N-VPFS 1 d770746dnvpfs.htm SEPARATE ACCOUNT VA-5 Separate Account VA-5

FINANCIAL STATEMENTS

Transamerica Life Insurance Company

Separate Account VA-5

Years Ended December 31, 2023 and 2022

Transamerica Life Insurance Company

Separate Account VA-5

Financial Statements

Years Ended December 31, 2023 and 2022

 

 

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

    6

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Transamerica Life Insurance Company and the Contract Owners of Separate Account VA-5

Opinions on the Financial Statements

We have audited the accompanying statements of assets and liabilities of each of the subaccounts of Separate Account VA-5 indicated in the table below as of December 31, 2023, and the related statements of operations and changes in net assets for each of the two years in the period ended December 31, 2023, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the subaccounts of Separate Account VA-5 as of December 31, 2023, and the results of each of their operations and the changes in each of their net assets for each of the two years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America.

 

Allspring VT Discovery SMID Cap Growth Class 2 Shares   Invesco V.I. Core Equity Series I Shares
American Century VP Balanced Class I Shares   Invesco V.I. High Yield Series I Shares
American Century VP Capital Appreciation Class I Shares   Janus Henderson - Research Institutional Shares
Columbia - Small Company Growth Class 1 Shares   Schwab Government Money Market
Federated Hermes Fund for U.S. Government Securities II   VY JPMorgan Emerging Markets Equity
Federated Hermes Managed Volatility II Primary Shares    

Basis for Opinions

These financial statements are the responsibility of the Transamerica Life Insurance Company management. Our responsibility is to express an opinion on the financial statements of each of the subaccounts of Separate Account VA-5 based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to each of the subaccounts of Separate Account VA-5 in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

 

1

Our procedures included confirmation of investments owned as of December 31, 2023 by correspondence with the transfer agent or investee mutual funds. We believe that our audits provide a reasonable basis for our opinions.

/s/ PricewaterhouseCoopers LLP

Chicago, Illinois

April 19, 2024

We have served as the auditor of one or more of the subaccounts of Separate Account VA-5 since 2014.

Transamerica Life Insurance Company

Separate Account VA-5

Statements of Assets and Liabilities

December 31, 2023

 

 

                                                                                                                                                                                                       
Subaccount   Number of Shares     Cost     Assets at Market
Value		    

Due (to)/from

General Account

     Net Assets     Units Outstanding     Range of Unit Values  
Allspring VT Discovery SMID Cap Growth Class 2 Shares     39,379.673     $ 995,424     $ 805,708     $ 2     $ 805,710       6,426     $ 125.379675      $ 125.379675  
American Century VP Balanced Class I Shares     31,097.224       229,850       237,894       -       237,894       4,310       55.199548        55.199548  
American Century VP Capital Appreciation Class I Shares     77,346.357       1,069,589       1,099,865       2       1,099,867       13,218       83.211853        83.211853  
Columbia - Small Company Growth Class 1 Shares     55,971.843       840,388       652,072       -       652,072       8,412       77.520735        77.520735  
Federated Hermes Fund for U.S. Government Securities II     22,634.213       245,550       211,630       -       211,630       9,739       21.729312        21.729312  
Federated Hermes Managed Volatility II Primary Shares     49,197.849       498,222       443,765       (6)       443,759       373,238       1.188943        1.188943  
Invesco V.I. Core Equity Series I Shares     110,732.170       3,179,801       3,243,345       1       3,243,346       1,043,218       3.108981        3.108981  
Invesco V.I. High Yield Series I Shares     78,636.710       401,032       368,806       1       368,807       9,797       37.643377        37.643377  
Janus Henderson - Research Institutional Shares     49,697.500       1,708,041       2,243,842       (2)       2,243,840       20,059       111.862729        111.862729  
Schwab Government Money Market     625,226.290       625,226       625,226       (8)       625,218       423,760       1.475406        1.475406  
VY JPMorgan Emerging Markets Equity     22,273.076       363,706       279,973       (5)       279,968       123,001       2.276150        2.276150  

 

See accompanying notes.

    2

Transamerica Life Insurance Company

Separate Account VA-5

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

                                                                                                                                           
    

Allspring VT Discovery SMID Cap

Growth Class 2 Shares

Subaccount

  

American Century VP Balanced

Class I Shares

Subaccount

  

American Century VP Capital

Appreciation Class I Shares

Subaccount

  

Columbia - Small Company Growth

Class 1 Shares

Subaccount

Net Assets as of December 31, 2021:

     $ 1,184,528     $  259,297     $  1,325,171     $ 818,179  
  

 

 

 

Investment Income:

         

Reinvested Dividends

      -       2,725       -       -  

Investment Expense:

         

Mortality and Expense Risk and Administrative Charges

      6,797       1,896       8,349       4,912  
  

 

 

 

Net Investment Income (Loss)

      (6,797 )      829       (8,349 )      (4,912 ) 

Increase (Decrease) in Net Assets from Operations:

         

Capital Gain Distributions

      273,681       34,791       142,525       230,614  

Realized Gain (Loss) on Investments

      (208 )      125       4,452       (1,969 ) 
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      273,473       34,916       146,977       228,645  

Net Change in Unrealized Appreciation (Depreciation)

      (716,390 )      (82,320 )      (515,183 )      (520,748 ) 
  

 

 

 

Net Gain (Loss) on Investment

      (442,917 )      (47,404 )      (368,206 )      (292,103 ) 

Net Increase (Decrease) in Net Assets Resulting from Operations

      (449,714 )      (46,575 )      (376,555 )      (297,015 ) 
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (57,738 )      -       (29,523 )      (1,167 ) 
  

 

 

 

Total Increase (Decrease) in Net Assets

      (507,452 )      (46,575 )      (406,078 )      (298,182 ) 
  

 

 

 

Net Assets as of December 31, 2022:

     $ 677,076     $ 212,722     $ 919,093     $ 519,997  
  

 

 

 

Investment Income:

         

Reinvested Dividends

      -       4,276       -       -  

Investment Expense:

         

Mortality and Expense Risk and Administrative Charges

      6,294       1,868       8,466       4,992  
  

 

 

 

Net Investment Income (Loss)

      (6,294 )      2,408       (8,466 )      (4,992 ) 

Increase (Decrease) in Net Assets from Operations:

         

Capital Gain Distributions

      -       -       1,438       -  

Realized Gain (Loss) on Investments

      (1,106 )      364       726       (3,973 ) 
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      (1,106 )      364       2,164       (3,973 ) 

Net Change in Unrealized Appreciation (Depreciation)

      136,899       29,193       187,132       141,881  
  

 

 

 

Net Gain (Loss) on Investment

      135,793       29,557       189,296       137,908  

Net Increase (Decrease) in Net Assets Resulting from Operations

      129,499       31,965       180,830       132,916  
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (865 )      (6,793 )      (56 )      (841 ) 
  

 

 

 

Total Increase (Decrease) in Net Assets

      128,634       25,172       180,774       132,075  
  

 

 

 

Net Assets as of December 31, 2023:

     $ 805,710     $ 237,894     $ 1,099,867     $ 652,072  
  

 

 

 

 

See Accompanying Notes.

(1) See Footnote 1

    3

Transamerica Life Insurance Company

Separate Account VA-5

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

 

                                                                                                                                           
    

Federated Hermes Fund for U.S.

Government Securities II

Subaccount

  

Federated Hermes Managed

Volatility II Primary Shares

Subaccount

  

Invesco V.I. Core Equity Series I

Shares

Subaccount

  

Invesco V.I. High Yield Series I

Shares

Subaccount

Net Assets as of December 31, 2021:

     $ 258,574     $ 517,946     $ 3,595,898     $ 379,517  
  

 

 

 

Investment Income:

         

Reinvested Dividends

      4,355       8,399       28,064       16,552  

Investment Expense:

         

Mortality and Expense Risk and Administrative Charges

      1,935       3,791       25,507       2,978  
  

 

 

 

Net Investment Income (Loss)

      2,420       4,608       2,557       13,574  

Increase (Decrease) in Net Assets from Operations:

         

Capital Gain Distributions

      -       105,296       476,943       -  

Realized Gain (Loss) on Investments

      (2,092 )      (1,605 )      9,362       (906 ) 
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      (2,092 )      103,691       486,305       (906 ) 

Net Change in Unrealized Appreciation (Depreciation)

      (34,049 )      (182,455 )      (1,249,045 )      (52,336 ) 
  

 

 

 

Net Gain (Loss) on Investment

      (36,141 )      (78,764 )      (762,740 )      (53,242 ) 

Net Increase (Decrease) in Net Assets Resulting from Operations

      (33,721 )      (74,156 )      (760,183 )      (39,668 ) 
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (10,845 )      (17,433 )      (27,301 )      5,001  
  

 

 

 

Total Increase (Decrease) in Net Assets

      (44,566 )      (91,589 )      (787,484 )      (34,667 ) 
  

 

 

 

Net Assets as of December 31, 2022:

     $ 214,008     $ 426,357     $ 2,808,414     $ 344,850  
  

 

 

 

Investment Income:

         

Reinvested Dividends

      5,292       7,880       22,119       18,595  

Investment Expense:

         

Mortality and Expense Risk and Administrative Charges

      1,776       3,583       25,529       2,986  
  

 

 

 

Net Investment Income (Loss)

      3,516       4,297       (3,410 )      15,609  

Increase (Decrease) in Net Assets from Operations:

         

Capital Gain Distributions

      -       -       71,381       -  

Realized Gain (Loss) on Investments

      (2,702 )      (4,555 )      7,747       (840 ) 
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      (2,702 )      (4,555 )      79,128       (840 ) 

Net Change in Unrealized Appreciation (Depreciation)

      5,938       32,246       526,798       16,704  
  

 

 

 

Net Gain (Loss) on Investment

      3,236       27,691       605,926       15,864  

Net Increase (Decrease) in Net Assets Resulting from Operations

      6,752       31,988       602,516       31,473  
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (9,130 )      (14,586 )      (167,584 )      (7,516 ) 
  

 

 

 

Total Increase (Decrease) in Net Assets

      (2,378 )      17,402       434,932       23,957  
  

 

 

 

Net Assets as of December 31, 2023:

     $ 211,630     $ 443,759     $ 3,243,346     $ 368,807  
  

 

 

 

 

See Accompanying Notes.

(1) See Footnote 1

    4

Transamerica Life Insurance Company

Separate Account VA-5

Statements of Operations and Changes in Net Assets

Years Ended December 31, 2023 and 2022

 

 

    

Janus Henderson - Research

Institutional Shares

Subaccount

  

Schwab Government Money

Market

Subaccount

  

VY JPMorgan Emerging Markets

Equity

Subaccount

  

Net Assets as of December 31, 2021:

     $ 2,867,261     $ 454,746     $ 371,359  
  

 

 

 

Investment Income:

       

Reinvested Dividends

      15,472       6,298       -  

Investment Expense:

       

Mortality and Expense Risk and Administrative Charges

      18,552       3,745       2,396  
  

 

 

 

Net Investment Income (Loss)

      (3,080 )      2,553       (2,396 ) 

Increase (Decrease) in Net Assets from Operations:

       

Capital Gain Distributions

      378,394       -       78,186  

Realized Gain (Loss) on Investments

      37,569       -       975  
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      415,963       -       79,161  

Net Change in Unrealized Appreciation (Depreciation)

      (1,279,369 )      -       (174,785 ) 
  

 

 

 

Net Gain (Loss) on Investment

      (863,406 )      -       (95,624 ) 

Net Increase (Decrease) in Net Assets Resulting from Operations

      (866,486 )      2,553       (98,020 ) 
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (48,252 )      (18,238 )      (8,997 ) 
  

 

 

 

Total Increase (Decrease) in Net Assets

      (914,738 )      (15,685 )      (107,017 ) 
  

 

 

 

Net Assets as of December 31, 2022:

     $ 1,952,523     $ 439,061     $ 264,342  
  

 

 

 

Investment Income:

       

Reinvested Dividends

      3,203       25,282       5,300  

Investment Expense:

       

Mortality and Expense Risk and Administrative Charges

      18,168       4,404       2,299  
  

 

 

 

Net Investment Income (Loss)

      (14,965 )      20,878       3,001  

Increase (Decrease) in Net Assets from Operations:

       

Capital Gain Distributions

      -       1       -  

Realized Gain (Loss) on Investments

      107,439       -       (648 ) 
  

 

 

 

Net Realized Capital Gains (Losses) on Investments

      107,439       1       (648 ) 

Net Change in Unrealized Appreciation (Depreciation)

      657,323       -       13,274  
  

 

 

 

Net Gain (Loss) on Investment

      764,762       1       12,626  

Net Increase (Decrease) in Net Assets Resulting from Operations

      749,797       20,879       15,627  
  

 

 

 

Increase (Decrease) in Net Assets from Contract Transactions

      (458,480 )      165,278       (1 ) 
  

 

 

 

Total Increase (Decrease) in Net Assets

      291,317       186,157       15,626  
  

 

 

 

Net Assets as of December 31, 2023:

     $ 2,243,840     $ 625,218     $ 279,968  
  

 

 

 

 

See Accompanying Notes.

(1) See Footnote 1

    5

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

1. Organization

Separate Account VA-5 (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. TLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TLIC’s other assets and liabilities. The Separate Account consists of multiple investment subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. Each Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in these specified investment subaccounts is available to contract owners of Distinct AssetsSM Variable Annuity.

Subaccount Investment by Mutual Fund:

 

Subaccount

   

Mutual Fund

Allspring Variable Trust:

   

Allspring Variable Trust:

Allspring VT Discovery SMID Cap Growth Class 2 Shares

   

Allspring VT Discovery SMID Cap Growth Fund Class 2 Shares

American Century Investments Variable Portfolios, Inc.:

   

American Century Investments Variable Portfolios, Inc.:

American Century VP Balanced Class I Shares

   

American Century VP Balanced Class I Shares

American Century VP Capital Appreciation Class I Shares

   

American Century VP Capital Appreciation Class I Shares

Columbia Funds Variable Insurance Trust:

   

Columbia Funds Variable Insurance Trust:

Columbia - Small Company Growth Class 1 Shares

   

Columbia - Small Company Growth Fund Class 1 Shares

Federated Insurance Series:

   

Federated Insurance Series:

Federated Hermes Fund for U.S. Government Securities II

   

Federated Hermes Fund for U.S. Government Securities II

Federated Hermes Managed Volatility II Primary Shares

   

Federated Hermes Managed Volatility II Primary Shares

AIM Variable Insurance Funds (Invesco Variable Insurance Funds):

   

AIM Variable Insurance Funds (Invesco Variable Insurance Funds):

Invesco V.I. Core Equity Series I Shares

   

Invesco V.I. Core Equity Fund Series I Shares

Invesco V.I. High Yield Series I Shares

   

Invesco V.I. High Yield Fund Series I Shares

Janus Aspen Series:

   

Janus Aspen Series:

Janus Henderson - Research Institutional Shares

   

Janus Henderson - Research Portfolio Institutional Shares

Schwab Annuity Portfolios:

   

Schwab Annuity Portfolios:

Schwab Government Money Market

   

Schwab Government Money Market Portfolio

Voya Investors Trust:

   

Voya Investors Trust:

VY JPMorgan Emerging Markets Equity

   

VY JPMorgan Emerging Markets Equity Portfolio

The following subaccount name changes were made effective during the fiscal year ended December 31, 2023:

 

Subaccount

   

Formerly

Allspring VT Discovery SMID Cap Growth Class 2 Shares

   

Allspring VT Discovery Class 2 Shares

 

6

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

2. Summary of Significant Accounting Policies

The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable 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.

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, 2023.

Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Funds are included in the Statements of Operations and Changes in Net Assets.

Dividend Income

Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.

Fair Value Measurements and Fair Value Hierarchy

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

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

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

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

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

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

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

c) Inputs other than quoted market prices that are observable

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

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

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

There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2023.

 

7

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

3. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2023 were as follows:

 

Subaccount   Purchases     Sales  
   

Allspring VT Discovery SMID Cap Growth Class 2 Shares

   $          -     $       7,160  
   

American Century VP Balanced Class I Shares

     4,276       8,661  
   

American Century VP Capital Appreciation Class I Shares

     1,438       8,523  
   

Columbia - Small Company Growth Class 1 Shares

     -       5,833  
   

Federated Hermes Fund for U.S. Government Securities II

     5,293       10,906  
   

Federated Hermes Managed Volatility II Primary Shares

     7,880       18,169  
   

Invesco V.I. Core Equity Series I Shares

     93,500       193,112  
   

Invesco V.I. High Yield Series I Shares

     18,595       10,502  
   

Janus Henderson - Research Institutional Shares

     3,204       476,647  
   

Schwab Government Money Market

     190,538       4,374  
   

VY JPMorgan Emerging Markets Equity

     5,300       2,299  

 

8

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

 

 

4. Change in Units

The change in units outstanding were as follows:

 

     Year Ended December 31, 2023            Year Ended December 31, 2022  
Subaccount    Units Purchased      Units Redeemed
and Transferred
to/from		     Net Increase
(Decrease)		            Units Purchased      Units Redeemed
and Transferred
to/from		     Net Increase
(Decrease)		  
             
Allspring VT Discovery SMID Cap Growth Class 2 Shares      -        (7 )      (7 )         -        (503 )      (503 ) 
             
American Century VP Balanced Class I Shares      -        (138 )      (138 )         -        -       -  
             
American Century VP Capital Appreciation Class I Shares      -        -       -          -        (368 )      (368 ) 
             
Columbia - Small Company Growth Class 1 Shares      -        (11 )      (11 )         -        (18 )      (18 ) 
             
Federated Hermes Fund for U.S. Government Securities II      -        (436 )      (436 )         -        (486 )      (486 ) 
             
Federated Hermes Managed Volatility II Primary Shares      -        (13,222 )      (13,222 )         -        (15,033 )      (15,033 ) 
             
Invesco V.I. Core Equity Series I Shares      -        (61,789 )      (61,789 )         -        (9,677 )      (9,677 ) 
             
Invesco V.I. High Yield Series I Shares      -        (211 )      (211 )         776        (646 )      130  
             
Janus Henderson - Research Institutional Shares      -        (4,721 )      (4,721 )         -        (518 )      (518 ) 
             
Schwab Government Money Market      114,258        -       114,258          -        (12,971 )      (12,971 ) 
             
VY JPMorgan Emerging Markets Equity      -        -       -          -        (3,975 )      (3,975 ) 

 

9

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

 

 

4. Change in Unit Dollars (continued)

 

     Year Ended December 31, 2023            Year Ended December 31, 2022  
Subaccount    Units Purchased in
Dollars		      Units Redeemed
and Transferred
to/from in Dollars		     Dollar Net Increase
(Decrease)		            Units Purchased in
Dollars		      Units Redeemed
and Transferred
to/from in Dollars		     Dollar Net Increase
(Decrease)		  
             
Allspring VT Discovery SMID Cap Growth Class 2 Shares    $ -      $ (865)     $ (865)        $ -      $  (57,738)     $  (57,738)  
             
American Century VP Balanced Class I Shares      -        (6,793 )      (6,793 )         -        -       -  
             
American Century VP Capital Appreciation Class I Shares      -        (56 )      (56 )         -        (29,523 )      (29,523 ) 
             
Columbia - Small Company Growth Class 1 Shares      -        (841 )      (841 )         -        (1,167 )      (1,167 ) 
             
Federated Hermes Fund for U.S. Government Securities II      -        (9,130 )      (9,130 )         -        (10,845 )      (10,845 ) 
             
Federated Hermes Managed Volatility II Primary Shares      -        (14,586 )      (14,586 )         -        (17,433 )      (17,433 ) 
             
Invesco V.I. Core Equity Series I Shares      -        (167,584 )      (167,584 )         -        (27,301 )      (27,301 ) 
             
Invesco V.I. High Yield Series I Shares      -        (7,516 )      (7,516 )         28,110        (23,109 )      5,001  
             
Janus Henderson - Research Institutional Shares      -        (458,480 )      (458,480 )         -        (48,252 )      (48,252 ) 
             
Schwab Government Money Market      165,287        (9 )      165,278          -        (18,238 )      (18,238 ) 
             
VY JPMorgan Emerging Markets Equity      -        (1 )      (1 )         -        (8,997 )      (8,997 ) 

 

10

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

5. Financial Highlights

The Separate Account offers various death benefit options, which have differing fees that are charged against the contract owner’s account balance. These charges are discussed in more detail in the individual’s policy. Differences in the fee structures for these units result in different unit values, expense ratios, and total returns.

 

            At December 31            For the Year Ended December 31  
Subaccount      Units      Unit Fair Value
Corresponding to
Lowest to Highest
Expense Ratio		      Net Assets            Investment
Income
Ratio*		    

Expense
Ratio**
Lowest to

Highest

    

Total Return***
 Corresponding to
Lowest to Highest

Expense Ratio

  

Allspring VT Discovery SMID Cap Growth Class 2 Shares

 

     12/31/2023        6,426      $ 125.38        to      $ 125.38      $ 805,710          -  %      0.85  %      to        0.85  %      19.13  %      to        19.13  % 
     12/31/2022        6,433        105.24        to        105.24        677,076          -       0.85       to        0.85       (38.37 )      to        (38.37 ) 
     12/31/2021        6,936        170.77        to        170.77         1,184,528          -       0.85       to        0.85       (5.84 )      to        (5.84 ) 
     12/31/2020        6,946        181.37        to        181.37        1,259,746          -       0.85       to        0.85       61.28       to        61.28  
     12/31/2019        6,954        112.46        to        112.46        782,046          -       0.85       to        0.85       37.85       to        37.85  

American Century VP Balanced Class I Shares

 

     12/31/2023        4,310        55.20        to        55.20        237,894          1.93       0.85       to        0.85       15.43       to        15.43  
     12/31/2022        4,448        47.82        to        47.82        212,722          1.21       0.85       to        0.85       (17.96 )      to        (17.96 ) 

      

      12/31/2021        4,448        58.29        to        58.29        259,297          0.72       0.85       to        0.85       14.79       to        14.79  
     12/31/2020        4,448        50.78        to        50.78        225,880          1.18       0.85       to        0.85       11.58       to        11.58  
     12/31/2019        4,448        45.51        to        45.51        202,440          1.44       0.85       to        0.85       18.84       to        18.84  

American Century VP Capital Appreciation Class I Shares

 

     12/31/2023        13,218        83.21        to        83.21        1,099,867          -       0.85       to        0.85       19.68       to        19.68  
     12/31/2022        13,218        69.53        to        69.53        919,093          -       0.85       to        0.85       (28.72 )      to        (28.72 ) 
     12/31/2021        13,586        97.54        to        97.54        1,325,171          -       0.85       to        0.85       10.22       to        10.22  
     12/31/2020        13,586        88.50        to        88.50        1,202,341          -       0.85       to        0.85       41.26       to        41.26  
     12/31/2019        13,578        62.65        to        62.65        850,700          -       0.85       to        0.85       34.42       to        34.42  

Columbia - Small Company Growth Class 1 Shares

 

     12/31/2023        8,412        77.52        to        77.52        652,072          -       0.85       to        0.85       25.57       to        25.57  
     12/31/2022        8,423        61.74        to        61.74        519,997          -       0.85       to        0.85       (36.31 )      to        (36.31 ) 
     12/31/2021        8,441        96.93        to        96.93        818,179          -       0.85       to        0.85       (3.72 )      to        (3.72 ) 
     12/31/2020        8,454        100.67        to        100.67        851,089          -       0.85       to        0.85       69.68       to        69.68  
     12/31/2019        8,799        59.33        to        59.33        522,073          -       0.85       to        0.85       39.51       to        39.51  

Federated Hermes Fund for U.S. Government Securities II

 

     12/31/2023        9,739        21.73        to        21.73        211,630          2.52       0.85       to        0.85       3.31       to        3.31  
     12/31/2022        10,175        21.03        to        21.03        214,008          1.90       0.85       to        0.85       (13.28 )      to        (13.28 ) 
     12/31/2021        10,661        24.25        to        24.25        258,574          2.02       0.85       to        0.85       (2.87 )      to        (2.87 ) 
     12/31/2020        10,661        24.97        to        24.97        266,216          2.10       0.85       to        0.85       4.33       to        4.33  
     12/31/2019        8,744        23.94        to        23.94        209,307          2.35       0.85       to        0.85       5.01       to        5.01  

Federated Hermes Managed Volatility II Primary Shares

 

     12/31/2023        373,238        1.19        to        1.19        443,759          1.86       0.85       to        0.85       7.77       to        7.77  
     12/31/2022        386,460        1.10        to        1.10        426,357          1.87       0.85       to        0.85       (14.48 )      to        (14.48 ) 
     12/31/2021        401,493        1.29        to        1.29        517,946          1.77       0.85       to        0.85       17.51       to        17.51  
     12/31/2020        412,741        1.10        to        1.10        453,108          2.56       0.85       to        0.85       0.08       to        0.08  
     12/31/2019        425,299        1.10        to        1.10        466,519          2.07       0.85       to        0.85       19.21       to        19.21  

Invesco V.I. Core Equity Series I Shares

 

     12/31/2023        1,043,218        3.11        to        3.11        3,243,346          0.73       0.85       to        0.85       22.33       to        22.33  
     12/31/2022        1,105,007        2.54        to        2.54        2,808,414          0.93       0.85       to        0.85       (21.22 )      to        (21.22 ) 
     12/31/2021        1,114,684        3.23        to        3.23        3,595,898          0.67       0.85       to        0.85       26.66       to        26.66  
     12/31/2020        1,115,421        2.55        to        2.55        2,840,829          1.38       0.85       to        0.85       12.89       to        12.89  
     12/31/2019        1,115,983        2.26        to        2.26        2,517,710          0.95       0.85       to        0.85       27.88       to        27.88  

Invesco V.I. High Yield Series I Shares

 

     12/31/2023        9,797        37.64        to        37.64        368,807          5.26       0.85       to        0.85       9.25       to        9.25  
     12/31/2022        10,008        34.46        to        34.46        344,850          4.70       0.85       to        0.85       (10.32 )      to        (10.32 ) 
     12/31/2021        9,878        38.42        to        38.42        379,517          4.78       0.85       to        0.85       3.50       to        3.50  
     12/31/2020        9,879        37.12        to        37.12        366,703          6.05       0.85       to        0.85       2.45       to        2.45  
     12/31/2019        9,879        36.23        to        36.23        357,944          5.86       0.85       to        0.85       12.55       to        12.55  

 

11

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

5. Financial Highlights (continued)

 

            At December 31            For the Year Ended December 31  
Subaccount      Units      Unit Fair Value
Corresponding to
Lowest to Highest
Expense Ratio		      Net Assets            Investment
Income
Ratio*		    

Expense
Ratio**
Lowest to

Highest

    

Total Return***
 Corresponding to
Lowest to Highest

Expense Ratio

  

Janus Henderson - Research Institutional Shares

 

     12/31/2023        20,059      $ 111.86        to      $ 111.86      $  2,243,840          0.15  %      0.85  %      to        0.85  %      41.97  %      to        41.97  % 
     12/31/2022        24,780        78.79        to        78.79        1,952,523          0.71       0.85       to        0.85       (30.48 )      to        (30.48 ) 
     12/31/2021        25,298        113.34        to        113.34        2,867,261          0.10       0.85       to        0.85       19.32       to        19.32  
     12/31/2020        25,108        94.99        to        94.99        2,385,053          0.54       0.85       to        0.85       31.83       to        31.83  
     12/31/2019        25,161        72.05        to        72.05        1,812,917          0.46       0.85       to        0.85       34.38       to        34.38  

Schwab Government Money Market

 

     12/31/2023        423,760        1.48        to        1.48        625,218          4.82       0.85       to        0.85       4.00       to        4.00  

      

      12/31/2022        309,502        1.42        to        1.42        439,061          1.42       0.85       to        0.85       0.60       to        0.60  
     12/31/2021        322,473        1.41        to        1.41        454,746          0.06       0.85       to        0.85       (0.78 )      to        (0.78 ) 
     12/31/2020        322,473        1.42        to        1.42        458,334          0.46       0.85       to        0.85       (0.56 )      to        (0.56 ) 
     12/31/2019        677,460        1.43        to        1.43        968,333          1.89       0.85       to        0.85       1.05       to        1.05  

VY JPMorgan Emerging Markets Equity

 

     12/31/2023        123,001        2.28        to        2.28        279,968          1.95       0.85       to        0.85       5.91       to        5.91  
     12/31/2022        123,001        2.15        to        2.15        264,342          -       0.85       to        0.85       (26.52 )      to        (26.52 ) 
     12/31/2021        126,976        2.92        to        2.92        371,359          -       0.85       to        0.85       (10.60 )      to        (10.60 ) 
     12/31/2020        135,096        3.27        to        3.27        441,975          0.59       0.85       to        0.85       32.61       to        32.61  
     12/31/2019        145,124        2.47        to        2.47        358,017          0.14       0.85       to        0.85       31.00       to        31.00  

 

  (1) 

See Footnote 1

 

    *

These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.

 

   **

These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.

 

  ***

These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.

 

12

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

6. Administrative and Mortality and Expense Risk Charges

TLIC deducts an annual charge during the accumulation phase, not to exceed $25, proportionately from the subaccounts’ unit values. An annual charge of 0.85% is deducted 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.

7. Income Tax

Operations of the Separate Account form a part of TLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable annuity contracts.

 

13

Transamerica Life Insurance Company

Separate Account VA-5

Notes to Financial Statements

December 31, 2023

 

 

8. Subsequent Events

The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued. During this period, there were no subsequent events requiring recognition in the financial statements.

9. Related Parties

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

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

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

 

14