRS0F7YG6 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
3,919 |
|
| 48507,SWAP, USD 1 / (USD 0), :31359MEL3 |
|
|
12/20/2016 |
|
|
|
19,000 |
|
|
|
339 |
|
| 48774,SWAP, USD 1 / (USD 0), :12624QAR4 |
|
|
12/20/2017 |
|
|
|
12,500 |
|
|
|
266 |
|
| 51287,SWAP, USD 1 / (USD 0), :912803DJ9 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
491 |
|
| 51406,SWAP, USD 1 / (USD 0), :912803BF9 |
|
|
12/20/2017 |
|
|
|
25,000 |
|
|
|
571 |
|
| 51407,SWAP, USD 1 / (USD 0), :912803BJ1 |
|
|
12/20/2017 |
|
|
|
20,000 |
|
|
|
352 |
|
| 51288,SWAP, USD 5 / (USD 0), :912803DM2 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
1,568 |
|
| 50040,SWAP, USD 1 / (USD 0), :94987MAB7 |
|
|
12/20/2017 |
|
|
|
10,000 |
|
|
|
146 |
|
| 53125,SWAP, USD 1 / (USD 0), :61761DAD4 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
139 |
|
| 52960,SWAP, USD 1 / (USD 0), :61761DAD4 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
90 |
|
| 53667,SWAP, USD 1 / (USD 0), :BAE1MTAS0 |
|
|
3/20/2018 |
|
|
|
20,000 |
|
|
|
309 |
|
| 53716,SWAP, USD 1 / (USD 0), :BAE1DP802 |
|
|
3/20/2018 |
|
|
|
20,000 |
|
|
|
449 |
|
| 53805,SWAP, USD 1 / (USD 0), :BAE2YGTK0 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
224 |
|
| 54724,SWAP, USD 1 / (USD 0), :912810QK7 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
(313 |
) |
| 54897,SWAP, USD 1 / (USD 0), :912803DJ9 |
|
|
3/20/2018 |
|
|
|
20,000 |
|
|
|
(329 |
) |
| 54867,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
3/20/2018 |
|
|
|
15,000 |
|
|
|
(400 |
) |
| 55126,SWAP, USD 1 / (USD 0), :36192KAT4 |
|
|
3/20/2018 |
|
|
|
7,100 |
|
|
|
(295 |
) |
| 55130,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
(267 |
) |
| 55142,SWAP, USD 1 / (USD 0), :71654qbf8 |
|
|
3/20/2018 |
|
|
|
3,000 |
|
|
|
23 |
|
| 55297,SWAP, USD 1 / (USD 0), :912803DM2 |
|
|
3/20/2018 |
|
|
|
10,000 |
|
|
|
(313 |
) |
| 55727,SWAP, USD 5 / (USD 0), :46637WAD5 |
|
|
6/20/2018 |
|
|
|
27,000 |
|
|
|
4,461 |
|
| 57866,SWAP, USD 1 / (USD 0), :17275RAH5 |
|
|
6/20/2018 |
|
|
|
10,000 |
|
|
|
137 |
|
| 60300,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
6/20/2018 |
|
|
|
5,000 |
|
|
|
99 |
|
| 60301,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
6/20/2018 |
|
|
|
5,000 |
|
|
|
99 |
|
| 60221,SWAP, USD 1 / (USD 0), :912828TY6 |
|
|
6/20/2018 |
|
|
|
15,000 |
|
|
|
240 |
|
| 60222,SWAP, USD 1 / (USD 0), :912828PC8 |
|
|
6/20/2018 |
|
|
|
10,000 |
|
|
|
160 |
|
| 60487,SWAP, USD 1 / (USD 0), :912828SF8 |
|
|
6/20/2018 |
|
|
|
50,000 |
|
|
|
988 |
|
| 60493,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
6/20/2018 |
|
|
|
50,000 |
|
|
|
988 |
|
| 60506,SWAP, USD 1 / (USD 0), :912828UN8 |
|
|
6/20/2018 |
|
|
|
50,000 |
|
|
|
988 |
|
| 60526,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
6/20/2018 |
|
|
|
5,000 |
|
|
|
99 |
|
| 60527,SWAP, USD 1 / (USD 0), :912828UN8 |
|
|
6/20/2018 |
|
|
|
50,000 |
|
|
|
988 |
|
| 60558,SWAP, USD 1 / (USD 0), :912828QN3 |
|
|
6/20/2018 |
|
|
|
5,000 |
|
|
|
99 |
|
| 60761,SWAP, USD 1 / (USD 0), :912828VB3 |
|
|
6/20/2018 |
|
|
|
50,000 |
|
|
|
988 |
|
| 63828,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2023 |
|
|
|
20,000 |
|
|
|
(329 |
) |
| 63829,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2023 |
|
|
|
20,000 |
|
|
|
(423 |
) |
| 63830,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
10,000 |
|
|
|
11 |
|
| 64982,SWAP, USD 1 / (USD 0), :912810BR6 |
|
|
9/20/2023 |
|
|
|
30,000 |
|
|
|
(568 |
) |
| 63955,SWAP, USD 1 / (USD 0), :912810RB6 |
|
|
9/20/2020 |
|
|
|
20,000 |
|
|
|
(142 |
) |
| 64983,SWAP, USD 1 / (USD 0), :912810RB6 |
|
|
9/20/2023 |
|
|
|
20,000 |
|
|
|
(329 |
) |
| 64235,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
10,000 |
|
|
|
87 |
|
| 64236,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
20,000 |
|
|
|
(573 |
) |
| 64238,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
10,000 |
|
|
|
11 |
|
| 64348,SWAP, USD 1 / (USD 0), :912810RB6 |
|
|
9/20/2020 |
|
|
|
10,000 |
|
|
|
87 |
|
| 64453,SWAP, USD 1 / (USD 0), :912810RB6 |
|
|
9/20/2020 |
|
|
|
25,000 |
|
|
|
14 |
|
| 64593,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
20,000 |
|
|
|
11 |
|
| 64595,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
37,000 |
|
|
|
(49 |
) |
| 65753,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
20,000 |
|
|
|
(573 |
) |
| 65755,SWAP, USD 1 / (USD 0), :912810RA8 |
|
|
9/20/2020 |
|
|
|
15,000 |
|
|
|
(466 |
) |
| 69637,SWAP, USD 1 / (USD 0), :912828QC4 |
|
|
12/20/2020 |
|
|
|
10,000 |
|
|
|
(22 |
) |
| 69710,SWAP, USD 1 / (USD 0), : |
|
|
12/20/2020 |
|
|
|
10,000 |
|
|
|
(22 |
) |
68
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
At December 31, 2013, the Company had written options with a fair value of $0 and average fair value for
the year of $(1,276). During 2012, the Company had no written options with a fair value and average fair value. The Company had no realized gains or losses in 2013 and 2012 related to these options.
At December 31, 2013 and 2012, the Company’s outstanding financial instruments with on and off balance sheet risks, shown in notional amounts, are
summarized as follows:
|
|
|
|
|
|
|
|
|
| |
|
Notional Amount |
|
| |
|
2013 |
|
|
2012 |
|
| Interest rate and currency swaps: |
|
|
|
|
|
|
|
|
| Receive floating - pay floating |
|
$ |
120,950 |
|
|
$ |
120,950 |
|
| Receive fixed - pay floating |
|
|
405,165 |
|
|
|
759,165 |
|
| Receive floating - pay fixed |
|
|
— |
|
|
|
50,000 |
|
| Receive fixed - pay fixed |
|
|
2,701,528 |
|
|
|
88,496 |
|
| Swaptions: |
|
|
|
|
|
|
|
|
| Receive floating - pay fixed |
|
|
6,676,000 |
|
|
|
— |
|
| Receive fixed - pay floating |
|
|
6,000,000 |
|
|
|
— |
|
| Interest rate swaps: |
|
|
|
|
|
|
|
|
| Receive fixed - pay floating |
|
|
11,408,586 |
|
|
|
11,674,159 |
|
| Receive fixed - pay fixed |
|
|
1,508,783 |
|
|
|
1,315,233 |
|
| Receive floating - pay fixed |
|
|
4,419,798 |
|
|
|
4,440,128 |
|
| Receive floating - pay floating |
|
|
4,217,010 |
|
|
|
1,417,115 |
|
The Company recognized net realized gains (losses) from futures contracts in the amount of $(267,369), $(93,809) and $147,183
for the years ended December 31, 2013, 2012 and 2011, respectively.
69
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Open futures contracts at December 31, 2013 and 2012, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long/Short |
|
Number of
Contracts |
|
|
Contract Type |
|
Opening
Fair
Value |
|
|
Year-End
Fair
Value |
|
| December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long |
|
|
10 |
|
|
Hang Seng IDX January 2014 Futures |
|
$ |
11,635 |
|
|
$ |
11,666 |
|
| Long |
|
|
43 |
|
|
S&P 500 March 2014 Futures |
|
|
18,989 |
|
|
|
19,791 |
|
| Short |
|
|
992 |
|
|
S&P 500 March 2014 Futures |
|
|
436,027 |
|
|
|
456,592 |
|
| Long |
|
|
66 |
|
|
Euro Stoxx 50 March 2014 Futures |
|
|
1,903 |
|
|
|
2,051 |
|
| Short |
|
|
383 |
|
|
S&P 500 E-MINI March 2014 Futures |
|
|
34,092 |
|
|
|
35,257 |
|
| Long |
|
|
5,770 |
|
|
US Ultra Bond March 2014 Futures |
|
|
802,154 |
|
|
|
786,162 |
|
|
|
|
|
|
| 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 |
|
70
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The following tables show the pledged or restricted assets as of December 31, 2013 and 2012,
respectively:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gross Restricted
Current Year |
|
| Restricted Asset Category |
|
Total General
Account (G/A) |
|
|
G/A Supporting
Separate
Account (S/A)
Activity |
|
|
Total S/A
Restricted
Assets |
|
|
S/A Assets
Supporting G/A
Activity |
|
|
Total |
|
| a. Subject to contractual obligation for which liability is not shown |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| b. Collateral held under security lending agreements |
|
|
3,182,026 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,182,026 |
|
| c. Subject to repurchase agreements |
|
|
88,847 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
88,847 |
|
| d. Subject to reverse repurchase agreements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| e. Subject to dollar repurchase agreements |
|
|
216,485 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
216,485 |
|
| f. Subject to dollar reverse repurchase agreements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| g. Placed under option contracts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| h. Letter stock or securities restricted as to sale |
|
|
45,463 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45,463 |
|
| i. On deposit with state(s) |
|
|
55,169 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
55,169 |
|
| j. On deposit with other regulatory bodies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| k. Pledged as collateral not captured in other categories |
|
|
3,649,464 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,649,464 |
|
| l. Other restricted assets - reinsurance |
|
|
462,872 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
462,872 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| m. Total Restricted Assets |
|
$ |
7,700,326 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,700,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gross Restricted |
|
|
|
|
|
Percentage |
|
| Restricted Asset Category |
|
Total From
Prior Year |
|
|
Increase/
(Decrease) |
|
|
Total Current
Year Admitted
Restricted |
|
|
Gross
Restricted
to Total
Assets |
|
|
Admitted
Restricted to
Total
Admitted
Assets |
|
| a. Subject to contractual obligation for which liability is not shown |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
0.00 |
% |
|
|
0.00 |
% |
| b. Collateral held under security lending agreements |
|
|
2,142,404 |
|
|
|
1,039,622 |
|
|
|
3,182,026 |
|
|
|
2.76 |
|
|
|
2.76 |
|
| c. Subject to repurchase agreements |
|
|
85,713 |
|
|
|
3,134 |
|
|
|
88,847 |
|
|
|
0.08 |
|
|
|
0.08 |
|
| d. Subject to reverse repurchase agreements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
| e. Subject to dollar repurchase agreements |
|
|
83,433 |
|
|
|
133,052 |
|
|
|
216,485 |
|
|
|
0.19 |
|
|
|
0.19 |
|
| f. Subject to dollar reverse repurchase agreements |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
| g. Placed under option contracts |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
| h. Letter stock or securities restricted as to sale |
|
|
49,416 |
|
|
|
(3,953 |
) |
|
|
45,463 |
|
|
|
0.04 |
|
|
|
0.04 |
|
| i. On deposit with state(s) |
|
|
56,464 |
|
|
|
(1,295 |
) |
|
|
55,169 |
|
|
|
0.05 |
|
|
|
0.05 |
|
| j. On deposit with other regulatory bodies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
| k. Pledged as collateral not captured in other categories |
|
|
4,953,800 |
|
|
|
(1,304,336 |
) |
|
|
3,649,464 |
|
|
|
3.17 |
|
|
|
3.17 |
|
| l. Other restricted assets - reinsurance |
|
|
473,487 |
|
|
|
(10,615 |
) |
|
|
462,872 |
|
|
|
0.40 |
|
|
|
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| m. Total Restricted Assets |
|
$ |
7,844,717 |
|
|
$ |
(144,391 |
) |
|
$ |
7,700,326 |
|
|
|
6.68 |
% |
|
|
6.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets pledged as collateral not captured in other categories includes the following:
Invested assets with a carrying value of $405,740 and $68,410 pledged in conjunction with derivative transactions as of December 31, 2013 and 2012,
respectively.
Invested assets with a carrying amount of $3,243,724 and $4,885,390 pledged in conjunction with funding agreement transactions as of
December 31, 2013 and 2012, respectively.
72
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
6. Reinsurance
Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company reinsures portions of
the risk on certain insurance policies which exceed its established limits, thereby providing a greater diversification of risk and minimizing exposure on larger risks. The Company remains contingently liable with respect to any insurance ceded, and
this would become an actual liability in the event that the assuming insurance company became unable to meet its obligation under the reinsurance treaty.
Premiums earned reflect the following reinsurance amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Direct premiums |
|
$ |
16,910,642 |
|
|
$ |
13,426,938 |
|
|
$ |
13,297,032 |
|
| Reinsurance assumed - non affiliates |
|
|
1,415,095 |
|
|
|
1,751,054 |
|
|
|
1,710,756 |
|
| Reinsurance assumed - affiliates |
|
|
115,377 |
|
|
|
185,147 |
|
|
|
222,283 |
|
| Reinsurance ceded - non affiliates |
|
|
(2,030,188 |
) |
|
|
(3,985,049 |
) |
|
|
(6,259,014 |
) |
| Reinsurance ceded - affiliates |
|
|
(875,690 |
) |
|
|
428,724 |
|
|
|
892,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net premiums earned |
|
$ |
15,535,235 |
|
|
$ |
11,806,814 |
|
|
$ |
9,864,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company received reinsurance recoveries in the amount of $2,927,641, $3,542,504 and $2,756,316 during 2013, 2012 and 2011,
respectively. At December 31, 2013 and 2012, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $606,295 and $618,208, respectively. The aggregate reserves for policies and
contracts were reduced for reserve credits for reinsurance ceded at December 31, 2013 and 2012 of $34,352,837 and $37,141,980, respectively.
The net
amount of the reduction in surplus at December 31, 2013 and 2012, if all reinsurance agreements were cancelled, is $176,597 and $235,002, respectively.
During 2013, the Company recaptured business previously reinsured to an affiliate. The Company received recapture consideration of $75,113, recaptured life,
annuity and claim reserves of $173,957, recaptured other assets of $3,360 and released into income from surplus a previously deferred unamortized gain from the original transaction in the amount of $25,121 ($16,328 net of tax), resulting in a
pre-tax loss of $70,363, which has been included in the statement of operations.
73
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
During 2013, the Company also recaptured treaties associated with the divestiture of the Transamerica
Reinsurance operations previously reinsured to various unaffiliated entities. The Company received recapture consideration of $678, recaptured life, annuity and claim reserves of $840, and recaptured other assets of $556, resulting in a pre-tax gain
of $394, which has been included in the statement of operations.
Subsequent to these recaptures, the Company novated the treaties that were previously
ceded to various affiliated and unaffiliated entities, in which consideration paid was $75,791, life and claim reserves released were $174,797, and other assets transferred were $3,916, resulting in a pre-tax gain of $95,090, 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 $146,003 and other assets were exchanged in the amount of $15,520. 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. In connection with this transaction, an unamortized gain relating to these blocks of $67,331 ($44,018, net of tax) was released into income,
resulting in a pre-tax gain of $67,331, which has been included in the statement of operations.
On November 1, 2013, the company recaptured the
business that was previously reinsured to an unaffiliated entity for which net consideration received was $380, invested and other assets received were $26,279, and life and claim reserves recaptured were $26,279, resulting in a pre-tax gain of
$380, which was included in the statement of operations.
On July 1, 2013, the Company recaptured certain treaties from an unaffiliated entity, for
which net consideration received was $3,837, life and claim reserves recaptured were $19,218, premiums recaptured were $1,813, and claims recaptured were $1,972, resulting in a pre-tax loss of $15,540, which was included in the statement of
operations.
On April 1, 2013, the Company recaptured certain treaties from an unaffiliated entity, for which net consideration received was
$106,511, life and claim reserves recaptured were $53,525, premiums recaptured were $11,432, and claims recaptured were $12,394, resulting in a pre-tax gain of $52,024, which was included in the statement of operations.
On March 31, 2013, the Company reinsured all business issued by its branch in Hong Kong to an affiliate, for which consideration paid was $54,610, life
and claim reserves transferred were $54,691, and assets of $81 were transferred. As a result, there was no net financial impact from this transaction.
74
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
On March 27, 2013, the Company recaptured certain treaties from a non-affiliate effective
October 1, 2012, for which net consideration received was $134,000, life and claim reserves recaptured were $116,225, premiums recaptured were $45,543, and claims recaptured were $68,014, resulting in a pre-tax loss of $4,696 which was included
in the statement of operations.
During 2013, amortization of deferred gains associated with previously transacted reinsurance agreements was released
into income in the amount of $144,509 ($111,768, net of tax).
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.
75
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
Also during 2012, 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.
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
76
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
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
77
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 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
78
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
$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.
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 April 1, 2010, the Company entered into an indemnity reinsurance
agreement to cede certain term life insurance policies to an affiliate on a coinsurance basis. The Company released life and claim reserves of $484,646 and $3,108, respectively, and other net assets of $24,933, resulting in a net of tax gain of
$300,833, which was deferred directly into unassigned surplus. During 2010, the Company amortized $11,200 of this gain into earnings on a net of tax basis with a corresponding charge to unassigned surplus. With the recapture of this business, the
remaining unamortized previously deferred gain of $289,633 on a net of tax basis was released into income from surplus during 2011.
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 $1,191, $1,130 and $1,073 of the liability in 2013, 2012 and 2011, respectively.
During 2012 and 2011, the Company amortized deferred
gains from reinsurance transactions occurring prior to 2011 of $28,528 and $29,355, respectively, into earnings on a net of tax basis with a corresponding charge to unassigned surplus.
79
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 $7,485, $7,767 and $8,053 was amortized during 2013, 2012 and 2011, 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.
The Company reports a reinsurance deposit receivable of $178,513 and $167,223
as of December 31, 2013 and 2012, 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 2013, 2012 and 2011, the Company obtained
letters of credit of $200,872, $790,269 and $841,411, 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.
80
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, 2013 and 2012 and the change from the prior year are comprised of the following components:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Gross Deferred Tax Assets |
|
$ |
1,367,104 |
|
|
$ |
306,158 |
|
|
$ |
1,673,262 |
|
| Statutory Valuation Allowance Adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross Deferred Tax Assets |
|
|
1,367,104 |
|
|
|
306,158 |
|
|
|
1,673,262 |
|
| Deferred Tax Assets Nonadmitted |
|
|
610,027 |
|
|
|
— |
|
|
|
610,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal (Net Deferred Tax Assets) |
|
|
757,077 |
|
|
|
306,158 |
|
|
|
1,063,235 |
|
| Deferred Tax Liabilities |
|
|
293,084 |
|
|
|
148,705 |
|
|
|
441,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Deferred Tax Assets |
|
$ |
463,993 |
|
|
$ |
157,453 |
|
|
$ |
621,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Change |
|
|
|
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Gross Deferred Tax Assets |
|
$ |
254,574 |
|
|
$ |
(33,731 |
) |
|
$ |
220,843 |
|
| Statutory Valuation Allowance Adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross Deferred Tax Assets |
|
|
254,574 |
|
|
|
(33,731 |
) |
|
|
220,843 |
|
| Deferred Tax Assets Nonadmitted |
|
|
260,443 |
|
|
|
— |
|
|
|
260,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal (Net Deferred Tax Assets) |
|
|
(5,869 |
) |
|
|
(33,731 |
) |
|
|
(39,600 |
) |
| Deferred Tax Liabilities |
|
|
(27,008 |
) |
|
|
18,935 |
|
|
|
(8,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Deferred Tax Assets |
|
$ |
21,139 |
|
|
$ |
(52,666 |
) |
|
$ |
(31,527 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
81
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 |
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
|
Change |
|
| Deferred Tax Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary |
|
|
|
|
|
|
|
|
|
|
|
|
| Discounting of unpaid losses |
|
$ |
1,766 |
|
|
$ |
2,848 |
|
|
$ |
(1,082 |
) |
| Policyholder reserves |
|
|
353,195 |
|
|
|
351,951 |
|
|
|
1,244 |
|
| Investments |
|
|
73,609 |
|
|
|
46,034 |
|
|
|
27,575 |
|
| Deferred acquisition costs |
|
|
507,343 |
|
|
|
505,352 |
|
|
|
1,991 |
|
| Compensation and benefits accrual |
|
|
28,849 |
|
|
|
31,260 |
|
|
|
(2,411 |
) |
| Receivables - nonadmitted |
|
|
24,486 |
|
|
|
28,128 |
|
|
|
(3,642 |
) |
| Tax credit carry-forward |
|
|
308,790 |
|
|
|
82,421 |
|
|
|
226,369 |
|
| Assumption Reinsurance |
|
|
16,946 |
|
|
|
16,946 |
|
|
|
— |
|
| Corporate Provision |
|
|
143 |
|
|
|
892 |
|
|
|
(749 |
) |
| Other (including items <5% of ordinary tax assets) |
|
|
51,977 |
|
|
|
46,698 |
|
|
|
5,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
1,367,104 |
|
|
|
1,112,530 |
|
|
|
254,574 |
|
|
|
|
|
| Nonadmitted |
|
|
610,027 |
|
|
|
349,584 |
|
|
|
260,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Admitted ordinary deferred tax assets |
|
|
757,077 |
|
|
|
762,946 |
|
|
|
(5,869 |
) |
|
|
|
|
| Capital: |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
|
306,158 |
|
|
|
339,889 |
|
|
|
(33,731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
306,158 |
|
|
|
339,889 |
|
|
|
(33,731 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Admitted deferred tax assets |
|
$ |
1,063,235 |
|
|
$ |
1,102,835 |
|
|
$ |
(39,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
|
Change |
|
| Deferred Tax Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
$ |
129,399 |
|
|
$ |
103,663 |
|
|
$ |
25,736 |
|
| Excess capital to offset ordinary |
|
|
98,578 |
|
|
|
147,464 |
|
|
|
(48,886 |
) |
| §807(f) adjustment |
|
|
45,099 |
|
|
|
52,736 |
|
|
|
(7,637 |
) |
| Separate account adjustments |
|
|
18,945 |
|
|
|
16,229 |
|
|
|
2,716 |
|
| Other (including items <5% of total ordinary tax liabilities) |
|
|
1,063 |
|
|
|
— |
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
293,084 |
|
|
|
320,092 |
|
|
|
(27,008 |
) |
| Capital |
|
|
|
|
|
|
|
|
|
|
|
|
| Investments |
|
|
247,419 |
|
|
|
277,234 |
|
|
|
(29,815 |
) |
| Excess capital to offset ordinary |
|
|
(98,578 |
) |
|
|
(147,464 |
) |
|
|
48,886 |
|
| Other (including items <5% of total capital tax liabilities) |
|
|
(136 |
) |
|
|
— |
|
|
|
(136 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
148,705 |
|
|
|
129,770 |
|
|
|
18,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
441,789 |
|
|
|
449,862 |
|
|
|
(8,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net deferred tax assets/liabilities |
|
$ |
621,446 |
|
|
$ |
652,973 |
|
|
$ |
(31,527 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not report a valuation allowance for deferred income tax assets as of December 31, 2013 or 2012.
82
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 years ended December 31, 2013 and 2012 the Company admits deferred
income tax assets pursuant to SSAP No. 101. The amount of admitted adjusted gross deferred income tax assets under each component of SSAP No. 101 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carry backs |
|
$ |
— |
|
|
$ |
6,963 |
|
|
$ |
6,963 |
|
| 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) |
|
|
463,993 |
|
|
|
150,490 |
|
|
|
614,483 |
|
| 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet
Date |
|
|
541,325 |
|
|
|
175,571 |
|
|
|
716,896 |
|
| 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold |
|
|
XXX |
|
|
|
XXX |
|
|
|
614,483 |
|
| 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 |
|
|
293,084 |
|
|
|
148,705 |
|
|
|
441,789 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +
2(c)) |
|
$ |
757,077 |
|
|
$ |
306,158 |
|
|
$ |
1,063,235 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carry backs |
|
$ |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
83
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Change |
|
|
|
|
| |
|
Ordinary |
|
|
Capital |
|
|
Total |
|
| Admission Calculation Components SSAP No. 101
2(a) Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks |
|
$ |
(116,426 |
) |
|
$ |
(101,380 |
) |
|
$ |
(217,806 |
) |
| 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) |
|
|
137,565 |
|
|
|
48,714 |
|
|
|
186,279 |
|
| 1. Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet
Date |
|
|
214,897 |
|
|
|
73,795 |
|
|
|
288,692 |
|
| 2. Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold |
|
|
XXX |
|
|
|
XXX |
|
|
|
(103,158 |
) |
| 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 |
|
|
(27,008 |
) |
|
|
18,935 |
|
|
|
(8,073 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2(d) Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) +
2(c)) |
|
$ |
(5,869 |
) |
|
$ |
(33,731 |
) |
|
$ |
(39,600 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
|
Change |
|
| Ratio Percentage Used To Determine Recovery Period and Threshold Limitation Amount |
|
|
815 |
% |
|
|
895 |
% |
|
|
-80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold Limitation in 2(b)2 above |
|
$ |
4,075,923 |
|
|
$ |
4,789,621 |
|
|
$ |
(713,698 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
84
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The impact of tax planning strategies at December 31, 2013 and 2012 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2013 |
|
| |
|
Ordinary
Percent |
|
|
Capital
Percent |
|
|
Total
Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs |
|
$ |
1,367,104 |
|
|
$ |
306,158 |
|
|
$ |
1,673,262 |
|
| (% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
62 |
% |
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs |
|
$ |
757,077 |
|
|
$ |
306,158 |
|
|
$ |
1,063,235 |
|
| (% of Total Net Admitted Adjusted Gross DTAs) |
|
|
4 |
% |
|
|
16 |
% |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2012 |
|
| |
|
Ordinary
Percent |
|
|
Capital
Percent |
|
|
Total
Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs |
|
$ |
1,112,530 |
|
|
$ |
339,889 |
|
|
$ |
1,452,419 |
|
| (% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
30 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs |
|
$ |
762,946 |
|
|
$ |
339,889 |
|
|
$ |
1,102,835 |
|
| (% of Total Net Admitted Adjusted Gross DTAs) |
|
|
22 |
% |
|
|
30 |
% |
|
|
24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Change |
|
|
|
|
| |
|
Ordinary
Percent |
|
|
Capital
Percent |
|
|
Total
Percent |
|
| Impact of Tax Planning Strategies: |
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Gross DTAs |
|
$ |
254,574 |
|
|
$ |
(33,731 |
) |
|
$ |
220,843 |
|
| (% of Total Adjusted Gross DTAs) |
|
|
0 |
% |
|
|
32 |
% |
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Admitted Adjusted Gross DTAs |
|
$ |
(5,869 |
) |
|
$ |
(33,731 |
) |
|
$ |
(39,600 |
) |
| (% of Total Net Admitted Adjusted Gross DTAs) |
|
|
-18 |
% |
|
|
-14 |
% |
|
|
-16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.
85
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 |
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
|
Change |
|
| Current Income Tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal |
|
$ |
(288,531 |
) |
|
$ |
(161,806 |
) |
|
$ |
(126,725 |
) |
| Foreign |
|
|
— |
|
|
|
(698 |
) |
|
|
698 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
(288,531 |
) |
|
|
(162,504 |
) |
|
|
(126,027 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal income tax on net capital gains |
|
|
57,648 |
|
|
|
94,705 |
|
|
|
(37,057 |
) |
| Utilization of capital loss carry-forwards |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Federal and foreign income taxes incurred |
|
$ |
(230,883 |
) |
|
$ |
(67,799 |
) |
|
$ |
(163,084 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
86
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 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Current income taxes incurred |
|
$ |
(230,883 |
) |
|
$ |
(67,799 |
) |
|
$ |
10,125 |
|
|
|
|
|
| Change in deferred income taxes (without tax on unrealized gains and losses) |
|
|
(32,931 |
) |
|
|
105,935 |
|
|
|
(136,907 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total income tax reported |
|
$ |
(263,814 |
) |
|
$ |
38,136 |
|
|
$ |
(126,782 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before taxes |
|
$ |
(183,865 |
) |
|
$ |
795,047 |
|
|
$ |
(2,260,735 |
) |
|
|
|
35.00 |
% |
|
|
35.00 |
% |
|
|
35.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expected income tax expense (benefit) at 35% statutory rate |
|
$ |
(64,353 |
) |
|
$ |
278,266 |
|
|
$ |
(791,257 |
) |
|
|
|
|
| Increase (decrease) in actual tax reported resulting from: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends received deduction |
|
|
(36,984 |
) |
|
|
(36,188 |
) |
|
|
(31,014 |
) |
| Tax credits |
|
|
(43,788 |
) |
|
|
(58,619 |
) |
|
|
(62,184 |
) |
| Tax-exempt Income |
|
|
(13 |
) |
|
|
(27 |
) |
|
|
(276 |
) |
| Tax adjustment for IMR |
|
|
(16,080 |
) |
|
|
(34,101 |
) |
|
|
(133,408 |
) |
| Surplus adjustment for in-force ceded |
|
|
(62,246 |
) |
|
|
(14,483 |
) |
|
|
863,606 |
|
| Nondeductible expenses |
|
|
2,228 |
|
|
|
774 |
|
|
|
8,166 |
|
| Deferred tax benefit on other items in surplus |
|
|
(23,120 |
) |
|
|
(4,103 |
) |
|
|
(15,569 |
) |
| Provision to return |
|
|
(17,246 |
) |
|
|
(13,629 |
) |
|
|
1,525 |
|
| Life-owned life insurance |
|
|
(3,660 |
) |
|
|
(4,268 |
) |
|
|
(3,786 |
) |
| Dividends from certain foreign corporations |
|
|
904 |
|
|
|
546 |
|
|
|
331 |
|
| Prior period adjustment |
|
|
(109 |
) |
|
|
(51,467 |
) |
|
|
(26,684 |
) |
| Pre-tax income of SMLLC’s |
|
|
— |
|
|
|
28,889 |
|
|
|
25,763 |
|
| Transfer of basis |
|
|
— |
|
|
|
— |
|
|
|
51,597 |
|
| Intercompany Dividents |
|
|
— |
|
|
|
(55,618 |
) |
|
|
(11,653 |
) |
| Partnership Permanent Adjustment |
|
|
(2,951 |
) |
|
|
1,014 |
|
|
|
2,290 |
|
| Other |
|
|
3,604 |
|
|
|
1,150 |
|
|
|
(4,229 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total income tax reported |
|
$ |
(263,814 |
) |
|
$ |
38,136 |
|
|
$ |
(126,782 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 liability in the year generated.
The Company is also entitled to recoup federal income taxes paid
87
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or
carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not yet been filed for 2013.
As of December 31, 2013 and 2012, respectively, the Company had a $308,791 and $82,421 tax credit carryforward available for tax purposes. As of
December 31, 2013 and 2012, the Company had no operating loss or capital loss carryforwards available for tax purposes.
The Company incurred income
taxes of $0, $0 and $6,964 during 2013, 2012 and 2011, respectively, which will be available for recoupment in the event of future net losses.
The amount
of tax contingencies calculated for the Company as of December 31, 2013 and 2012 is $814 and $1,448, respectively. The total amount of tax contingencies that, if recognized, would affect the effective income tax rate is $814. The Company
classifies interest and penalties related to income taxes as income tax expense. The Company’s interest (benefit) expense related to income taxes for the years ending December 31, 2013, 2012 and 2011 is $67, $1,102 and ($3,883),
respectively. The total interest payable balance as of December 31, 2013 and 2012 is $28 and $95, 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, 2013 and 2012.
88
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
For the years ended December 31, 2013, 2012 and 2011, premiums for life participating policies were
$14,802, $16,028 and $17,183, 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 $8,579, $8,651 and $9,496 to policyholders during
2013, 2012 and 2011, respectively, and did not allocate any additional income to such policyholders.
A portion of the Company’s policy reserves and
other policyholders’ funds (including separate account liabilities) relates to liabilities established on a variety of the Company’s annuity and deposit fund products. There may be certain restrictions placed upon the amount of funds that
can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31
2013 |
|
| |
|
General
Account |
|
|
Separate
Account with
Guarantees |
|
|
Separate
Account Non-
Guaranteed |
|
|
Total |
|
|
Percent |
|
| Subject to discretionary withdrawal With fair value adjustment |
|
$ |
1,654,750 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,654,750 |
|
|
|
2 |
% |
| At book value less surrender charge of 5% or more |
|
|
782,031 |
|
|
|
— |
|
|
|
— |
|
|
|
782,031 |
|
|
|
1 |
|
| At fair value |
|
|
170,373 |
|
|
|
— |
|
|
|
53,387,151 |
|
|
|
53,557,524 |
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total with adjustment or at fair value |
|
|
2,607,154 |
|
|
|
— |
|
|
|
53,387,151 |
|
|
|
55,994,305 |
|
|
|
65 |
|
| At book value without adjustment (minimal or no charge or adjustment) |
|
|
18,217,292 |
|
|
|
67,856 |
|
|
|
— |
|
|
|
18,285,148 |
|
|
|
21 |
|
| Not subject to discretionary withdrawal provision |
|
|
12,250,823 |
|
|
|
55,319 |
|
|
|
42,643 |
|
|
|
12,348,785 |
|
|
|
14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total annuity reserves and deposit liabilities |
|
|
33,075,269 |
|
|
|
123,175 |
|
|
|
53,429,794 |
|
|
|
86,628,238 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less reinsurance ceded |
|
|
13,859,632 |
|
|
|
— |
|
|
|
— |
|
|
|
13,859,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net annuity reserves and deposit liabilities |
|
$ |
19,215,637 |
|
|
$ |
123,175 |
|
|
$ |
53,429,794 |
|
|
$ |
72,768,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
89
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in the liability for deposit-type contracts at December 31, 2013 and 2012 are $261,946 and $257,327,
respectively, of funding agreements issued to special purpose entities in conjunction with non-recourse medium-term note programs. Under these programs, the proceeds from each note series issuance are used to purchase a funding agreement from 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, 2013, the contractual
maturities were as follows:
|
|
|
|
|
| Year |
|
Amount |
|
| 2014 |
|
$ |
261,946 |
|
| 2015 |
|
|
— |
|
| 2016 |
|
|
— |
|
| 2017 |
|
|
— |
|
| 2018 |
|
|
— |
|
| Thereafter |
|
|
— |
|
The Company’s liability for deposit-type contracts includes GIC’s and funding agreements assumed from Monumental
Life Insurance Company. The liabilities assumed are $878,808 and $1,659,668 at December 31, 2013 and 2012, respectively.
90
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
Information regarding the separate accounts of the Company as of and for the years ended
December 31, 2013, 2012 and 2011 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, 2013 |
|
$ |
— |
|
|
$ |
538 |
|
|
$ |
10,350 |
|
|
$ |
12,450,327 |
|
|
$ |
12,461,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserves for separate accounts as of December 31, 2013 with assets at: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value |
|
$ |
— |
|
|
$ |
19,400 |
|
|
$ |
35,919 |
|
|
$ |
56,624,730 |
|
|
$ |
56,680,049 |
|
| Amortized cost |
|
|
— |
|
|
|
631,636 |
|
|
|
— |
|
|
|
— |
|
|
|
631,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total as of December 31, 2013 |
|
$ |
— |
|
|
$ |
651,036 |
|
|
$ |
35,919 |
|
|
$ |
56,624,730 |
|
|
$ |
57,311,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reserves for separate accounts by withdrawal characteristics as of December 31, 2013: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subject to discretionary withdrawal |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| With fair value adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| At fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,582,087 |
|
|
|
56,582,087 |
|
| At book value without fair value adjustment and with current surrender charge of less than 5% |
|
|
— |
|
|
|
631,636 |
|
|
|
— |
|
|
|
— |
|
|
|
631,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
— |
|
|
|
631,636 |
|
|
|
— |
|
|
|
56,582,087 |
|
|
|
57,213,723 |
|
| Not subject to discretionary withdrawal |
|
|
— |
|
|
|
19,400 |
|
|
|
35,919 |
|
|
|
42,643 |
|
|
|
97,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total separate account liabilities at December 31, 2013 |
|
$ |
— |
|
|
$ |
651,036 |
|
|
$ |
35,919 |
|
|
$ |
56,624,730 |
|
|
$ |
57,311,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
91
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, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
92
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31 |
|
| |
|
2013 |
|
|
2012 |
|
|
2011 |
|
| Transfer as reported in the summary of operations of the separate accounts statement: |
|
|
|
|
|
|
|
|
|
|
|
|
| Transfers to separate accounts |
|
$ |
12,451,604 |
|
|
$ |
9,341,436 |
|
|
$ |
9,383,003 |
|
| Transfers from separate accounts |
|
|
(5,908,789 |
) |
|
|
(7,125,237 |
) |
|
|
(4,988,224 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transfers to separate accounts |
|
|
6,542,815 |
|
|
|
2,216,199 |
|
|
|
4,394,779 |
|
| Miscellaneous reconciling adjustments |
|
|
709,764 |
|
|
|
817,767 |
|
|
|
772,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net transfers as reported in the statements of operations of the life, accident and health annual statement |
|
$ |
7,252,579 |
|
|
$ |
3,033,966 |
|
|
$ |
5,167,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
93
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The legal insulation of separate account assets prevents such assets from being generally available to
satisfy claims resulting from the general account. At December 31, 2013 and 2012, the Company’s separate account statement included legally insulated assets of $61,019,794 and $48,683,536, respectively. The assets legally insulated from
general account claims at December 31, 2013 and 2012 are attributed to the following products:
|
|
|
|
|
|
|
|
|
| |
|
2013 |
|
|
2012 |
|
| Group annuities |
|
$ |
22,549,971 |
|
|
$ |
17,051,144 |
|
| Variable annuities |
|
|
34,050,766 |
|
|
|
25,509,279 |
|
| Fixed universal life |
|
|
627,296 |
|
|
|
610,585 |
|
| Variable universal life |
|
|
3,493,942 |
|
|
|
5,232,516 |
|
| Variable life |
|
|
201,314 |
|
|
|
171,104 |
|
| Modified separate accounts |
|
|
96,505 |
|
|
|
108,908 |
|
|
|
|
|
|
|
|
|
|
| Total separate account assets |
|
$ |
61,019,794 |
|
|
$ |
48,683,536 |
|
|
|
|
|
|
|
|
|
|
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, 2013 and 2012, the general account of the Company had a maximum
guarantee for separate account liabilities of $2,041,654 and $2,158,788, respectively. To compensate the general account for the risk taken, the separate account paid risk charges of $242,257, $180,634 and $124,027 to the general account in 2013,
2012 and 2011, respectively. During the years ended December 31, 2013, 2012 and 2011, the general account of the Company had paid $30,682, $61,745 and $32,156, respectively, toward separate account guarantees.
At December 31, 2013 and 2012, the Company reported guaranteed separate account assets at amortized cost in the amount of $616,160 and $619,780,
respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $651,390 and $693,462 at December 31, 2013 and 2012, respectively, which would have resulted in an unrealized
gain of $35,230 and $73,682, 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
94
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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.
At December 31, 2013 and 2012, the Company had variable and separate account annuities with minimum guaranteed benefits as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit and Type of Risk |
|
Subjected
Account
Value |
|
|
Amount of
Reserve
Held |
|
|
Reinsurance
Reserve
Credit |
|
| December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum guaranteed death benefit |
|
$ |
9,780,645 |
|
|
$ |
248,254 |
|
|
$ |
242,555 |
|
| Minimum guaranteed income benefit |
|
|
5,888,991 |
|
|
$ |
1,109,426 |
|
|
$ |
878,523 |
|
| Guaranteed premium accumulation fund |
|
|
233,596 |
|
|
|
21,398 |
|
|
|
— |
|
| Minimum guaranteed withdrawal benefit |
|
|
23,695,873 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
| 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 |
|
95
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2013 and 2012, the gross premium and loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Gross |
|
|
Loading |
|
|
Net |
|
| December 31, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
| Life and annuity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Ordinary first-year business |
|
$ |
4,746 |
|
|
$ |
4,398 |
|
|
$ |
348 |
|
| Ordinary renewal business |
|
|
531,041 |
|
|
|
3,993 |
|
|
|
527,048 |
|
| Group life business |
|
|
5,255 |
|
|
|
3,381 |
|
|
|
1,874 |
|
| Credit life business |
|
|
1,283 |
|
|
|
— |
|
|
|
1,283 |
|
| Reinsurance ceded |
|
|
(427,598 |
) |
|
|
— |
|
|
|
(427,598 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114,727 |
|
|
|
11,772 |
|
|
|
102,955 |
|
| Accident and health |
|
|
27,876 |
|
|
|
— |
|
|
|
27,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
142,603 |
|
|
$ |
11,772 |
|
|
$ |
130,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 2013 and 2012, the Company had insurance in force aggregating $87,374,058 and $95,138,990, 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 $641,454 and $676,461 to cover these deficiencies as of
December 31, 2013 and 2012, respectively.
96
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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 2014, without the prior
approval of insurance regulatory authorities, is $1,340,255.
The Company paid common and preferred stock dividends totaling $150,000,000 and $300,000,000
on December 23, 2013, and December 21, 2012, respectively, to its parent companies.
The Company paid ordinary common stock dividends of
$79,320, and $159,410 to its common stock shareholder, Transamerica International Holdings, Inc. on December 23, 2013 and December 21, 2012, respectively. The Company paid preferred stock dividends of $52,240, and $18,440, to its preferred
stock shareholders, Transamerica Corporation and AEGON USA, LLC, respectively, on December 23, 2013. On December 21, 2012, the Company paid preferred stock dividends of $103,910, and $36,680, to Transamerica Corporation and AEGON USA, LLC,
respectively.
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.
97
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The Company did not pay any dividends in 2011.
The Company received preferred and common stock dividends of $430 and $37,370, respectively, from Transamerica Financial Life Insurance (TFLIC) Company 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, 2013, 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.
Additional information related to the outstanding surplus notes at December 31, 2013 and 2012 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| For Year Ending |
|
Balance
Outstanding |
|
|
Interest Paid
Current Year |
|
|
Cumulative
Interest Paid |
|
|
Accrued
Interest |
|
| 2013 |
|
$ |
150,000 |
|
|
$ |
9,000 |
|
|
$ |
99,000 |
|
|
$ |
2,250 |
|
| 2012 |
|
$ |
150,000 |
|
|
$ |
9,000 |
|
|
$ |
90,000 |
|
|
$ |
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
98
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the
loaned security.
At December 31, 2013 and 2012, respectively, securities in the amount of $3,069,772 and $2,064,426 were on loan under securities
lending agreements. At December 31, 2013, the collateral the Company received from securities lending activities was in the form of cash and on open terms. This cash collateral is reinvested and is not available for general corporate purposes.
The reinvested cash collateral has a fair value of $3,479,818 and $2,159,184 at December 31, 2013 and 2012, respectively.
The contractual maturities
of the securities lending collateral positions are as follows:
|
|
|
|
|
| |
|
Fair Value |
|
| Open |
|
$ |
3,182,026 |
|
| 30 days or less |
|
|
— |
|
| 31 to 60 days |
|
|
— |
|
| 61 to 90 days |
|
|
— |
|
| Greater than 90 days |
|
|
— |
|
|
|
|
|
|
| Total |
|
|
3,182,026 |
|
|
|
| Securities received |
|
|
— |
|
|
|
|
|
|
| Total collateral received |
|
$ |
3,182,026 |
|
|
|
|
|
|
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.
99
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
The maturity dates of the reinvested securities lending collateral are as follows:
|
|
|
|
|
|
|
|
|
| |
|
Amortized Cost |
|
|
Fair Value |
|
| Open |
|
$ |
311,054 |
|
|
$ |
311,054 |
|
| 30 days or less |
|
|
1,064,322 |
|
|
|
1,064,322 |
|
| 31 to 60 days |
|
|
993,379 |
|
|
|
993,379 |
|
| 61 to 90 days |
|
|
604,220 |
|
|
|
604,220 |
|
| 91 to 120 days |
|
|
14,973 |
|
|
|
14,973 |
|
| 121 to 180 days |
|
|
181,678 |
|
|
|
181,678 |
|
| Greater than 3 years |
|
|
12,799 |
|
|
|
12,141 |
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
3,182,425 |
|
|
|
3,181,767 |
|
|
|
|
| Securities received |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Total collateral reinvested |
|
$ |
3,182,425 |
|
|
$ |
3,181,767 |
|
|
|
|
|
|
|
|
|
|
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 $3,182,866 (fair value of $3,181,767) that are currently tradable securities that could be sold and used to pay for the $3,182,026
in collateral calls that could come due under a worst-case scenario.
11. Retirement and Compensation Plans
The Company’s employees participate in a qualified 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 $25,626, $23,983 and $20,647 for the years ended December 31, 2013, 2012 and
2011, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974.
The Company’s employees 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
100
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
and disclosure requirements of the Employee Retirement Income Security Act of 1974. The Company’s
allocation of benefits expense was $12,255, $11,501 and $10,237 for the years ended December 31, 2013, 2012 and 2011 respectively.
Aegon sponsors
supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The 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, 2013, 2012 and 2011 was insignificant. Aegon also sponsors an employee stock option plan/stock appreciation rights for employees of the
Company and a stock purchase plan for its producers, with the participating affiliated companies establishing their own eligibility criteria, producer contribution limits and company matching formula. These plans have been 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 $6,700, $7,018 and $3,951 related to these plans for the years ended
December 31, 2013, 2012 and 2011, respectively.
12. Related Party Transactions
The Company shares certain officers, employees and general expenses with affiliated companies.
The Company is party to a common cost allocation service agreement between Aegon companies, in which various affiliated companies may perform specified
administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company is also party to two additional service agreements with Transamerica Advisors Life
Insurance Company of New York (TALICNY) and TFLIC, in which the Company provides services, including accounting, data processing and other professional services, in consideration of reimbursement of the actual costs of services rendered. The Company
is also a party to a Management and Administrative and Advisory agreement with Aegon USA Realty Advisors, Inc. whereby the advisor serves as the administrator and advisor for the 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
101
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
party to these agreements was $229,780, $209,527 and $75,124 during 2013, 2012 and 2011, 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 $96,209, $74,457 and $60,237 for these services during 2013, 2012 and 2011, respectively.
Transamerica Capital, Inc. provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this
agreement of $115,212, $70,768 and $79,375 for the years ended December 31, 2013, 2012 and 2011, respectively.
Receivables from and payables to
affiliates bear interest at the thirty-day commercial paper rate. During 2013, 2012 and 2011, the Company paid net interest of $34, $112 and $252, respectively, to affiliates At December 31, 2013 and 2012, respectively, the Company reported a
net amount of receivables from affiliates of $10,042 and $44,001. Terms of settlement require that these amounts are settled within 90 days.
At
December 31, 2013, the Company had short-term intercompany notes receivable of $788,088 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 |
|
$ |
1,600 |
|
|
March 13, 2014 |
|
|
0.11 |
% |
| AEGON |
|
|
330,000 |
|
|
May 21, 2014 |
|
|
0.10 |
|
| AEGON |
|
|
16,700 |
|
|
September 16, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
50,400 |
|
|
September 17, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
40,500 |
|
|
September 18, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
27,200 |
|
|
September 26, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
71,588 |
|
|
September 27, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
2,000 |
|
|
November 29, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
111,400 |
|
|
November 29, 2014 |
|
|
0.11 |
|
| AEGON |
|
|
120,500 |
|
|
December 2, 2014 |
|
|
0.12 |
|
| AEGON |
|
|
12,800 |
|
|
December 20, 2014 |
|
|
0.12 |
|
| AEGON |
|
|
3,400 |
|
|
December 30, 2014 |
|
|
0.12 |
|
102
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.
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
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 $155,614 and $152,524 at December 31, 2013 and 2012, 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,
2013 and 2012, the cash surrender value of these policies was $161,384 and $156,981, respectively.
13. Commitments and Contingencies
At December 31, 2013 and 2012, the Company has mortgage loan commitments of $25,073 and $29,562, respectively. The Company has contingent commitments for
$242,171 and $245,514 as of December 31, 2013 and 2012, respectively, to provide additional funding for various joint ventures, partnerships, and limited liability companies, which includes LIHTC commitments of $3,621 and $23,053, respectively.
At December 31, 2013 and 2012, the Company has private placement commitments outstanding of $37,669 and $9,979, respectively.
The Company had no securities being acquired (sold) on a “to be announced” (TBA) basis as of December 31, 2013 and 2012.
Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s balance sheet.
The amount of cash collateral posted as of December 31, 2013 and 2012, respectively, was $379,202 and $971,255. In addition, securities in the amount of $180,359 and $619,879 were also posted to the Company as of
103
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
December 31, 2013 and 2012, respectively, which were not included on the balance sheet of the Company as
the Company does not have the ability to sell or repledge the collateral.
The Company has provided back-stop guarantees for the performance of
non-insurance affiliates or subsidiaries that are involved in the guaranteed sale of investments in low-income housing tax credit partnerships. The nature of the obligation is to provide third party investors with a minimum guaranteed annual and
cumulative return on their contributed capital which is based on tax credits and tax losses generated from the low income housing tax credit partnerships. Guarantee payments arise if low income housing tax credit partnerships experience unexpected
significant decreases in tax credits and tax losses or there are compliance issues with the partnerships. A significant portion of the remaining term of the guarantees is between 13-18 years. 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, 2013 or 2012, 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 $185 and $245 at December 31, 2013 and 2012, respectively. No payments are required as of December 31, 2013. The current assessment of risk of making
payments under these guarantees is remote.
The 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.
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, 2013, 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
104
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2013, 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, 2013 and 2012, TLB holds related statutory-basis policy and claim reserves of
$667,196 and $384,529, 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, 2013, there is no payment or performance risk because TLB is not insolvent as of this date.
The Company has provided a guarantee to TLB’s (Hong Kong Branch) policyholders. If TLB fails to pay a valid claim solely by reason of it becoming
insolvent as defined by Bermuda law, then the Company shall pay directly to the policy owner or named beneficiary the amount of the valid claim. At December 31, 2013, TLB holds related statutory-basis policy and claim reserves of $1,260,437,
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, 2013, there is no payment or performance risk because TLB is not insolvent as of this date.
The Company did not recognize a liability for any of the TLB guarantees due to the adoption of SSAP No. 5R at December 31, 2013 or 2012, 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
105
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
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, 2013 and 2012 for the total payout block is $3,610,718 and $3,688,696, 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, 2013 and 2012:
|
|
|
|
|
|
|
|
|
| |
|
December 31 |
|
| |
|
2013 |
|
|
2012 |
|
| Aggregate maximum potential of future payments of all guarantees (undiscounted) |
|
$ |
1,927,818 |
|
|
$ |
384,774 |
|
|
|
|
|
|
|
|
|
|
| Current liability recognized in financial statements: |
|
|
|
|
|
|
|
|
| Noncontingent liabilities |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Contingent liabilities |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Ultimate financial statement impact if action required: |
|
|
|
|
|
|
|
|
| Incurred claims |
|
|
1,927,633 |
|
|
|
384,529 |
|
| Other |
|
|
185 |
|
|
|
245 |
|
|
|
|
|
|
|
|
|
|
| Total impact if action required |
|
$ |
1,927,818 |
|
|
$ |
384,774 |
|
|
|
|
|
|
|
|
|
|
106
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 |
|
| |
|
2013 |
|
|
2012 |
|
| FHLB stock purchased/owned as part of the agreement |
|
$ |
104,000 |
|
|
$ |
137,938 |
|
| Collateral pledged to the FHLB |
|
|
3,189,790 |
|
|
|
4,790,115 |
|
| Borrowing capacity currently available |
|
|
5,709,267 |
|
|
|
5,865,876 |
|
| Agreement General Account |
|
|
|
|
|
|
|
|
| Assets |
|
|
1,943,306 |
|
|
|
2,568,722 |
|
| Liabilities |
|
|
1,584,912 |
|
|
|
1,975,268 |
|
The Company has issued synthetic GIC contracts to benefit plan sponsors totaling $1,985,290 and $2,545,786 as of
December 31, 2013 and 2012, respectively. A synthetic GIC is an off-balance sheet fee-based product sold primarily to tax qualified plans. The plan sponsor retains ownership and control of the related plan assets. The Company provides book
value benefit responsiveness in the event that qualified plan benefit requests exceed plan cash flows. In 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, 2013 and 2012.
As of December 31, 2013 and 2012, 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 $470, 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
107
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
there were, any such draws would be purchases of municipal bonds, which would be repaid with interest.
The Company is a party to legal proceedings involving a variety of issues incidental to its business, including class actions. Lawsuits may be brought in
nearly any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are
subject to many variables, and given its complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, it is
management’s opinion that damages arising from such demands will not be material to the Company’s financial position.
The Company is subject to
insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are
charged to operations when received by the Company, except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s balance sheet. The future obligation for
known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty 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 $8,525 and $26,107 and an offsetting premium tax benefit of $6,220 and $5,044 at December 31, 2013 and 2012, respectively, for
its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $(155), $(4,325) and $(3,645), for the years ended December 31, 2013, 2012 and 2011, respectively.
14. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities
The Company has recorded liabilities of $88,979 and $89,724 for municipal repurchase agreements as of December 31, 2013 and 2012, respectively. The
repurchase agreements are primarily collateralized by investment-grade corporate bonds with book values of $88,847 and $85,713, respectively, and fair values of $94,435 and $92,872, respectively, as of December 31, 2013 and 2012. These
securities have maturity dates that range from 2014 to 2021.
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 16 months to 24 months are the basis for the near-term liquidity planning. This liquidity model excludes new business
108
Transamerica Life Insurance Company
Notes to Financial Statements – Statutory Basis (continued)
(Dollars in Thousands, Except per Share amounts)
(non applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in
part through rigorously defined and monitored derivatives programs.
The Company enters into dollar repurchase agreements in which securities are
delivered to the counterparty once adequate collateral has been received. At December 31, 2013 and 2012, the Company had dollar repurchase agreements outstanding in the amount of $216,485 and $82,026, respectively. The Company had an
outstanding liability for borrowed money in the amount $209,442 and $85,516 at December 31, 2013 and 2012, respectively due to participation in dollar repurchase agreements which includes accrued interest. The Company did not participate in
dollar repurchase agreements at December 31, 2011.
The contractual maturities of the dollar repurchase agreement positions are as follows:
|
|
|
|
|
| |
|
Fair Value |
|
| Open |
|
$ |
208,813 |
|
| 30 days or less |
|
|
— |
|
| 31 to 60 days |
|
|
— |
|
| 61 to 90 days |
|
|
— |
|
| Greater than 90 days |
|
|
— |
|
|
|
|
|
|
| Total |
|
|
208,813 |
|
|
|
| Securities received |
|
|
— |
|
|
|
|
|
|
| Total collateral received |
|
$ |
208,813 |
|
|
|
|
|
|
In the course of the Company’s asset management, securities are sold and reacquired within 30 days of the sale date to
enhance the Company’s yield on its investment portfolio. The details by NAIC designation 3 or below of securities sold during 2013 and reacquired within 30 days of the sale date are:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Number of
Transactions |
|
|
Book Value of
Securities
Sold |
|
|
Cost of
Securities
Repurchased |
|
|
Gain/(Loss) |
|
| Bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NAIC 4 |
|
|
2 |
|
|
$ |
2,748 |
|
|
$ |
3,084 |
|
|
$ |
364 |
|
| NAIC 5 |
|
|
4 |
|
|
|
4,093 |
|
|
|
4,332 |
|
|
|
290 |
|
109
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). With the exception of the Affordable Care Act annual fee described below, the Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2013 through the date the financial
statements are issued.
On January 1, 2014, the Company will be subject to an annual fee under section 9010 of the Affordable Care Act (ACA). This
annual fee will be allocated to individual health insurers based on the ratio of the amount of the entity’s net premiums written during the preceding calendar year to the amount of health insurance for any U.S. health risk that is written
during the preceding calendar year. A health insurance entity’s portion of the annual fee becomes payable once the entity provides health insurance for any U.S. health risk for each calendar year beginning on or after January 1, 2014. As
of December 31, 2013, the Company has written health insurance subject to the ACA assessment, expects to conduct health insurance business in 2014, and estimates their portion of the annual health insurance industry fee to be payable on
September 30, 2014 to be $448. This assessment is not expected to have a material impact on risk based capital in 2014.
110
Statutory-Basis Financial
Statement Schedules
Transamerica Life Insurance Company
Summary of Investments – Other Than
Investments in Related Parties
(Dollars in Thousands)
December 31, 2013
SCHEDULE
I
|
|
|
|
|
|
|
|
|
|
|
|
|
| Type of Investment |
|
Cost (1) |
|
|
Fair Value |
|
|
Amount at
Which Shown
in the
Balance Sheet (2) |
|
| Fixed maturities |
|
|
|
|
|
|
|
|
|
|
|
|
| Bonds: |
|
|
|
|
|
|
|
|
|
|
|
|
| United States government and government agencies and authorities |
|
$ |
4,456,301 |
|
|
$ |
4,565,465 |
|
|
$ |
4,457,359 |
|
| States, municipalities and political subdivisions |
|
|
751,418 |
|
|
|
771,345 |
|
|
|
751,348 |
|
| Foreign governments |
|
|
552,197 |
|
|
|
538,383 |
|
|
|
547,840 |
|
| Hybrid securities |
|
|
863,341 |
|
|
|
797,606 |
|
|
|
862,627 |
|
| All other corporate bonds |
|
|
29,625,858 |
|
|
|
31,552,192 |
|
|
|
29,533,107 |
|
| Preferred stocks |
|
|
132,631 |
|
|
|
133,645 |
|
|
|
132,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total fixed maturities |
|
|
36,381,745 |
|
|
|
38,358,636 |
|
|
|
36,284,911 |
|
|
|
|
|
| Equity securities |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stocks: |
|
|
|
|
|
|
|
|
|
|
|
|
| Industrial, miscellaneous and all other |
|
|
124,347 |
|
|
|
174,007 |
|
|
|
174,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity securities |
|
|
124,347 |
|
|
|
174,007 |
|
|
|
174,007 |
|
|
|
|
|
| Mortgage loans on real estate |
|
|
5,610,794 |
|
|
|
|
|
|
|
5,610,794 |
|
| Real estate |
|
|
78,448 |
|
|
|
|
|
|
|
78,448 |
|
| Policy loans |
|
|
687,569 |
|
|
|
|
|
|
|
687,569 |
|
| Other long-term investments |
|
|
1,153,347 |
|
|
|
|
|
|
|
1,153,347 |
|
| Receivable for Securities |
|
|
135 |
|
|
|
|
|
|
|
135 |
|
| Securities Lending |
|
|
3,182,425 |
|
|
|
|
|
|
|
3,182,425 |
|
| Cash, cash equivalents and short-term investments |
|
|
1,199,054 |
|
|
|
|
|
|
|
1,199,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total investments |
|
$ |
48,417,864 |
|
|
|
|
|
|
$ |
48,370,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (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 $130,081 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. |
112
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, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individual life |
|
$ |
14,185,805 |
|
|
$ |
— |
|
|
$ |
231,700 |
|
|
$ |
1,185,165 |
|
|
$ |
795,744 |
|
|
$ |
1,887,131 |
|
|
$ |
946,491 |
|
| Individual health |
|
|
3,281,297 |
|
|
|
98,172 |
|
|
|
130,325 |
|
|
|
456,021 |
|
|
|
198,062 |
|
|
|
468,090 |
|
|
|
154,043 |
|
| Group life and health |
|
|
1,465,232 |
|
|
|
13,467 |
|
|
|
64,476 |
|
|
|
400,624 |
|
|
|
66,995 |
|
|
|
301,864 |
|
|
|
180,181 |
|
| Annuity |
|
|
15,055,747 |
|
|
|
— |
|
|
|
16,053 |
|
|
|
13,493,425 |
|
|
|
1,333,335 |
|
|
|
6,504,357 |
|
|
|
8,142,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33,988,081 |
|
|
$ |
111,639 |
|
|
$ |
442,554 |
|
|
$ |
15,535,235 |
|
|
$ |
2,394,136 |
|
|
$ |
9,161,442 |
|
|
$ |
9,423,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
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. |
113
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, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life insurance in force |
|
$ |
425,824,013 |
|
|
$ |
900,426,392 |
|
|
$ |
609,160,147 |
|
|
$ |
182,304,432 |
|
|
|
334 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Premiums: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Individual life |
|
|
2,341,520 |
|
|
|
2,591,067 |
|
|
|
1,434,712 |
|
|
|
1,185,165 |
|
|
|
121 |
% |
| Individual health |
|
|
524,580 |
|
|
|
87,856 |
|
|
|
19,298 |
|
|
|
456,021 |
|
|
|
4 |
% |
| Group life and health |
|
|
482,218 |
|
|
|
84,646 |
|
|
|
3,052 |
|
|
|
400,624 |
|
|
|
1 |
% |
| Annuity |
|
|
13,562,324 |
|
|
|
142,308 |
|
|
|
73,409 |
|
|
|
13,493,425 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
16,910,642 |
|
|
$ |
2,905,877 |
|
|
$ |
1,530,471 |
|
|
$ |
15,535,235 |
|
|
|
10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
114
FINANCIAL STATEMENTS
Transamerica Life Insurance Company
Separate Account VA-2L
Years Ended December 31, 2013 and 2012
Transamerica Life Insurance Company
Separate Account VA-2L
Financial Statements
Years Ended December 31, 2013 and 2012
Contents
|
|
|
|
|
| Report of Independent Registered Public Accounting Firm |
|
|
1 |
|
|
|
| Financial Statements |
|
|
|
|
|
|
| Statements of Assets and Liabilities |
|
|
2 |
|
| Statements of Operations and Changes in Net Assets |
|
|
3 |
|
| Notes to Financial Statements |
|
|
7 |
|
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, 2013, and the related statements of operations and changes in net assets for the periods indicated thereon. These
financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Separate Account’s internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Separate
Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013 by correspondence with the fund
companies or their transfer agents. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts of Transamerica Life Insurance Company Separate Account VA-2L, at December 31, 2013, the results of their operations and changes
in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.
/s/ Ernst
& Young LLP
Des Moines, Iowa
April 25, 2014
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Assets and Liabilities
December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Number of Shares |
|
|
Cost |
|
|
Assets at Market
Value |
|
|
Due (to)/from
General Account |
|
|
Net Assets |
|
|
Units Outstanding |
|
|
Range of Unit Values |
|
| Dreyfus Core Value Initial Shares |
|
|
613,727.805 |
|
|
$ |
8,965,250 |
|
|
$ |
11,924,731 |
|
|
$ |
(5 |
) |
|
$ |
11,924,726 |
|
|
|
631,031 |
|
|
$ |
18.897209 |
|
|
$ |
18.897209 |
|
| Dreyfus Core Value Service Shares |
|
|
711,141.789 |
|
|
|
11,274,904 |
|
|
|
13,874,376 |
|
|
|
(3 |
) |
|
|
13,874,373 |
|
|
|
2,246,381 |
|
|
|
1.655559 |
|
|
|
18.507084 |
|
| Dreyfus Growth and Income Service Shares |
|
|
256,349.533 |
|
|
|
5,297,106 |
|
|
|
7,675,105 |
|
|
|
(6 |
) |
|
|
7,675,099 |
|
|
|
726,490 |
|
|
|
1.621024 |
|
|
|
45.466011 |
|
| Dreyfus International Value Initial Shares |
|
|
591,045.850 |
|
|
|
6,863,525 |
|
|
|
6,986,162 |
|
|
|
3 |
|
|
|
6,986,165 |
|
|
|
344,142 |
|
|
|
20.300252 |
|
|
|
20.300252 |
|
| Dreyfus International Value Service Shares |
|
|
297,534.022 |
|
|
|
3,463,231 |
|
|
|
3,516,852 |
|
|
|
6 |
|
|
|
3,516,858 |
|
|
|
675,840 |
|
|
|
1.511901 |
|
|
|
19.863449 |
|
| Dreyfus MidCap Stock Initial Shares |
|
|
696,824.178 |
|
|
|
8,943,806 |
|
|
|
14,542,721 |
|
|
|
1 |
|
|
|
14,542,722 |
|
|
|
611,088 |
|
|
|
23.798095 |
|
|
|
23.798095 |
|
| Dreyfus MidCap Stock Service Shares |
|
|
460,374.732 |
|
|
|
6,059,908 |
|
|
|
9,589,606 |
|
|
|
10 |
|
|
|
9,589,616 |
|
|
|
1,190,668 |
|
|
|
2.016875 |
|
|
|
23.313372 |
|
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
111,438.051 |
|
|
|
3,560,083 |
|
|
|
5,141,752 |
|
|
|
— |
|
|
|
5,141,752 |
|
|
|
572,281 |
|
|
|
1.415776 |
|
|
|
122.107345 |
|
| Dreyfus Quality Bond Service Shares |
|
|
1,143,483.429 |
|
|
|
12,698,206 |
|
|
|
13,493,104 |
|
|
|
7 |
|
|
|
13,493,111 |
|
|
|
3,094,051 |
|
|
|
1.172857 |
|
|
|
25.783844 |
|
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
301,461.289 |
|
|
|
8,773,258 |
|
|
|
13,288,414 |
|
|
|
(4 |
) |
|
|
13,288,410 |
|
|
|
300,567 |
|
|
|
44.211158 |
|
|
|
44.211158 |
|
| Dreyfus Socially Responsible Growth Service Shares |
|
|
53,228.593 |
|
|
|
1,391,301 |
|
|
|
2,329,283 |
|
|
|
(1 |
) |
|
|
2,329,282 |
|
|
|
222,463 |
|
|
|
1.561283 |
|
|
|
42.777534 |
|
| Dreyfus Stock Index Initial Shares |
|
|
1,191,386.723 |
|
|
|
33,429,198 |
|
|
|
48,656,234 |
|
|
|
— |
|
|
|
48,656,234 |
|
|
|
705,115 |
|
|
|
69.004685 |
|
|
|
69.004685 |
|
| Dreyfus Stock Index Service Shares |
|
|
301,809.798 |
|
|
|
8,874,515 |
|
|
|
12,341,003 |
|
|
|
(3 |
) |
|
|
12,341,000 |
|
|
|
1,360,322 |
|
|
|
1.722778 |
|
|
|
66.750724 |
|
| Dreyfus Technology Growth Initial Shares |
|
|
814,203.405 |
|
|
|
7,179,599 |
|
|
|
14,965,059 |
|
|
|
12 |
|
|
|
14,965,071 |
|
|
|
1,243,278 |
|
|
|
12.036785 |
|
|
|
12.036785 |
|
| Dreyfus Technology Growth Service Shares |
|
|
149,238.200 |
|
|
|
1,364,385 |
|
|
|
2,659,425 |
|
|
|
2 |
|
|
|
2,659,427 |
|
|
|
425,199 |
|
|
|
1.879870 |
|
|
|
11.633175 |
|
| Dreyfus VIF Appreciation Initial Shares |
|
|
1,141,837.439 |
|
|
|
38,196,346 |
|
|
|
54,751,105 |
|
|
|
1 |
|
|
|
54,751,106 |
|
|
|
947,989 |
|
|
|
1.124035 |
|
|
|
57.754992 |
|
| Dreyfus VIF Appreciation Service Shares |
|
|
324,782.935 |
|
|
|
11,372,753 |
|
|
|
15,488,898 |
|
|
|
(2 |
) |
|
|
15,488,896 |
|
|
|
1,921,255 |
|
|
|
1.671260 |
|
|
|
55.867465 |
|
| Dreyfus VIF Growth and Income Initial Shares |
|
|
1,152,190.702 |
|
|
|
23,343,974 |
|
|
|
34,473,546 |
|
|
|
— |
|
|
|
34,473,546 |
|
|
|
736,673 |
|
|
|
46.796240 |
|
|
|
46.796240 |
|
| Dreyfus VIF International Equity Initial shares |
|
|
588,862.746 |
|
|
|
10,500,290 |
|
|
|
11,353,274 |
|
|
|
1 |
|
|
|
11,353,275 |
|
|
|
380,975 |
|
|
|
29.800591 |
|
|
|
29.800591 |
|
| Dreyfus VIF International Equity Service Shares |
|
|
129,669.275 |
|
|
|
2,204,433 |
|
|
|
2,494,837 |
|
|
|
5 |
|
|
|
2,494,842 |
|
|
|
310,743 |
|
|
|
1.933076 |
|
|
|
28.810885 |
|
| Dreyfus VIF Money Market |
|
|
52,843,905.700 |
|
|
|
52,843,906 |
|
|
|
52,843,906 |
|
|
|
(233 |
) |
|
|
52,843,673 |
|
|
|
39,563,306 |
|
|
|
0.899070 |
|
|
|
1.359325 |
|
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
618,441.528 |
|
|
|
21,752,042 |
|
|
|
29,085,305 |
|
|
|
(3 |
) |
|
|
29,085,302 |
|
|
|
230,352 |
|
|
|
126.264622 |
|
|
|
126.264622 |
|
| Dreyfus VIF Quality Bond Initial Shares |
|
|
2,048,232.882 |
|
|
|
22,831,336 |
|
|
|
24,271,560 |
|
|
|
6 |
|
|
|
24,271,566 |
|
|
|
910,765 |
|
|
|
26.649657 |
|
|
|
26.649657 |
|
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
|
86,690.775 |
|
|
|
931,730 |
|
|
|
998,678 |
|
|
|
2 |
|
|
|
998,680 |
|
|
|
893,176 |
|
|
|
1.098169 |
|
|
|
1.119968 |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
|
20,227.755 |
|
|
|
215,961 |
|
|
|
221,696 |
|
|
|
2 |
|
|
|
221,698 |
|
|
|
206,075 |
|
|
|
1.056613 |
|
|
|
1.077581 |
|
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
|
3,030.472 |
|
|
|
33,279 |
|
|
|
35,850 |
|
|
|
— |
|
|
|
35,850 |
|
|
|
30,461 |
|
|
|
1.155903 |
|
|
|
1.178848 |
|
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
|
35,264.709 |
|
|
|
375,561 |
|
|
|
392,144 |
|
|
|
2 |
|
|
|
392,146 |
|
|
|
360,103 |
|
|
|
1.069549 |
|
|
|
1.090765 |
|
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
|
20,298.800 |
|
|
|
217,798 |
|
|
|
237,496 |
|
|
|
(1 |
) |
|
|
237,495 |
|
|
|
207,350 |
|
|
|
1.124954 |
|
|
|
1.147282 |
|
| TA Market Participation Strategy Service Class |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.100542 |
|
|
|
1.117353 |
|
| TA PIMCO Tactical - Balanced Service Class |
|
|
20,675.095 |
|
|
|
226,671 |
|
|
|
237,970 |
|
|
|
— |
|
|
|
237,970 |
|
|
|
217,236 |
|
|
|
1.080345 |
|
|
|
1.096839 |
|
| TA PIMCO Tactical - Conservative Service Class |
|
|
4,955.203 |
|
|
|
51,319 |
|
|
|
54,012 |
|
|
|
— |
|
|
|
54,012 |
|
|
|
50,841 |
|
|
|
1.047710 |
|
|
|
1.063716 |
|
| TA PIMCO Tactical - Growth Service Class |
|
|
664.098 |
|
|
|
6,953 |
|
|
|
7,551 |
|
|
|
— |
|
|
|
7,551 |
|
|
|
6,635 |
|
|
|
1.122352 |
|
|
|
1.139510 |
|
| TA Vanguard ETF - Balanced Service Class |
|
|
82,120.239 |
|
|
|
902,275 |
|
|
|
961,628 |
|
|
|
5 |
|
|
|
961,633 |
|
|
|
855,897 |
|
|
|
1.103486 |
|
|
|
1.125389 |
|
| TA Vanguard ETF - Conservative Service Class |
|
|
13,629.533 |
|
|
|
161,275 |
|
|
|
166,553 |
|
|
|
1 |
|
|
|
166,554 |
|
|
|
154,224 |
|
|
|
1.060662 |
|
|
|
1.081714 |
|
| TA Vanguard ETF - Growth Service Class |
|
|
16,793.563 |
|
|
|
181,215 |
|
|
|
185,065 |
|
|
|
— |
|
|
|
185,065 |
|
|
|
153,905 |
|
|
|
1.181033 |
|
|
|
1.204465 |
|
| TA WMC Diversified Growth Initial Class |
|
|
365,909.064 |
|
|
|
8,232,810 |
|
|
|
11,650,545 |
|
|
|
(1 |
) |
|
|
11,650,544 |
|
|
|
697,577 |
|
|
|
1.905408 |
|
|
|
19.494177 |
|
See accompanying notes.
2
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Change in Net Assets
Year Ended December 31, 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment
Income: |
|
|
Investment
Expense: |
|
|
Increase (Decrease) in Net Assets from Operations: |
|
|
|
|
|
|
|
| Subaccount |
|
Net Assets
as of
January 1,
2012: |
|
|
Reinvested
Dividends |
|
|
Mortality and
Expense Risk
and
Administrative
Charges |
|
|
Net
Investment
Income (Loss) |
|
|
Capital Gain
Distributions |
|
|
Realized
Gain (Loss)
on
Investments |
|
|
Net
Realized
Capital
Gains
(Losses) on
Investments |
|
|
Net Change in
Unrealized
Appreciation
(Depreciation) |
|
|
Net Gain
(Loss) on
Investment |
|
|
Net
Increase
(Decrease)
in Net
Assets
Resulting
from
Operations |
|
|
Increase
(Decrease)
in Net Assets
from
Contract
Transactions |
|
|
Total
Increase
(Decrease)
in Net
Assets |
|
|
Net Assets as of
December 31,
2012 |
|
| Dreyfus Core Value Initial Shares |
|
$ |
9,393,308 |
|
|
$ |
86,959 |
|
|
$ |
136,347 |
|
|
$ |
(49,388 |
) |
|
$ |
— |
|
|
$ |
(690,415 |
) |
|
$ |
(690,415 |
) |
|
$ |
2,237,759 |
|
|
$ |
1,547,344 |
|
|
$ |
1,497,956 |
|
|
$ |
(1,079,063 |
) |
|
$ |
418,893 |
|
|
$ |
9,812,201 |
|
| Dreyfus Core Value Service Shares |
|
|
11,471,673 |
|
|
|
79,140 |
|
|
|
160,495 |
|
|
|
(81,355 |
) |
|
|
— |
|
|
|
(887,832 |
) |
|
|
(887,832 |
) |
|
|
2,723,880 |
|
|
|
1,836,048 |
|
|
|
1,754,693 |
|
|
|
(1,837,538 |
) |
|
|
(82,845 |
) |
|
|
11,388,828 |
|
| Dreyfus Growth and Income Service Shares |
|
|
6,974,560 |
|
|
|
85,454 |
|
|
|
101,878 |
|
|
|
(16,424 |
) |
|
|
— |
|
|
|
(84,007 |
) |
|
|
(84,007 |
) |
|
|
1,187,663 |
|
|
|
1,103,656 |
|
|
|
1,087,232 |
|
|
|
(981,979 |
) |
|
|
105,253 |
|
|
|
7,079,813 |
|
| Dreyfus International Value Initial Shares |
|
|
6,657,081 |
|
|
|
193,468 |
|
|
|
90,100 |
|
|
|
103,368 |
|
|
|
— |
|
|
|
(1,105,773 |
) |
|
|
(1,105,773 |
) |
|
|
1,700,897 |
|
|
|
595,124 |
|
|
|
698,492 |
|
|
|
(925,685 |
) |
|
|
(227,193 |
) |
|
|
6,429,888 |
|
| Dreyfus International Value Service Shares |
|
|
3,828,927 |
|
|
|
98,637 |
|
|
|
52,893 |
|
|
|
45,744 |
|
|
|
— |
|
|
|
(571,751 |
) |
|
|
(571,751 |
) |
|
|
914,847 |
|
|
|
343,096 |
|
|
|
388,840 |
|
|
|
(480,056 |
) |
|
|
(91,216 |
) |
|
|
3,737,711 |
|
| Dreyfus MidCap Stock Initial Shares |
|
|
11,947,122 |
|
|
|
58,102 |
|
|
|
172,928 |
|
|
|
(114,826 |
) |
|
|
— |
|
|
|
(443,693 |
) |
|
|
(443,693 |
) |
|
|
2,580,730 |
|
|
|
2,137,037 |
|
|
|
2,022,211 |
|
|
|
(2,040,174 |
) |
|
|
(17,963 |
) |
|
|
11,929,159 |
|
| Dreyfus MidCap Stock Service Shares |
|
|
8,099,992 |
|
|
|
17,605 |
|
|
|
116,218 |
|
|
|
(98,613 |
) |
|
|
— |
|
|
|
(220,002 |
) |
|
|
(220,002 |
) |
|
|
1,671,638 |
|
|
|
1,451,636 |
|
|
|
1,353,023 |
|
|
|
(1,364,205 |
) |
|
|
(11,182 |
) |
|
|
8,088,810 |
|
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
3,289,578 |
|
|
|
— |
|
|
|
49,603 |
|
|
|
(49,603 |
) |
|
|
— |
|
|
|
(163,382 |
) |
|
|
(163,382 |
) |
|
|
809,233 |
|
|
|
645,851 |
|
|
|
596,248 |
|
|
|
(229,699 |
) |
|
|
366,549 |
|
|
|
3,656,127 |
|
| Dreyfus Quality Bond Service Shares |
|
|
19,348,936 |
|
|
|
503,138 |
|
|
|
251,714 |
|
|
|
251,424 |
|
|
|
— |
|
|
|
292,828 |
|
|
|
292,828 |
|
|
|
376,739 |
|
|
|
669,567 |
|
|
|
920,991 |
|
|
|
(3,382,876 |
) |
|
|
(2,461,885 |
) |
|
|
16,887,051 |
|
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
11,559,697 |
|
|
|
95,807 |
|
|
|
166,438 |
|
|
|
(70,631 |
) |
|
|
— |
|
|
|
(116,879 |
) |
|
|
(116,879 |
) |
|
|
1,388,871 |
|
|
|
1,271,992 |
|
|
|
1,201,361 |
|
|
|
(1,610,047 |
) |
|
|
(408,686 |
) |
|
|
11,151,011 |
|
| Dreyfus Socially Responsible Growth Service Shares |
|
|
2,042,497 |
|
|
|
11,971 |
|
|
|
29,406 |
|
|
|
(17,435 |
) |
|
|
— |
|
|
|
91,936 |
|
|
|
91,936 |
|
|
|
131,927 |
|
|
|
223,863 |
|
|
|
206,428 |
|
|
|
(237,567 |
) |
|
|
(31,139 |
) |
|
|
2,011,358 |
|
| Dreyfus Stock Index Initial Shares |
|
|
42,786,445 |
|
|
|
897,610 |
|
|
|
623,551 |
|
|
|
274,059 |
|
|
|
2,194,591 |
|
|
|
(331,788 |
) |
|
|
1,862,803 |
|
|
|
3,772,061 |
|
|
|
5,634,864 |
|
|
|
5,908,923 |
|
|
|
(5,987,545 |
) |
|
|
(78,622 |
) |
|
|
42,707,823 |
|
| Dreyfus Stock Index Service Shares |
|
|
12,747,384 |
|
|
|
219,111 |
|
|
|
176,025 |
|
|
|
43,086 |
|
|
|
624,823 |
|
|
|
245,066 |
|
|
|
869,889 |
|
|
|
777,392 |
|
|
|
1,647,281 |
|
|
|
1,690,367 |
|
|
|
(2,816,021 |
) |
|
|
(1,125,654 |
) |
|
|
11,621,730 |
|
| Dreyfus Technology Growth Initial Shares |
|
|
13,005,887 |
|
|
|
— |
|
|
|
190,825 |
|
|
|
(190,825 |
) |
|
|
— |
|
|
|
820,006 |
|
|
|
820,006 |
|
|
|
1,171,233 |
|
|
|
1,991,239 |
|
|
|
1,800,414 |
|
|
|
(2,220,380 |
) |
|
|
(419,966 |
) |
|
|
12,585,921 |
|
| Dreyfus Technology Growth Service Shares |
|
|
2,240,648 |
|
|
|
— |
|
|
|
33,316 |
|
|
|
(33,316 |
) |
|
|
— |
|
|
|
103,341 |
|
|
|
103,341 |
|
|
|
235,417 |
|
|
|
338,758 |
|
|
|
305,442 |
|
|
|
(202,579 |
) |
|
|
102,863 |
|
|
|
2,343,511 |
|
| Dreyfus VIF Appreciation Initial Shares |
|
|
53,521,029 |
|
|
|
1,987,218 |
|
|
|
763,250 |
|
|
|
1,223,968 |
|
|
|
— |
|
|
|
182,848 |
|
|
|
182,848 |
|
|
|
3,304,658 |
|
|
|
3,487,506 |
|
|
|
4,711,474 |
|
|
|
(6,626,872 |
) |
|
|
(1,915,398 |
) |
|
|
51,605,631 |
|
| Dreyfus VIF Appreciation Service Shares |
|
|
16,328,188 |
|
|
|
521,135 |
|
|
|
222,892 |
|
|
|
298,243 |
|
|
|
— |
|
|
|
580,801 |
|
|
|
580,801 |
|
|
|
482,578 |
|
|
|
1,063,379 |
|
|
|
1,361,622 |
|
|
|
(2,852,022 |
) |
|
|
(1,490,400 |
) |
|
|
14,837,788 |
|
| Dreyfus VIF Growth and Income Initial Shares |
|
|
28,398,598 |
|
|
|
422,705 |
|
|
|
415,037 |
|
|
|
7,668 |
|
|
|
— |
|
|
|
(207,622 |
) |
|
|
(207,622 |
) |
|
|
4,705,847 |
|
|
|
4,498,225 |
|
|
|
4,505,893 |
|
|
|
(3,932,055 |
) |
|
|
573,838 |
|
|
|
28,972,436 |
|
| Dreyfus VIF International Equity Initial shares |
|
|
10,776,892 |
|
|
|
50,326 |
|
|
|
155,425 |
|
|
|
(105,099 |
) |
|
|
— |
|
|
|
(257,670 |
) |
|
|
(257,670 |
) |
|
|
2,531,105 |
|
|
|
2,273,435 |
|
|
|
2,168,336 |
|
|
|
(1,825,834 |
) |
|
|
342,502 |
|
|
|
11,119,394 |
|
| Dreyfus VIF International Equity Service Shares |
|
|
2,558,648 |
|
|
|
3,766 |
|
|
|
36,481 |
|
|
|
(32,715 |
) |
|
|
— |
|
|
|
(250,199 |
) |
|
|
(250,199 |
) |
|
|
776,323 |
|
|
|
526,124 |
|
|
|
493,409 |
|
|
|
(536,200 |
) |
|
|
(42,791 |
) |
|
|
2,515,857 |
|
| Dreyfus VIF Money Market |
|
|
73,916,054 |
|
|
|
25 |
|
|
|
955,363 |
|
|
|
(955,338 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(955,338 |
) |
|
|
(10,531,091 |
) |
|
|
(11,486,429 |
) |
|
|
62,429,625 |
|
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
21,290,385 |
|
|
|
— |
|
|
|
313,187 |
|
|
|
(313,187 |
) |
|
|
— |
|
|
|
(595,974 |
) |
|
|
(595,974 |
) |
|
|
4,746,884 |
|
|
|
4,150,910 |
|
|
|
3,837,723 |
|
|
|
(2,740,045 |
) |
|
|
1,097,678 |
|
|
|
22,388,063 |
|
| Dreyfus VIF Quality Bond Initial Shares |
|
|
30,600,462 |
|
|
|
916,275 |
|
|
|
430,686 |
|
|
|
485,589 |
|
|
|
— |
|
|
|
364,692 |
|
|
|
364,692 |
|
|
|
806,212 |
|
|
|
1,170,904 |
|
|
|
1,656,493 |
|
|
|
(1,706,964 |
) |
|
|
(50,471 |
) |
|
|
30,549,991 |
|
| TA Aegon Tactical Vanguard ETF - Balanced Service Class (1) |
|
|
— |
|
|
|
176 |
|
|
|
1,025 |
|
|
|
(849 |
) |
|
|
133 |
|
|
|
20 |
|
|
|
153 |
|
|
|
5,905 |
|
|
|
6,058 |
|
|
|
5,209 |
|
|
|
276,005 |
|
|
|
281,214 |
|
|
|
281,214 |
|
See accompanying notes.
3
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Change in Net Assets
Year Ended December 31, 2012, Except as Noted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment
Income: |
|
|
Investment
Expense: |
|
|
Increase (Decrease) in Net Assets from Operations: |
|
|
|
|
|
|
|
| Subaccount |
|
Net Assets as
of January 1,
2012: |
|
|
Reinvested
Dividends |
|
|
Mortality and
Expense Risk
and
Administrative
Charges |
|
|
Net
Investment
Income (Loss) |
|
|
Capital Gain
Distributions |
|
|
Realized Gain
(Loss) on
Investments |
|
|
Net Realized
Capital Gains
(Losses) on
Investments |
|
|
Net Change in
Unrealized
Appreciation
(Depreciation) |
|
|
Net Gain
(Loss) on
Investment |
|
|
Net Increase
(Decrease) in
Net Assets
Resulting from
Operations |
|
|
Increase
(Decrease) in
Net Assets from
Contract
Transactions |
|
|
Total Increase
(Decrease) in
Net Assets |
|
|
Net Assets as of
December 31,
2012 |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class (1) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
314 |
|
|
$ |
(314 |
) |
|
$ |
— |
|
|
$ |
(4 |
) |
|
$ |
(4 |
) |
|
$ |
459 |
|
|
$ |
455 |
|
|
$ |
141 |
|
|
$ |
111,229 |
|
|
$ |
111,370 |
|
|
$ |
111,370 |
|
| TA Aegon Tactical Vanguard ETF - Growth Service
Class (1) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(6 |
) |
|
|
(6 |
) |
|
|
37 |
|
|
|
31 |
|
|
|
28 |
|
|
|
3,163 |
|
|
|
3,191 |
|
|
|
3,191 |
|
| TA Legg Mason Dynamic Allocation - Balanced Service Class (1) |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
|
|
(15 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(13 |
) |
|
|
(15 |
) |
|
|
(30 |
) |
|
|
19,368 |
|
|
|
19,338 |
|
|
|
19,338 |
|
| TA Legg Mason Dynamic Allocation - Growth Service
Class (1) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
|
|
12 |
|
|
|
8 |
|
|
|
5 |
|
|
|
3,161 |
|
|
|
3,166 |
|
|
|
3,166 |
|
| TA Market Participation Strategy Service
Class (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Balanced Service Class (1) |
|
|
— |
|
|
|
— |
|
|
|
84 |
|
|
|
(84 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
8 |
|
|
|
7 |
|
|
|
(77 |
) |
|
|
37,862 |
|
|
|
37,785 |
|
|
|
37,785 |
|
| TA PIMCO Tactical - Conservative Service Class (1) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
3 |
|
|
|
— |
|
|
|
3,157 |
|
|
|
3,157 |
|
|
|
3,157 |
|
| TA PIMCO Tactical - Growth Service
Class (1) |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
19 |
|
|
|
18 |
|
|
|
15 |
|
|
|
3,158 |
|
|
|
3,173 |
|
|
|
3,173 |
|
| TA Vanguard ETF - Balanced Service Class (1) |
|
|
— |
|
|
|
2,451 |
|
|
|
1,949 |
|
|
|
502 |
|
|
|
4,992 |
|
|
|
47 |
|
|
|
5,039 |
|
|
|
6,980 |
|
|
|
12,019 |
|
|
|
12,521 |
|
|
|
559,085 |
|
|
|
571,606 |
|
|
|
571,606 |
|
| TA Vanguard ETF - Conservative Service Class (1) |
|
|
— |
|
|
|
341 |
|
|
|
362 |
|
|
|
(21 |
) |
|
|
305 |
|
|
|
5 |
|
|
|
310 |
|
|
|
1,458 |
|
|
|
1,768 |
|
|
|
1,747 |
|
|
|
84,198 |
|
|
|
85,945 |
|
|
|
85,945 |
|
| TA Vanguard ETF - Growth Service
Class (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7 |
) |
|
|
(7 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
(7 |
) |
|
|
7 |
|
|
|
— |
|
|
|
— |
|
| TA WMC Diversified Growth Initial Class |
|
|
10,393,279 |
|
|
|
33,317 |
|
|
|
152,169 |
|
|
|
(118,852 |
) |
|
|
— |
|
|
|
257,619 |
|
|
|
257,619 |
|
|
|
1,058,078 |
|
|
|
1,315,697 |
|
|
|
1,196,845 |
|
|
|
(1,620,237 |
) |
|
|
(423,392 |
) |
|
|
9,969,887 |
|
See Accompanying Notes.
4
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Change in Net Assets
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment
Income: |
|
|
Investment
Expense: |
|
|
Increase (Decrease) in Net Assets from Operations: |
|
|
|
|
|
|
|
| Subaccount |
|
Net Assets as
of January 1,
2013: |
|
|
Reinvested
Dividends |
|
|
Mortality and
Expense Risk
and
Administrative
Charges |
|
|
Net
Investment
Income (Loss) |
|
|
Capital Gain
Distributions |
|
|
Realized Gain
(Loss) on
Investments |
|
|
Net Realized
Capital Gains
(Losses) on
Investments |
|
|
Net Change in
Unrealized
Appreciation
(Depreciation) |
|
|
Net Gain
(Loss) on
Investment |
|
|
Net Increase
(Decrease) in
Net Assets
Resulting from
Operations |
|
|
Increase
(Decrease) in
Net Assets from
Contract
Transactions |
|
|
Total Increase
(Decrease) in
Net Assets |
|
|
Net Assets as of
December 31,
2013 |
|
| Dreyfus Core Value Initial Shares |
|
$ |
9,812,201 |
|
|
$ |
139,761 |
|
|
$ |
152,682 |
|
|
$ |
(12,921 |
) |
|
$ |
— |
|
|
$ |
(197,738 |
) |
|
$ |
(197,738 |
) |
|
$ |
3,549,617 |
|
|
$ |
3,351,879 |
|
|
$ |
3,338,958 |
|
|
$ |
(1,226,433 |
) |
|
$ |
2,112,525 |
|
|
$ |
11,924,726 |
|
| Dreyfus Core Value Service Shares |
|
|
11,388,828 |
|
|
|
130,228 |
|
|
|
178,400 |
|
|
|
(48,172 |
) |
|
|
— |
|
|
|
(230,091 |
) |
|
|
(230,091 |
) |
|
|
4,140,824 |
|
|
|
3,910,733 |
|
|
|
3,862,561 |
|
|
|
(1,377,016 |
) |
|
|
2,485,545 |
|
|
|
13,874,373 |
|
| Dreyfus Growth and Income Service Shares |
|
|
7,079,813 |
|
|
|
49,108 |
|
|
|
104,950 |
|
|
|
(55,842 |
) |
|
|
— |
|
|
|
170,487 |
|
|
|
170,487 |
|
|
|
2,111,793 |
|
|
|
2,282,280 |
|
|
|
2,226,438 |
|
|
|
(1,631,152 |
) |
|
|
595,286 |
|
|
|
7,675,099 |
|
| Dreyfus International Value Initial Shares |
|
|
6,429,888 |
|
|
|
138,909 |
|
|
|
93,132 |
|
|
|
45,777 |
|
|
|
— |
|
|
|
(581,612 |
) |
|
|
(581,612 |
) |
|
|
1,832,742 |
|
|
|
1,251,130 |
|
|
|
1,296,907 |
|
|
|
(740,630 |
) |
|
|
556,277 |
|
|
|
6,986,165 |
|
| Dreyfus International Value Service Shares |
|
|
3,737,711 |
|
|
|
70,493 |
|
|
|
48,658 |
|
|
|
21,835 |
|
|
|
— |
|
|
|
(659,601 |
) |
|
|
(659,601 |
) |
|
|
1,316,316 |
|
|
|
656,715 |
|
|
|
678,550 |
|
|
|
(899,403 |
) |
|
|
(220,853 |
) |
|
|
3,516,858 |
|
| Dreyfus MidCap Stock Initial Shares |
|
|
11,929,159 |
|
|
|
186,486 |
|
|
|
187,220 |
|
|
|
(734 |
) |
|
|
— |
|
|
|
276,977 |
|
|
|
276,977 |
|
|
|
3,534,611 |
|
|
|
3,811,588 |
|
|
|
3,810,854 |
|
|
|
(1,197,291 |
) |
|
|
2,613,563 |
|
|
|
14,542,722 |
|
| Dreyfus MidCap Stock Service Shares |
|
|
8,088,810 |
|
|
|
105,078 |
|
|
|
123,939 |
|
|
|
(18,861 |
) |
|
|
— |
|
|
|
175,297 |
|
|
|
175,297 |
|
|
|
2,359,504 |
|
|
|
2,534,801 |
|
|
|
2,515,940 |
|
|
|
(1,015,134 |
) |
|
|
1,500,806 |
|
|
|
9,589,616 |
|
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
3,656,127 |
|
|
|
— |
|
|
|
61,800 |
|
|
|
(61,800 |
) |
|
|
— |
|
|
|
(62,154 |
) |
|
|
(62,154 |
) |
|
|
1,803,781 |
|
|
|
1,741,627 |
|
|
|
1,679,827 |
|
|
|
(194,202 |
) |
|
|
1,485,625 |
|
|
|
5,141,752 |
|
| Dreyfus Quality Bond Service Shares |
|
|
16,887,051 |
|
|
|
383,928 |
|
|
|
205,449 |
|
|
|
178,479 |
|
|
|
— |
|
|
|
250,651 |
|
|
|
250,651 |
|
|
|
(908,714 |
) |
|
|
(658,063 |
) |
|
|
(479,584 |
) |
|
|
(2,914,356 |
) |
|
|
(3,393,940 |
) |
|
|
13,493,111 |
|
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
11,151,011 |
|
|
|
155,557 |
|
|
|
171,953 |
|
|
|
(16,396 |
) |
|
|
— |
|
|
|
201,879 |
|
|
|
201,879 |
|
|
|
3,258,893 |
|
|
|
3,460,772 |
|
|
|
3,444,376 |
|
|
|
(1,306,977 |
) |
|
|
2,137,399 |
|
|
|
13,288,410 |
|
| Dreyfus Socially Responsible Growth Service Shares |
|
|
2,011,358 |
|
|
|
22,940 |
|
|
|
30,577 |
|
|
|
(7,637 |
) |
|
|
— |
|
|
|
159,314 |
|
|
|
159,314 |
|
|
|
458,553 |
|
|
|
617,867 |
|
|
|
610,230 |
|
|
|
(292,306 |
) |
|
|
317,924 |
|
|
|
2,329,282 |
|
| Dreyfus Stock Index Initial Shares |
|
|
42,707,823 |
|
|
|
842,099 |
|
|
|
642,334 |
|
|
|
199,765 |
|
|
|
513,132 |
|
|
|
1,511,663 |
|
|
|
2,024,795 |
|
|
|
9,912,153 |
|
|
|
11,936,948 |
|
|
|
12,136,713 |
|
|
|
(6,188,302 |
) |
|
|
5,948,411 |
|
|
|
48,656,234 |
|
| Dreyfus Stock Index Service Shares |
|
|
11,621,730 |
|
|
|
187,632 |
|
|
|
166,145 |
|
|
|
21,487 |
|
|
|
134,815 |
|
|
|
370,481 |
|
|
|
505,296 |
|
|
|
2,614,715 |
|
|
|
3,120,011 |
|
|
|
3,141,498 |
|
|
|
(2,422,228 |
) |
|
|
719,270 |
|
|
|
12,341,000 |
|
| Dreyfus Technology Growth Initial Shares |
|
|
12,585,921 |
|
|
|
— |
|
|
|
184,202 |
|
|
|
(184,202 |
) |
|
|
— |
|
|
|
912,988 |
|
|
|
912,988 |
|
|
|
2,920,633 |
|
|
|
3,833,621 |
|
|
|
3,649,419 |
|
|
|
(1,270,269 |
) |
|
|
2,379,150 |
|
|
|
14,965,071 |
|
| Dreyfus Technology Growth Service Shares |
|
|
2,343,511 |
|
|
|
— |
|
|
|
33,592 |
|
|
|
(33,592 |
) |
|
|
— |
|
|
|
184,148 |
|
|
|
184,148 |
|
|
|
509,213 |
|
|
|
693,361 |
|
|
|
659,769 |
|
|
|
(343,853 |
) |
|
|
315,916 |
|
|
|
2,659,427 |
|
| Dreyfus VIF Appreciation Initial Shares |
|
|
51,605,631 |
|
|
|
1,032,961 |
|
|
|
743,413 |
|
|
|
289,548 |
|
|
|
126,353 |
|
|
|
1,235,462 |
|
|
|
1,361,815 |
|
|
|
7,835,508 |
|
|
|
9,197,323 |
|
|
|
9,486,871 |
|
|
|
(6,341,396 |
) |
|
|
3,145,475 |
|
|
|
54,751,106 |
|
| Dreyfus VIF Appreciation Service Shares |
|
|
14,837,788 |
|
|
|
255,706 |
|
|
|
208,497 |
|
|
|
47,209 |
|
|
|
36,053 |
|
|
|
471,881 |
|
|
|
507,934 |
|
|
|
2,097,938 |
|
|
|
2,605,872 |
|
|
|
2,653,081 |
|
|
|
(2,001,973 |
) |
|
|
651,108 |
|
|
|
15,488,896 |
|
| Dreyfus VIF Growth and Income Initial Shares |
|
|
28,972,436 |
|
|
|
284,101 |
|
|
|
439,344 |
|
|
|
(155,243 |
) |
|
|
— |
|
|
|
947,460 |
|
|
|
947,460 |
|
|
|
8,678,033 |
|
|
|
9,625,493 |
|
|
|
9,470,250 |
|
|
|
(3,969,140 |
) |
|
|
5,501,110 |
|
|
|
34,473,546 |
|
| Dreyfus VIF International Equity Initial shares |
|
|
11,119,394 |
|
|
|
326,709 |
|
|
|
157,856 |
|
|
|
168,853 |
|
|
|
— |
|
|
|
(134,551 |
) |
|
|
(134,551 |
) |
|
|
1,658,208 |
|
|
|
1,523,657 |
|
|
|
1,692,510 |
|
|
|
(1,458,629 |
) |
|
|
233,881 |
|
|
|
11,353,275 |
|
| Dreyfus VIF International Equity Service Shares |
|
|
2,515,857 |
|
|
|
66,921 |
|
|
|
34,800 |
|
|
|
32,121 |
|
|
|
— |
|
|
|
(105,673 |
) |
|
|
(105,673 |
) |
|
|
443,190 |
|
|
|
337,517 |
|
|
|
369,638 |
|
|
|
(390,653 |
) |
|
|
(21,015 |
) |
|
|
2,494,842 |
|
| Dreyfus VIF Money Market |
|
|
62,429,625 |
|
|
|
21 |
|
|
|
801,100 |
|
|
|
(801,079 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(801,079 |
) |
|
|
(8,784,873 |
) |
|
|
(9,585,952 |
) |
|
|
52,843,673 |
|
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
22,388,063 |
|
|
|
— |
|
|
|
357,197 |
|
|
|
(357,197 |
) |
|
|
— |
|
|
|
409,144 |
|
|
|
409,144 |
|
|
|
9,708,190 |
|
|
|
10,117,334 |
|
|
|
9,760,137 |
|
|
|
(3,062,898 |
) |
|
|
6,697,239 |
|
|
|
29,085,302 |
|
| Dreyfus VIF Quality Bond Initial Shares |
|
|
30,549,991 |
|
|
|
760,672 |
|
|
|
373,088 |
|
|
|
387,584 |
|
|
|
— |
|
|
|
540,906 |
|
|
|
540,906 |
|
|
|
(1,737,824 |
) |
|
|
(1,196,918 |
) |
|
|
(809,334 |
) |
|
|
(5,469,091 |
) |
|
|
(6,278,425 |
) |
|
|
24,271,566 |
|
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
|
281,214 |
|
|
|
4,691 |
|
|
|
10,994 |
|
|
|
(6,303 |
) |
|
|
4,924 |
|
|
|
6,906 |
|
|
|
11,830 |
|
|
|
61,043 |
|
|
|
72,873 |
|
|
|
66,570 |
|
|
|
650,896 |
|
|
|
717,466 |
|
|
|
998,680 |
|
See accompanying notes.
5
Transamerica Life Insurance Company
Separate Account VA-2L
Statements of Operations and Change in Net Assets
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Investment
Income: |
|
|
Investment
Expense: |
|
|
Increase (Decrease) in Net Assets from Operations: |
|
|
|
|
|
|
|
| Subaccount |
|
Net Assets as
of January 1,
2013: |
|
|
Reinvested
Dividends |
|
|
Mortality and
Expense Risk
and
Administrative
Charges |
|
|
Net
Investment
Income (Loss) |
|
|
Capital Gain
Distributions |
|
|
Realized Gain
(Loss) on
Investments |
|
|
Net Realized
Capital Gains
(Losses) on
Investments |
|
|
Net Change in
Unrealized
Appreciation
(Depreciation) |
|
|
Net Gain
(Loss) on
Investment |
|
|
Net Increase
(Decrease) in
Net Assets
Resulting from
Operations |
|
|
Increase
(Decrease) in
Net Assets from
Contract
Transactions |
|
|
Total Increase
(Decrease) in
Net Assets |
|
|
Net Assets as of
December 31,
2013 |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
$ |
111,370 |
|
|
$ |
1,767 |
|
|
$ |
1,949 |
|
|
$ |
(182 |
) |
|
$ |
1,997 |
|
|
$ |
1,071 |
|
|
$ |
3,068 |
|
|
$ |
5,276 |
|
|
$ |
8,344 |
|
|
$ |
8,162 |
|
|
$ |
102,166 |
|
|
$ |
110,328 |
|
|
$ |
221,698 |
|
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
|
3,191 |
|
|
|
250 |
|
|
|
280 |
|
|
|
(30 |
) |
|
|
— |
|
|
|
27 |
|
|
|
27 |
|
|
|
2,534 |
|
|
|
2,561 |
|
|
|
2,531 |
|
|
|
30,128 |
|
|
|
32,659 |
|
|
|
35,850 |
|
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
|
19,338 |
|
|
|
659 |
|
|
|
2,843 |
|
|
|
(2,184 |
) |
|
|
119 |
|
|
|
287 |
|
|
|
406 |
|
|
|
16,596 |
|
|
|
17,002 |
|
|
|
14,818 |
|
|
|
357,990 |
|
|
|
372,808 |
|
|
|
392,146 |
|
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
|
3,166 |
|
|
|
338 |
|
|
|
2,279 |
|
|
|
(1,941 |
) |
|
|
34 |
|
|
|
705 |
|
|
|
739 |
|
|
|
19,685 |
|
|
|
20,424 |
|
|
|
18,483 |
|
|
|
215,846 |
|
|
|
234,329 |
|
|
|
237,495 |
|
| TA Market Participation Strategy Service Class |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Balanced Service Class |
|
|
37,785 |
|
|
|
966 |
|
|
|
1,973 |
|
|
|
(1,007 |
) |
|
|
— |
|
|
|
1,739 |
|
|
|
1,739 |
|
|
|
11,291 |
|
|
|
13,030 |
|
|
|
12,023 |
|
|
|
188,162 |
|
|
|
200,185 |
|
|
|
237,970 |
|
| TA PIMCO Tactical - Conservative Service Class |
|
|
3,157 |
|
|
|
90 |
|
|
|
430 |
|
|
|
(340 |
) |
|
|
— |
|
|
|
(633 |
) |
|
|
(633 |
) |
|
|
2,689 |
|
|
|
2,056 |
|
|
|
1,716 |
|
|
|
49,139 |
|
|
|
50,855 |
|
|
|
54,012 |
|
| TA PIMCO Tactical - Growth Service Class |
|
|
3,173 |
|
|
|
54 |
|
|
|
111 |
|
|
|
(57 |
) |
|
|
— |
|
|
|
520 |
|
|
|
520 |
|
|
|
578 |
|
|
|
1,098 |
|
|
|
1,041 |
|
|
|
3,337 |
|
|
|
4,378 |
|
|
|
7,551 |
|
| TA Vanguard ETF - Balanced Service Class |
|
|
571,606 |
|
|
|
8,812 |
|
|
|
10,395 |
|
|
|
(1,583 |
) |
|
|
10,919 |
|
|
|
10,031 |
|
|
|
20,950 |
|
|
|
52,373 |
|
|
|
73,323 |
|
|
|
71,740 |
|
|
|
318,287 |
|
|
|
390,027 |
|
|
|
961,633 |
|
| TA Vanguard ETF - Conservative Service Class |
|
|
85,945 |
|
|
|
1,048 |
|
|
|
1,559 |
|
|
|
(511 |
) |
|
|
1,180 |
|
|
|
2,901 |
|
|
|
4,081 |
|
|
|
3,820 |
|
|
|
7,901 |
|
|
|
7,390 |
|
|
|
73,219 |
|
|
|
80,609 |
|
|
|
166,554 |
|
| TA Vanguard ETF - Growth Service Class |
|
|
— |
|
|
|
590 |
|
|
|
499 |
|
|
|
91 |
|
|
|
953 |
|
|
|
149 |
|
|
|
1,102 |
|
|
|
3,851 |
|
|
|
4,953 |
|
|
|
5,044 |
|
|
|
180,021 |
|
|
|
185,065 |
|
|
|
185,065 |
|
| TA WMC Diversified Growth Initial Class |
|
|
9,969,887 |
|
|
|
112,147 |
|
|
|
149,487 |
|
|
|
(37,340 |
) |
|
|
— |
|
|
|
172,344 |
|
|
|
172,344 |
|
|
|
2,742,110 |
|
|
|
2,914,454 |
|
|
|
2,877,114 |
|
|
|
(1,196,457 |
) |
|
|
1,680,657 |
|
|
|
11,650,544 |
|
See Accompanying Notes.
6
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
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.
In the prior year, both Service Class and Initial Class were presented together within one subaccount. For the current year presentation, Service Class and
Initial Class shares have been restated and now are reflected separately.
Subaccount Investment by Mutual Fund:
|
|
|
| Subaccount |
|
Mutual Fund |
| Dreyfus Variable Investments Fund: |
|
Dreyfus Variable Investments Fund: |
| Dreyfus Core Value Initial Shares |
|
Dreyfus Core Value Portfolio Initial Shares |
| Dreyfus Core Value Service Shares |
|
Dreyfus Core Value Portfolio Service Shares |
| Dreyfus Growth and Income Service Shares |
|
Dreyfus Growth and Income Portfolio Service Shares |
| Dreyfus International Value Initial Shares |
|
Dreyfus International Value Portfolio Initial Shares |
| Dreyfus International Value Service Shares |
|
Dreyfus International Value Portfolio Service Shares |
| Dreyfus MidCap Stock Initial Shares |
|
Dreyfus MidCap Stock Portfolio Initial Shares |
| Dreyfus MidCap Stock Service Shares |
|
Dreyfus MidCap Stock Portfolio Service Shares |
| Dreyfus Opportunistic Small Cap Service Shares |
|
Dreyfus Opportunistic Small Cap Portfolio Service Shares |
| Dreyfus Quality Bond Service Shares |
|
Dreyfus Quality Bond Portfolio Service Shares |
| Dreyfus Socially Responsible Growth Initial Shares |
|
Dreyfus Socially Responsible Growth Portfolio Initial Shares |
| Dreyfus Socially Responsible Growth Service Shares |
|
Dreyfus Socially Responsible Growth Portfolio Service Shares |
| Dreyfus Stock Index Initial Shares |
|
Dreyfus Stock Index Portfolio Initial Shares |
| Dreyfus Stock Index Service Shares |
|
Dreyfus Stock Index Portfolio Service Shares |
| Dreyfus Technology Growth Initial Shares |
|
Dreyfus Technology Growth Portfolio Initial Shares |
| Dreyfus Technology Growth Service Shares |
|
Dreyfus Technology Growth Portfolio Service Shares |
| Dreyfus VIF Appreciation Initial Shares |
|
Dreyfus VIF Appreciation Portfolio Initial Shares |
| Dreyfus VIF Appreciation Service Shares |
|
Dreyfus VIF Appreciation Portfolio Service Shares |
| Dreyfus VIF Growth and Income Initial Shares |
|
Dreyfus VIF Growth and Income Portfolio Initial Shares |
| Dreyfus VIF International Equity Initial shares |
|
Dreyfus VIF International Equity Portfolio Initial shares |
| Dreyfus VIF International Equity Service Shares |
|
Dreyfus VIF International Equity Portfolio Service Shares |
| Dreyfus VIF Money Market |
|
Dreyfus VIF Money Market Portfolio |
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
Dreyfus VIF Opportunistic Small Cap Portfolio Initial Shares |
| Dreyfus VIF Quality Bond Initial Shares |
|
Dreyfus VIF Quality Bond Portfolio Initial Shares |
| Transamerica Series Trust: |
|
Transamerica Series Trust: |
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
Transamerica Aegon Tactical Vanguard ETF - Balanced VP Service Class |
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
Transamerica Aegon Tactical Vanguard ETF - Conservative VP Service Class |
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
Transamerica Aegon Tactical Vanguard ETF - Growth VP Service Class |
7
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
1. Organization and Summary of Significant Accounting Policies (continued)
Subaccount Investment by Mutual Fund (continued):
|
|
|
| Subaccount |
|
Mutual Fund |
| Transamerica Series Trust: |
|
Transamerica Series Trust: |
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
Transamerica Legg Mason Dynamic Allocation - Balanced VP Service Class |
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
Transamerica Legg Mason Dynamic Allocation - Growth VP Service Class |
| TA Market Participation Strategy Service Class |
|
Transamerica Market Participation Strategy VP Service Class |
| TA PIMCO Tactical - Balanced Service Class |
|
Transamerica PIMCO Tactical - Balanced VP Service Class |
| TA PIMCO Tactical - Conservative Service Class |
|
Transamerica PIMCO Tactical - Conservative VP Service Class |
| TA PIMCO Tactical - Growth Service Class |
|
Transamerica PIMCO Tactical - Growth VP Service Class |
| TA Vanguard ETF - Balanced Service Class |
|
Transamerica Vanguard ETF - Balanced VP Service Class |
| TA Vanguard ETF - Conservative Service Class |
|
Transamerica Vanguard ETF - Conservative VP Service Class |
| TA Vanguard ETF - Growth Service Class |
|
Transamerica Vanguard ETF - Growth VP Service Class |
| TA WMC Diversified Growth Initial Class |
|
Transamerica WMC Diversified Growth VP Initial Class |
Each period reported on reflects a full twelve month period except as follows:
|
|
|
| Subaccount |
|
Inception Date |
| TA Market Participation Strategy Service Class |
|
September 17, 2012 |
| TA PIMCO Tactical - Balanced Service Class |
|
September 17, 2012 |
| TA PIMCO Tactical - Conservative Service Class |
|
September 17, 2012 |
| TA PIMCO Tactical - Growth Service Class |
|
September 17, 2012 |
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
May 1, 2012 |
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
May 1, 2012 |
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
May 1, 2012 |
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
May 1, 2012 |
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
May 1, 2012 |
| TA Vanguard ETF - Balanced Service Class |
|
May 1, 2012 |
| TA Vanguard ETF - Conservative Service Class |
|
May 1, 2012 |
| TA Vanguard ETF - Growth Service Class |
|
May 1, 2012 |
The following subaccount name changes were made effective during the fiscal year ended December 31, 2013:
|
|
|
| Subaccount |
|
Formerly |
| TA Vanguard ETF - Balanced Service Class |
|
TA Vanguard ETF Index - Balanced Service Class |
| TA Vanguard ETF - Conservative Service Class |
|
TA Vanguard ETF Index - Conservative Service Class |
| TA Vanguard ETF - Growth Service Class |
|
TA Vanguard ETF Index - Growth Service Class |
8
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
1. Organization and Summary of Significant Accounting Policies (continued)
Investments
Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Funds as selected by the contract owner. Investments are
stated at the closing net asset values per share on December 31, 2013.
Realized capital gains and losses from sales of shares in the Separate
Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from
investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.
Dividend Income
Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.
Accounting Policy
The financial statements included
herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.
9
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
2. Investments
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2013 were as follows:
|
|
|
|
|
|
|
|
|
| Subaccount |
|
Purchases |
|
|
Sales |
|
| Dreyfus Core Value Initial Shares |
|
$ |
310,362 |
|
|
$ |
1,549,714 |
|
| Dreyfus Core Value Service Shares |
|
|
527,771 |
|
|
|
1,952,957 |
|
| Dreyfus Growth and Income Service Shares |
|
|
336,430 |
|
|
|
2,023,423 |
|
| Dreyfus International Value Initial Shares |
|
|
229,511 |
|
|
|
924,366 |
|
| Dreyfus International Value Service Shares |
|
|
90,222 |
|
|
|
967,795 |
|
| Dreyfus MidCap Stock Initial Shares |
|
|
808,898 |
|
|
|
2,006,922 |
|
| Dreyfus MidCap Stock Service Shares |
|
|
226,372 |
|
|
|
1,260,375 |
|
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
317,269 |
|
|
|
573,273 |
|
| Dreyfus Quality Bond Service Shares |
|
|
695,386 |
|
|
|
3,431,278 |
|
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
272,847 |
|
|
|
1,596,220 |
|
| Dreyfus Socially Responsible Growth Service Shares |
|
|
89,881 |
|
|
|
389,824 |
|
| Dreyfus Stock Index Initial Shares |
|
|
1,924,445 |
|
|
|
7,399,856 |
|
| Dreyfus Stock Index Service Shares |
|
|
444,133 |
|
|
|
2,710,054 |
|
| Dreyfus Technology Growth Initial Shares |
|
|
308,874 |
|
|
|
1,763,355 |
|
| Dreyfus Technology Growth Service Shares |
|
|
34,919 |
|
|
|
412,367 |
|
| Dreyfus VIF Appreciation Initial Shares |
|
|
1,744,348 |
|
|
|
7,669,842 |
|
| Dreyfus VIF Appreciation Service Shares |
|
|
498,579 |
|
|
|
2,417,292 |
|
| Dreyfus VIF Growth and Income Initial Shares |
|
|
1,260,977 |
|
|
|
5,385,363 |
|
| Dreyfus VIF International Equity Initial shares |
|
|
687,647 |
|
|
|
1,977,422 |
|
| Dreyfus VIF International Equity Service Shares |
|
|
133,271 |
|
|
|
491,807 |
|
| Dreyfus VIF Money Market |
|
|
3,189,673 |
|
|
|
12,776,189 |
|
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
356,728 |
|
|
|
3,776,820 |
|
| Dreyfus VIF Quality Bond Initial Shares |
|
|
1,602,532 |
|
|
|
6,684,042 |
|
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
|
765,519 |
|
|
|
116,004 |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
|
151,081 |
|
|
|
47,102 |
|
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
|
30,393 |
|
|
|
295 |
|
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
|
362,743 |
|
|
|
6,820 |
|
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
|
227,719 |
|
|
|
13,780 |
|
| TA Market Participation Strategy Service Class |
|
|
— |
|
|
|
— |
|
| TA PIMCO Tactical - Balanced Service Class |
|
|
226,260 |
|
|
|
39,105 |
|
| TA PIMCO Tactical - Conservative Service Class |
|
|
86,009 |
|
|
|
37,211 |
|
| TA PIMCO Tactical - Growth Service Class |
|
|
17,441 |
|
|
|
14,162 |
|
| TA Vanguard ETF - Balanced Service Class |
|
|
474,102 |
|
|
|
146,485 |
|
| TA Vanguard ETF - Conservative Service Class |
|
|
136,851 |
|
|
|
62,963 |
|
| TA Vanguard ETF - Growth Service Class |
|
|
185,610 |
|
|
|
4,544 |
|
| TA WMC Diversified Growth Initial Class |
|
|
235,097 |
|
|
|
1,468,891 |
|
10
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
3. Change in Units
The change in units outstanding were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2013 |
|
|
Year Ended December 31, 2012 |
|
| Subaccount |
|
Units Purchased |
|
|
Units Redeemed
and Transferred
to/from |
|
|
Net Increase
(Decrease) |
|
|
Units Purchased |
|
|
Units Redeemed
and Transferred
to/from |
|
|
Net Increase
(Decrease) |
|
| Dreyfus Core Value Initial Shares |
|
|
5,027 |
|
|
|
(80,004 |
) |
|
|
(74,977 |
) |
|
|
17,709 |
|
|
|
(100,421 |
) |
|
|
(82,712 |
) |
| Dreyfus Core Value Service Shares |
|
|
5,236 |
|
|
|
(261,825 |
) |
|
|
(256,589 |
) |
|
|
11,142 |
|
|
|
(528,589 |
) |
|
|
(517,447 |
) |
| Dreyfus Growth and Income Service Shares |
|
|
2,000 |
|
|
|
(151,524 |
) |
|
|
(149,524 |
) |
|
|
1,919 |
|
|
|
(227,466 |
) |
|
|
(225,547 |
) |
| Dreyfus International Value Initial Shares |
|
|
2,316 |
|
|
|
(42,367 |
) |
|
|
(40,051 |
) |
|
|
8,109 |
|
|
|
(65,847 |
) |
|
|
(57,738 |
) |
| Dreyfus International Value Service Shares |
|
|
1,602 |
|
|
|
(107,358 |
) |
|
|
(105,756 |
) |
|
|
1,233 |
|
|
|
(64,787 |
) |
|
|
(63,554 |
) |
| Dreyfus MidCap Stock Initial Shares |
|
|
3,899 |
|
|
|
(60,146 |
) |
|
|
(56,247 |
) |
|
|
13,686 |
|
|
|
(135,089 |
) |
|
|
(121,403 |
) |
| Dreyfus MidCap Stock Service Shares |
|
|
2,770 |
|
|
|
(177,411 |
) |
|
|
(174,641 |
) |
|
|
7,875 |
|
|
|
(187,310 |
) |
|
|
(179,435 |
) |
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
433 |
|
|
|
(43,441 |
) |
|
|
(43,008 |
) |
|
|
106 |
|
|
|
(20,278 |
) |
|
|
(20,172 |
) |
| Dreyfus Quality Bond Service Shares |
|
|
4,276 |
|
|
|
(465,271 |
) |
|
|
(460,995 |
) |
|
|
8,912 |
|
|
|
(680,875 |
) |
|
|
(671,963 |
) |
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
2,054 |
|
|
|
(35,655 |
) |
|
|
(33,601 |
) |
|
|
2,514 |
|
|
|
(50,861 |
) |
|
|
(48,347 |
) |
| Dreyfus Socially Responsible Growth Service Shares |
|
|
1,726 |
|
|
|
(16,366 |
) |
|
|
(14,640 |
) |
|
|
349 |
|
|
|
(28,700 |
) |
|
|
(28,351 |
) |
| Dreyfus Stock Index Initial Shares |
|
|
7,955 |
|
|
|
(108,697 |
) |
|
|
(100,742 |
) |
|
|
9,933 |
|
|
|
(125,509 |
) |
|
|
(115,576 |
) |
| Dreyfus Stock Index Service Shares |
|
|
1,479 |
|
|
|
(186,181 |
) |
|
|
(184,702 |
) |
|
|
8,519 |
|
|
|
(397,894 |
) |
|
|
(389,375 |
) |
| Dreyfus Technology Growth Initial Shares |
|
|
27,515 |
|
|
|
(153,695 |
) |
|
|
(126,180 |
) |
|
|
12,800 |
|
|
|
(256,862 |
) |
|
|
(244,062 |
) |
| Dreyfus Technology Growth Service Shares |
|
|
1,048 |
|
|
|
(53,517 |
) |
|
|
(52,469 |
) |
|
|
1,059 |
|
|
|
(20,752 |
) |
|
|
(19,693 |
) |
| Dreyfus VIF Appreciation Initial Shares |
|
|
6,513 |
|
|
|
(125,680 |
) |
|
|
(119,167 |
) |
|
|
4,849 |
|
|
|
(142,936 |
) |
|
|
(138,087 |
) |
| Dreyfus VIF Appreciation Service Shares |
|
|
4,699 |
|
|
|
(349,222 |
) |
|
|
(344,523 |
) |
|
|
11,897 |
|
|
|
(567,678 |
) |
|
|
(555,781 |
) |
| Dreyfus VIF Growth and Income Initial Shares |
|
|
6,503 |
|
|
|
(104,993 |
) |
|
|
(98,490 |
) |
|
|
5,768 |
|
|
|
(123,767 |
) |
|
|
(117,999 |
) |
| Dreyfus VIF International Equity Initial shares |
|
|
2,774 |
|
|
|
(55,038 |
) |
|
|
(52,264 |
) |
|
|
17,319 |
|
|
|
(94,010 |
) |
|
|
(76,691 |
) |
| Dreyfus VIF International Equity Service Shares |
|
|
968 |
|
|
|
(57,347 |
) |
|
|
(56,379 |
) |
|
|
1,109 |
|
|
|
(39,690 |
) |
|
|
(38,581 |
) |
| Dreyfus VIF Money Market |
|
|
633,966 |
|
|
|
(7,103,612 |
) |
|
|
(6,469,646 |
) |
|
|
688,221 |
|
|
|
(8,395,723 |
) |
|
|
(7,707,502 |
) |
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
1,620 |
|
|
|
(31,026 |
) |
|
|
(29,406 |
) |
|
|
3,669 |
|
|
|
(37,597 |
) |
|
|
(33,928 |
) |
| Dreyfus VIF Quality Bond Initial Shares |
|
|
8,466 |
|
|
|
(210,779 |
) |
|
|
(202,313 |
) |
|
|
10,597 |
|
|
|
(73,885 |
) |
|
|
(63,288 |
) |
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
|
39,654 |
|
|
|
577,917 |
|
|
|
617,571 |
|
|
|
12 |
|
|
|
275,593 |
|
|
|
275,605 |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
|
40,942 |
|
|
|
55,821 |
|
|
|
96,763 |
|
|
|
12 |
|
|
|
109,300 |
|
|
|
109,312 |
|
| TA Aegon Tactical Vanguard ETF - Growth Service Class |
|
|
1,064 |
|
|
|
26,281 |
|
|
|
27,345 |
|
|
|
12 |
|
|
|
3,104 |
|
|
|
3,116 |
|
11
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
3. Change in Units (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Year Ended December 31, 2013 |
|
|
Year Ended December 31, 2012 |
|
| Subaccount |
|
Units Purchased |
|
|
Units Redeemed
and Transferred
to/from |
|
|
Net Increase
(Decrease) |
|
|
Units Purchased |
|
|
Units Redeemed
and Transferred
to/from |
|
|
Net Increase
(Decrease) |
|
| TA Legg Mason Dynamic Allocation - Balanced Service Class |
|
|
33,602 |
|
|
|
307,346 |
|
|
|
340,948 |
|
|
|
12 |
|
|
|
19,143 |
|
|
|
19,155 |
|
| TA Legg Mason Dynamic Allocation - Growth Service Class |
|
|
1,464 |
|
|
|
202,734 |
|
|
|
204,198 |
|
|
|
12 |
|
|
|
3,140 |
|
|
|
3,152 |
|
| TA Market Participation Strategy Service Class |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
(12 |
) |
|
|
— |
|
| TA PIMCO Tactical - Balanced Service Class |
|
|
13,238 |
|
|
|
165,951 |
|
|
|
179,189 |
|
|
|
12 |
|
|
|
38,035 |
|
|
|
38,047 |
|
| TA PIMCO Tactical - Conservative Service Class |
|
|
— |
|
|
|
47,671 |
|
|
|
47,671 |
|
|
|
12 |
|
|
|
3,158 |
|
|
|
3,170 |
|
| TA PIMCO Tactical - Growth Service Class |
|
|
— |
|
|
|
3,423 |
|
|
|
3,423 |
|
|
|
12 |
|
|
|
3,200 |
|
|
|
3,212 |
|
| TA Vanguard ETF - Balanced Service Class |
|
|
1,927 |
|
|
|
294,877 |
|
|
|
296,804 |
|
|
|
12 |
|
|
|
559,081 |
|
|
|
559,093 |
|
| TA Vanguard ETF - Conservative Service Class |
|
|
2,073 |
|
|
|
67,804 |
|
|
|
69,877 |
|
|
|
12 |
|
|
|
84,335 |
|
|
|
84,347 |
|
| TA Vanguard ETF - Growth Service Class |
|
|
104,261 |
|
|
|
49,644 |
|
|
|
153,905 |
|
|
|
12 |
|
|
|
(12 |
) |
|
|
— |
|
| TA WMC Diversified Growth Initial Class |
|
|
4,332 |
|
|
|
(76,074 |
) |
|
|
(71,742 |
) |
|
|
12,089 |
|
|
|
(115,982 |
) |
|
|
(103,893 |
) |
12
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
4. Financial Highlights
The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These
charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Unit Fair Value |
|
|
|
|
|
|
|
|
Expense |
|
|
Total Return*** |
|
| |
|
|
|
|
|
|
|
Corresponding to |
|
|
|
|
|
Investment |
|
|
Ratio** |
|
|
Corresponding to |
|
| |
|
Year |
|
|
|
|
|
Lowest to Highest |
|
|
Net |
|
|
Income |
|
|
Lowest to |
|
|
Lowest to Highest |
|
| Subaccount |
|
Ended |
|
|
Units |
|
|
Expense Ratio |
|
|
Assets |
|
|
Ratio* |
|
|
Highest |
|
|
Expense Ratio |
|
| Dreyfus Core Value Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
631,031 |
|
|
$ |
18.90 |
|
|
|
to |
|
|
$ |
18.90 |
|
|
$ |
11,924,726 |
|
|
|
1.28 |
% |
|
|
1.40 |
% |
|
|
to |
|
|
|
1.40 |
% |
|
|
35.97 |
% |
|
|
to |
|
|
|
35.97 |
% |
|
|
|
12/31/2012 |
|
|
|
706,008 |
|
|
|
13.90 |
|
|
|
to |
|
|
|
13.90 |
|
|
|
9,812,201 |
|
|
|
0.89 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
16.70 |
|
|
|
to |
|
|
|
16.70 |
|
|
|
|
12/31/2011 |
|
|
|
788,720 |
|
|
|
11.91 |
|
|
|
to |
|
|
|
11.91 |
|
|
|
9,393,308 |
|
|
|
1.14 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(7.11 |
) |
|
|
to |
|
|
|
(7.11 |
) |
|
|
|
12/31/2010 |
|
|
|
902,880 |
|
|
|
12.82 |
|
|
|
to |
|
|
|
12.82 |
|
|
|
11,576,531 |
|
|
|
1.51 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
11.65 |
|
|
|
to |
|
|
|
11.65 |
|
|
|
|
12/31/2009 |
|
|
|
999,486 |
|
|
|
11.48 |
|
|
|
to |
|
|
|
11.48 |
|
|
|
11,478,110 |
|
|
|
3.26 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
16.54 |
|
|
|
to |
|
|
|
16.54 |
|
| Dreyfus Core Value Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
2,246,381 |
|
|
|
1.68 |
|
|
|
to |
|
|
|
1.82 |
|
|
|
13,874,373 |
|
|
|
1.02 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
35.76 |
|
|
|
to |
|
|
|
34.17 |
|
|
|
|
12/31/2012 |
|
|
|
2,502,970 |
|
|
|
1.24 |
|
|
|
to |
|
|
|
1.36 |
|
|
|
11,388,828 |
|
|
|
0.69 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.50 |
|
|
|
to |
|
|
|
15.13 |
|
|
|
|
12/31/2011 |
|
|
|
3,020,417 |
|
|
|
1.07 |
|
|
|
to |
|
|
|
1.18 |
|
|
|
11,471,673 |
|
|
|
0.89 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(7.23 |
) |
|
|
to |
|
|
|
(8.31 |
) |
|
|
|
12/31/2010 |
|
|
|
3,546,844 |
|
|
|
1.15 |
|
|
|
to |
|
|
|
1.29 |
|
|
|
15,019,356 |
|
|
|
1.42 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
11.49 |
|
|
|
to |
|
|
|
10.18 |
|
|
|
|
12/31/2009 |
|
|
|
4,221,900 |
|
|
|
1.03 |
|
|
|
to |
|
|
|
1.17 |
|
|
|
15,914,190 |
|
|
|
2.57 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.44 |
|
|
|
to |
|
|
|
15.08 |
|
| Dreyfus Growth and Income Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
726,490 |
|
|
|
1.65 |
|
|
|
to |
|
|
|
1.79 |
|
|
|
7,675,099 |
|
|
|
0.65 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
34.68 |
|
|
|
to |
|
|
|
33.10 |
|
|
|
|
12/31/2012 |
|
|
|
876,014 |
|
|
|
1.22 |
|
|
|
to |
|
|
|
1.35 |
|
|
|
7,079,813 |
|
|
|
1.18 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.25 |
|
|
|
to |
|
|
|
14.88 |
|
|
|
|
12/31/2011 |
|
|
|
1,101,561 |
|
|
|
1.05 |
|
|
|
to |
|
|
|
1.17 |
|
|
|
6,974,560 |
|
|
|
0.98 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(4.23 |
) |
|
|
to |
|
|
|
(5.35 |
) |
|
|
|
12/31/2010 |
|
|
|
1,311,697 |
|
|
|
1.10 |
|
|
|
to |
|
|
|
1.24 |
|
|
|
8,674,992 |
|
|
|
0.93 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
16.78 |
|
|
|
to |
|
|
|
15.41 |
|
|
|
|
12/31/2009 |
|
|
|
1,509,370 |
|
|
|
0.94 |
|
|
|
to |
|
|
|
1.07 |
|
|
|
8,933,656 |
|
|
|
1.06 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
26.79 |
|
|
|
to |
|
|
|
25.31 |
|
| Dreyfus International Value Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
344,142 |
|
|
|
20.30 |
|
|
|
to |
|
|
|
20.30 |
|
|
|
6,986,165 |
|
|
|
2.08 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
21.30 |
|
|
|
to |
|
|
|
21.30 |
|
|
|
|
12/31/2012 |
|
|
|
384,193 |
|
|
|
16.74 |
|
|
|
to |
|
|
|
16.74 |
|
|
|
6,429,888 |
|
|
|
2.99 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
11.10 |
|
|
|
to |
|
|
|
11.10 |
|
|
|
|
12/31/2011 |
|
|
|
441,931 |
|
|
|
15.06 |
|
|
|
to |
|
|
|
15.06 |
|
|
|
6,657,081 |
|
|
|
2.19 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(19.60 |
) |
|
|
to |
|
|
|
(19.60 |
) |
|
|
|
12/31/2010 |
|
|
|
512,528 |
|
|
|
18.74 |
|
|
|
to |
|
|
|
18.74 |
|
|
|
9,603,238 |
|
|
|
1.86 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
3.01 |
|
|
|
to |
|
|
|
3.01 |
|
|
|
|
12/31/2009 |
|
|
|
554,070 |
|
|
|
18.19 |
|
|
|
to |
|
|
|
18.19 |
|
|
|
10,077,884 |
|
|
|
4.08 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
29.17 |
|
|
|
to |
|
|
|
29.17 |
|
| Dreyfus International Value Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
675,840 |
|
|
|
1.54 |
|
|
|
to |
|
|
|
1.74 |
|
|
|
3,516,858 |
|
|
|
2.04 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
21.12 |
|
|
|
to |
|
|
|
19.70 |
|
|
|
|
12/31/2012 |
|
|
|
781,596 |
|
|
|
1.27 |
|
|
|
to |
|
|
|
1.45 |
|
|
|
3,737,711 |
|
|
|
2.60 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
10.97 |
|
|
|
to |
|
|
|
9.67 |
|
|
|
|
12/31/2011 |
|
|
|
845,150 |
|
|
|
1.14 |
|
|
|
to |
|
|
|
1.32 |
|
|
|
3,828,927 |
|
|
|
1.87 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(19.80 |
) |
|
|
to |
|
|
|
(20.74 |
) |
|
|
|
12/31/2010 |
|
|
|
903,111 |
|
|
|
1.43 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
5,225,880 |
|
|
|
1.65 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
2.88 |
|
|
|
to |
|
|
|
1.68 |
|
|
|
|
12/31/2009 |
|
|
|
1,071,885 |
|
|
|
1.39 |
|
|
|
to |
|
|
|
1.64 |
|
|
|
5,769,486 |
|
|
|
3.86 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
28.98 |
|
|
|
to |
|
|
|
27.47 |
|
| Dreyfus MidCap Stock Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
611,088 |
|
|
|
23.80 |
|
|
|
to |
|
|
|
23.80 |
|
|
|
14,542,722 |
|
|
|
1.38 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
33.13 |
|
|
|
to |
|
|
|
33.13 |
|
|
|
|
12/31/2012 |
|
|
|
667,335 |
|
|
|
17.88 |
|
|
|
to |
|
|
|
17.88 |
|
|
|
11,929,159 |
|
|
|
0.47 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
18.01 |
|
|
|
to |
|
|
|
18.01 |
|
|
|
|
12/31/2011 |
|
|
|
788,738 |
|
|
|
15.15 |
|
|
|
to |
|
|
|
15.15 |
|
|
|
11,947,122 |
|
|
|
0.51 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(0.99 |
) |
|
|
to |
|
|
|
(0.99 |
) |
|
|
|
12/31/2010 |
|
|
|
909,686 |
|
|
|
15.30 |
|
|
|
to |
|
|
|
15.30 |
|
|
|
13,916,756 |
|
|
|
1.01 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
25.34 |
|
|
|
to |
|
|
|
25.34 |
|
|
|
|
12/31/2009 |
|
|
|
1,004,334 |
|
|
|
12.21 |
|
|
|
to |
|
|
|
12.21 |
|
|
|
12,258,081 |
|
|
|
1.41 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
33.64 |
|
|
|
to |
|
|
|
33.64 |
|
| Dreyfus MidCap Stock Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
1,190,668 |
|
|
|
2.05 |
|
|
|
to |
|
|
|
2.19 |
|
|
|
9,589,616 |
|
|
|
1.18 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
32.97 |
|
|
|
to |
|
|
|
31.41 |
|
|
|
|
12/31/2012 |
|
|
|
1,365,309 |
|
|
|
1.54 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
8,088,810 |
|
|
|
0.21 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
17.80 |
|
|
|
to |
|
|
|
16.41 |
|
|
|
|
12/31/2011 |
|
|
|
1,544,744 |
|
|
|
1.31 |
|
|
|
to |
|
|
|
1.43 |
|
|
|
8,099,992 |
|
|
|
0.38 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(1.08 |
) |
|
|
to |
|
|
|
(2.24 |
) |
|
|
|
12/31/2010 |
|
|
|
1,801,180 |
|
|
|
1.32 |
|
|
|
to |
|
|
|
1.46 |
|
|
|
9,624,263 |
|
|
|
0.98 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
25.32 |
|
|
|
to |
|
|
|
23.85 |
|
|
|
|
12/31/2009 |
|
|
|
2,416,798 |
|
|
|
1.06 |
|
|
|
to |
|
|
|
1.18 |
|
|
|
9,092,186 |
|
|
|
1.02 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
33.59 |
|
|
|
to |
|
|
|
32.03 |
|
| Dreyfus Opportunistic Small Cap Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
572,281 |
|
|
|
1.44 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
5,141,752 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
46.32 |
|
|
|
to |
|
|
|
44.61 |
|
|
|
|
12/31/2012 |
|
|
|
615,289 |
|
|
|
0.98 |
|
|
|
to |
|
|
|
1.16 |
|
|
|
3,656,127 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
18.69 |
|
|
|
to |
|
|
|
17.29 |
|
|
|
|
12/31/2011 |
|
|
|
635,461 |
|
|
|
0.83 |
|
|
|
to |
|
|
|
0.98 |
|
|
|
3,289,578 |
|
|
|
0.32 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(15.16 |
) |
|
|
to |
|
|
|
(16.15 |
) |
|
|
|
12/31/2010 |
|
|
|
767,671 |
|
|
|
0.98 |
|
|
|
to |
|
|
|
1.17 |
|
|
|
4,294,737 |
|
|
|
0.69 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
29.14 |
|
|
|
to |
|
|
|
27.63 |
|
|
|
|
12/31/2009 |
|
|
|
927,462 |
|
|
|
0.76 |
|
|
|
to |
|
|
|
0.92 |
|
|
|
3,877,640 |
|
|
|
1.29 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
24.15 |
|
|
|
to |
|
|
|
22.69 |
|
13
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
4. Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Unit Fair Value |
|
|
|
|
|
|
|
|
Expense |
|
|
Total Return*** |
|
| |
|
|
|
|
|
|
|
Corresponding to |
|
|
|
|
|
Investment |
|
|
Ratio** |
|
|
Corresponding to |
|
| |
|
Year |
|
|
|
|
|
Lowest to Highest |
|
|
Net |
|
|
Income |
|
|
Lowest to |
|
|
Lowest to Highest |
|
| Subaccount |
|
Ended |
|
|
Units |
|
|
Expense Ratio |
|
|
Assets |
|
|
Ratio* |
|
|
Highest |
|
|
Expense Ratio |
|
| Dreyfus Quality Bond Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
3,094,051 |
|
|
$ |
1.42 |
|
|
|
to |
|
|
$ |
1.17 |
|
|
$ |
13,493,111 |
|
|
|
2.62 |
% |
|
|
1.30 |
% |
|
|
to |
|
|
|
2.50 |
% |
|
|
(3.06 |
)% |
|
|
to |
|
|
|
(4.19 |
)% |
|
|
|
12/31/2012 |
|
|
|
3,555,046 |
|
|
|
1.47 |
|
|
|
to |
|
|
|
1.22 |
|
|
|
16,887,051 |
|
|
|
2.78 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
5.32 |
|
|
|
to |
|
|
|
4.08 |
|
|
|
|
12/31/2011 |
|
|
|
4,227,009 |
|
|
|
1.39 |
|
|
|
to |
|
|
|
1.18 |
|
|
|
19,348,936 |
|
|
|
3.41 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
5.42 |
|
|
|
to |
|
|
|
4.19 |
|
|
|
|
12/31/2010 |
|
|
|
4,815,654 |
|
|
|
1.32 |
|
|
|
to |
|
|
|
1.13 |
|
|
|
20,115,268 |
|
|
|
3.64 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
6.81 |
|
|
|
to |
|
|
|
5.56 |
|
|
|
|
12/31/2009 |
|
|
|
5,631,171 |
|
|
|
1.24 |
|
|
|
to |
|
|
|
1.07 |
|
|
|
22,273,010 |
|
|
|
4.55 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.16 |
|
|
|
to |
|
|
|
11.83 |
|
| Dreyfus Socially Responsible Growth Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
300,567 |
|
|
|
44.21 |
|
|
|
to |
|
|
|
44.21 |
|
|
|
13,288,410 |
|
|
|
1.26 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
32.49 |
|
|
|
to |
|
|
|
32.49 |
|
|
|
|
12/31/2012 |
|
|
|
334,168 |
|
|
|
33.37 |
|
|
|
to |
|
|
|
33.37 |
|
|
|
11,151,011 |
|
|
|
0.81 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
10.42 |
|
|
|
to |
|
|
|
10.42 |
|
|
|
|
12/31/2011 |
|
|
|
382,515 |
|
|
|
30.22 |
|
|
|
to |
|
|
|
30.22 |
|
|
|
11,559,697 |
|
|
|
0.90 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(0.49 |
) |
|
|
to |
|
|
|
(0.49 |
) |
|
|
|
12/31/2010 |
|
|
|
425,307 |
|
|
|
30.37 |
|
|
|
to |
|
|
|
30.37 |
|
|
|
12,916,047 |
|
|
|
0.89 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
13.23 |
|
|
|
to |
|
|
|
13.23 |
|
|
|
|
12/31/2009 |
|
|
|
476,596 |
|
|
|
26.82 |
|
|
|
to |
|
|
|
26.82 |
|
|
|
12,782,311 |
|
|
|
0.98 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
31.91 |
|
|
|
to |
|
|
|
31.91 |
|
| Dreyfus Socially Responsible Growth Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
222,463 |
|
|
|
1.59 |
|
|
|
to |
|
|
|
1.79 |
|
|
|
2,329,282 |
|
|
|
1.04 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
32.28 |
|
|
|
to |
|
|
|
30.73 |
|
|
|
|
12/31/2012 |
|
|
|
237,103 |
|
|
|
1.20 |
|
|
|
to |
|
|
|
1.37 |
|
|
|
2,011,358 |
|
|
|
0.57 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
10.26 |
|
|
|
to |
|
|
|
8.96 |
|
|
|
|
12/31/2011 |
|
|
|
265,454 |
|
|
|
1.09 |
|
|
|
to |
|
|
|
1.26 |
|
|
|
2,042,497 |
|
|
|
0.68 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(0.64 |
) |
|
|
to |
|
|
|
(1.80 |
) |
|
|
|
12/31/2010 |
|
|
|
298,143 |
|
|
|
1.10 |
|
|
|
to |
|
|
|
1.28 |
|
|
|
2,353,485 |
|
|
|
0.66 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.08 |
|
|
|
to |
|
|
|
11.75 |
|
|
|
|
12/31/2009 |
|
|
|
334,684 |
|
|
|
0.97 |
|
|
|
to |
|
|
|
1.15 |
|
|
|
2,543,211 |
|
|
|
0.67 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
31.73 |
|
|
|
to |
|
|
|
30.19 |
|
| Dreyfus Stock Index Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
705,115 |
|
|
|
69.00 |
|
|
|
to |
|
|
|
69.00 |
|
|
|
48,656,234 |
|
|
|
1.83 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
30.21 |
|
|
|
to |
|
|
|
30.21 |
|
|
|
|
12/31/2012 |
|
|
|
805,857 |
|
|
|
53.00 |
|
|
|
to |
|
|
|
53.00 |
|
|
|
42,707,823 |
|
|
|
2.02 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
14.13 |
|
|
|
to |
|
|
|
14.13 |
|
|
|
|
12/31/2011 |
|
|
|
921,433 |
|
|
|
46.43 |
|
|
|
to |
|
|
|
46.43 |
|
|
|
42,786,445 |
|
|
|
1.80 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
0.47 |
|
|
|
to |
|
|
|
0.47 |
|
|
|
|
12/31/2010 |
|
|
|
1,027,290 |
|
|
|
46.22 |
|
|
|
to |
|
|
|
46.22 |
|
|
|
47,476,951 |
|
|
|
1.82 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
13.25 |
|
|
|
to |
|
|
|
13.25 |
|
|
|
|
12/31/2009 |
|
|
|
1,135,236 |
|
|
|
40.81 |
|
|
|
to |
|
|
|
40.81 |
|
|
|
46,325,834 |
|
|
|
2.09 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
24.59 |
|
|
|
to |
|
|
|
24.59 |
|
| Dreyfus Stock Index Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
1,360,322 |
|
|
|
1.75 |
|
|
|
to |
|
|
|
1.83 |
|
|
|
12,341,000 |
|
|
|
1.58 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
30.02 |
|
|
|
to |
|
|
|
28.50 |
|
|
|
|
12/31/2012 |
|
|
|
1,545,024 |
|
|
|
1.35 |
|
|
|
to |
|
|
|
1.43 |
|
|
|
11,621,730 |
|
|
|
1.74 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.98 |
|
|
|
to |
|
|
|
12.64 |
|
|
|
|
12/31/2011 |
|
|
|
1,934,399 |
|
|
|
1.18 |
|
|
|
to |
|
|
|
1.27 |
|
|
|
12,747,384 |
|
|
|
1.54 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
0.32 |
|
|
|
to |
|
|
|
(0.85 |
) |
|
|
|
12/31/2010 |
|
|
|
2,464,744 |
|
|
|
1.18 |
|
|
|
to |
|
|
|
1.28 |
|
|
|
14,877,753 |
|
|
|
1.55 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.07 |
|
|
|
to |
|
|
|
11.74 |
|
|
|
|
12/31/2009 |
|
|
|
3,278,068 |
|
|
|
1.04 |
|
|
|
to |
|
|
|
1.14 |
|
|
|
15,939,817 |
|
|
|
1.83 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
24.43 |
|
|
|
to |
|
|
|
22.97 |
|
| Dreyfus Technology Growth Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
1,243,278 |
|
|
|
12.04 |
|
|
|
to |
|
|
|
12.04 |
|
|
|
14,965,071 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
30.97 |
|
|
|
to |
|
|
|
30.97 |
|
|
|
|
12/31/2012 |
|
|
|
1,369,458 |
|
|
|
9.19 |
|
|
|
to |
|
|
|
9.19 |
|
|
|
12,585,921 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
14.02 |
|
|
|
to |
|
|
|
14.02 |
|
|
|
|
12/31/2011 |
|
|
|
1,613,520 |
|
|
|
8.06 |
|
|
|
to |
|
|
|
8.06 |
|
|
|
13,005,887 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(9.05 |
) |
|
|
to |
|
|
|
(9.05 |
) |
|
|
|
12/31/2010 |
|
|
|
1,776,157 |
|
|
|
8.86 |
|
|
|
to |
|
|
|
8.86 |
|
|
|
15,741,800 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
28.14 |
|
|
|
to |
|
|
|
28.14 |
|
|
|
|
12/31/2009 |
|
|
|
1,937,556 |
|
|
|
6.92 |
|
|
|
to |
|
|
|
6.92 |
|
|
|
13,401,272 |
|
|
|
0.44 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
55.49 |
|
|
|
to |
|
|
|
55.49 |
|
| Dreyfus Technology Growth Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
425,199 |
|
|
|
1.91 |
|
|
|
to |
|
|
|
2.16 |
|
|
|
2,659,427 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
30.79 |
|
|
|
to |
|
|
|
29.26 |
|
|
|
|
12/31/2012 |
|
|
|
477,668 |
|
|
|
1.46 |
|
|
|
to |
|
|
|
1.67 |
|
|
|
2,343,511 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.86 |
|
|
|
to |
|
|
|
12.52 |
|
|
|
|
12/31/2011 |
|
|
|
497,361 |
|
|
|
1.28 |
|
|
|
to |
|
|
|
1.48 |
|
|
|
2,240,648 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(9.22 |
) |
|
|
to |
|
|
|
(10.28 |
) |
|
|
|
12/31/2010 |
|
|
|
590,951 |
|
|
|
1.41 |
|
|
|
to |
|
|
|
1.65 |
|
|
|
2,879,173 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
27.99 |
|
|
|
to |
|
|
|
26.50 |
|
|
|
|
12/31/2009 |
|
|
|
702,719 |
|
|
|
1.11 |
|
|
|
to |
|
|
|
1.31 |
|
|
|
2,646,686 |
|
|
|
0.20 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
55.06 |
|
|
|
to |
|
|
|
53.24 |
|
| Dreyfus VIF Appreciation Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
947,989 |
|
|
|
57.75 |
|
|
|
to |
|
|
|
57.75 |
|
|
|
54,751,106 |
|
|
|
1.94 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
19.43 |
|
|
|
to |
|
|
|
19.43 |
|
|
|
|
12/31/2012 |
|
|
|
1,067,156 |
|
|
|
48.36 |
|
|
|
to |
|
|
|
48.36 |
|
|
|
51,605,631 |
|
|
|
3.65 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
8.90 |
|
|
|
to |
|
|
|
8.90 |
|
|
|
|
12/31/2011 |
|
|
|
1,205,243 |
|
|
|
44.41 |
|
|
|
to |
|
|
|
44.41 |
|
|
|
53,521,029 |
|
|
|
1.67 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
7.51 |
|
|
|
to |
|
|
|
7.51 |
|
|
|
|
12/31/2010 |
|
|
|
1,311,866 |
|
|
|
41.30 |
|
|
|
to |
|
|
|
41.30 |
|
|
|
54,186,299 |
|
|
|
2.25 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
13.73 |
|
|
|
to |
|
|
|
13.73 |
|
|
|
|
12/31/2009 |
|
|
|
1,504,537 |
|
|
|
36.32 |
|
|
|
to |
|
|
|
36.32 |
|
|
|
54,643,978 |
|
|
|
2.71 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
20.87 |
|
|
|
to |
|
|
|
20.87 |
|
| Dreyfus VIF Appreciation Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
1,921,255 |
|
|
|
1.70 |
|
|
|
to |
|
|
|
1.76 |
|
|
|
15,488,896 |
|
|
|
1.71 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
19.28 |
|
|
|
to |
|
|
|
17.88 |
|
|
|
|
12/31/2012 |
|
|
|
2,265,778 |
|
|
|
1.43 |
|
|
|
to |
|
|
|
1.49 |
|
|
|
14,837,788 |
|
|
|
3.26 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
8.72 |
|
|
|
to |
|
|
|
7.44 |
|
|
|
|
12/31/2011 |
|
|
|
2,821,559 |
|
|
|
1.31 |
|
|
|
to |
|
|
|
1.39 |
|
|
|
16,328,188 |
|
|
|
1.55 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
7.35 |
|
|
|
to |
|
|
|
6.09 |
|
|
|
|
12/31/2010 |
|
|
|
3,513,350 |
|
|
|
1.22 |
|
|
|
to |
|
|
|
1.31 |
|
|
|
19,018,293 |
|
|
|
2.01 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
13.57 |
|
|
|
to |
|
|
|
12.24 |
|
|
|
|
12/31/2009 |
|
|
|
4,360,720 |
|
|
|
1.08 |
|
|
|
to |
|
|
|
1.16 |
|
|
|
19,991,263 |
|
|
|
2.42 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
20.66 |
|
|
|
to |
|
|
|
19.25 |
|
14
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
4. Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Unit Fair Value |
|
|
|
|
|
|
|
|
Expense |
|
|
Total Return*** |
|
| |
|
|
|
|
|
|
|
Corresponding to |
|
|
|
|
|
Investment |
|
|
Ratio** |
|
|
Corresponding to |
|
| |
|
Year |
|
|
|
|
|
Lowest to Highest |
|
|
Net |
|
|
Income |
|
|
Lowest to |
|
|
Lowest to Highest |
|
| Subaccount |
|
Ended |
|
|
Units |
|
|
Expense Ratio |
|
|
Assets |
|
|
Ratio* |
|
|
Highest |
|
|
Expense Ratio |
|
| Dreyfus VIF Growth and Income Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
736,673 |
|
|
$ |
46.80 |
|
|
|
to |
|
|
$ |
46.80 |
|
|
$ |
34,473,546 |
|
|
|
0.90 |
% |
|
|
1.40 |
% |
|
|
to |
|
|
|
1.40 |
% |
|
|
34.90 |
% |
|
|
to |
|
|
|
34.90 |
% |
|
|
|
12/31/2012 |
|
|
|
835,163 |
|
|
|
34.69 |
|
|
|
to |
|
|
|
34.69 |
|
|
|
28,972,436 |
|
|
|
1.43 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
16.44 |
|
|
|
to |
|
|
|
16.44 |
|
|
|
|
12/31/2011 |
|
|
|
953,162 |
|
|
|
29.79 |
|
|
|
to |
|
|
|
29.79 |
|
|
|
28,398,598 |
|
|
|
1.24 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(4.13 |
) |
|
|
to |
|
|
|
(4.13 |
) |
|
|
|
12/31/2010 |
|
|
|
1,056,891 |
|
|
|
31.08 |
|
|
|
to |
|
|
|
31.08 |
|
|
|
32,846,859 |
|
|
|
1.20 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
16.97 |
|
|
|
to |
|
|
|
16.97 |
|
|
|
|
12/31/2009 |
|
|
|
1,178,152 |
|
|
|
26.57 |
|
|
|
to |
|
|
|
26.57 |
|
|
|
31,303,163 |
|
|
|
1.33 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
27.01 |
|
|
|
to |
|
|
|
27.01 |
|
| Dreyfus VIF International Equity Initial shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
380,975 |
|
|
|
29.80 |
|
|
|
to |
|
|
|
29.80 |
|
|
|
11,353,275 |
|
|
|
2.89 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
16.11 |
|
|
|
to |
|
|
|
16.11 |
|
|
|
|
12/31/2012 |
|
|
|
433,239 |
|
|
|
25.67 |
|
|
|
to |
|
|
|
25.67 |
|
|
|
11,119,394 |
|
|
|
0.45 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
21.44 |
|
|
|
to |
|
|
|
21.44 |
|
|
|
|
12/31/2011 |
|
|
|
509,930 |
|
|
|
21.13 |
|
|
|
to |
|
|
|
21.13 |
|
|
|
10,776,892 |
|
|
|
2.13 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(15.86 |
) |
|
|
to |
|
|
|
(15.86 |
) |
|
|
|
12/31/2010 |
|
|
|
573,945 |
|
|
|
25.12 |
|
|
|
to |
|
|
|
25.12 |
|
|
|
14,416,035 |
|
|
|
1.75 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
8.51 |
|
|
|
to |
|
|
|
8.51 |
|
|
|
|
12/31/2009 |
|
|
|
654,031 |
|
|
|
23.15 |
|
|
|
to |
|
|
|
23.15 |
|
|
|
15,138,944 |
|
|
|
4.14 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
23.54 |
|
|
|
to |
|
|
|
23.54 |
|
| Dreyfus VIF International Equity Service Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
310,743 |
|
|
|
1.97 |
|
|
|
to |
|
|
|
2.10 |
|
|
|
2,494,842 |
|
|
|
2.70 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
15.92 |
|
|
|
to |
|
|
|
14.57 |
|
|
|
|
12/31/2012 |
|
|
|
367,122 |
|
|
|
1.70 |
|
|
|
to |
|
|
|
1.83 |
|
|
|
2,515,857 |
|
|
|
0.14 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
21.25 |
|
|
|
to |
|
|
|
19.82 |
|
|
|
|
12/31/2011 |
|
|
|
405,703 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.53 |
|
|
|
2,558,648 |
|
|
|
1.89 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(16.00 |
) |
|
|
to |
|
|
|
(16.99 |
) |
|
|
|
12/31/2010 |
|
|
|
490,671 |
|
|
|
1.67 |
|
|
|
to |
|
|
|
1.84 |
|
|
|
3,526,013 |
|
|
|
1.56 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
8.33 |
|
|
|
to |
|
|
|
7.06 |
|
|
|
|
12/31/2009 |
|
|
|
651,425 |
|
|
|
1.54 |
|
|
|
to |
|
|
|
1.72 |
|
|
|
4,116,259 |
|
|
|
3.84 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
23.28 |
|
|
|
to |
|
|
|
21.84 |
|
| Dreyfus VIF Money Market |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
39,563,306 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
0.90 |
|
|
|
52,843,673 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(1.28 |
) |
|
|
to |
|
|
|
(2.44 |
) |
|
|
|
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 |
|
|
|
53,740,454 |
|
|
|
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 |
|
|
|
112,087,497 |
|
|
|
0.15 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
(1.15 |
) |
|
|
to |
|
|
|
(2.31 |
) |
| Dreyfus VIF Opportunistic Small Cap Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
230,352 |
|
|
|
126.26 |
|
|
|
to |
|
|
|
126.26 |
|
|
|
29,085,302 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
46.50 |
|
|
|
to |
|
|
|
46.50 |
|
|
|
|
12/31/2012 |
|
|
|
259,758 |
|
|
|
86.19 |
|
|
|
to |
|
|
|
86.19 |
|
|
|
22,388,063 |
|
|
|
— |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
18.89 |
|
|
|
to |
|
|
|
18.89 |
|
|
|
|
12/31/2011 |
|
|
|
293,686 |
|
|
|
72.49 |
|
|
|
to |
|
|
|
72.49 |
|
|
|
21,290,385 |
|
|
|
0.41 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(15.03 |
) |
|
|
to |
|
|
|
(15.03 |
) |
|
|
|
12/31/2010 |
|
|
|
325,419 |
|
|
|
85.32 |
|
|
|
to |
|
|
|
85.32 |
|
|
|
27,764,892 |
|
|
|
0.76 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
29.34 |
|
|
|
to |
|
|
|
29.34 |
|
|
|
|
12/31/2009 |
|
|
|
359,247 |
|
|
|
65.97 |
|
|
|
to |
|
|
|
65.97 |
|
|
|
23,697,978 |
|
|
|
1.71 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
24.30 |
|
|
|
to |
|
|
|
24.30 |
|
| Dreyfus VIF Quality Bond Initial Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
910,765 |
|
|
|
26.65 |
|
|
|
to |
|
|
|
26.65 |
|
|
|
24,271,566 |
|
|
|
2.87 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
(2.90 |
) |
|
|
to |
|
|
|
(2.90 |
) |
|
|
|
12/31/2012 |
|
|
|
1,113,078 |
|
|
|
27.45 |
|
|
|
to |
|
|
|
27.45 |
|
|
|
30,549,991 |
|
|
|
2.97 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
5.51 |
|
|
|
to |
|
|
|
5.51 |
|
|
|
|
12/31/2011 |
|
|
|
1,176,366 |
|
|
|
26.01 |
|
|
|
to |
|
|
|
26.01 |
|
|
|
30,600,462 |
|
|
|
3.66 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
5.56 |
|
|
|
to |
|
|
|
5.56 |
|
|
|
|
12/31/2010 |
|
|
|
1,397,681 |
|
|
|
24.64 |
|
|
|
to |
|
|
|
24.64 |
|
|
|
34,443,114 |
|
|
|
3.89 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
6.88 |
|
|
|
to |
|
|
|
6.88 |
|
|
|
|
12/31/2009 |
|
|
|
1,523,775 |
|
|
|
23.06 |
|
|
|
to |
|
|
|
23.06 |
|
|
|
35,133,383 |
|
|
|
4.75 |
|
|
|
1.40 |
|
|
|
to |
|
|
|
1.40 |
|
|
|
13.37 |
|
|
|
to |
|
|
|
13.37 |
|
| TA Aegon Tactical Vanguard ETF - Balanced Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
893,176 |
|
|
|
1.12 |
|
|
|
to |
|
|
|
1.10 |
|
|
|
998,680 |
|
|
|
0.56 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
9.69 |
|
|
|
to |
|
|
|
8.40 |
|
|
|
|
12/31/2012 |
(1) |
|
|
275,605 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.01 |
|
|
|
281,214 |
|
|
|
0.13 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Aegon Tactical Vanguard ETF - Conservative Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
206,075 |
|
|
|
1.08 |
|
|
|
to |
|
|
|
1.06 |
|
|
|
221,698 |
|
|
|
1.20 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
5.70 |
|
|
|
to |
|
|
|
4.46 |
|
|
|
|
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 Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
30,461 |
|
|
|
1.18 |
|
|
|
to |
|
|
|
1.16 |
|
|
|
35,850 |
|
|
|
1.13 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
15.01 |
|
|
|
to |
|
|
|
13.66 |
|
|
|
|
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 Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
360,103 |
|
|
|
1.09 |
|
|
|
to |
|
|
|
1.07 |
|
|
|
392,146 |
|
|
|
0.28 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
7.97 |
|
|
|
to |
|
|
|
6.71 |
|
|
|
|
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 Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
207,350 |
|
|
|
1.15 |
|
|
|
to |
|
|
|
1.12 |
|
|
|
237,495 |
|
|
|
0.20 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
14.12 |
|
|
|
to |
|
|
|
12.79 |
|
|
|
|
12/31/2012 |
(1) |
|
|
3,152 |
|
|
|
1.01 |
|
|
|
to |
|
|
|
1.00 |
|
|
|
3,166 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Market Participation Strategy Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
— |
|
|
|
1.12 |
|
|
|
to |
|
|
|
1.10 |
|
|
|
— |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
12.83 |
|
|
|
to |
|
|
|
11.51 |
|
|
|
|
12/31/2012 |
(1) |
|
|
— |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
— |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
15
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
4. Financial Highlights (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Unit Fair Value |
|
|
|
|
|
|
|
|
Expense |
|
|
Total Return*** |
|
| |
|
|
|
|
|
|
|
Corresponding to |
|
|
|
|
|
Investment |
|
|
Ratio** |
|
|
Corresponding to |
|
| |
|
Year |
|
|
|
|
|
Lowest to Highest |
|
|
Net |
|
|
Income |
|
|
Lowest to |
|
|
Lowest to Highest |
|
| Subaccount |
|
Ended |
|
|
Units |
|
|
Expense Ratio |
|
|
Assets |
|
|
Ratio* |
|
|
Highest |
|
|
Expense Ratio |
|
| TA PIMCO Tactical - Balanced Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
217,236 |
|
|
$ |
1.10 |
|
|
|
to |
|
|
$ |
1.08 |
|
|
$ |
237,970 |
|
|
|
0.61 |
% |
|
|
1.30 |
% |
|
|
to |
|
|
|
2.50 |
% |
|
|
10.41 |
% |
|
|
to |
|
|
|
9.12 |
% |
|
|
|
12/31/2012 |
(1) |
|
|
38,047 |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
37,785 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA PIMCO Tactical - Conservative Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
50,841 |
|
|
|
1.06 |
|
|
|
to |
|
|
|
1.05 |
|
|
|
54,012 |
|
|
|
0.27 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
6.77 |
|
|
|
to |
|
|
|
5.52 |
|
|
|
|
12/31/2012 |
(1) |
|
|
3,170 |
|
|
|
1.00 |
|
|
|
to |
|
|
|
0.99 |
|
|
|
3,157 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA PIMCO Tactical - Growth Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
6,635 |
|
|
|
1.14 |
|
|
|
to |
|
|
|
1.12 |
|
|
|
7,551 |
|
|
|
0.65 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
15.31 |
|
|
|
to |
|
|
|
13.96 |
|
|
|
|
12/31/2012 |
(1) |
|
|
3,212 |
|
|
|
0.99 |
|
|
|
to |
|
|
|
0.98 |
|
|
|
3,173 |
|
|
|
— |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF - Balanced Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
855,897 |
|
|
|
1.13 |
|
|
|
to |
|
|
|
1.10 |
|
|
|
961,633 |
|
|
|
1.15 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
10.00 |
|
|
|
to |
|
|
|
8.71 |
|
|
|
|
12/31/2012 |
(1) |
|
|
559,093 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.02 |
|
|
|
571,606 |
|
|
|
1.03 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF - Conservative Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
154,224 |
|
|
|
1.08 |
|
|
|
to |
|
|
|
1.06 |
|
|
|
166,554 |
|
|
|
0.87 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
6.09 |
|
|
|
to |
|
|
|
4.85 |
|
|
|
|
12/31/2012 |
(1) |
|
|
84,347 |
|
|
|
1.02 |
|
|
|
to |
|
|
|
1.01 |
|
|
|
85,945 |
|
|
|
0.73 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA Vanguard ETF - Growth Service Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
153,905 |
|
|
|
1.20 |
|
|
|
to |
|
|
|
1.18 |
|
|
|
185,065 |
|
|
|
1.24 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
17.26 |
|
|
|
to |
|
|
|
15.89 |
|
|
|
|
12/31/2012 |
(1) |
|
|
— |
|
|
|
1.03 |
|
|
|
to |
|
|
|
1.02 |
|
|
|
— |
|
|
|
0.08 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
— |
|
|
|
to |
|
|
|
— |
|
| TA WMC Diversified Growth Initial Class |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/31/2013 |
|
|
|
697,577 |
|
|
|
1.94 |
|
|
|
to |
|
|
|
1.91 |
|
|
|
11,650,544 |
|
|
|
1.04 |
|
|
|
1.30 |
|
|
|
to |
|
|
|
2.50 |
|
|
|
30.77 |
|
|
|
to |
|
|
|
29.24 |
|
|
|
|
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 |
|
|
|
873,212 |
|
|
|
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 |
|
|
|
11,832,026 |
|
|
|
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 |
|
| * |
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. |
16
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
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 Tax
Operations of the Separate Account form a part of TLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as
amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under
Subchapter M of the Code and is not otherwise taxable as an entity separate from TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable 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.
17
Transamerica Life Insurance Company
Separate Account VA-2L
Notes to Financial Statements
December 31, 2013
8. Fair Value Measurements and Fair Value Hierarchy
The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy
based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
The Separate Account has
categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets
or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is
significant to the fair value measurement of the instrument.
Financial assets and liabilities recorded at fair value on the Statements of Assets and
Liabilities are categorized as follows:
Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset
or liability. Level 2 inputs include the following:
| |
a) |
Quoted prices for similar assets or liabilities in active markets |
| |
b) |
Quoted prices for identical or similar assets or liabilities in non-active markets |
| |
c) |
Inputs other than quoted market prices that are observable |
| |
d) |
Inputs that are derived principally from or corroborated by observable market data 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.
18
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a |
)(1) |
|
Amendment No. 13 to Participation Agreement (Dreyfus). Note 20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
)(1) |
|
Amendment No. 1 to Participation Agreement (TST). Note 18 |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
)(2) |
|
Schedule A Revisions 9-3-2013 (TST). Note 19 |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
)(3) |
|
Schedule A Revisions 9-18-2013 (TST). Note 19 |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
)(4) |
|
Schedule A Revisions 10-31-2013 (TST). Note 19 |
|
|
|
|
|
|
|
|
|
|
|
|
(c |
)(5) |
|
Schedule A Revisions 5-1-2014 (TST). Note 20 |
|
|
|
|
|
|
|
|
|
(9) |
|
|
(a |
) |
|
Opinion and Consent of Counsel. Note 20. |
|
|
|
|
|
|
|
|
|
|
|
|
(b |
) |
|
Consent of Counsel. Note 17. |
|
|
|
|
|
|
|
|
|
(10) |
|
|
(a |
) |
|
Consent of Independent Registered Public Accounting Firm. Note 20. |
|
|
|
|
|
|
|
|
|
(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. (C. Michiel van Katwijk) Note
20 |
|
|
|
| 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 with Post-Effective Amendment No. 6 to form N-4 Registration Statement (File No. 333-153773) dated April 25, 2013. |
|
|
| Note 18. |
|
Incorporated herein by reference to Post-Effective Amendment No. 59 to form N-4 Registration Statement (File No. 33-33085) dated August
16, 2013. |
|
|
| Note 19. |
|
Incorporated herein by reference to Pre-Effective Amendment No. 2 to form N-4 Registration Statement (File No. 333-189435) dated October
2, 2013. |
|
|
| Note 20. |
|
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, Treasurer and Chief Financial Officer |
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 |
|
|
|
|
| 44764 Yukon Inc. |
|
Canada |
|
100% Creditor Resources, Inc. |
|
Holding company |
|
|
|
|
| AEGON Alliances, Inc. |
|
Virginia |
|
100% Commonwealth General Corporation |
|
Insurance company marketing support |
|
|
|
|
| AEGON Asset Management Services, Inc. |
|
Delaware |
|
100% AUSA Holding Company |
|
Registered investment advisor |
|
|
|
|
| AEGON Assignment Corporation |
|
Illinois |
|
100% AEGON Financial Services Group, Inc. |
|
Administrator of structured settlements |
|
|
|
|
| AEGON Assignment Corporation of Kentucky |
|
Kentucky |
|
100% AEGON Financial Services Group, Inc. |
|
Administrator of structured settlements |
|
|
|
|
| AEGON Canada ULC |
|
Canada |
|
AEGON Canada Holding B.V. owns 174,588,712 shares of Common Stock; 1,500 shares of Series II Preferred stock; 2 shares of Series III Preferred stock. TIHI Canada Holding, LLC owns
1,441,941.26 shares of Class B - Series I Preferred stock. |
|
Holding company |
|
|
|
|
| AEGON Capital Management Inc. |
|
Canada |
|
100% AEGON Asset Management (Canada) B.V. |
|
Portfolio management company/investment advisor |
|
|
|
|
| AEGON-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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AEGON Direct Marketing Services Insurance Broker (HK) Limited |
|
Hong Kong |
|
100% AEGON Direct Marketing Services Hong Kong Limited |
|
Brokerage company |
|
|
|
|
| AEGON Direct Marketing Services International, Inc. |
|
Maryland |
|
100% AUSA Holding Company |
|
Marketing arm for sale of mass marketed insurance coverage |
|
|
|
|
| AEGON Direct Marketing Services Korea Co., Ltd. |
|
Korea |
|
100% AEGON DMS Holding B.V. |
|
Provide consulting services ancillary to the marketing of insurance products overseas. |
|
|
|
|
| AEGON Direct Marketing Services Mexico, S.A. de C.V. |
|
Mexico |
|
100% AEGON DMS Holding B.V. |
|
Provide management advisory and technical consultancy services. |
|
|
|
|
| AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V. |
|
Mexico |
|
100% AEGON DMS Holding B.V. |
|
Provide marketing, trading, telemarketing and advertising services in favor of any third party, particularly in favor of insurance and reinsurance companies. |
|
|
|
|
| AEGON Direct Marketing Services, Inc. |
|
Taiwan |
|
100% AEGON DMS Holding B.V. |
|
Authorized business: Enterprise management consultancy, credit investigation services, to engage in business not prohibited or restricted under any law of R.O.C., except business
requiring special permission of government. |
|
|
|
|
| AEGON Financial Services Group, Inc. |
|
Minnesota |
|
100% Transamerica Life Insurance Company |
|
Marketing |
|
|
|
|
| AEGON Fund Management Inc. |
|
Canada |
|
100% AEGON Asset Management (Canada) B.V. |
|
Mutual fund manager |
|
|
|
|
| AEGON Funding Company, LLC. |
|
Delaware |
|
100% AEGON USA, LLC |
|
Issue debt securities-net proceeds used to make loans to affiliates |
|
|
|
|
| AEGON Institutional Markets, Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Provider of investment, marketing and administrative services to insurance companies |
|
|
|
|
| AEGON Life Insurance Agency Inc. |
|
Taiwan |
|
100% AEGON Direct Marketing Services, Inc. (Taiwan Domiciled) |
|
Life insurance |
|
|
|
|
| AEGON Managed Enhanced Cash, LLC |
|
Delaware |
|
Members: Transamerica Life Insurance Company (91.2389%) ; Monumental Life Insurance Company (8.7611%) |
|
Investment vehicle for securities lending cash collateral |
|
|
|
|
| AEGON Management Company |
|
Indiana |
|
100% AEGON U.S. Holding Corporation |
|
Holding company |
|
|
|
|
| AEGON N.V. |
|
Netherlands |
|
22.446% of Vereniging AEGON Netherlands Membership Association |
|
Holding company |
|
|
|
|
| AEGON Structured Settlements, Inc. |
|
Kentucky |
|
100% Commonwealth General Corporation |
|
Administers structured settlements of plaintiff’s physical injury claims against property and casualty insurance companies. |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AEGON USA Realty Advisors, LLC |
|
Iowa |
|
Sole Member - AEGON USA Asset Management Holding, LLC |
|
Administrative and investment services |
|
|
|
|
| AEGON USA Realty Advisors of California, Inc. |
|
Iowa |
|
100% AEGON USA Realty Advisors, Inc. |
|
Investments |
|
|
|
|
| AEGON USA, LLC |
|
Iowa |
|
100% AEGON U.S. Holding Corporation |
|
Holding company |
|
|
|
|
| AFSG Securities Corporation |
|
Pennsylvania |
|
100% Commonwealth General Corporation |
|
Inactive |
|
|
|
|
| ALH Properties Eight LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Eleven LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Four LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Nine LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Seven LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Seventeen LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Sixteen LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Ten LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Twelve LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| ALH Properties Two LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| AMTAX HOLDINGS 561, LLC |
|
Ohio |
|
TAHP Fund VII, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 567, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 588, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 613, LLC |
|
Ohio |
|
Garnet LIHTC Fund VII, LLC - 99% member; Cupples State LIHTC Investors, LLC - 1% member; TAH Pentagon Funds, LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 639, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 649, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 672, LLC |
|
Ohio |
|
TAHP Fund I, LLC - 100% MEMBER; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| AMTAX HOLDINGS 713, LLC |
|
Ohio |
|
TAHP Fund II, LLC - 100% member; TAH Pentagon Funds LLC - non-owner manager |
|
Affordable housing |
|
|
|
|
| Apollo Housing Capital Arrowhead Gardens, LLC |
|
Delaware |
|
Garnet LIHTC Fund XXXV, LLC - sole Member |
|
Affordable housing |
|
|
|
|
| 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 Investment Holding Limited |
|
Hong Kong |
|
99% Transamerica Life Insurance Company |
|
Holding company |
|
|
|
|
| AUSA Holding Company |
|
Maryland |
|
100% AEGON USA, LLC |
|
Holding company |
|
|
|
|
| AUSA Properties, Inc. |
|
Iowa |
|
100% AUSA Holding Company |
|
Own, operate and manage real estate |
|
|
|
|
|
|
|
| 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, 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 Ltd. |
|
Canada |
|
44764 Yukon Inc. owns all preferred shares of stock; various non-AEGON entities/investors own comon shares of stock |
|
Holding company |
|
|
|
|
| CRI Solutions Inc. |
|
Maryland |
|
100% Creditor Resources, Inc. |
|
Sales of reinsurance and credit insurance |
|
|
|
|
| Cupples State LIHTC Investors, LLC |
|
Delaware |
|
100% Garnet LIHTC Fund VIII, LLC |
|
Investments |
|
|
|
|
| Erfahrungsschatz GmbH |
|
Germany |
|
100% Cornerstone International Holdings, Ltd. |
|
Marketing/membership |
|
|
|
|
| FD TLIC, Limited Liability Company |
|
New York |
|
100% Transamerica Life Insurance Company |
|
Broadway production |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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 |
|
|
|
|
| Garnet Community Investments V, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments VI, LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Investments |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
|
|
|
|
| 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 |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet Community Investments XXXVI, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXVII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XXXVIII, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Invesments |
|
|
|
|
| Garnet Community Investments XXXIX, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet Community Investments XL, LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund II, LLC |
|
Delaware |
|
Members: Garnet Community Investments II, LLC (99.99%); Transamerica Life Insurance Company (0.01%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund III, LLC |
|
Delaware |
|
Members: Garnet Community Investments III, LLC (0.01%); Jefferson-Pilot Life Insurance Company, a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet LIHTC Fund XI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XI, LLC (0.01%); NorLease, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XII, LLC |
|
Delaware |
|
Garnet Community Investments XII, LLC (.01%); and the following non-AEGON affiliates: Bank of America, N.A.( 73.39%); J.P. Morgan Chase Bank, N.A. (13.30%); NorLease, Inc.
(13.30%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XII-A, LLC |
|
Delaware |
|
Garnet Community Investments XII, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XII-B, LLC |
|
Delaware |
|
Garnet Community Investments XII, LLC (0.01%); J.P. Morgan Chase Bank, N.A., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XII-C, LLC |
|
Delaware |
|
Garnet Community Investments XII, LLC (.01%); NorLease, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet LIHTC Fund XVII, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); ING USA Annuity and Life Insurance company, a non-affiliate of AEGON (12.999%), and ReliaStar Life
Insurance Company, a non-affiliate of AEGON (86.991%). |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XVIII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XVIII, LLC (0.01%); Verizon Capital Corp., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XIX, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Bank of America, N.A., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XX, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XX, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXI, LLC |
|
Delaware |
|
100% Garnet Community Investments, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXII, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Norlease, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXIII, LLC |
|
Delaware |
|
Members: Garnet Community Investments, LLC (0.01%); Idacorp Financial Services, Inc., a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXIV, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXIV, LLC (0.01% as Managing Member); Transamerica Life Insurance Company (21.26%); non-affiliates of AEGON: New York Life Insurance Company
(25.51%), New York Life Insurance and Annuity Corporation (21.73%) and Principal Life Insurance Company (31.49%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXV, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXV, LLC (0.01%); Garnet LIHTC Fund XXVIII LLC (1%); non-affiliates of AEGON: Mt. Hamilton Fund, LLC (97.99%); Google Affordable housing I LLC
(1%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXVI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXVI, LLC (0.01%); American Income Life Insurance Company, a non-affiliate of AEGON (99.99%) |
|
Investments |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet LIHTC Fund XXVII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXVII, LLC (0.01%); Transamerica Life Insurance Company (16.7045%); non-affiliates of AEGON: Aetna Life Insurance Company (30.2856%); New York
Life Insurance Company (22.7142%); ProAssurance Casualty Company (3.6343%); ProAssurance Indemnity Company (8.4800%); State Street Brank and Trust Company (18.1714%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXVIII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXVIII LLC (0.01%); non-affiliates of AEGON: USAA Casualty Insurance Company (17.998%); USAA General Indemnity Company (19.998%); USAA Life
Insurance Company (3.999%); United Services Automobile Association (57.994%) |
|
Real estate investments |
|
|
|
|
| Garnet LIHTC Fund XXIX, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXIX, LLC (.01%); non-affiliate of AEGON: Bank of America, N.A. (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXX, LLC |
|
Delaware |
|
Garnet Community Investments XXX, LLC (0.01%); non-affiliate of AEGON, New York Life Insurance Company (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXXI, LLC (0.1%); non-affiliates of AEGON: Thunderbolt Peak Fund, LLC (98.99%); Google Affordable housing I, LLC (1%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXII, LLC |
|
Delaware |
|
Sole Member: Garnet Community Investments XXXVII, LLC. |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXIII, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXXIII, LLC (0.01%); non-affiliate of AEGON, NorLease, Inc. (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXIV, LLC |
|
Delaware |
|
Members: non-AEGON affiliate, U.S. Bancorp Community Development Corporation (99.99%); Garnet Community Investments XXXIV, LLC (.01%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXV, LLC |
|
Delaware |
|
Members: Garnet Community Investment XXXV, LLC (0.01%); non-affiliate of AEGON, Microsoft Corporation (99.99%) |
|
Investments |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Garnet LIHTC Fund XXXVI, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXXVI, LLC (1%) as managing member; JPM Capital Corporation, a non-AEGON affiliate (99%) as investor member |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXVII, LLC |
|
Delaware |
|
Members: Garnet Community Investments XXXVII, LLC (.01%); LIH Realty Corporation, a non-AEGON affiliate (99.99%) |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXVIII, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XXXVIII, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XXXIX, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XXXIX, LLC |
|
Investments |
|
|
|
|
| Garnet LIHTC Fund XL, LLC |
|
Delaware |
|
Sole Member - Garnet Community Investments XL, LLC |
|
Investments |
|
|
|
|
| Global Preferred Re Limited |
|
Bermuda |
|
100% AEGON USA, LLC |
|
Reinsurance |
|
|
|
|
| Harbor View Re Corp. |
|
Hawaii |
|
100% Commonwealth General Corporation |
|
Captive insurance company |
|
|
|
|
| Horizons Acquisition 5, LLC |
|
Florida |
|
Sole Member - PSL Acquisitions Operating, LLC |
|
Development company |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Investors Warranty of America, Inc. |
|
Iowa |
|
100% AUSA Holding Company |
|
Leases business equipment |
|
|
|
|
| LCS Associates, LLC |
|
Delaware |
|
100% Investors Warranty of America, Inc. |
|
Investments |
|
|
|
|
| Legacy General Insurance Company |
|
Canada |
|
100% AEGON Canada ULC |
|
Insurance company |
|
|
|
|
| Life Investors Alliance LLC |
|
Delaware |
|
Sole Member - Transamerica Life Insurance Company |
|
Purchase, own, and hold the equity interest of other entities |
|
|
|
|
| LIICA Holdings, LLC |
|
Delaware |
|
Sole Member: Transamerica Life Insurance Company |
|
To form and capitalize LIICA Re I, Inc. |
|
|
|
|
| LIICA Re I, Inc. |
|
Vermont |
|
100% LIICA Holdings, LLC |
|
Captive insurance company |
|
|
|
|
| LIICA Re II, Inc. |
|
Vermont |
|
100% Transamerica Life Insurance Company |
|
Captive insurance company |
|
|
|
|
| Massachusetts Fidelity Trust Company |
|
Iowa |
|
100% AUSA Holding Company |
|
Trust company |
|
|
|
|
| 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 |
|
Members: Transamerica Life Insurance Company (20% 13.1%) and non-affiliates of AEGON and the public holders own the remainder. |
|
Provides protection from default risk of investment grade corporate and sovereign issues of financial obligations. |
|
|
|
|
| PSL Acquisitions Operating, LLC |
|
Iowa |
|
Sole Member: Investors Warranty of America, Inc. |
|
Owner of Core subsidiary entities |
|
|
|
|
| Pyramid Insurance Company, Ltd. |
|
Hawaii |
|
100% Transamerica Corporation |
|
Property & Casualty Insurance |
|
|
|
|
| RCC North America LLC |
|
Delaware |
|
100% AEGON USA, LLC |
|
Real estate |
|
|
|
|
| Real Estate Alternatives Portfolio 1 LLC |
|
Delaware |
|
Members: Transamerica Life Insurance Company (90.96%); Monumental Life Insurance Company (6.30%); Transamerica Financial Life Insurance Company (2.74%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 2 LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (90.25%); Transamerica Financial Life Insurance Company (7.5%); Stonebridge Life Insurance Company (2.25%). Manager: AEGON USA
Realty Advisors, Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 3 LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (73.4%); Monumental Life Insurance Company (25.6%); Stonebridge Life Insurance Company (1%). Manager: AEGON USA Realty Advisors,
Inc. |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 3A, Inc. |
|
Delaware |
|
Members: Monumental Life Insurance Company (37%); Transamerica Financial Life Insurance Company (9.4%); Transamerica Life Insurance Company (52.6%); Stonebridge Life Insurance
Company (1%) |
|
Real estate alternatives investment |
|
|
|
|
| Real Estate Alternatives Portfolio 4 HR, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment |
|
|
|
|
| Real Estate Alternatives Portfolio 4 MR, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (64%); Monumental Life Insurance Company (32%); Transamerica Financial Life Insurance Company (4%). Manager: AEGON USA Realty
Advisors, Inc. |
|
Investment vehicle for alternative real estate investments that are established annually for our affiliated companies common investment |
|
|
|
|
| Realty Information Systems, Inc. |
|
Iowa |
|
100% Transamerica Realty Services, LLC |
|
Information Systems for real estate investment management |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Retirement Project Oakmont |
|
California |
|
General Partner: Transamerica Oakmont Retirement Associates, a CA limited partnership; Transamerica Life Insurance Company (limited partner); and Oakmont Gardens, a CA limited
partnership (non-AEGON entity limited partner). General Partner of Transamerica Oakmont Retirement Associates is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors. |
|
Senior living apartment complex |
|
|
|
|
| River Ridge Insurance Company |
|
Vermont |
|
100% AEGON Management Company |
|
Captive insurance company |
|
|
|
|
| Second FGP LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Selient Inc. |
|
Canada |
|
100% AEGON Canada ULC |
|
Application service provider providing loan origination platforms to Canadian credit unions. |
|
|
|
|
| Seventh FGP LLC |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| Short Hills Management Company |
|
New Jersey |
|
100% AEGON U.S. Holding Corporation |
|
Dormant |
|
|
|
|
| Southwest Equity Life Insurance Company |
|
Arizona |
|
Voting common stock is allocated 75% of total cumulative vote - AEGON USA, LLC. Participating Common stock (100% owned by non-AEGON shareholders) is allocated 25% of total
cumulative vote. |
|
Insurance |
|
|
|
|
| St. Lucie West Development Company, LLC |
|
Florida |
|
Sole Member - PSL Acquisitions Operating, LLC |
|
Development company |
|
|
|
|
| Stonebridge Benefit Services, Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Health discount plan |
|
|
|
|
| Stonebridge Casualty Insurance Company |
|
Ohio |
|
100% AEGON USA, LLC |
|
Insurance company |
|
|
|
|
| Stonebridge International Insurance Ltd. |
|
UK |
|
100% Cornerstone International Holdings Ltd. |
|
General insurance company |
|
|
|
|
| Stonebridge Life Insurance Company |
|
Vermont |
|
100% Commonwealth General Corporation |
|
Insurance company |
|
|
|
|
| Stonebridge Reinsurance Company |
|
Vermont |
|
100% Stonebridge Life Insurance Company |
|
Captive insurance company |
|
|
|
|
| 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 |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| 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 |
|
100% AEGON International B.V. |
|
Voting Trust |
|
|
|
|
| The RCC Group, Inc. |
|
Delaware |
|
100% FGH USA LLC |
|
Real estate |
|
|
|
|
| THH Acquisitions, LLC |
|
Iowa |
|
Sole Member - Investors 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 |
|
|
|
|
| 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 |
|
|
|
|
| Transamerica Affinity Marketing Corretora de Seguros Ltda. |
|
Brazil |
|
749,000 quota shares owned by AEGON DMS Holding B.V.; 1 quota share owned by AEGON International B.V. |
|
Brokerage company |
|
|
|
|
| Transamerica Affinity Services, Inc. |
|
Maryland |
|
100% AEGON Direct Marketing Services, Inc. |
|
Marketing company |
|
|
|
|
| Transamerica Affordable housing, Inc. |
|
California |
|
100% Transamerica Realty Services, LLC |
|
General partner LHTC Partnership |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Transamerica Agency Network, Inc. |
|
Iowa |
|
100% AUSA Holding Company |
|
Special purpose subsidiary |
|
|
|
|
| Transamerica Annuity Service Corporation |
|
New Mexico |
|
100% Transamerica International Holdings, Inc. |
|
Performs services required for structured settlements |
|
|
|
|
| Transamerica Asset Management, Inc. |
|
Florida |
|
Western Reserve Life Assurance Co. of Ohio owns 77%; AUSA Holding Co. owns 23%. |
|
Fund advisor |
|
|
|
|
| Transamerica Aviation LLC |
|
Delaware |
|
100% TCFC Air Holdings, Inc. |
|
Special purpose corporation |
|
|
|
|
| Transamerica (Bermuda) Services Center, Ltd. |
|
Bermuda |
|
100% AEGON International B.V. |
|
Special purpose corporation |
|
|
|
|
| Transamerica Capital, Inc. |
|
California |
|
100% AUSA Holding Company |
|
Broker/Dealer |
|
|
|
|
| Transamerica Commercial Finance Corporation, I |
|
Delaware |
|
100% Transamerica Finance Corporation |
|
Holding company |
|
|
|
|
| Transamerica Consumer Finance Holding Company |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Consumer finance holding company |
|
|
|
|
| Transamerica Corporation |
|
Delaware |
|
100% The AEGON Trust |
|
Major interest in insurance and finance |
|
|
|
|
| Transamerica Corporation |
|
Oregon |
|
100% Transamerica Corporation |
|
Holding company |
|
|
|
|
| Transamerica Direct Marketing Asia Pacific Pty Ltd. |
|
Australia |
|
100% AEGON DMS Holding B.V. |
|
Holding company |
|
|
|
|
| Transamerica Direct Marketing Consultants Private Limited |
|
India |
|
99.95% AEGON DMS Holding B.V.; non-AEGON affiliate, Keshav Sunderraj owns .05% |
|
Marketing consultant |
|
|
|
|
| Transamerica Distribution Finance - Overseas, Inc. |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Commercial Finance |
|
|
|
|
| Transamerica Finance Corporation |
|
Delaware |
|
100% Transamerica Corporation |
|
Commercial & Consumer Lending & equipment leasing |
|
|
|
|
| Transamerica Financial Advisors, Inc. |
|
Delaware |
|
1,000 shares owned by AUSA Holding Company; 209 shares owned by Transamerica International Holdings, Inc.; 729 shares owned by AEGON Asset Management Services, Inc. |
|
Broker/Dealer |
|
|
|
|
| Transamerica Financial Life Insurance Company |
|
New York |
|
87.40% AEGON USA, LLC; 12.60% Transamerica Life Insurance Company |
|
Insurance |
|
|
|
|
| Transamerica Fund Services, Inc. |
|
Florida |
|
Western Reserve Life Assurance Co. of Ohio owns 44%; AUSA Holding Company owns 56% |
|
Mutual fund |
|
|
|
|
| Transamerica Funding LP |
|
U.K. |
|
99% Transamerica Leasing Holdings, Inc.; 1% Transamerica Commercial Finance Corporation, I |
|
Intermodal leasing |
|
|
|
|
| Transamerica Home Loan |
|
California |
|
100% Transamerica Consumer Finance Holding Company |
|
Consumer mortgages |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Transamerica Insurance Marketing Asia Pacific Pty Ltd. |
|
Australia |
|
100% Transamerica Direct Marketing Asia Pacific Pty Ltd. |
|
Insurance intermediary |
|
|
|
|
| Transamerica International Direct Marketing Consultants, LLC |
|
Maryland |
|
51% Hugh J. McAdorey; 49% AEGON Direct Marketing Services, Inc. |
|
Provide consulting services ancillary to the marketing of insurance products overseas. |
|
|
|
|
| Transamerica International Holdings, Inc. |
|
Delaware |
|
100% AEGON USA, LLC |
|
Holding company |
|
|
|
|
| Transamerica International RE (Bermuda) Ltd. |
|
Bermuda |
|
100% AEGON USA, LLC |
|
Reinsurance |
|
|
|
|
| Transamerica International Re Escritório de Representação no Brasil Ltd |
|
Brazil |
|
95% Transamerica International Re(Bermuda) Ltd.; 5% Transamerica International Holdings, Inc. |
|
Insurance and reinsurance consulting |
|
|
|
|
| Transamerica Investment Management, LLC |
|
Delaware |
|
Sole Member - AEGON USA Asset Management Holding, LLC |
|
Investment advisor |
|
|
|
|
| Transamerica Investors Securities Corporation |
|
Delaware |
|
100% Transamerica Retirement Solutions Corporation |
|
Broker/Dealer |
|
|
|
|
| Transamerica Leasing Holdings Inc. |
|
Delaware |
|
100% Transamerica Finance Corporation |
|
Holding company |
|
|
|
|
| Transamerica Life Canada |
|
Canada |
|
100% AEGON Canada ULC |
|
Life insurance company |
|
|
|
|
| Transamerica Life Insurance Company |
|
Iowa |
|
676,190 shares Common Stock owned by Transamerica International Holdings, Inc.; 86,590 shares of Preferred Stock owned by Transamerica Corporation; 30,564 shares of Preferred Stock
owned by AEGON USA, LLC |
|
Insurance |
|
|
|
|
| Transamerica Life (Bermuda) Ltd. |
|
Bermuda |
|
100% Transamerica Life Insurance Company |
|
Long-term life insurer in Bermuda — will primarily write fixed universal life and term insurance |
|
|
|
|
| Transamerica Oakmont Corporation |
|
California |
|
100% Transamerica International Holdings, Inc. |
|
General partner retirement properties |
|
|
|
|
| Transamerica Oakmont Retirement Associates |
|
California |
|
General Partner is Transamerica Oakmont Corporation. 100 units of limited partnership interests widely held by individual investors. |
|
Senior living apartments |
|
|
|
|
| Transamerica Pacific Insurance Company, Ltd. |
|
Hawaii |
|
26,000 shares common stock owned by Commonwealth General Corporation; 1,000 shares of common stock owned by Transamerica International Holdings, Inc. |
|
Life insurance |
|
|
|
|
| Transamerica Pyramid Properties LLC |
|
Iowa |
|
100% Monumental Life Insurance Company |
|
Realty limited liability company |
|
|
|
|
| Transamerica Realty Investment Properties LLC |
|
Delaware |
|
100% Monumental Life Insurance Company |
|
Realty limited liability company |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| Transamerica Realty Services, LLC |
|
Delaware |
|
AUSA Holding Company - sole Member |
|
Real estate investments |
|
|
|
|
| Transamerica Resources, Inc. |
|
Maryland |
|
100% Monumental General Administrators, Inc. |
|
Provides education and information regarding retirement and economic issues. |
|
|
|
|
| Transamerica Retirement Advisors, Inc. |
|
Delaware |
|
100% Transamerica Retirement Solutions Corporation |
|
Investment advisor |
|
|
|
|
| Transamerica Retirement Insurance Agency, Inc. |
|
Delaware |
|
100% Transamerica Retirement Solutions Corporation |
|
Conduct business as an insurance agency. |
|
|
|
|
| Transamerica Retirement Solutions Corporation |
|
Delaware |
|
100% AUSA Holding Company |
|
Retirement plan services. |
|
|
|
|
| Transamerica Securities Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada, Inc. |
|
Mutual fund dealer |
|
|
|
|
| Transamerica Small Business Capital, Inc. |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Holding company |
|
|
|
|
| Transamerica Stable Value Solutions Inc. |
|
Delaware |
|
100% Commonwealth General Corporation |
|
Principle Business: Provides management services to the stable value division of AEGON insurers who issue synthetic GIC contracts. |
|
|
|
|
| Transamerica Travel and Conference Services, LLC |
|
Iowa |
|
100% Money Services, Inc. |
|
Travel and conference services |
|
|
|
|
| Transamerica Vendor Financial Services Corporation |
|
Delaware |
|
100% TCFC Asset Holdings, Inc. |
|
Provides commercial leasing |
|
|
|
|
| United Financial Services, Inc. |
|
Maryland |
|
100% AEGON USA, LLC |
|
General agency |
|
|
|
|
| Universal Benefits, LLC |
|
Iowa |
|
100% AUSA Holding Company |
|
Third party administrator |
|
|
|
|
| Western Reserve Life Assurance Co. of Ohio |
|
Ohio |
|
100% AEGON USA, LLC |
|
Insurance |
|
|
|
|
| WFG China Holdings, Inc. |
|
Delaware |
|
100% World Financial Group, Inc. |
|
Hold interest in Insurance Agency located in Peoples Republic of China |
|
|
|
|
| WFG Insurance Agency of Puerto Rico, Inc. |
|
Puerto Rico |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| WFG Properties Holdings, LLC |
|
Georgia |
|
100% World Financial Group, Inc. |
|
Marketing |
|
|
|
|
| WFG Reinsurance Limited |
|
Bermuda |
|
51% owned by World Financial Group, Inc; remaining 49% is annually offered to independent contractors associated with WFG Reinsurance Ltd. |
|
Reinsurance |
|
|
|
|
| World Financial Group Canada Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada Inc. |
|
Marketing |
|
|
|
|
| World Financial Group Holding Company of Canada Inc. |
|
Canada |
|
100% Transamerica International Holdings, Inc. |
|
Holding company |
|
|
|
|
| World Financial Group, Inc. |
|
Delaware |
|
100% AEGON Asset Management Services, Inc. |
|
Marketing |
|
|
|
|
|
|
|
| Name |
|
Jurisdiction
of
Incorporation |
|
Percent of Voting
Securities Owned |
|
Business |
| World Financial Group Insurance Agency of Canada Inc. |
|
Ontario |
|
50% World Financial Group Holding Co. of Canada Inc.; 50% World Financial Group Subholding Co. of Canada Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Hawaii, Inc. |
|
Hawaii |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Massachusetts, Inc. |
|
Massachusetts |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency of Wyoming, Inc. |
|
Wyoming |
|
100% World Financial Group Insurance Agency, Inc. |
|
Insurance agency |
|
|
|
|
| World Financial Group Insurance Agency, Inc. |
|
California |
|
100% Western Reserve Life Assurance Co. of Ohio |
|
Insurance agency |
|
|
|
|
| World Financial Group Subholding Company of Canada Inc. |
|
Canada |
|
100% World Financial Group Holding Company of Canada, Inc. |
|
Holding company |
|
|
|
|
| Yarra Rapids, LLC |
|
Delaware |
|
Members are: Real Estate Alternatives Portfolio 4MR, LLC (49%) and non-AEGON affiliate (51%) |
|
Real estate investments |
|
|
|
|
| Zahorik Company, Inc. |
|
California |
|
100% AUSA Holding Company |
|
Inactive |
|
|
|
|
| Zero Beta Fund, LLC |
|
Delaware |
|
Members are: Transamerica Life Insurance Company (82.35%); Monumental Life Insurance Company (16.16%); Transamerica Financial Life Insurance Company (1.49%) Manager: AEGON USA
Investment Management LLC |
|
Aggregating vehicle formed to hold various fund investments. |
| Item 27. |
Number of Contract Owners |
As of
February 28, 2014, there were 7,067 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 B, Separate Account VA Q, Separate Account VA HH, Separate Account
VA-1, Separate Account VA-2L, Separate Account VA-5, Separate Account VA-6, Separate Account VA-7, Separate Account VA-8, Separate Account Fund B, Separate Account Fund C, Transamerica Corporate Separate Account Sixteen, Transamerica Separate
Account R3, Separate Account VL, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Separate Account VUL-A, and Variable Life Account A. These accounts are
separate accounts of Transamerica Life Insurance Company.
Transamerica Capital, Inc. serves as principal underwriter for Separate Account VA
BNY, Separate Account VA QNY, TFLIC Separate Account VNY, Separate Account VA-2LNY, TFLIC Separate Account C, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Series Annuity Account 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 |
|
|
|
| Dennis P. Gallagher |
|
(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 |
|
|
|
| Jeffrey T. McGlaun |
|
(3) |
|
Assistant Treasurer |
|
|
|
| C. Michael Van Katwijk |
|
(3) |
|
Treasurer |
|
|
|
| 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. |
|
$ |
304,309 |
|
|
|
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
25th day of April, 2014.
|
| 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, Chief Financial |
|
, 2014 |
| C. Michiel van Katwijk |
|
|
|
Officer and Treasurer |
|
|
|
|
|
|
| * |
|
|
|
Director and Chairman of the |
|
, 2014 |
| Mark W. Mullin |
|
|
|
Board |
|
|
|
|
|
|
| * |
|
|
|
Director and President |
|
, 2014 |
| Brenda K. Clancy |
|
|
|
|
|
|
|
|
|
|
| * |
|
|
|
Director, Senior Vice President, |
|
, 2014 |
| Craig D. Vermie |
|
|
|
Secretary and General Counsel |
|
|
|
|
|
|
| * |
|
|
|
Director, Chief Tax Officer and |
|
, 2014 |
| Arthur Schneider |
|
|
|
Senior Vice President |
|
|
|
|
|
|
| * |
|
|
|
Corporate Controller and |
|
, 2014 |
| Eric J. Martin |
|
|
|
Senior Vice President |
|
|
|
|
|
|
| /s/ Darin D. Smith |
|
|
|
Managing Assistant General Counsel, |
|
April 25, 2014 |
| *By: Darin D. Smith |
|
|
|
Vice President and Assistant Secretary |
|
|
| * |
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.* |
|
|
|
| 8(a)(1) |
|
Amendment No. 13 to Participation Agreement |
|
|
|
|
|
| 8(c)(5) |
|
Schedule A Revisions 5-1-2014 (TST) |
|
|
|
|
|
| (9)(a) |
|
Opinion and Consent of Counsel |
|
|
|
|
|
| (10)(a) |
|
Consent of Independent Registered Public Accounting Firm |
|
|
|
|
|
| (13) |
|
Power of Attorney |
|
|
| * |
Page numbers included only in manually executed original. |
Group 