As filed with the Securities and Exchange Commission on April 27, 2026

Registration No.    333-215598

811-06032 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-4

REGISTRATION STATEMENT UNDER THE

SECURITIES ACT OF 1933

Pre-Effective Amendment No. ___

Post-Effective Amendment No. 10

and

REGISTRATION STATEMENT UNDER THE

INVESTMENT COMPANY ACT OF 1940

Amendment No. 434 

 

SEPARATE ACCOUNT VA B

(Exact Name of Registrant)

TRANSAMERICA LIFE INSURANCE COMPANY

(Name of Depositor)

6400 C Street SW

Cedar Rapids, IA 52499-0001

(Address of Depositor’s Principal Executive Offices)

Depositor’s Telephone Number: (319) 355-8511

Brian Stallworth, Esquire

TRANSAMERICA LIFE INSURANCE COMPANY

c/o Office of the General Counsel

6400 C Street SW

Cedar Rapids, IA 52499-4240

(Name and Address of Agent for Service)

It is proposed that this filing become effective:

☐ immediately upon filing pursuant to paragraph (b) of Rule 485

☒ on May 1, 2026 pursuant to paragraph (b) of Rule 485

☐ 60 days after filing pursuant to paragraph (a)(1) of Rule 485

☐ on (date) pursuant to paragraph (a)(1) of Rule 485

If appropriate, check the following box:

☐ This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

Check each box that appropriately characterizes the Registrant:

 

☐ New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not filed a Securities Act registration statement or amendment thereto within 3 years preceding this filing)
☐ Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 (“Exchange Act”))
☐ If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act
☒ Insurance Company relying on Rule 12h-7 under the Exchange Act
☐ Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act)

Transamerica Variable Annuity Series    Transamerica AxiomSM II
Transamerica InspireSM Variable Annuity    Transamerica Variable Annuity I-Share
Transamerica PrincipiumSM III    Transamerica AxiomSM Variable Annuity
Transamerica LandmarkSM Variable Annuity    Transamerica ExtraSM Variable Annuity
Transamerica FreedomSM Variable Annuity    Transamerica LibertySM Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2026

to the

Prospectus dated May 1, 2026

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide the rider fee, growth and withdrawal percentages that we are currently offering for the Retirement Income Choice® 1.6 rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2026.

We will file a new Rate Sheet Prospectus Supplement at least 10 business days prior to changing the rider fee percentages, growth percentage, and withdrawal percentages.

For riders issued as part of the new policy application process. In order to receive the terms listed below we must receive Your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners: In order to receive the terms listed below, Your rider election form must be signed and received in good order while this supplement is in effect. If Your rider election form is received in good order after this supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing

The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage may increase by no more than 0.75% from the current rider fee percentage listed below). The growth percentage can change upon manual reset, which is a manual process under which your current rider is terminated and a new rider is issued. You can only elect to reset during the 30 day period following each successive fifth rider anniversary and if all other rider issue requirements are met as further described in the Retirement Income Choice® 1.6 – Base Benefit- Manual Resets section of your prospectus. The Rate Sheet Prospectus Supplement applicable to your policy will be included with your prospectus. Please work with your financial professional or visit www.transamerica.com to confirm the current rates.

 

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

1

RIDER FEES

 

Rider Benefit    Single Life Option    Joint Life Option

Base Benefit Designated Allocation Group A 

    1.85%    1.95%

Base Benefit Designated Allocation Group B

    1.40%    1.50%

Base Benefit Designated Allocation Group C

    0.95%    1.05%

Death Benefit

    0.40%    0.35%

Income Enhancement

    0.30%    0.50%

GROWTH PERCENTAGE

5.00%

WITHDRAWAL PERCENTAGE

 

Age at time of

first withdrawal

   

Withdrawal Percentage -

Single Life Option*

  

Withdrawal Percentage -

Joint Life Option*

0-58    0.00%    0.00%
59-64    3.50%    3.00%
65-80    4.75%    4.25%
≥ 81    5.25%    4.75%

* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday.

 

Transamerica Life Insurance Company

Product Name

    SEC File
Number		    Product Name    SEC File
Number

Transamerica Variable Annuity Series

    333-185573    Transamerica AxiomSM II    333-186029

Transamerica InspireSM Variable Annuity

    333-215598    Transamerica Variable Annuity I-Share    333-186031

Transamerica PrincipiumSM III

    333-186030    Transamerica AxiomSM Variable Annuity    333-187913

Transamerica LandmarkSM Variable Annuity

    33-33085    Transamerica ExtraSM Variable Annuity    333-187910

Transamerica FreedomSM Variable Annuity

    33-56908    Transamerica LibertySM Variable Annuity    333-187911

 

 

 

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

2

Transamerica Variable Annuity Series    Transamerica Inspire® Variable Annuity
Transamerica AxiomSM II    Transamerica Variable Annuity I-Share
Transamerica PrincipiumSM III    Transamerica LandmarkSM Variable Annuity
Transamerica FreedomSM Variable Annuity    Transamerica LibertySM Variable Annuity
Transamerica ExtraSM Variable Annuity    Transamerica AxiomSM Variable Annuity

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2026

to the

Prospectus dated May 1, 2026

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this supplement to provide the rider fee, growth and withdrawal percentages that we are offering for the Retirement Income Max® rider as described in the prospectus.

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2026.

We will file a new Rate Sheet Prospectus Supplement at least 10 business days prior to changing the rider fee percentages, growth percentage, and withdrawal percentages.

For riders issued as part of the new policy application process. In order to receive the terms listed below we must receive Your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners: In order to receive the terms listed below, Your rider election form must be signed and received in good order while this supplement is in effect. If Your rider election form is received in good order after this supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage may increase by no more than 0.75% from the current rider fee percentage listed below). The Rate Sheet Prospectus Supplement applicable to your policy will be included with your prospectus. Please work with your financial professional or visit www.transamerica.com to confirm the current rates.

RIDER FEE

 

        Single             Joint        
        1.50%                 1.60%     

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

1

GROWTH PERCENTAGE

5.00%

WITHDRAWAL PERCENTAGE

 

Age at time of

first withdrawal

   

Withdrawal Percentage -

Single Life Option*

  

Withdrawal Percentage -

Joint Life Option*

0-58    0.00%    0.00%
59-64    3.75%    3.25%
65-80    5.00%    4.50%
≥ 81    5.50%    5.00%

* The withdrawal percentage is determined by the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the benefit anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) 59th birthday.

 

Transamerica Life Insurance Company

Product Name

    SEC File
Number		    Product Name    SEC File
Number

Transamerica Variable Annuity Series

    333-185573    Transamerica Inspire® Variable Annuity    333-215598

Transamerica AxiomSM II

    333-186029    Transamerica Variable Annuity I-Share    333-186031

Transamerica PrincipiumSM III

    333-186030    Transamerica LandmarkSM Variable Annuity    33-33085

Transamerica FreedomSM Variable Annuity

    33-56908    Transamerica LibertySM Variable Annuity    333-187911

Transamerica ExtraSM Variable Annuity

    333-187910    Transamerica AxiomSM Variable Annuity    333-187913

 

 

 

 

 

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

2

Transamerica Variable Annuity Series    Transamerica Inspire® Variable Annuity
Transamerica AxiomSM II    Transamerica PrincipiumSM III
Transamerica Variable Annuity I-Share   

Issued by

TRANSAMERICA LIFE INSURANCE COMPANY

SEPARATE ACCOUNT VA B

Rate Sheet Supplement dated May 1, 2026

to the

Prospectus dated May 1, 2026

This Rate Sheet Prospectus Supplement (this “supplement”) applies to the above listed Transamerica variable annuities and should be read and retained with the prospectus. If you would like another copy of the current prospectus, please call us at (800) 525-6205.

All Rate Sheet Prospectus Supplements are also available on the EDGAR system at www.sec.gov. Please see the SEC file number table below for your applicable product.

We are issuing this Rate Sheet Prospectus Supplement to provide the premium and rebalance allocation requirements as well as the rider fee and withdrawal percentages that we are currently offering for the Transamerica Income Edge rider as described in the prospectus

The information listed below applies to applications signed on or after and rider election forms received on or after May 1, 2026.

We will file a new Rate Sheet Prospectus Supplement at least 10 business days prior to changing the rider fee percentages, required allocations and withdrawal percentages.

For riders issued as part of the new policy application process. In order to receive the terms listed below we must receive Your completed application within 7 calendar days from the date that this supplement is no longer effective, and the policy must be funded within 60 calendar days from the date that this supplement is no longer effective. If these conditions are not met, Your application will be considered not in good order and additional paperwork may be required to issue the policy with the applicable rates in effect at that time.

For riders issued to existing policy Owners: In order to receive the terms listed below, Your rider election form must be signed and received in good order while this supplement is in effect. If Your rider election form is received in good order after this supplement is no longer in effect, You will receive the rider terms that are in effect on the date Your rider election form is received in good order. Election forms must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Election forms received in good order on non-business days or after our close of business will get next-day pricing.

The rider fee and withdrawal percentages applicable to your policy will not change for the life of your policy (unless subject to an automatic step-up as described in the Automatic Step-Up section of your prospectus. At the time of an automatic step-up the rider fee percentage may increase by no more than 0.75% from the current rider fee percentage listed below.) The premium and rebalance allocation requirements will not change for the life of your policy. The Rate Sheet Prospectus Supplement applicable to your policy will be included with your prospectus. Please work with your financial professional or visit www.transamerica.com to confirm the current rates.

RIDER FEE

 

        Single             Joint        
        1.45%                 1.55%     

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

1

REQUIRED ALLOCATIONS

 

     

Premium

   

Rebalance

  

Minimum

   

Maximum

   

Minimum

   

Maximum

Stable Account*

    30%    30%    N/A    N/A

Select Investment Options

    0%    70%    0%    100%

Flexible Investment Options

    0%    70%    0%    100%

*The stable account is excluded from rebalancing

SINGLE LIFE WITHDRAWAL PERCENTAGE

 

Age at time of

first withdrawal

  

Rider Years 1-5
Withdrawal

Percentage -

Single Life Option**

 

Rider Years 6-10

Withdrawal

Percentage -

Single Life

Option**

 

Rider Years 11+

Withdrawal

Percentage -

Single Life

Option**

0-58   0.00%   0.00%   0.00%
59-64   3.75%   4.25%   4.75%
65-80   5.00%   5.50%   6.00%
≥ 81   5.50%   6.00%   6.50%

JOINT LIFE WITHDRAWAL PERCENTAGE

 

Age at time of

first withdrawal

  

Rider Years 1-5
Withdrawal

Percentage -

Joint Life Option**

 

Rider Years 6-10

Withdrawal

Percentage -

Joint Life

Option**

 

Rider Years 11+

Withdrawal

Percentage -

Joint Life

Option**

0-58   0.00%   0.00%   0.00%
59-64   3.25%   3.75%   4.25%
65-80   4.50%   5.00%   5.50%
≥ 81   5.00%   5.50%   6.00%

** The withdrawal percentage is determined by the number of rider years and the annuitant’s age (or the annuitant’s spouse’s age if younger and the joint life option is elected) at the time of the first withdrawal taken on or after the rider anniversary immediately following the annuitant’s (or the annuitant’s spouse’s if younger and the joint life option is elected) attainment of the minimum benefit age.

 

Transamerica Life Insurance Company

Product Name

    SEC File Number     Product Name    SEC File Number 

Transamerica Variable Annuity Series

    333-185573    Transamerica Inspire® Variable Annuity    333-215598

Transamerica AxiomSM II

    333-186029    Transamerica PrincipiumSM III    333-186030

Transamerica Variable Annuity I-Share

    333-186031          

This Supplement must be accompanied or preceded by the current Prospectus.

Please read this Supplement carefully and retain it for future reference.

 

2

TRANSAMERICA INSPIRE® VARIABLE ANNUITY 
Transamerica Life Insurance Company
Separate Account VA B (EST. 1/19/1990)
Administrative Office
6400 C Street SW
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com
Transamerica Financial Life Insurance Company
Separate Account VA BNY (EST. 9/27/1994)
Administrative Office
6400 C Street SW
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com
Sales of this Policy were discontinued for new purchasers effective September 1, 2020.
This prospectus describes information You should know before You purchase a Transamerica Inspire® Variable Annuity variable annuity. The prospectus describes a contract between each Owner and joint Owner (“You” ) and Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company (“us,” “we,” “our” or “Company” ). This is an individual, deferred, flexible premium variable annuity. This variable annuity allows You to allocate Your premium payments among the Fixed Account (if available) and the Subaccounts that invest in underlying fund portfolios which may be found under Appendix Investment Options Available Under the Policy.
This prospectus and the underlying fund prospectuses give You important information about the policies and the underlying fund portfolios. Please read them carefully before You invest and keep them for future reference.
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.
This variable annuity may not be suitable for everyone. The Policy is a complex investment vehicle and involves risks including potential loss of principal. The Policy is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals could result in surrender charges, taxes, and tax penalties. Our financial obligations under the Policy are subject to our financial strength and claims-paying ability. This variable annuity may not be appropriate for people who do not have a long-term investment time horizon and is not appropriate for people who intend to engage in market timing or other frequent (disruptive) trading. You will get no additional tax advantage from this variable annuity if You are investing in a variable annuity through a tax-advantaged retirement plan (such as a 401(k) plan or Individual Retirement Account (“IRA”)). This prospectus is not intended to provide tax, accounting or legal advice. We are relying on the exemption provided by Rule 12h-7 under the 1934 Act. In reliance on that exemption, we do not file periodic and current reports that we would be otherwise required to file pursuant to Section 15 (d) of the 1934 Act.
We are not an investment adviser nor are we registered as such with the SEC or any state securities regulatory authority. We are not acting in any fiduciary capacity with respect to Your Policy nor are we acting in any capacity on behalf of any tax-advantaged retirement plan. This information does not constitute personalized investment advice or financial planning advice.
Additional information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission’s staff and is available at Investor.gov.
Prospectus Date: May 1, 2026
 
 
TABLE OF CONTENTS
 
glossary of terms___________________
1
3
5
9
Policy ____________________________
13
Business Continuity____________________
14
14
Information About Us___________________
14
14
The Separate Account___________________
15
15
16
VOTING RIGHTS______________________
16
THE ANNUITY policy__________________
16
PURCHASE___________________________
17
Policy Issue Requirements_________________
17
Premium Payments_____________________
17
Policy Value_________________________
18
INVESTMENT OPTIONS_________________
18
19
20
The Fixed Account_____________________
21
Transfers___________________________
21
Investment Restrictions__________________
22
22
EXPENSES____________________________
25
Transaction Expenses___________________
25
Surrender Charges_____________________
25
25
Premium Taxes_______________________
26
26
Special Service Fees_____________________
26
Transfer Fee_________________________
26
Base Contract Expenses__________________
26
26
Administrative Charges__________________
26
Annual Service Charge___________________
26
Fund Facilitation Fee____________________
27
Optional Benefits______________________
27
27
Reduced Fees and Charges________________
27
Revenue We Receive____________________
27
29
Ownership__________________________
29
Beneficiary__________________________
29
Assignment_________________________
29
29
Certain Offers________________________
29
30
ACCESS TO YOUR MONEY_______________
30
Surrenders__________________________
30
30
31
Signature Guarantee____________________
32
32
Annuity Payment Options________________
32
34
DEATH BENEFIT_______________________
41
42
42
42
Owner Death________________________
43
Spousal Continuation___________________
43
Amount of Death Benefit_________________
43
43
44
44
ADDITIONAL FEATURES________________
53
Systematic Payout Option________________
53
53
54
Unemployment Waiver__________________
54
54
55
Asset Rebalancing_____________________
56
Loans______________________________
56
TAX INFORMATION____________________
56
OTHER INFORMATION_________________
65
65
65
65
Mixed and Shared Funding________________
65
66
Legal Proceedings______________________
66
66
 
68
 
75
 
78
ii
TABLE OF CONTENTS continued
 
Examples ______________________
80
 
Death Benefit____________________
83
 
85
 
86
 
87
 
92
 
95
 
99
 
103
 
105
 
statE Variations__________________
106
APPENDIX  
FINANCIALINTERMEDIARY VARIATIONS 107
iii
glossary of terms
Accumulation Unit- An accounting unit of measure used in calculating the Policy Value in the Separate Account before the Annuity Commencement Date. For more information on unit values, including how they are calculated after the Annuity Commencement Date, please see the Statement of Additional Information.
Adjusted Policy Value- The Policy Value increased or decreased by any Excess Interest Adjustment.
Administrative Office- Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, Attention: Customer Care Group, 6400 C Street SW, Cedar Rapids, IA 52499, (800)525-6205.
Annuitant- The person on whose life any annuity payments involving life contingencies will be based.
Annuitize (Annuitization)- When You switch from the accumulation phase to the income phase and we begin to make annuity payments to You (or Your payee).
Annuity Commencement Date- The date upon which annuity payments are to commence. This date may not be later than the last day of the Policy month following the month in which the Annuitant attains age 99 (earlier if required by state law).
Annuity Payment Option- A method of receiving a stream of annuity payments selected by the Owner.
Assumed Investment Return or AIR- The annual effective rate shown in Your Policy that is used in the calculation of each variable annuity payment.
Business Day- A day when the New York Stock Exchange is open for regular trading. Business Day may be referred to as Market Day in Your Policy.
Cash Value- The Adjusted Policy Value less any applicable surrender charge.
Code or Internal Revenue Code- The Internal Revenue Code of 1986, as amended.
Death Proceeds- The amount payable upon death.
Excess Interest Adjustment- A positive or negative adjustment to amounts paid out or transferred 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 us 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 withdrawals, surrenders or commencement of annuity payments, depending upon whether there has been an increase or decrease in interest rates, respectively. The Excess Interest Adjustment will not decrease the interest credited to Your Policy below the guaranteed minimum. The Excess Interest Adjustment does not apply to policies issued in New York by Transamerica Financial Life Insurance Company.
Fixed Account- One or more Investment Options under the Policy that are part of our general assets and are not in the Separate Account.
Fund Facilitation Fee- A fee we charge in order to make certain Portfolio Companies available as Investment Options under the Policy. This may also be referred to as a Platform Charge.
Guaranteed Lifetime Withdrawal Benefit- Any optional benefit under the Policy that provides a guaranteed minimum withdrawal benefit, including the Guaranteed Principal SolutionSM rider, the Retirement Income Max® rider, the Retirement Income Choice® 1.6 rider and the Transamerica Income EdgeSM rider.
Guaranteed Minimum Accumulation Benefit- A benefit under the optional Guaranteed Principal SolutionSM (GPS) rider that provides a guaranteed future value.
Guaranteed Period Options- The various guaranteed interest rate periods of the Fixed Account which we may offer and into which premium payments may be paid or amounts transferred when available.
Investment Option(s) - The Subaccounts and the Fixed Account.
Investment Restrictions - The requirement of the Owners to invest in certain underlying fund portfolios, as required by certain optional riders.
Owner (You, Your)- The person who may exercise all rights and privileges under the Policy.
Physician- A doctor of medicine or osteopathy as set forth in Section 186 (r)(1) of the Social Security Act, as amended, who is legally authorized to practice medicine and surgery within the United States by the jurisdiction in which he or she performs such function or action.
1
Policy- The Transamerica Inspire® Variable Annuity, an individual deferred, flexible premium variable annuity. Also referred to as the contract.
Policy Date- The date shown on the Policy data page attached to the Policy and the date on which the Policy becomes effective.
Policy Value- On or before the Annuity Commencement Date, the Policy Value is equal to the Owner's:
●
premium payments; minus
●
gross withdrawals (withdrawals plus the surrender charge on the portion of the requested withdrawal that is subject to the surrender charge plus or minus any Excess Interest Adjustment plus taxes (on the withdrawal)); plus
●
interest credited in the Fixed Account; plus
●
accumulated gains in the Separate Account; minus
●
accumulated losses in the Separate Account; minus
●
service charges, rider fees, premium taxes, transfer fees, and other charges (including those imposed upon termination), if any.
Policy Year- A Policy Year begins on the Policy Date and on each anniversary thereafter.
Portfolio Company(ies)- The investment company(ies) made available as Investment Options under the Policy. Also referred to as underlying fund portfolios.
Required Beginning Date- April 1 of the calendar year next following the year in which the Owner reaches the applicable age as per Code section 401(a)(9)(C). If distributions hereunder commence prior to such date under an annuity option that provides for distributions that are made in accordance with Regulation Section 1.401(a)(9)-6(a)(3), then the Annuity Start Date shall be treated as the Required Beginning Date in accordance with Regulation Section 1.401(a)(9)-6(k).
Separate Account- Separate Account VA B and Separate Account VA BNY, Separate Accounts established and registered as unit investment trusts under the Investment Company Act of 1940, as amended (the “1940 Act”), to which premium payments under the policies may be allocated.
Separate Account Value- The portion of the Policy Value that is invested in the Separate Account.
Stable Account- A Fixed Account option, only available if You elect the Transamerica Income EdgeSM rider, to which You must allocate a portion of Your premium payments and Policy Value. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES.
Subaccount- A subdivision within the Separate Account, the assets of which are invested in a specified underlying fund portfolio.
Surrender Charge Free Amount- The amount that can be withdrawn each Policy Year without incurring any Surrender Charges. Please see EXPENSES – Surrender Charges for more explanation.
Valuation Period- The period of time from one determination of Accumulation Unit values and annuity unit values to the next subsequent determination of those values. Such determination shall be made generally at the close of business on each Business Day.
Written Notice- Written Notice, signed by the Owner, that gives us the information we require and is received in good order at the Administrative Office. For some transactions, we may accept an electronic notice or telephone instructions. Such electronic notice must meet the requirements for good order that we establish for such notices.
2
Overview of the policy
Purpose
The Transamerica Inspire Variable Annuity is a variable annuity Policy. You can use the Policy to accumulate assets for retirement or other long-term financial planning purposes. The amount of money You are able to accumulate in Your Policy depends upon the performance of Your investment options. The Policy also offers a death benefit to protect Your designated beneficiaries.
This Policy may not be appropriate for people who do not have a long-term investment time horizon and is not appropriate for people who intend to engage in market timing or other frequent (disruptive) trading.
Who the Policy is Appropriate For
The Policy is designed for investors who intend to accumulate assets for retirement or other long-term financial planning best suited for those with a long-term investment horizon. Although You have the ability to make partial withdrawals and/or surrender the Policy at any time during the accumulation phase, the Policy should not be viewed as a highly liquid investment. In that regard, withdrawals taken in the near term can result in Your being assessed a surrender charge, which can be a significant amount. In addition, if You participate in certain optional benefits, withdrawals can markedly reduce the benefit’s value. Finally, failure to hold the Policy for the long-term would mean that You lose the opportunity for the performance of Your chosen investment options to grow on a tax-deferred basis. Thus, the Policy’s features are appropriate for an investor who does not have significant liquidity needs with respect to money dedicated to the Policy, has a long-term investment horizon, and has purchased the Policy for retirement purposes or other long-term financial planning purposes.
Share Classes
Two different Share Classes are sold under the Policy - Inspire and Inspire with the Liquidity Rider. The Inspire features a seven-year surrender charge period and base Separate Account annual expenses of 1.30%. The Inspire with the Liquidity Rider features a four-year surrender charge period and base Separate Account annual expense of 1.80% for the first four Policy years and 1.30% thereafter.
Phases of the Policy
The Policy has two phases: (1) an accumulation (or savings) phase and (2) and annuity (or income) phase.
Accumulation Phase. To help You accumulate assets during the accumulation phase, You can invest Your Premium payments and Policy Value in:
●
Underlying fund portfolios available under the Policy, each of which has its own investment strategies and risks; investment adviser(s); expense ratio; and performance history; and
●
The Fixed Account option, which offers a guaranteed interest rate during a selected period.
A list of Portfolio Companies in which You can invest is provided in an Appendix to this Prospectus. See Appendix – Investment Options Available Under the Policy.
Annuity Phase. You can elect to Annuitize Your Policy and turn Your Policy Value into a stream of income payments called annuity payments. When You Annuitize Your Policy, the accumulation phase ends, and You will no longer be able to withdraw money from Your Policy. Any guaranteed benefits You elected will terminate without value.
You can choose from among several Annuity Payment Options, including those guaranteeing payments for life and/or for a fixed time period. If You choose income for a specified period, life income with 10 years certain, life income with guaranteed return of Policy proceeds, or income of a specified amount, and the person receiving annuity payments dies prior to the end of the guaranteed period, then the remaining guaranteed annuity payments will be continued to a new payee, or their present value may be paid in a single sum.
Primary Features and Options of the Policy
Type of Policy. Transamerica Variable Annuity Series Policy is a flexible premium deferred variable annuity Policy. It is a “deferred” annuity because You defer taking annuity payments during the accumulation phase. It is a “flexible premium” annuity because You are generally not required to make any premium payments in addition to the initial minimum premium payment. The Policy is “variable” because its value can go up or down based on the performance of the Investment Options You choose. The Policy is available as a non-qualified or qualified Policy. The tax treatment of Your Policy may impact the benefits, as well as fees and charges under Your Policy.
3
Accessing Your Money. Before You Annuitize, You can withdraw money from Your Policy at any time. If You take a withdrawal, You may be subject to a negative Excess Interest Adjustment and/or have to pay a surrender charge and/or income taxes, including a tax penalty if You are younger than age 59½.
Tax Treatment. You can transfer money between investment options without tax implications, and earnings (if any) on Your investments are generally tax-deferred. You are taxed only upon: (1) making a withdrawal; (2) receiving a payment from us; or (3) payment of a death benefit; (4) or as required under the Internal Revenue Code for certain transactions.
Death Benefits. The Policy includes, at no additional cost, a default death benefit that will pay Your designated beneficiaries at least the Policy Value or as required under the Internal Revenue Code for certain transactions. You can purchase a guaranteed minimum death benefit for an additional fee, which may increase the amount of money payable to Your designated beneficiaries upon Your death.
Optional Living Benefits. For an additional fee, You may have purchased one of several Guaranteed Lifetime Withdrawal Benefits, which are designed to provide a guaranteed level of withdrawals from Your Policy, regardless of investment performance.
Optional Liquidity Rider. For an additional fee, You can reduce the number of years that each premium payment is subject to surrender charges from seven years to four years.
Additional Services. At no additional charge, You may select the following additional services:
●
Dollar-Cost Averaging. This service allows You to automatically transfer amounts between certain investment options on a monthly basis.
●
Asset Rebalancing. This service automatically reallocates Your Policy Value among Your Investment Options on a periodic basis to maintain Your standing allocation instructions.
●
Systematic Payout Options. This service allows You to receive regular automatic withdrawals from Your Policy either on a monthly, quarterly, semi-annual and annual basis.
●
Telephone and Electronic Transactions. This service allows You to make certain transactions by telephone or other electronic means with the appropriate authorization from You.
4
important INFORMATION you should consider about the policy 
 
FEES AND EXPENSES
Location in
Prospectus
Are There Charges for
Early Withdrawal?
Yes. If You withdraw money during a specified number of Policy Years
following each premium payment, You may be assessed a surrender charge.
The surrender is assessed for 7 years with a maximum of 8% under the
I-Share. The surrender charge is assessed for 4 years with a maximum of
8% under the I-Share with Liquidity Rider.
For example, if You make an early withdrawal, You could pay a surrender
charge on a $100,000 investment of up to $8,000.
Annuity Policy Fee
Tables and Expense
Examples
Transaction Expenses
– Surrender Charge
Access to Your Money
Surrenders
Are There Transaction
Charges?
Yes. In addition to surrender charges, You also may be assessed a transfer
fee and special services fee.
Transfer Fee. We reserve the right to charge for transfers among Investment
Options after the first 12 transfers per Policy Year. For each such
additional transfer, we may impose a transfer fee of $10. Currently, we do
not charge a transfer fee, but reserve the right to do so.
Special Service Fee. We reserve the right to deduct a charge for special
services, including overnight delivery, duplicate policies, handling
insufficient checks on new business, duplicate Form 1099 and Form 5498
tax forms, check copies, printing and mailing previously submitted forms,
and asset verification requests from mortgage companies.
Annuity Policy Fee
Tables and Expense
Examples
Expenses –
Transaction Expenses
5
 
FEES AND EXPENSES
Location in
Prospectus
Are There Ongoing Fees
and Expenses?
(annual charges)
Yes. The table below describes the fees and expenses that You may pay
each year, depending on the options You choose. Please refer to Your Policy
specifications page for information about the specific fees You will pay
each year based on the options You have elected.
Annuity Policy Fee
Tables and Expense
Examples
Base Contract Expenses
Appendix –
Investment Options
Available Under the
Policy
Annual Fee
Minimum
Maximum
Base Policy1
1.30%
3.30%
Portfolio Company (fund fees and
expenses)2
0.53%
1.24%
Optional Benefit Expenses (if elected)
0.20%1
2.50%3
1 As a percentage of average Separate Account Value.
2 As a percentage of Portfolio Company assets.
3 As a percentage of the Withdrawal Base.
Because Your Policy is customizable, the choices You make affect how
much You will pay. To help You understand the cost of owning Your
Policy, the following table shows the lowest and highest cost You could pay
each year based on current charges. This estimate assumes that You do not
take withdrawals from the Policy, which could add surrender charges
that substantially increase costs.
Lowest Annual Cost
$1,865
Highest Annual Cost
$6,231
Assumes:
Assumes:
●Investment of $100,000
●5% annual appreciation
●Least expensive Portfolio Company
fees and expenses
●No optional benefits
●No sales charges
●No additional purchase payments,
transfers, or withdrawals
●Investment of $100,000
●5% annual appreciation
●Most expensive combination
of optional benefits and
Portfolio Company fees and
expenses
●No sales charges
●No additional purchase
payments, transfers, or
withdrawals
 
RISKS
Location in
Prospectus
Is There a Risk of Loss
From Poor
Performance?
Yes. You can lose money by investing in this Policy.
Principal Risks of
Investing in the Policy
Is this a Short-Term
Investment?
No. This Policy is not a short-term investment and is not appropriate for
an investor who needs ready access to cash.
Surrender charges may apply for several years under the Policy,. Surrender
charges will reduce the value of Your Policy if You withdraw money during
that time.
The benefits of tax deferral and living benefit protection also means the
Policy is more beneficial to investors with a long-term time horizon.
Principal Risks of
Investing in the Policy
Transaction Expenses -
Surrender Charges
Tax Information
6
 
RISKS
Location in
Prospectus
What are the Risks
Associated with
Investment Options?
●An investment in this Policy is subject to the risk of poor investment
performance and can vary depending on the performance of the
Investment Options available under the Policy.
●Each Investment Option, including the Fixed Account, has its own
unique risks.
●You should review the prospectuses for the available Portfolio
Companies before making an investment decision.
Principal Risks of
Investing in the Policy
Investment Options
Appendix: Investment
Options Available
Under the Policy
What are the Risks
Related to the
Insurance Company?
Any obligations (including under the Fixed Account), guarantees, and
benefits under the Policy are subject to our claims-paying ability. If we
experience financial distress, we may not be able to meet our obligations
to You. More information about Transamerica Life Insurance Company
and Transamerica Financial Life Insurance Company, including our
financial strength ratings, is available by visiting transamerica.com or by
calling toll-free (800)525-6205.
Principal Risks of
Investing in the Policy
Information About Us
Financial Condition
 
RESTRICTIONS
Location in
Prospectus
Are There Restrictions
on the Investment
Options?
Yes.
●We reserve the right to impose a charge for transfers in excess of 12
transfers per Policy Year.
●We reserve the right to limit transfers in circumstances of large or
frequent transfers.
●The Fixed Account option may not be available for investment
depending on when You applied for Your Policy and when it was issued.
●We reserve the right to remove or substitute the Portfolio Companies
that are available as Investment Options under the Policy.
Transaction Expenses
Investment Option –
Transfers
Market Timing and
Disruptive Trading
Are There any
Restrictions on Policy
Benefits?
Yes.
●Certain optional benefits limit or restrict the Investment Options that
You may select under the Policy. We reserve the right to change these
restrictions in the future.
●Withdrawals that exceed limits specified by the terms of an optional
benefit may reduce the value of an optional benefit by an amount
greater than the value withdrawn, which could significantly reduce the
value or even terminate the benefit.
●We reserve the right to stop offering an optional benefit at any time for
new sales, which includes sales to the Owners who may want to
purchase the benefit after they purchase the Policy.
●In some cases, a benefit may not be available through all financial
intermediaries or all states. For more information on the options
available for electing a benefit, please contact Your financial
intermediary or our Administrative Office.
Investment Restrictions
Benefits Available
Under the Policy
Optional Benefit Riders
7
 
TAXES
Location in
Prospectus
What Are the Policy’s
Tax Implications?
●Consult with a tax professional to determine the tax implications of an
investment in and payments received under the Policy.
●If You purchase the Policy as an individual retirement account or
through a tax qualified plan, You do not get any additional tax benefit.
●You will generally not be taxed on increases in the value of Your Policy
until they are withdrawn. Earnings on Your Policy are taxed at ordinary
income tax rates when withdrawn, and You may have to pay a penalty if
You take a withdrawal before age 59 ½.
Tax Information
 
CONFLICT OF INTEREST
Location in
Prospectus
How are Investment
Professionals
Compensated?
Your investment professional may receive compensation for selling this
Policy to You, in the form of commissions, additional cash benefits (e.g.,
bonuses), and non-cash compensation. Our affiliate, Transamerica
Capital, LLC (“TCL”) formerly known as Transamerica Capital, Inc.
(“TCI”) is the principal underwriter and may share the revenue we earn
on this Policy with Your investment professional’s firm. In addition, we
may pay all or a portion of the cost of affiliates’ operating and other
expenses. This conflict of interest may influence Your investment
professional to recommend this Policy over another investment for which
the investment professional is not compensated or compensated less.
Distribution of the
Policies
Should I Exchange My
Policy?
If You already own an insurance Policy, some investment professionals
may have a financial incentive to offer You a new Policy in place of the
one You own. You should only exchange a Policy You already own if You
determine, after comparing the features, fees, and risks of both policies,
that it is better for You to purchase the new Policy rather than continue to
own Your existing Policy.
Exchanges and/or
Reinstatements
8
Annuity Policy FEE TABLE AND EXPENSE EXAMPLES
The following table describes the fees and expenses that You will pay when buying, owning, and surrendering or making withdrawals from the Policy. Please refer to Your Policy specification page for information about the specific fees You will pay each year based on the options You have elected.
The first table describes the fees and expenses that You will pay at the time that You buy the Policy, surrender or make withdrawals from the Policy, or transfer Cash Value between Investment Options. State premium taxes may also be deducted.
Transaction Expenses: 
Sales Load Imposed On Purchase Payments
0.00%
Contingent Deferred Surrender Charges (as a percentage of premium surrendered or withdrawn)(1)
Number of Years Since Premium Payment Date
Year 1
8.00%
Year 2
8.00%
Year 3
7.00%
Year 4
6.00%
Year 5
5.00%
Year 6
4.00%
Year 7
3.00%
Transfer Fee(2)
$10
Special Service Fee(3)
$50
The next table describes the fees and expenses that you will pay each year during the time that you own the Policy, not including portfolio fees and expenses.
Annual Contract Expenses: 
Annual Service Charge(4)
$0-$50
Base Contract Expenses (as a percentage, annually, of average Separate Account Value)(5):
1.30%
Fund Facilitation Fee (as a percentage, annually, of the net asset value of Subaccount)
0.30%
Optional Benefit Expenses:
Annual Step-Up Death Benefit (as a percentage, annually, of average Separate Account Value)
0.20%
Liquidity Rider (as a percentage, annually, of average Separate Account Value)
0.50%
Optional Death Benefit Riders – No Longer Available
Additional Death DistributionSM (annual charge based on Policy Value)
0.25%
Additional Death Distribution+SM (annual charge based on Policy Value)
0.55%
Maximum Fees 
 
Maximum
Optional Guaranteed Lifetime Withdrawal Benefit Riders – No Longer Available(6)
Retirement Income Max® (annual charge - % of Withdrawal Base)
2.50%
Retirement Income Choice® 1.6 (annual charge - % of Withdrawal Base)
Base Benefit Designated Allocation Group A
2.50%
Base Benefit Designated Allocation Group B
2.50%
Base Benefit Designated Allocation Group C
2.50%
Additional Benefits available with Retirement Income Choice® 1.6 rider:
Income EnhancementSM - (Single Life Option - Not available in NY) (annual charge - % of Withdrawal Base)
0.45%
Income EnhancementSM - (Joint Life Option - Not available in NY) (annual charge - % of Withdrawal Base)
0.65%
Transamerica Income EdgeSM (annual charge - % of Withdrawal Base)
2.50%
9
*The current rider fee will be less than or equal to the stated Maximum. Your rider fee may increase (or decrease) at the time of any automatic step-up. See Automatic Step-Up discussion for each applicable optional benefit. Your rider fee percentage will not exceed the maximum fee percentage shown in this table. The current rider fee will be disclosed in a Rate Sheet Prospectus Supplement. All Rate Sheet Prospectus Supplements are also available on the EDGAR system at sec.gov (File Numbers 333-215598 for TLIC and 333- 215599 for TFLIC). Maximum Fee and Current Fee: 
 
Maximum
Current
Optional Guaranteed Lifetime Withdrawal Benefit Riders:
Guaranteed Principal SolutionSM rider (also known as Living Benefits Rider) (annual charge - % of
Principal Back Total Withdrawal Base)
1.25%
1.25%
Notes to Fee Table
Transaction Expenses:
1) Maximum Surrender Charge:
The surrender charge, if any is imposed, applies to each premium payment, regardless of how Policy Value is allocated among the Investment Options. The surrender charge decreases based on the number of years since that premium payment was made.
2) Transfer Fee:
The transfer fee, if any is imposed, applies to each Policy, regardless of how Policy Value is allocated among the Investment Options. There is no fee for the first 12 transfers per Policy Year. For additional transfers, we may charge a fee of $10 per transfer. Currently, we do not charge a transfer fee, but reserve the right to do so.
3) Special Service Fees:
We may deduct a charge for special services, including overnight delivery and duplicate policies. We reserve the right to deduct a charge for special services in the future, including non-sufficient checks on new business; duplicate Form 1099 and Form 5498 tax forms; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. We may charge a fee for each service performed and fees may vary based on the type of service but will not exceed the maximum Special Service Fee shown above.
4) Annual Service Charge:
The annual service charge is assessed on each Policy anniversary and at the time of surrender. The maximum annual service charge is the lesser of $50 per Policy or 2% of the Policy Value. As indicated in the table immediately below, we may waive some or all of the Annual Service Charge, based on the greater of the Policy Value and the sum of all premium payments less withdrawals. 
Criteria for Potential Waiver
Potential Waiver Amount**
$50,000 thru $249,999.99*
up to $35
$250,000 or more*
up to $50
*
Based on the greater of Policy Value or sum of all premium payments less all withdrawals.
**
In no event will we waive in the aggregate more than the actual annual service charge for any Policy Year.
Annual Contract Expenses:
5) Base Contract Expenses:
Base contract expenses consist of the Mortality & Expense Risk Fee and the Administrative Fee.
Mortality and Expense Risk and Administrative Fee: The mortality and expense risk and administrative fee shown is for the accumulation phase with the base death benefit. During the income phase, the mortality and expense risk and administrative fee is at an annual rate of 1.25%.
10
Fund Facilitation Fee: Any Fund Facilitation Fee is a Separate Account expense in addition to the mortality and expense risk and administrative fees. This daily fee is applied only to Policy Value in the Subaccounts invested in the following Portfolio Companies: 
Portfolio Companies
Annualized
Fee %
American Funds Insurance Series® - Asset Allocation FundSM - Class 2
American Funds Insurance Series® - The Bond Fund of AmericaSM - Class 2
American Funds Insurance Series® - Growth FundSM - Class 2
American Funds Insurance Series® - Growth-Income FundSM - Class 2
American Funds Insurance Series® - EUPAC FundTM - Class 2
0.30%
AB Balanced Hedged Allocation Portfolio - Class B
State Street Total Return V.I.S. Fund - Class 3
0.20%
TA MSCI EAFE Index - Service Class
TA S&P 500 Index - Service Class
0.15%
We charge a Fund Facilitation Fee in order to make certain Portfolio Companies available as investment choices under the policies. We apply the fee to Portfolio Companies that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Portfolio Companies that we specify.
Optional Benefit Separate Account Expenses: Any optional benefit separate account expense is in addition to the mortality and expense risk and administrative fees. 
Liquidity Rider: If you elect this rider, the fee is only charged for the first four Policy years.
In some cases, riders to the Policy are available that provide optional benefits. There are additional fees (annualized fee charged on a yearly or quarterly basis, depending on the rider) for those riders.
Fixed Account: This account is comprised of one or more investment options under the Policy that are part of our general assets and are not in the Separate Account. Interest will be compounded annually and credited daily to achieve at least the guaranteed minimum effective interest rate(s). We may declare a higher interest rate in advance. New money and renewals will be based upon the most recent declared interest rate(s). We reserve the right to limit any or all Fixed Accounts from accepting new premiums, transfers, or rollovers.
OPTIONAL RIDERS
In some cases, riders to the Policy are available that provide optional benefits. There are additional fees (annualized fee charged on a yearly or quarterly basis, depending on the rider) for those riders.
6) Optional Guaranteed Lifetime Withdrawal Benefit Riders - No Longer Available
Guaranteed Principal SolutionSM Rider - Total Withdrawal Base: We use the total withdrawal base to calculate the maximum annual withdrawal amount. The total withdrawal base on the rider date is the Policy Value.
Retirement Income Max® Rider and Retirement Income Choice® 1.6 Rider - Withdrawal Base: We use the withdrawal base to calculate the rider withdrawal amount and the rider fee. The withdrawal base on the rider date is the Policy Value.
Transamerica Income EdgeSM Rider - Withdrawal Base: We use the withdrawal base to calculate the rider withdrawal amount and the rider fee. The withdrawal base on the rider date is the Policy Value. For riders issued prior to the date of this prospectus, the withdrawal percentage and growth rate percentage information can be found in the Statement of Additional Information “Appendix - Prior Withdrawal and Growth Percentages”.
Annual Portfolio Company Expenses:
The next section shows the minimum and maximum total operating expenses charged by the Portfolio Companies that You may pay periodically during the time You own the Policy. A complete list of the Portfolios available under the Policy, including their annual expenses may be found under “Appendix - Investment Options Available Under the Policy”. 
11
Annual Portfolio Company Expenses
Minimum
Maximum
Expenses that are deducted from Portfolio Company assets, including
management fees, distribution and/or service 12b-1 fees, Fund Facilitation
Fee if applicable and other expenses
0.53%
1.24%
Expenses that are deducted from Portfolio Company asset, including
management fees, 12b-1 fees, Fund Facilitation Fee if applicable and other
expenses, after any waivers or expense reimbursement
0.53%
1.20%
Expense Examples(1):
The following Examples are intended to help You compare the cost of investing in the Policy with the cost of investing in other variable annuity policies. These costs include Owner transaction expenses, annual Policy expenses, and annual Portfolio Company operating expenses.
The Examples assume that You invest $100,000 in the Policy for the time periods indicated. The Examples also assume that Your Policy has a 5% return each year and assumes the most expensive combination of annual Portfolio Company expenses and optional benefits available for an additional charge. This includes the maximum annual Portfolio Company expenses (including Fund Facilitation Fee, if applicable) Annual Step-Up Death Benefit, Additional Death Distribution+SM rider and Retirement Income Choice® 1.6 rider - Joint Life with the Income EnhancementSM option. Although Your actual costs may be higher or lower, based on these assumptions, Your costs would be:
If the Policy is surrendered at the end of the applicable time period: 
 
Inspire
Inspire
w/Liquidity
Rider
1 Year
$13,629
$14,115
3 Years
$25,906
$27,286
5 Years
$37,723
$34,942
10 Years
$69,278
$70,649
If the Policy is Annuitized at the end of the applicable time period or if you do not surrender your Policy: 
 
Inspire
Inspire
w/Liquidity
Rider
1 Year
$6,429
$6,915
3 Years
$19,606
$20,986
5 Years
$33,223
$34,942
10 Years
$69,278
$70,649
(1)Please remember that these Examples are illustrations and do not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Examples. Similarly, your rate of return may be more or less than the 5% assumed in the Examples. The Examples don't reflect premium tax charges, special service fees, or transfer fees. Different fees and expenses not reflected in the Examples may be assessed during the income phase of the Policy.
12
Principal Risks of Investing in the Policy
There are risks associated with investing in the Policy. You can lose money in a variable annuity, including potential loss of Your original investment. The value of Your investment and any returns will depend primarily on the performance of the underlying fund portfolios You select. Each underlying fund portfolio may have its own unique risks. We reserve the right to remove or substitute underlying funds, to impose investment restrictions and to limit additional purchase payments or transfers between investment options.
Variable annuities are not a short-term investment vehicle. The surrender charge applies for a number of years, so that the Policy should only be purchased for the long-term. Under some circumstances, You may receive less than the sum of Your premium payments. In addition, full or partial withdrawals will be subject to income tax and may be subject to a 10% Internal Revenue Service (“IRS”) penalty if taken before age 59½. Accordingly, You should carefully consider Your income and liquidity needs before purchasing a Policy. Additional information about these risks appears in the Tax Information section of this prospectus.
Risks Of An Increase In Current Fees And Expenses. Certain fees and expenses are currently assessed at less than their guaranteed maximum levels. In the future, these charges may be increased up to the guaranteed (maximum) levels.
Investment Risk. You bear the risk of any decline in the Policy Value caused by the performance of the underlying fund portfolios held by the Subaccounts. Those funds could decline in value very significantly, and there is a risk of loss of your entire amount invested. The risk of loss varies with each underlying fund. This risk could have a significant negative impact on the value of certain optional benefits offered under the Policy. The investment risks are described in the prospectuses for the underlying funds.
Investment Restrictions – Opportunity Risks. Generally, the living benefit riders offered under the Policy restrict Your choice of available underlying fund portfolios. These restrictions are intended to protect us financially, in that they reduce the likelihood that we will have to pay guaranteed benefits under the riders from our own assets. These restrictions could result in an opportunity cost – in the form of underlying fund portfolios that You did not invest in that ultimately generated superior investment performance. Thus, You should consider these underlying fund portfolio restrictions when deciding whether to elect an optional benefit that features such restrictions.
Risk Associated With Election of Optional Benefits. Several of the optional benefits include a host of requirements that must be adhered to in order to preserve and maximize the guarantees we offer under the benefit. If You fail to adhere to these requirements, that may diminish the value of the benefit and even possibly cause termination of the benefit. In addition, it is possible that You will pay fees for the optional benefit without fully realizing the guarantees available under the optional benefit. For example, such would be the case if You were to hold a Guaranteed Lifetime Withdrawal Benefit for many years yet die sooner than anticipated, without having taken a significant number of lifetime withdrawals.
Risks of Managing General Account Assets. The general account assets of the Company are used to support the payment of guaranteed benefits under the Policy. To the extent that the Company is required to pay amounts in addition to the Policy Value, such amounts will come from our general account assets. You should be aware that the general account assets are exposed to the risks normally associated with a portfolio of fixed-income securities, including interest rate, option, liquidity and credit risk, and are also subject to the claims of the Company’s general creditors. The Company’s financial statements contained in the Statement of Additional Information include a further discussion of risks inherent in the general account investments.
Insurance Company Insolvency. It is possible that we could experience financial difficulty in the future and even become insolvent, and therefore unable to provide all of the guarantees and benefits that exceed the assets in the Separate Account that we promise.
Tax Consequences. Withdrawals are generally taxable to the extent of any earnings in the Policy, and prior to age 59½ a tax penalty may apply. In addition, even if the Policy is held for years before any withdrawal is made, withdrawals are taxable as ordinary income rather than capital gains.
Cybersecurity and Certain Business Continuity Risks
Our operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure of or gap in the systems and processes necessary to support complex transactions and avoid systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a materially adverse effect on our results of operations and corporate reputation. In addition, we must commit significant resources to maintain and enhance its existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If we fail to maintain secure and well-functioning information systems, we may not be able to rely on information for product pricing, compliance obligations, risk management and underwriting decisions. In addition, we cannot assure
13
investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a materially adverse effect on our businesses, results of operations and financial condition.
For additional detail regarding cybersecurity and related risks, please reference the Cyber Security section in the Statement of Additional Information.
Business Continuity
Our business operations may be adversely affected by volatile natural and man-made disasters, including (but not limited to) hurricanes, earthquakes, terrorism, civil unrest, geopolitical disputes, military action, fires and explosions, pandemic diseases, and other catastrophes (“Catastrophic Events”). Over the past several years, changing weather patterns and climatic conditions have added to the unpredictability and frequency of natural disasters in certain parts of the world. To date, the COVID-19 pandemic has caused significant uncertainty and disruption to governments, business operations, and consumer behavior on a global scale. Such uncertainty as to future trends and exposure may lead to financial losses to our businesses. Furthermore, Catastrophic Events may disrupt our operations and result in the loss of, or restricted access to, property and information about Transamerica and its clients. Such events may also impact the availability and capacity of our key personnel. If our business continuity plans do not include effective contingencies for Catastrophic Events, we may experience business disruption, damage to corporate reputation, and damage to financial condition for a prolonged period of time.
Transamerica life insurance company, transamerica financial life insurance company, The separate account, and portfolio companies
Information About Us
Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, located at 6400 C Street SW, Cedar Rapids, Iowa 52499, is the insurance company issuing the Policy.
We are engaged in the sale of life insurance and annuity policies. Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company Inc., and is licensed in the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands and all states except New York. Transamerica Financial Life Insurance Company was incorporated under the laws of the State of New York on October 3, 1947 as Zurich Life Insurance Company and is licensed in all states and the District of Columbia. We are a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most 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 Ltd., the securities of which are publicly traded. Aegon Ltd., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business.
All obligations arising under the policies, including the promise to make annuity payments, and payment of any amounts held in the Fixed Account are general corporate obligations of ours and subject to our claims paying ability. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for our financial obligations arising under the policies.
We are relying on the exemption provided by Rule 12h-7 under the 1934 Act. In reliance on that exemption, we do not file periodic and current reports that we would be otherwise required to file pursuant to Section 15(d) of the 1934 Act.
Financial Condition of the Company
We pay benefits under Your Policy from our general account assets and/or from Your Policy Value held in the Separate Account. It is important that You understand that benefit payments are not assured and depend upon certain factors discussed below.
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. Policy value allocated to a variable option will vary based on the investment experience of the corresponding Portfolio Company in which the variable option invests. There is a risk of loss of the entire amount invested. For more information see The Separate Account below.
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
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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. For more information see The Fixed Account.
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.
As an insurance company, we are required by state insurance regulation to hold a specified amount of general account reserves in order to meet all the contractual obligations to our Owners. We monitor our reserves so that we hold sufficient amounts to cover actual or expected Policy and claims payments. In addition, we monitor our reserves so that we hold sufficient amounts to cover actual or expected Policy and claims payments. In addition we hedge our investments in our general account, and may require purchasers of certain benefits of the variable insurance products that we offer to allocation premium payments and Policy Value in accordance with specified investment requirements. 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. We may also experience liquidity risk if our general account assets cannot be readily converted into cash to meet obligations to our policy Owners or to provide the collateral necessary to finance our business operations.
How to Obtain More Information. We encourage 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 Insurance as well as the financial statements of the Separate Account are located in the Statement of Additional Information (SAI). For a free 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 SEC.gov. Our financial strength ratings which reflect the opinions of leading independent rating agencies of our ability to meet our obligations to our Owners, are available on our website https://www.transamerica.com/why-transamerica/financial-strength, and the websites of these nationally recognized statistical ratings organizations – https://www.ambest.com/home/default.aspx, https://www.moodys.com/, and https://www.spglobal.com/ratings/en/.
The Separate Account
Each Separate Account receives and invests the premium payments that are allocated to it for investment in shares of the underlying fund portfolios. Each Separate 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 policies of the Separate Account or us. Income, gains and losses (whether or not realized), from assets allocated to the Separate Account are, in accordance with the policies, credited to or charged against the Separate Account without regard to our other income, gains or losses.
The assets of each Separate Account are held in our name on behalf of the Separate Account and belong to us. However, those assets that underlie the policies are not chargeable with liabilities arising out of any other business we may conduct. The Separate Account may include other Subaccounts that are not available under these policies. We do not guarantee the investment results of the Separate Account.
The Underlying Fund Portfolios
At the time You purchase Your Policy, You may allocate Your premium payment to Subaccounts. These are subdivisions of our Separate Account, an account that keeps Your Policy assets separate from our company assets. The Subaccounts then purchase shares of underlying fund portfolios set up exclusively for variable annuity or variable life insurance products. These are not the same mutual funds that You buy through Your investment professional even though they may have similar investment strategies and the same portfolio managers. Each underlying fund portfolio has varying degrees of investment risk. Underlying fund portfolios are also subject to separate fees and expenses such as management fees and operating expenses. “Master-feeder” or “fund of funds” invest substantially all of their assets in other mutual funds and will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce Your investment return. Read the underlying fund portfolio prospectuses carefully before investing. We do not guarantee the investment results of any underlying fund portfolio. Certain underlying fund portfolios may not be available in all states and in all share classes. Please see Appendix - Investment Options Available Under the Policy for additional information.
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Other Transamerica Policies
We offer a variety of fixed and variable annuity policies. They may offer features, including Investment Options, and have fees and charges, that are different from those in the Policy offered by this prospectus. Not every Policy we issue is offered through every financial intermediary. Some financial intermediaries may not offer and/or limit the offering of certain features or options, as well as limit the availability of the policies, based on issue Age, or other criteria established by the financial intermediary. Upon request, Your financial professional can show You information regarding other Transamerica annuity policies that he or she distributes. You can contact us to find out more about the availability of any of the Transamerica annuity policies.
You should decide whether this Policy is appropriate for You based on a thorough analysis of Your particular insurance needs, financial objectives, investment goals, time horizons and risk tolerance.
VOTING RIGHTS
To the extent required by law, we will vote the underlying fund portfolios' shares held by the Separate 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 we will determine that it is permitted to vote the underlying fund portfolios shares in its own right, it may elect to do so.
Before the Annuity Commencement 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 Policy 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 Commencement Date, You have the voting interest, and the number of votes decreases as annuity payments are made and as the reserves for the Policy decrease. The person's number of votes will be determined by dividing the reserve for the Policy 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 have 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. We will solicit voting instructions by sending You, or other persons entitled to vote, 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 us 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 policies participating in the same Subaccount. Accordingly, it is possible for a small number of 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. Shares owned by the insurance company and its affiliates will also be proportionately voted.
Each person having a voting interest in a Subaccount will receive proxy material, reports, and other materials relating to the appropriate portfolio.
THE ANNUITY policy
This prospectus describes information You should know before You purchase the Transamerica Inspire® Variable Annuity.
An annuity is a contract between You (the Owner) and an insurance company (in this case us), 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 Commencement Date. Until the Annuity Commencement Date, Your annuity is in the accumulation phase and the earnings (if any) are generally tax deferred. Tax deferral means You are not taxed until You take money out of Your annuity. After You Annuitize, Your annuity switches to the income phase.
The Policy is a “deferred” annuity. You can use the Policy to accumulate assets for retirement or other long-term financial planning purposes. Your individual investment and Your rights are determined primarily by Your own Policy.
The Policy is a “flexible premium” annuity because after You purchase it, You can generally make additional premium payments of at least $50 (but not more than the stated maximum total premium payment amount) until the Annuity Commencement Date. You are not required to make any additional premium payments.
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The Policy is a “variable” annuity because the value of Your Policy can go up or down based on the performance of Your Subaccounts. If You invest in the Separate Account, the amount of money You are able to accumulate in Your Policy during the accumulation phase depends upon the performance of Your Subaccounts. You could lose the amount You allocate to the Separate Account. The amount of annuity payments You receive from the Separate Account during the income phase also depends upon the investment performance of Your Subaccounts.
We do not guarantee that the Fixed Account will always be available. If the Fixed Account is offered it will offer interest at a rate(s) that we guarantee will not decrease during the selected guaranteed period. There may be different interest rates for each different guaranteed period that we may offer and that You select.
Do not purchase this Policy 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 Policy is not intended or designed to be traded on any stock exchange or secondary market. By purchasing this Policy, You represent and warrant that You are not using the Policy, or any of its riders for resale, speculation, arbitrage, viatication, or any other type of collective investment scheme.
PURCHASE
Policy Issue Requirements
We will not issue a Policy unless:
●
we receive in good order (See Sending Forms and Transaction Requests in Good Order) all information needed to issue the Policy;
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we receive in good order (at our Administrative Office) a minimum initial premium (including anticipated premiums from 1035 exchanges on nonqualified policies and transfers or rollovers on qualified policies as indicated on Your application or electronic order form) payment;
●
the Annuitant, Owner, and any joint Owner are age 85 or younger (the limit may be lower for qualified policies)
●
the Owner and Annuitant have an immediate familial relationship.
Please note, certain riders described herein may require a younger age. Please carefully read the applicable rider sections regarding any age limitations.
We reserve the right to reject any application.
Premium Payments
General. You should make checks for premium payments payable to Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company, as applicable, and send them to the Administrative Office. Your check must be honored in order for us to pay any associated annuity payments and benefits due under the Policy.
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 us, however, in some circumstances, at our discretion we may accept third party checks that are from a rollover or transfer from other financial institutions. Any third party checks not accepted by us will be returned.
We reserve the right to reject or accept any form of payment. Any unacceptable forms of payment will be returned.
Initial Premium Requirements. The initial premium payment for nonqualified policies must be at least $5,000 (including anticipated premiums from Internal Revenue Code Section 1035 exchanges as indicated on your application or electronic order form), and at least $1,000 for qualified policies (including anticipated premiums from transfers or rollovers as indicated on your application or electronic order form). You must obtain our prior approval to purchase a Policy with an amount in excess of our maximum premium amount.
Your initial premium payment may not be credited to Your Policy on the day that You leave Your premium payment with Your financial intermediary. Your financial intermediary may take up to seven Business Days to assess whether buying this Policy is suitable for You. Your financial intermediary may send us Your initial premium payment while they complete this assessment. Your financial intermediary must also ensure that we have all the information needed for us to process Your Policy. We will not begin to process Your Policy during this period.
We will first begin our review only once we receive both Your initial premium payment and Your application (or an electronic order form). We will credit Your initial premium payment to Your Policy within two Business Days after the Business Day that we receive Your initial premium payment, Your application (or order form) and once we determine that Your Policy information is both
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complete and in good order. This time period is in addition to the time Your financial intermediary may take to complete their part of the process. If we are unable to complete our part of the process within five Business Days after the Business Day that we receive Your initial premium payment and Your application (or electronic order form), then we will notify You or Your financial intermediary, if applicable, and explain why we can't process Your Policy. We will also return Your initial premium payment at that time unless You consent to us holding the premium up to 30 days. We must receive Your consent to hold prior to the market close on the fifth Business Day after receipt of the premium. If Your information is not received in good order within 30 days of our receipt of the premium, then it will be returned. We will credit Your initial premium payment within two Business Days after Your information is both complete and in good order.
Neither we nor Your financial intermediary are responsible for lost investment opportunities while we each complete our review processes. Any initial premium payments received by us will be held in our general account until credited to Your Policy. You will not earn interest on Your initial premium payment during these review periods.
The date on which we credit Your initial premium payment to Your Policy is generally the Policy Date. The Policy Date is used to determine Policy Years, Policy quarters, Policy months and Policy anniversaries.
Additional Premium Payments. You are not required to make any additional premium payments. However, You can generally make additional premium payments during the accumulation phase. Additional premium payments must be at least $50. After the first Policy Year, additional premium payments each Policy Year cannot, in the aggregate, without our prior approval, exceed $25,000 for nonqualified policies and the lesser of (1) the IRS maximum contribution limit or (2) $60,000 for qualified policies. We reserve the right to refuse any additional premium payment in excess of these limits, and if You do not obtain prior approval for premiums in excess of the dollar amounts listed above, the business will be deemed not in good order. We will credit additional premium payments to Your Policy as of the Business Day we receive Your premium and required information in good order at our Administrative Office. Additional premium payments must be received in good order before the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time) to get same-day pricing of the additional premium payment. Additional premium payments received in good order on non-Business Days or after our close of business on Business Days will receive next-day pricing. See Sending Forms and Transaction Requests in Good Order.
Maximum Total Premium Payments. For issue ages 0-80, we reserve the right to require prior approval of any cumulative premium payments over $1,000,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. We may approve premium payments over $1,000,000 but restrict access to certain optional benefits. For issue ages over 80, we reserve the right to require prior approval of any cumulative premium payments over $500,000 (this includes subsequent premium payments) for policies with the same Owner or same Annuitant issued by us or an affiliate. If You do not obtain prior approval for premium payments in excess of the dollar amounts listed above, the business will be deemed not in good order.
Allocation of Premium Payments. When You purchase a Policy, we will allocate Your premium payment to the investment choices You select. Your allocation must be in whole percentages and must total 100%. We will allocate additional premium payments the same way, unless You request a different allocation. You could lose the amount You allocate to the Subaccounts.
If You allocate premium payments to the Dollar Cost Averaging program (if it is available), You must give us instructions regarding the Subaccount(s) to which transfers are to be made or we cannot accept Your premium payment.
You may change allocations for future additional premium payments by sending written instructions to our Administrative Office, or by telephone, or other electronic means acceptable to us, subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions, or any other means acceptable to us. The allocation change will apply to premium payments received on or after the date we receive the change request in good order.
We reserve the right to restrict or refuse any premium payment.
Policy Value
You should expect Your Policy Value to change from Valuation Period to Valuation Period. 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 for business. Regular trading on the New York Stock Exchange usually closes at 4:00 p.m., Eastern Time. Holidays are generally not Business Days.
INVESTMENT OPTIONS
This Policy 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 Policy are listed in the Appendix - Investment Options Available Under the Policy.
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The general public may not purchase shares of any of these underlying fund portfolios. The names and investment objectives and policies may be similar to other portfolios 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 portfolios.
More detailed information, including an explanation of the portfolios' fees and investment objectives, may be found in the current prospectuses for the underlying fund portfolios, which can be found at http://dfinview.com/Transamerica/TAHD/89354G802?site=VAVUL. You should read the prospectuses for the underlying fund portfolios carefully before You invest.
In addition, information regarding each underlying fund portfolio, including (i) its name (ii) its investment objective (iii) its investment adviser and any sub-investment adviser (iv) current expenses and (v) performance is available in the Appendix - Investment Options Available Under the Policy. Each underlying fund portfolio has issued a prospectus that contains more detailed information about its investment holdings, including a description of investment risks. You may obtain a free copy of the underlying fund portfolio prospectuses by contacting our Administrative Office at (800)525-6205 or by visiting our website at http://dfinview.com/Transamerica/TAHD/89354G802?site=VAVUL.
Note: If You received a summary prospectus for any of the underlying fund portfolios listed in Appendix - Investment Options Available Under the Policy, please follow the instructions on the first page of the summary prospectus to obtain a copy of the full underlying fund prospectus or its Statement of Additional Information.
Selection of Underlying Fund Portfolios
The underlying fund portfolios offered through this variable annuity are selected by us, and we 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, volatility, hedge ability, 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 premium payments 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 in cooperation with one or more distributors, and may include certain underlying fund portfolios based on their recommendations. Their selection criteria may differ from our selection criteria.
If You elect a Guaranteed Lifetime Withdrawal Benefit rider, as discussed later in this prospectus, we require You to allocate Your Policy Value to designated Investment Options. This requirement is intended to reduce the Company’s costs and risks associated with offering the rider, and we select which underlying fund portfolios to make available under the riders with these factors in mind. Certain designated Investment Options invest in underlying fund portfolios with volatility control strategies, which could limit full participation in market gains and the growth of the riders. See the Investment Restrictions section for information regarding the potential impact of volatility control strategies on the value of the Guaranteed Lifetime Withdrawal Benefit riders.
Designated Investment Options, including those that invest in underlying fund portfolios with volatility control strategies, are also available to Owners who do not elect a Guaranteed Lifetime Withdrawal Benefit rider. Although volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing Policy Owners with the opportunity for smoother performance and better risk adjusted returns, such strategies could limit Your full participation in market gains and ability to maximize potential growth of Your Policy Value.
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. We do not recommend or endorse any particular underlying fund portfolio and we do not provide investment advice.
In making Your investment selections, we encourage You to thoroughly investigate all of the information regarding the underlying fund portfolios that are 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 underlying fund's website 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 payment, 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.
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We do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers.
We reserve the right to limit the number of Subaccounts You are invested in at any one time.
If You elect certain optional riders, You will be subject to Investment Restrictions. In the future, we may change the Investment Restrictions.
Not all Subaccounts may be available for all policies, in all states, or through all financial intermediary firms.
Addition, Deletion, or Substitution of Investment Options
We cannot and do not guarantee that any of the Subaccounts will always be available for premium payments, allocations, or transfers. We retain the right, subject to any applicable law, to make certain changes to the Separate Account and its Investment Options. We reserve the right to add new Subaccounts or close existing Subaccounts. We also reserve the right to eliminate the shares of any portfolio held by a Subaccount and to substitute shares of other underlying fund portfolios or of other registered open-end management investment companies. To the extent required by applicable law, substitutions of shares attributable to Your interest in a Subaccount will not be made without prior notice to You and the prior regulatory approval. Nothing contained herein shall prevent the Separate Account from purchasing other securities for other series or classes of variable annuity policies, or from affecting an exchange between series or classes of variable annuity policies on the basis of Your requests.
New Subaccounts may be established when, in our sole discretion, marketing, tax, investment or other conditions warrant. Any new Subaccounts may be made available to existing Owners on a basis to be determined by us. Each additional Subaccount will purchase shares in an underlying fund portfolio or other investment vehicle. We may also close one or more Subaccounts if, in our sole discretion, marketing, tax, investment or other conditions warrant such change. In the event any Subaccount is closed, we will notify You and request a reallocation of the amounts invested in the closed Subaccount. If we do not receive additional instructions, any subsequent premium payments, or transfers (including Dollar Cost Averaging transactions or asset rebalance programs transactions) into a closed Subaccount will be re-allocated to the remaining available Investment Options according to the investment allocation instructions You previously provided. If Your previous investment allocation instructions do not include any available Investment Options, we will require new instructions. If we do not receive new instructions, the requested transaction will be canceled and any premium 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 Policy, You should also consider whether or not to re-allocate the value remaining in the closed Subaccount to another Investment Option. If You decide to re-allocate the value of the closed Subaccount, You will need to provide us with instructions. Under certain situations involving death benefit adjustments for continued policies, if an Investment Option is closed to new investment, the amount that would have been allocated thereto will instead be allocated pro rata to the other current Investment Options You have value allocated to and which are open to new investment.
In the event of any such substitution or change, we may, by appropriate endorsement, make such changes in the policies 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 policies, the Separate Account may be (1) operated as a management company under the 1940 Act or any other form permitted by law, (2) deregistered under the 1940 Act in the event such registration is no longer required or (3) combined with one or more other Separate Accounts. To the extent permitted by applicable law, we also may (1) transfer the assets of the Separate Account associated with the policies 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 underlying fund portfolio for an existing underlying fund portfolio.
In addition, a Subaccount could become no longer available due to the liquidation of its corresponding underlying fund portfolio. To the extent permitted by applicable law, upon advance notice to You and unless You otherwise instruct us, we will:
1) 
Re-allocate any Policy Value in the liquidated underlying fund portfolio to the money market Subaccount or a Subaccount investing in another underlying fund portfolio designated by us; and
2) 
If You are using an automated transfer feature such as the Rebalancing program or Dollar Cost Averaging with the Subaccount for the portfolio, You should contact us immediately to make alternate arrangements. If you do not make alternate arrangements before the closure date, any subsequent allocations to the Subaccount for the portfolio will be directed to the Money Market Subaccount.
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We reserve the right, subject to compliance with applicable law, to make certain changes to the Separate Account and its investments. We reserve the right to add new portfolios (or portfolio classes), close existing portfolios (or portfolio classes), or substitute portfolio shares that are held by any Subaccount for shares of a different portfolio. We will not add, delete or substitute any Underlying Fund Portfolio shares attributable to Your interest in a Subaccount without notice to You and prior approval of the SEC, to the extent required by the 1940 Act or other applicable law.
The Fixed Account
We do not guarantee that the Fixed Account will always be available. If available, premium payments allocated and amounts transferred to the Fixed Account become part of our 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. Disclosures relating to interests in the general account are, however, subject to certain generally applicable provisions of the federal securities laws relating to the accuracy of statements made in a registration statement.
While we do not guarantee that the Fixed Account will always be available for investment, we do guarantee that the interest credited to the Fixed Account when available will not be less than the guaranteed minimum effective annual interest rate shown on Your Policy (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 the money market Subaccount or if a money market Subaccount is unavailable to 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 Option by giving us notice within 30 days before the end of the expiring guaranteed period.
Surrenders, withdrawals, transfers, and amounts applied to an Annuity Payment Option from a Guaranteed Period Option of the Fixed Account prior to the end of the guaranteed period are generally subject to an Excess Interest Adjustment. See ACCESS TO YOUR MONEY - Excess Interest Adjustment for more information about when an Excess Interest Adjustment applies. This adjustment will also be made to amounts that You apply to an Annuity Payment Option. The Excess Interest Adjustment will not decrease the interest credited to Your Policy below the guaranteed minimum. Please see Appendix – Excess Interest Adjustment Examples for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.
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 Policy is issued.
If You select the Fixed Account, when it is available, Your money will be placed with our other general assets. Assets in the Stable Account are not subject to Separate Account Annual Expenses as set forth under ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES. 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 each annuity payment You receive during the income phase from the fixed portion of Your Policy will remain level for the entire income phase. The interest credited as well as principal invested in the Fixed Account is based on our claims-paying ability.
We reserve the right to refuse any premium payment or transfer to the Fixed Account.
Transfers
During the accumulation phase, You may make transfers to or from any Investment Option within certain limitations. Transfers out of a Guaranteed Period Option of the Fixed Account are limited to the following:
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Transfers at the end of a guaranteed period.
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Transfers of amounts equal to interest credited. This may affect Your overall interest-crediting rate, because unless otherwise directed, transfers are deemed to come from the oldest premium 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, including transfers in connection with the Portfolio Allocation Method discussed later in this prospectus, are subject to an Excess Interest Adjustment. If it is a negative adjustment, the maximum amount you can transfer in any one Policy Year may be limited to 25% of the amount in that Guaranteed Period Option, less any previous transfers during the current Policy 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 the Guaranteed Period Option of the Fixed Account.  You should carefully consider whether investment in the Fixed Account meets your needs and investment criteria.) Please see Appendix - Excess Interest Adjustment Examples for an example showing the effect of a hypothetical Excess Interest Adjustment calculation.
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In general, each transfer from a Subaccount must be at least $500, or the entire Subaccount value if less than $500. 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. Transfer requests must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transfer requests received in good order on non-Business Days or after our close of business on Business Days will get next-day pricing. See Sending Forms and Transaction Requests in Good Order.
The number of transfers permitted may be limited and a $10 charge for each transfer in excess of 12 in any Policy Year may apply. Currently, we do not charge a transfer fee but reserve the right to do so in the future. We reserve the right to prohibit transfers to the Fixed Account.
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 made by telephone, or other electronic means acceptable to us, are subject to the limitations described in ADDITIONAL FEATURES - Telephone and Electronic Transactions.
Additional Restrictions for the Transamerica Income Edge Rider. If You elect the Transamerica Income Edge rider, a certain percentage of Your Policy Value must be allocated to the Stable Account, the select Investment Options and the flexible Investment Options as specified below. See Optional Benefit Riders - Transamerica Income EdgeSM Rider. Any transfer requests to and from the select Investment Options and flexible Investment Options will be validated using the prior Business Day’s Policy Value to ensure compliance with the required allocations for rebalancing at the time of the request. Transfer requests that do not comply with the required allocations for rebalancing will be deemed not in good order. Changes in Policy Values due to market movements on other dates will not be treated as a violation of the required allocations. Transfers to the Stable Account are not permitted except at the time of election of the rider. Transfers from the Stable Account are not permitted except upon termination of the rider.
Investment Restrictions
If You elect certain optional riders, You will be subject to Investment Restrictions requiring You to invest in certain underlying fund portfolios, which may be referred to (depending on Your rider) as designated Investment Options, flexible Investment Options and/or select Investment Options. In addition, the Transamerica Income Edge rider may require You to invest in the Stable Account.
One or more of the underlying fund portfolios that may be designated, flexible or select Investment Options under an optional rider, in part, may include a volatility control strategy. Volatility control strategies, in periods of high market volatility, could limit Your participation in market gains; this may conflict with Your investment objectives by limiting Your ability to maximize potential growth of Your Policy Value and, in turn, the value of any guaranteed benefit that is tied to investment performance. Volatility control strategies are intended to help limit overall volatility and reduce the effects of significant market downturns during periods of high market volatility, providing Policy Owners with the opportunity for smoother performance and better risk adjusted returns. Volatility control (and similar terms) can encompass a variety of investment strategies of different types and degrees; therefore, You should read the applicable annuity and underlying fund portfolio prospectuses carefully to understand how these investment strategies may affect Your Policy Value and rider benefits. Our requirement to invest in accordance with certain Investment Options, which may include volatility control, may reduce our costs and risks associated with the applicable riders. You pay an additional fee for the rider benefits which, in part, pays for protecting the rider benefit base from investment losses. Since the rider benefit base does not decrease as a result of investment losses, volatility control strategies might not provide meaningful additional benefit to You. You should carefully evaluate with Your financial professional whether to invest in underlying fund portfolios with volatility control strategies, taking into consideration the potential positive or negative impact that such strategy may have on Your investment objectives, Your Policy Value and the benefits under the riders. If You determine that underlying fund portfolios with volatility control strategies are not consistent with Your investment objectives, other Investment Options are available under the riders that do not invest in underlying fund portfolios that utilize volatility control strategies.
For more information about the underlying fund portfolios and the investment strategies they employ, please refer to the underlying fund portfolios' current prospectuses.
Market Timing and Disruptive Trading
Statement of Policy. This variable annuity Policy was not designed to accommodate market timing or facilitate frequent or large transfers among the Subaccounts or between the Subaccounts and the Fixed Account. (Both frequent and large transfers may be considered disruptive.)
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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 risks and 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.
Deterrence. If we determine 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 sent 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. 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 underlying fund portfolios). Please note that transfers of less than one million dollars may be disruptive in some circumstances; we may change the maximum dollar mount of permitted transfer quickly and without notice.
For policies with Portfolio Allocation Method, the effect of transfers pursuant thereto may be considered disruptive for certain underlying fund portfolios. As a result, Policy Owners using Portfolio Allocation Method may have to change their selected underlying fund portfolios. We will contact You in the event this occurs.
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.
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In addition to our internal policies and procedures, we will administer Your variable annuity Policy 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:
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impose redemption fees on transfers; or
●
expressly limit the number or size of transfers in a given period except for certain Subaccounts where an underlying fund portfolio has advised us to prohibit certain transfers that exceed a certain size; or
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provide a certain number of allowable transfers in a given period.
Redemption fees, transfer limits, and other procedures or restrictions imposed by the underlying fund portfolios 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 preventative transfer restriction (e.g., expressly limiting the number of trades within a given period or limiting trades by their size), it is possible that some level of market timing and disruptive trading will occur before it is detected and steps taken 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. We do not monitor transfer requests for compliance with the frequent trading policies and procedures of the respective underlying fund portfolios.
We are required to provide to an underlying fund portfolio or its payee certain information about the trading activity of individual Owners. We are required to restrict or prohibit further purchases or transfers by specific Owners or persons acting on their behalf, if identified by an underlying fund portfolio as violating frequent trading policies.
Please read the underlying fund portfolio prospectus for information about restrictions on transfers.
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 portfolio companies' ability to apply their respective frequent trading policies and procedures.
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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 and disruptive trading, the underlying fund portfolio may reject the entire omnibus order and thereby delay or prevent us from implementing Your request.
EXPENSES
There are charges and expenses associated with Your Policy that reduce the return on Your investment in the Policy. In addition to the following charges, there are optional benefits that if selected, assess additional charges. Please see ADDITIONAL FEATURES for more information.
Transaction Expenses
Surrender Charges
During the accumulation phase, You can surrender part or all of the Cash Value (restrictions may apply to qualified policies). We may apply a surrender charge to compensate us for start-up expenses of the Policy relating to sales, including commissions to registered representatives and other promotional expenses.
You can take a withdrawal of up to 10% of your premium payments each Policy Year free of surrender charges. This amount is referred to as the Surrender Charge Free Amount and is determined at the time of surrender. (This amount is not cumulative, so not surrendering anything in one year does not increase the Surrender Charge Free Amount in subsequent years.) If the surrender is in excess of the Surrender Charge Free Amount, You might have to pay a surrender charge, which is a contingent deferred sales charge, on the excess amount.
For example, assume Your premium is $100,000 and Your Policy value is $106,000 at the beginning of the second Policy Year and You surrender $30,000. Since that amount is more than Your surrender charge free amount ($10,000), You would pay a surrender charge of $1,600 on the remaining $20,000 [8% of ($30,000 - $10,000)]. Likewise, assume Your Policy Value is $80,000 (premium payments $100,000) at the beginning of the second Policy Year and You surrender Your Policy. You would pay a surrender charge of $7,200 [8% of ($100,000 - ($100,000 x 10%))].
You can generally choose to receive the full amount of a requested withdrawal by directing us to deduct any applicable surrender charge (and any applicable Excess Interest Adjustment) from Your remaining Policy Value. You receive Your Cash Value upon full surrender.
Surrender charges and Excess Interest Adjustments are waived if You surrender money under the Nursing Care and Terminal Condition Withdrawal Option or the Unemployment Waiver.
For surrender charge purposes, earnings are considered to be surrendered first, then the oldest premium is considered to be surrendered next. Please note, while there is no surrender charge on the withdrawal of earnings, withdrawn earnings count towards Your Surrender Charge Free Amount. This means that withdrawing earnings will reduce (possibly to zero) Your Surrender Charge Free Amount (10% of premium payments) for that Policy Year.
Keep in mind that withdrawals may be taxable and, if made before age 59½, may be subject to a 10% federal penalty tax. For tax purposes, surrenders from nonqualified policies are considered to come from taxable earnings first.
We may elect to reduce or eliminate the amount of the surrender charge when the Policy is sold under circumstances which reduce our sales or other expenses or when required to by regulation or regulatory authority.
Liquidity Rider Surrender Charge Schedule. The optional Liquidity Rider reduces the number of years each premium payment is subject to surrender charges from seven years to four years. The surrender charge schedule is the same during the first four years for each premium payment. There is an extra charge for this rider.
Excess Interest Adjustment
Surrenders, withdrawals, transfers, amounts applied when a death benefit is calculated, and amounts applied to an annuity option 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
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amounts applied to an Annuity Payment Option. However, please note that a death benefit will not be reduced if the Excess Interest Adjustment results in a decrease in the Cash Value available to You. Please see Appendix - Excess Interest Adjustment Examples for an example showing the effect of a hypothetical Excess Interest Adjustment calculation. The Excess Interest Adjustment plays a role in calculating the total interest credited to the Fixed Account.
Premium Taxes
A deduction may also be made for premium taxes, if any, imposed on us by a state, municipality or other government agency. The tax, currently ranging from 0% to 3.50%, may be assessed at the time premium payments are made or when annuity payments begin. We may pay the premium tax at the time it is imposed. We may, at our discretion, deduct the total amount of premium taxes, if any, from the Policy Value when such taxes are due to the applicable taxing authority, You begin receiving annuity payments, You surrender the Policy or a death benefit is paid.
Federal, State and Local Taxes
We may in the future deduct charges from the Policy for any taxes we incur because of the Policy. However, no deductions are being made at the present time.
Special Service Fees
We currently deduct a charge for overnight delivery and duplicate policies. We reserve the right to deduct a charge for special services in the future, including non-sufficient checks on new business; duplicate Form 1099 and Form 5498 tax forms; check copies; printing and mailing previously submitted forms; and asset verification requests from mortgage companies. We may charge a fee for each service performed and fees may vary based on the type of service but will not exceed the maximum Special Service Fee shown in the Fee Table.
Transfer Fee
You are generally allowed to make 12 free transfers per Policy Year before the Annuity Commencement Date. If You make more than 12 transfers per Policy Year, we reserve the right to charge for each additional transfer. Premium payments, Asset Rebalancing, and Dollar Cost Averaging transfers do not count as one of Your free transfers. All transfer requests made at the same time are treated as a single transfer. Currently, we are not charging for transfers, but reserve the right to do so in the future.
Base Contract Expenses
Mortality and Expense Risk Fees
We charge a fee as compensation for bearing certain mortality and expense risks under the Policy. 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 benefit, certain expenses of the Policy (including distribution related expenses), and assuming the risk that the current charges will be insufficient in the future to cover costs of selling, distributing and administering the Policy.
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 supporting and administering the Policy (including certain distribution-related expenses). This charge is equal to a percentage of the daily net asset value of each Subaccount during both the accumulation phase and the income phase.
Annual Service Charge
We reserve the right to increase the annual service charge up to the maximum. A portion of the service charge may be waived, but is not guaranteed to always be waived. We reserve the right to vary the amount of any waiver and the circumstances in which any waiver or waivers apply.
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Fund Facilitation Fee
We charge a Fund Facilitation Fee in order to make certain Portfolio Companies available as Investment Options under the policies. We apply the fee to Portfolio Companies that invest in underlying fund portfolios that do not provide us with the amount of revenue we require in order for us to meet our expenses and revenue targets. This fee is assessed daily based on the net asset value of Portfolio Companies that we specify.
Optional Benefits
If You elect to purchase optional benefits, we will deduct an additional fee. For some optional benefits the fee is assessed against the daily net asset value of each Subaccount and for others it is deducted from each Investment Option in proportion to the amount of Policy Value in each Investment Option. Please refer to the ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES for the list of fees for each optional benefit and Optional Benefit Riders section for more information.
Underlying Fund Portfolio Fees and Expenses
The value of the assets in each Subaccount will reflect the fees and expenses paid by the underlying Fund Portfolios. The lowest and highest Underlying Fund Portfolio expenses for the previous calendar year are found in ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES in this prospectus. See the prospectuses for the Underlying Fund Portfolios for more information.
Reduced Fees and Charges
We may, at our discretion, reduce or eliminate certain fees and charges for certain policies (including employer-sponsored savings plans) which may result in decreased costs and expenses.
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, sub-advisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other support services we (and/or our affiliates) provide and expenses we incur in offering and selling our variable insurance products. These arrangements are described further below. While only certain of the types of payments described below may be made in connection with Your particular Policy, 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 Policy.
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, LLC (“TCL” ) who is the principal underwriter for the policies, indirectly receive 12b-1 fees from certain underlying fund portfolios available as Investment Options under our variable insurance products. Any 12b-1 fees received by TCL that are attributable to our variable insurance products are then credited to us. These fees range from 0.00% to 0.45% of the average daily assets of the certain underlying fund portfolios attributable to the policies and to certain other variable insurance products that we and our affiliates issue. These fees are paid from the underlying fund portfolios’ assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of 12b-1 fees (see the prospectuses for the underlying fund portfolios for more information).
● 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 TCL. These payments may be derived, in whole or in part, from the profits the investment adviser or sub-adviser realized on the advisory fee deducted from underlying fund portfolio assets. Policy Owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees (see the prospectuses for the underlying fund portfolios 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 our affiliates and we issue. These percentages differ and the amounts may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.
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The following chart provides the maximum combined percentages of Support Fees and underlying fund portfolio fees (i.e. sub-transfer agent, Rule 12b-1, and Shareholder Services) that we anticipate will be paid to us on an annual basis. 
Incoming Payments to Us and/or TCL
Underlying Fund Portfolio
Maximum Fee % of assets
TRANSAMERICA SERIES TRUST (“TST”)
0.25%
AB VARIABLE PRODUCTS SERIES FUND, INC.
0.45%
AMERICAN FUNDS INSURANCE SERIES® TRUST
0.25%
FIDELITY® VARIABLE INSURANCE PRODUCTS FUND
0.395%
STATE STREET VARIABLE INSURANCE SERIES FUNDS, INC.
0.45%
NOTES TO INCOMING PAYMENTS TABLE:
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 Policy and under certain other variable insurance products offered by our affiliates and us. We and/or TCL may continue to receive 12b-1 fees and administrative fees on assets invested in Subaccounts that are closed to new premium payments, depending on the terms of the agreements supporting those payments and on the services provided.
TST: Because TST is managed by 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 and 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 2024 we received approximately $158.9 million for Transamerica Life Insurance Company and $11.3 million for Transamerica Financial Life Insurance Company in benefits from TAM pursuant to these arrangements. This includes the 0.25% amount in the above chart.
Fidelity® Variable Insurance Products Fund: We receive this percentage once $100 million in shares are held by the Subaccounts of ours and our affiliates.
Other Payments. TCL also serves as the wholesale distributor for the policies, and in that capacity directly or indirectly receives additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the underlying fund portfolios (or their affiliates) with regard to variable insurance products and/or mutual funds that are issued by us and our affiliates. These amounts may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from underlying fund portfolio assets. Owners, through their indirect investment in the underlying fund portfolios, bear the costs of these advisory fees. Certain advisers and sub-advisers of the underlying fund portfolios (or their affiliates):
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may directly or indirectly pay TCL conference sponsorship or marketing allowance payments that provides such advisers and sub-advisers with access to TCL's wholesalers at TCL's national and regional sales conferences as well as internal and external meetings and events that are attended by TCL's wholesalers and/or other TCL employees.
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may provide our affiliates and/or selling firms with wholesaling services to assist us in the distribution of the policies.
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may provide us and/or certain affiliates and/or selling firms with occasional gifts, meals, tickets or other compensation as an incentive to market the underlying fund portfolios and to assist with their promotional efforts. The amounts may be significant and these arrangements provide the adviser or sub-adviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the policies.
For the calendar year ended December 31, 2025, TCL and its affiliates received revenue sharing payments from asset managers including Alliance Bernstein; Blackrock; Fidelity; First Trust; Goldman Sachs; Great Lakes Advisors; Janus Henderson; JP Morgan Asset Management; Kayne Anderson Capital Advisors; Madison Investments; Milliman; Morgan Stanley Investment Management; NASDAQ; PGIM QS; Pinebridge Investments; Raymond James Investment Management/Clarivest Asset Management; Systematic Financial; T. Rowe Price; TSW; Wellington Management Company; and Westfield Capital in the amount of $690,000.00 to participate in TCL sponsored events.
Please note some of the aforementioned managers and/or sub-advisers may not be associated with underlying fund portfolios currently available in this product.
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Proceeds from certain of these payments by the underlying fund portfolios, 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 Policy, 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 policies, see OTHER INFORMATION - Distribution of the Policies in this prospectus.
general description of the policy
Ownership
You, as Owner of the Policy, exercise all rights under the Policy. You can generally change the Owner at any time by notifying us in writing at our Administrative Office. If we do not have an originating signature or guaranteed signature on file or if the Company suspects fraud, we may require a notarized signature. There may be limitations on Your ability to change the ownership of a qualified Policy. An ownership change may be a taxable event.
Beneficiary
The beneficiary designation will remain in effect until changed. The Owner may change the designated beneficiary by sending us Written Notice. 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.) We will not be liable for any payment made before the Written Notice is received in our Administrative Office. 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), then the surviving Owner (s) automatically takes the place of any beneficiary designation.
Assignment
You can also generally assign the Policy any time during Your lifetime. We will not be bound by the assignment until we receive Written Notice of the assignment in good order at our Administrative Office and approve it. 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. We will not be liable for any payment or other action we take in accordance with the Policy before we approve the assignment. There may be limitations on Your ability to assign a qualified Policy. An assignment may have tax consequences.
Termination for Low Value
If a withdrawal or fee (including an optional rider fee, administrative fee, or Owner transaction fee) reduces Your Cash Value below the minimum specified in Your Policy, we reserve the right to terminate Your Policy and send You a full distribution of Your remaining Cash Value. All benefits associated with Your annuity Policy will be terminated. Federal law may impose restrictions on our right to terminate certain qualified policies. We do not currently anticipate exercising this right if You have certain optional benefits, however, we reserve the right to do so.
Certain Offers
From time to time, we have (and we may again) offered You some form of payment or incentive in return for terminating or modifying certain guaranteed benefits.
When we make an offer, we may vary the offer amount, up or down, among the same group of Policy Owners based on certain criteria such as account value, the difference between account value and any applicable benefit base, investment allocations and the amount and type of withdrawals taken. For example, for guaranteed benefits that have benefit bases that can be reduced on either a pro rata or dollar-for-dollar basis depending on the amount of withdrawals taken, we may consider whether You have taken any withdrawal that has caused a pro rata reduction in Your benefit base, as opposed to a dollar-for-dollar reduction. Also, we may increase or decrease offer amounts from offer to offer. In other words, we may make an offer to a group of Policy Owners based on an offer amount, and, in the future, make another offer based on a higher or lower offer amount to the remaining Policy Owners in the same group.
If You accept an offer that requires You to terminate a guaranteed benefit and You retain Your Policy, we will no longer charge You for the benefit, and You will not be eligible for any future offers related to that type of guaranteed benefit, even if such future offer would have included a greater offer amount or different payment or incentive.
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We may also make an offer to You to exchange an existing rider for a different rider.
Exchanges and/or Reinstatements
You can generally exchange a nonqualified annuity Policy for another in a “tax-free exchange” under Section 1035 of the Internal Revenue Code or transfer qualified policies directly to another life insurance company as a “trustee-to-trustee transfer”. Before making an exchange or transfer, You should compare both annuities carefully. Remember that if You exchange or transfer another annuity for the one described in this prospectus, then You may pay a surrender charge on the other annuity, and there may be a new surrender charge period under this annuity and other charges may be higher (or lower) and the benefits under this annuity may be different. You should not exchange or transfer another annuity for this one unless You determine, after knowing all the facts, that the exchange or transfer is in Your best interest and not just better for the person trying to sell You this Policy (that person will generally earn a commission if You buy this Policy through an exchange, transfer or otherwise).
You may ask us to reinstate Your Policy after such an exchange, transfer, withdrawal or surrender and in certain limited circumstances we will allow You to do so by returning the same total dollar amount of funds distributed to the applicable Investment Options. The dollar amount will be used to purchase new Accumulation Units at the then current price. In the event any Subaccount previously invested in is closed and we don’t receive additional instructions, funds will be reallocated to the remaining available Investment Options according to the investment allocation instructions You previously provided. Because of changes in market value, Your new Accumulation Units may be worth more or less than the units You previously owned. Generally for non-qualified annuity reinstatements, unless You return the original company check, if a portion of the prior withdrawal was taxable, we are required to report the taxable amount from the distribution even though the funds have been reinstated. The cost basis will be adjusted accordingly. The taxable amount will be reported on Form 1099-R which You will receive in January of the year following the distribution. Qualified annuity reinstatements may be subject to the same tax reporting and rollover requirements. We recommend that You consult a tax professional to explain the possible tax consequences of reinstatements.
ACCESS TO YOUR MONEY
During the accumulation phase, You can have access to the money in Your Policy in the following ways:
●
by taking a withdrawal or surrender; or
●
by taking systematic payouts (See ADDITIONAL FEATURES - Systematic Payout Option for more details).
Surrenders
During the accumulation phase, if You take a full surrender You will receive your Cash Value. If You want to take a withdrawal, in most cases it must be for at least $500. Certain optional benefits have specific requirements regarding the order in which surrenders can be taken from Investment Options. Unless You tell us otherwise, we will take the surrender from each of the Investment Options in proportion to the Policy Value. Surrenders may be referred to as withdrawals on your Policy statement and other documents.
You may elect to take up to the Surrender Charge Free Amount each Policy Year without incurring a surrender charge. Remember that any withdrawal You take will reduce the Policy Value, and the amount of the death benefit. See DEATH BENEFIT, for more details. A withdrawal also may have a negative impact on certain other benefits and guarantees of Your Policy. See ADDITIONAL FEATURES, for more details.
Withdrawals in excess of the Surrender Charge Free Amount may be subject to a surrender charge. Withdrawals from the Fixed Account may be subject to an Excess Interest Adjustment. Income taxes, federal tax penalties and certain restrictions may apply to any withdrawals You make.
Withdrawals from qualified policies may be restricted or prohibited.
During the income phase, You will receive annuity payments under the Annuity Payment Option you select; however, You generally may not take any other surrenders, either full or partial.
Delay of Payment and Transfer
Payment of any amount due from the Separate Account for a surrender, a death benefit, or the death of the Owner of a nonqualified Policy, will generally occur within seven days from the date we receive in good order all required information at our Administrative Office. We may defer such payment from the Separate 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.
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Transfers of amounts from the Subaccounts also may be deferred under these circumstances. In addition, if, pursuant to SEC rules, the Transamerica BlackRock Government Money Market VP portfolio (or any money market portfolio offered under this Policy) suspends payment of redemption proceeds in connection with a liquidation of the portfolio, then we may delay payment of any transfer, surrender, withdrawal, loan, or death benefit from the TA BlackRock Government Money Market Subaccount until the portfolio is liquidated.
Any payment or transfer request which is not in good order will cause a delay. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.
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 premium payment check has cleared Your bank.
Excess Interest Adjustment
Surrenders, withdrawals, transfers, and amounts applied to an annuity 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. If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value (but not below the Excess Interest Adjustment floor described in Appendix - Excess Interest Adjustment Examples). However, if the guaranteed interest rate for the applicable period has fallen since the date of the initial guarantee, the Excess Interest Adjustment will result in a higher Cash Value upon withdrawal, surrender or transfer. Please see Appendix - Excess Interest Adjustment Examples to see how the Excess Interest Adjustment is calculated and illustrative examples using hypothetical values.
Any amount withdrawn in excess of the cumulative interest credited for that Guaranteed Period Option is generally subject to an Excess Interest Adjustment. An Excess Interest Adjustment may also be made on amounts applied to an Annuity Payment Option.
The formula that will be used to determine the Excess Interest Adjustment is: 
S* (G-C)* (M/12)
S
=
Is the amount (before surrender charges, premium taxes and the application of any
Guaranteed Minimum Death Benefits) being surrendered, withdrawn, transferred,
paid upon death, or applied to an income option that is subject to the Excess Interest
Adjustment;
G
=
Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C
=
Is the current guaranteed interest rate then being offered on new premium payments
for the next longer option period than “M”. If this Policy 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,
M
=
Number of months remaining in the current option period for “S”, rounded up to
the next higher whole number of months; and
*
=
Multiplication
Please see Appendix - Excess Interest Adjustment Examples for more detailed information concerning the Excess Interest Adjustment calculation.
There will be no Excess Interest Adjustment on any of the following:
●
withdrawals or transfers of cumulative interest credited for that Guaranteed Period Option;
●
Nursing Care and Terminal Condition Waiver surrenders;
●
Unemployment Waiver withdrawals;
●
transfers from a Dollar Cost Averaging fixed source;
●
withdrawals to satisfy any minimum distribution requirements;
●
systematic withdrawals, which do not exceed cumulative interest credited at the time of payment; and
●
the Stable Account as defined in the glossary.
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 not be applicable for all policies.
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Signature Guarantee
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 withdrawals or surrenders over $250,000 unless it is a custodial owned annuity;
●
Any non-electronic disbursement request made on or within 15 days of a change to the address of record for the Policy Owner’s account;
●
Any electronic fund transfer instruction changes on or within 15 days of an address change;
●
Any withdrawal or surrender when we have been directed to send proceeds to a different personal address from the address of record for that Owner. 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 withdrawal or surrender when we do not have an originating or guaranteed signature on file unless it is a custodial owned annuity;
●
Any other transaction we require.
We may change the specific requirements listed above, or add signature guarantees in other circumstances, at 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 a Medallion signature guarantee program. 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.
ANNUITY PAYMENTS (THE INCOME PHASE)
Upon the Annuity Commencement Date, which is the date Your Policy is Annuitized and annuity payments begin, Your annuity switches from the accumulation phase to the income phase. You can generally change the Annuity Commencement Date by giving us 30 days notice with the new date or age. Unless required by state law this date cannot be earlier than the third Policy anniversary. The latest Annuity Commencement Date generally cannot be later than the last day of the month following the month in which the Annuitant attains age 99 (earlier if required by state law).
Before the Annuity Commencement Date, if the Annuitant is alive, You may choose an Annuity Payment Option or change Your election. If the Annuitant dies before the Annuity Commencement Date, the death benefit is payable in a lump sum or under one of the Annuity Payment Options (unless the surviving spouse is eligible to and elects to continue the Policy). If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and any remaining guaranteed payment will be paid to the beneficiary as provided for in the annuity income option elected.
Your Policy may not be “partially” Annuitized, i.e., You may not apply a portion of Your Policy Value to an annuity option while keeping the remainder of Your Policy in force.
Unless You specify otherwise, the Owner will receive the annuity payments. After the Annuitant's death, the beneficiary You designate at Annuitization will receive any remaining guaranteed payments.
Annuity Payment Options
The Policy provides several Annuity Payment Options (also known as income options) that are described below. You may choose any combination of Annuity Payment Options. We will use Your Adjusted Policy Value to provide these annuity payments. If the Adjusted Policy Value on the Annuity Commencement 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 Option. You can receive annuity payments monthly, quarterly, semi-annually, or annually. (We reserve the right to change the frequency if annuity payments would be less than the amount specified in Your Policy.) We may require proof of life before making annuity payments.
In deciding on which Annuity Payment Option to elect, You must decide if fixed or variable payments are better for You. If You choose to receive fixed annuity payments, then the amount of each payment will be set on the Annuity Commencement Date and will not change. You may, however, choose to receive variable annuity payments. 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 Policy. The dollar amount of additional variable annuity payments will vary based on the investment performance of the Subaccount(s) You select. The dollar amount of each variable annuity payment after the first may increase, decrease, or remain constant. If the actual
32
investment performance (net of fees and expenses) exactly matched the Assumed Investment Return of 3% at all times, the amount of each variable annuity payment would remain constant. If actual investment performance (net of fees and expenses) exceeds the Assumed Investment Return, the amount of the variable annuity payments would increase.
For example, assume the first monthly variable annuity payment is $500.00, further assume that the investment performance for the 1st month is an 8.00% annual rate of return, then the second monthly variable annuity payment would increase to $501.37. 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. Continuing from the previous example, further assume that the investment performance for the 2nd month is a -2.00% annual rate of return, then the 3rd monthly variable payment would decrease to $498.88.
You must also decide if You want Your annuity payments to be guaranteed for the Annuitant's lifetime, a period certain, or a combination thereof. Generally, annuity payments will be lower if You combine a period certain, guaranteed amount, or liquidity with a lifetime guarantee (e.g., Life Income with 10 years Certain and Life with Guaranteed Return of Policy proceeds). Likewise, annuity payments will also generally be lower the longer the period certain (because You are guaranteed payments for a longer time).
A charge for premium taxes and an Excess Interest Adjustment may be made when annuity payments begin.
The Annuity Payment Options currently available are explained below. Some options are fixed only.
Income for a Specified Period (fixed only). We will make level annuity payments only for a fixed period. No assets will remain at the end of the period. If Your Policy is a qualified Policy, this Annuity Payment Option may not satisfy minimum required distribution rules. Consult a financial professional before electing this option.
Income of a Specified Amount (fixed only). 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 annuity payments followed by a smaller final annuity payment. If Your Policy is a qualified Policy, this Annuity Payment Option may not satisfy minimum required distribution rules. Consult a financial professional before electing this option.
Life Income. You may choose between:
●
No Period Certain (fixed or variable) - Payments will be made only during the Annuitant's lifetime. The last annuity payment will be the payment immediately before the Annuitant's death. If You choose this option and the Annuitant dies before the due date of the first annuity payment no payments will be made.
●
10 Years Certain (fixed or variable) - Payments will be made for the longer of the Annuitant's lifetime or ten years.
●
Guaranteed Return of Policy Proceeds (fixed only) - Payments will be made for the longer of the Annuitant's lifetime or until the total dollar amount of annuity payments we made to You equals the Annuitized amount (i.e., the Adjusted Policy Value less premium tax, if applicable).
Joint and Survivor Annuity. You may choose:
●
No Period Certain (fixed or variable) - Payments are made during the joint lifetime of the Annuitant and a joint Annuitant of Your selection. Annuity payments will be made as long as either person is living. If You choose this option and both joint Annuitants die before the due date of the first annuity payment no payments will be made.
●
10 Year Certain (fixed only) - Payments will be made for the longer of the lifetime of the Annuitant and joint Annuitant or ten years.
Other Annuity Payment Options may be arranged by agreement with us. Some Annuity Payment Options may not be available for all policies, all ages or we may limit certain Annuity Payment Options to ensure they comply with the applicable tax law provisions.
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 (or both joint Annuitants die) before the due date of the second (third, fourth, etc.) annuity payment;
THEN:
●
we may make only one (two, three, etc.) annuity payments.
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IF:
●
You choose Income for a Specified Period, Life Income with 10 Years Certain, Life Income with Guaranteed Return of Policy Proceeds, or Income of a Specified Amount; and
●
the person receiving annuity payments dies prior to the end of the guaranteed period;
THEN:
●
the remaining guaranteed annuity payments will be continued to a new payee, or their present value may be paid in a single sum.
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 annuity payments is responsible for keeping us informed of his/her 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 be variable payments under Life with 10 Years Certain. If any portion of the default Annuitization is a variable payout option, then annuity units will be purchased proportionally based off Your available current investment allocations. Please note, all benefits (including guaranteed minimum death benefits and living benefits) terminate upon Annuitization. The only benefits that remain include the guarantees provided under the terms of the annuity option.
Please Note: If You Annuitize before the maximum Annuity Commencement Date, the payments You receive under the Annuity Payment Options may be less than the guaranteed minimum payments You are entitled to under a GLWB rider (if elected). Please consult a financial professional about the advisability of Annuitization before the maximum commencement date and the Annuity Payment options available to You.
Benefits Available Under the Policy
The following table summarizes information about the benefits available under the Policy. 
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Liquidity Rider
For Inspire contracts, reduces
the number of years each
premium payment is subject to
surrender charges from 7 years
to 4 years.
Optional
Equal to 0.50%
annually of the
Separate Account
Value for the first 4
Policy Years only
●This rider is no longer
available.
●Was available only at
purchase.
●You cannot drop this benefit.
●We may credit lower interest
rate to amounts allocated to
the Fixed Account while the
rider is in effect.
●May not be available in all
states.
“Base Policy” Death
Benefit
Pays base death benefit
generally equal to the greatest of
Policy Value, Cash Value plus
positive Excess Interest
Adjustment and Fixed Account
portion of minimum required
Cash Value plus the Separate
Account portion of the Policy
Value.
Standard
No Charge
●Available only at purchase.
●Cannot change death benefit
once elected
●Death benefit terminates
without value upon
Annuitization.
●May not be available in all
states.
34
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Annual Step-Up Death
Benefit
Pays death benefit equal to
highest Policy Value on Policy
Date or on any Policy
Anniversary prior to
Annuitant’s 81st birthday
(adjusted for premium
payments and withdrawals).
Optional
0.20% annually of
average Separate
Account Value
●Available only at purchase.
●Cannot change death benefit
once elected
●Not available if You or
Annuitant is 76 or older on
Policy Date.
●Must allocate 100% of Policy
Value to designated
Investment Options.
●Withdrawals can significantly
reduce benefit value or
terminate benefit.
●”Step-Up” ends on Policy
Anniversary prior to Your
81st birthday.
●Terminates upon
Annuitization.
●May not be available in all
states.
Additional Death
DistributionSM
Pays an additional death benefit
amount based on any rider
earnings, since the rider was
issued.
Optional
0.25% annually of
the Policy Value
●This rider is no longer
available.
●Was available for issue ages
through 75 and younger.
●Was not available to Inherited
IRAs.
●Was available only with
Return of Premium Death
Benefit or Annual Step-Up
Death Benefit and subject to
same Investment Restrictions
●Additional benefit amount
varies by issue age.
●Terminates upon
Annuitization.
35
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Additional Death
Distribution+SM
Pays an additional death benefit
amount that varies depending
on time elapsed since rider date.
Optional
0.55% annually of
the Policy Value
●This rider is no longer
available.
●Was available only for issue
ages 69 and younger.
●Was not available to Inherited
IRAs.
●Was available only with the
Return of Premium Death
Benefit or Annual Step-Up
Death Benefit, and subject to
the same Investment
Restrictions.
●Additional benefit amount
during first five years after
rider date equal to sum of all
rider fees paid since rider
date, after five years, benefit
equal to percentage of rider
benefit base.
●Terminates upon
Annuitization.
Nursing Care and
Terminal Condition
Waiver
Waives Surrender Charges and
Excess Interest Adjustments if
You or Your spouse are confined
to a nursing home or have
terminal illness.
Standard
No charge
●Withdrawals are subject to a
$1,000 minimum.
●Qualifying conditions related
to nursing home stay and
terminal illness.
●May not be available in all
states.
Unemployment Waiver
Waives Surrender Charges and
Excess Interest Adjustments if
You or Your spouse become
unemployed due to involuntary
job termination or lay-off.
Standard
No charge
●Qualifying conditions related
to job termination and job
history.
●Must be unemployed for a
certain period of time prior to
taking withdrawal, be
receiving unemployment
benefits, and have $5,000
minimum in Cash Value.
●May not be available in all
states.
36
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Dollar Cost Averaging
Program
Allows you to automatically
make transfers into one or more
Subaccounts in accordance with
Your allocation instructions in
order, on average, to buy more
Accumulation Units when
prices are low and fewer
Accumulation Units when
prices are high.
Standard
No charge
●Traditional – A minimum of
$500 per transfer is required.
●Minimum and maximum
number of transfers.
●Special – Limited to six
month or twelve-month
transfer program and only
available for new premium
payments.
●May not be available in all
states.
Asset Rebalancing
Automatically rebalances the
amounts in Your Subaccounts
to maintain Your desired asset
allocation percentages.
Standard
No charge
●Does not include any
amounts allocated to the
Fixed Account.
Systematic Payout
Option
Provides monthly, quarterly,
semi-annual or annual
withdrawals.
Optional
No Charge
●Subject to $40 minimum
withdrawals.
●Systematic withdrawals in
excess of cumulative interest
credited from Guaranteed
Period Options may be
subject to Excess Interest
Adjustment.
●Systematic withdrawals in
excess of remaining Surrender
Charge Free Amount may be
subject to Surrender Charge.
●Systematic withdrawals can
significantly reduce benefit
value or terminate benefit.
37
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Guaranteed Principal
SolutionSM Rider
Provides combination
Guaranteed Minimum
Accumulation Benefit and
Guaranteed Lifetime
Withdrawal Benefit.
Optional
1.25% annually of
principal back total
withdrawal base
●This rider is no longer
available.
●Could not be added to a
Policy with another active
Guaranteed Minimum Living
Benefit or Guaranteed
Minimum Income Benefit
Rider, or with Inherited IRA
policies.
●Was available for Annuitant
issue ages 0-80.
●Benefit subject to Investment
Restrictions including
Portfolio Allocation Method
(“PAM”).
●Guaranteed minimum
accumulation portion of
benefit applies only if rider is
held for at least 10 years.
●Maximum annual withdrawal
amount under guaranteed
minimum withdrawal portion
of the benefit equal to
specified percentage of total
withdrawal base.
●Withdrawals could
significantly reduce or
terminate benefit.
●Benefit terminates upon
Annuitization.
38
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Retirement Income
Max® Rider
Provides Guaranteed Lifetime
Withdrawal Benefit amount,
which can be withdrawn in any
rider year after age 59.
Optional
2.50% annually of
the withdrawal base
●This rider is no longer
available.
●Could not be added to a
Policy with another active
Guaranteed Minimum Living
Benefit or Guaranteed
Minimum Income Benefit
Rider, or with Inherited IRA
policies.
●Was available for
Owner/Annuitant issue ages
of 0-85.
●Joint Life options available
subject to certain restrictions
and differences, including
right to charge higher fee and
provide lower annual
withdrawal amounts.
●Rider fees subject to increase
(or decrease) at time of any
automatic step-up of
withdrawal base.
●Policy Value must be
allocated to designated
Investment Options.
●Excess withdrawals may
significantly reduce or
terminated the benefit.
●Terminates upon
Annuitization.
39
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Retirement Income
Choice 1.6 Rider
Provides Guaranteed Lifetime
Withdrawal Benefit amount,
which can be withdrawn in any
rider year after age 59. Also
provides death protection
and/or long-term care benefit
for an additional fee.
Optional
2.50% annually of
the withdrawal base
Income
Enhancement
Option: 0.45%
annually (Single Life)
or 0.65% annually
(Joint Life) of
Withdrawal Base
If qualifications are
met, the Income
Enhancement
Option increases the
income benefit by
50%
●This rider is no longer
available.
●Could not be added to a
Policy with another active
Guaranteed Minimum Living
Benefit or Guaranteed
Minimum Income Benefit
Rider, or with Inherited IRA
policies.
●Was available for
Owner/Annuitant issue ages
of 0-85.
●Joint Life options available
subject to certain restrictions
and differences, including
right to charge higher fee and
provide lower annual
withdrawal amounts.
●Beginning on the 5th rider
anniversary rider fees subject
to increase (or decrease) at
time of any automatic
step-up.
●Policy Value must be
allocated to designated
Investment Options.
●Excess withdrawals could
significantly reduce or
terminate the benefits.
●The Income Enhancement
Option subject to qualifying
conditions, including
conditions related to the
hospital and/or nursing home
stay.
40
Name of Benefit
Purpose
Standard
or
Optional
Maximum
Annual Fee
Brief Description of
Restrictions/Limitations
Transamerica Income
EdgeSM Rider
Provides Guaranteed Lifetime
Withdrawal Benefit amount,
which can be withdrawn in any
rider year after age 59.
Optional
2.50% annually of
withdrawal base
●This rider is no longer
available.
●Could not be added to a
Policy with another active
Guaranteed Minimum Living
Benefit or Guaranteed
Minimum Income Benefit
Rider, or with Inherited IRA
policies.
●Was available for
Owner/Annuitant issue ages
of 0-85.
●Joint Life options available
subject to certain restrictions
and differences, including
right to charge higher fee and
provide lower annual
withdrawal amounts.
●Rider fees subject to increase
(or decrease) at time of any
automatic step-up.
●Policy Value must be
allocated to designated
Investment Options.
●Excess withdrawals could
significantly reduce or
terminate the benefits.
DEATH BENEFIT
We will pay a death benefit to Your beneficiary, under certain circumstances, if the Annuitant dies during the accumulation phase. If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit instead of the listed beneficiary. The person receiving the death benefit may choose an Annuity Payment Option (if You pick a variable Annuity Payment Option fees and expenses will apply), or may choose to receive the death benefit as a lump sum withdrawal. The guarantees of these death benefits are based on our claims-paying ability. No death benefit will be payable upon or after the Annuity Commencement Date. Please note that there is a mandatory Annuity Commencement Date. See ANNUITY PAYMENTS (THE INCOME PHASE) section in this prospectus.
We will determine the amount of and process the death benefit proceeds, if any are payable on a Policy, upon receipt at our Administrative Office of satisfactory proof of the Annuitant's death, directions regarding how to process 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 process the death benefit when the first beneficiary provides us with due proof of 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 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. See OTHER INFORMATION - Sending Forms and Transaction Requests in Good Order.
The death benefit proceeds remain invested in the Separate Account in accordance with the allocations made by the Policy Owner until the beneficiary has provided us with due proof of death. Once we receive due proof of death, investments in the Separate Account may be reallocated in accordance with the beneficiary's instructions.
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We may permit the beneficiary to give a “one-time” written instruction to reallocate the Policy Value in the Separate Account to the money market Subaccount 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 (satisfactory evidence may include a certified death certificate).
When We Pay A Death Benefit
We will pay a death benefit IF:
●
You are both the Annuitant and sole Owner of the Policy; and
●
You die before the Annuity Commencement Date.
We will pay a death benefit to You (Owner) IF:
●
You are not the Annuitant; and
●
the Annuitant dies before the Annuity Commencement Date.
Please note: If there is a surviving Owner(s) when the Annuitant dies, the surviving Owner(s) will receive the death benefit (i.e., the surviving Owner(s) takes the place of any beneficiary designation).
If the designated beneficiary receiving the death benefit is the surviving spouse of the Owner, then he or she may elect, if eligible, to continue the Policy as the new Annuitant and Owner, instead of receiving the death benefit. See DEATH BENEFIT - Spousal Continuation. All currently existing surrender charges will be waived.
When We Do Not Pay A Death Benefit
We will not pay a death benefit IF:
●
You are the Owner but not the Annuitant; and
●
You die prior to the Annuity Commencement Date.
Please note: If an Owner (who is not the Annuitant) dies before the Annuitant, the amount payable will be equal to the Cash Value. Distribution requirements apply upon the death of any Owner. Generally, upon the Owner's death (who is not the Annuitant) the entire interest must be distributed in accordance with the Internal Revenue Code. See TAX INFORMATION for a more detailed discussion of the distribution requirements under the Code.
If an Owner (who is not the Annuitant) dies during the accumulation phase, the Cash Value will be paid to the person or entity first listed below who is alive or in existence on the date of that death:
●
any surviving Owner(s);
●
primary beneficiary(ies);
●
contingent beneficiary(ies); or
●
deceased Owner's estate.
Deaths After the Annuity Commencement Date
The amount payable, if any, on or after the Annuity Commencement Date depends on the annuity income option.
IF:
●
You are not the Annuitant; and
●
You die on or after the Annuity Commencement Date; and
●
the entire guaranteed amount in the Policy has not been paid;
THEN:
●
the remaining portion of such guaranteed amount in the Policy 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:
●
You are the Owner and Annuitant; and
●
You die after the Annuity Commencement Date; and
●
the Annuity Payment Option You selected did not have or no longer has a guaranteed period;
THEN:
●
no additional payments will be made.
42
Owner Death
If an Owner (who is not the Annuitant) dies during the accumulation phase, the Cash Value will be paid to the person or entity first listed below who is alive or in existence on the date of that death:
●
any surviving Owner(s);
●
primary beneficiary(ies);
●
contingent beneficiary(ies); or
●
deceased Owner's estate.
Spousal Continuation
If the sole primary beneficiary is the spouse of the deceased, upon the Owner's or the Annuitant's death, the beneficiary may elect to continue the Policy in his or her own name. Upon the Annuitant's death if such election is made, the Policy 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 death benefit amount over the Policy Value will be allocated to each applicable Investment Option in the ratio that the Policy Value in the Investment Option bears to the total Policy Value. The terms and conditions of the Policy that applied prior to the Annuitant's death will continue to apply, with certain exceptions described in the Policy. For purposes of the death benefit on the continued Policy, the death benefit is calculated in the same manner as it was prior to continuation on the date the spouse continues the Policy. 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 Policy 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 and if the Annuitant's spouse is the sole primary beneficiary of the Annuitant's interest in such account, the Annuitant's spouse will be treated as the beneficiary of the Policy for purposes of applying the spousal continuation provisions of the Policy.
Amount of Death Benefit
Death benefit provisions may differ from state to state. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law. The amount of the death benefit depends on the guaranteed minimum death benefit option, You choose when You buy the Policy. The “base Policy” death benefit will generally be the greatest of:
●
the Policy Value on the date we receive the required information in good order at our Administrative Office;
●
the Cash Value on the date we receive in good order the required information at our Administrative Office (this will be more than the Policy Value if there is a positive Excess Interest Adjustment that exceeds the surrender charge);
●
the Fixed Account portion of the minimum required Cash Value plus the Separate Account portion of the Policy Value, on the date we receive the required information in good order at our Administrative Office; and
●
the guaranteed minimum death benefit on the date of death; plus premium payments, minus gross withdrawals, from the date of death to the date the death benefit is paid. Please see Appendix - Death Benefit for illustrative examples regarding death benefit calculations.
Please note: The death benefit terminates upon Annuitization.
Guaranteed Minimum Death Benefit
The guaranteed minimum death benefit terminates upon Annuitization and there is a mandatory Annuity Commencement Date. On the Policy application, You may choose the Annual Step-Up death benefit (age limitations may apply) for an additional fee. After the Policy is issued, You cannot make an election for the Annual Step-Up death benefit and the death benefit cannot be changed.
The Guaranteed Minimum Death Benefit (unless you choose the Annual Step-Up death benefit) is equal to:
●
total premium payments; minus
●
any adjusted withdrawals (please see Appendix - Death Benefit) as of the date of death; minus
●
withdrawals from the date of death to the date the death benefit is paid.
43
Please note, if you elect the Annual Step-Up death benefit option, then your guaranteed minimum death benefit will be the Annual Step-Up death benefit as described below.
Annual Step-Up Death Benefit
Under this option, on each Policy anniversary prior to Your 81st birthday, a new “stepped-up” death benefit is determined and becomes the guaranteed minimum death benefit for that Policy Year. This “step-up” death benefit is equal to:
●
the largest Policy Value on the Policy Date or on any Policy anniversary prior to the earlier of the Annuitant's date of death or the Annuitant's 81st birthday; plus
●
any premium payments since the date of any Policy anniversary with the largest Policy Value; minus
●
any adjusted withdrawals (please see Appendix - Death Benefit) since the date of the Policy anniversary with the largest Policy Value to the date of death; minus
●
withdrawals from the date of death to the date the death benefit is paid.
The Annual Step-Up Death Benefit is not available if You or the Annuitant is 76 or older on the Policy Date. There is an extra charge for this death benefit. See ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES.
Designated Investment Options. If You elected the Annual Step-Up Death Benefit, You must allocate 100% of Your Policy Value to one or more of the designated Investment Options approved for the Annual Step-Up Death Benefit. See Appendix - Designated Investment Options for a complete listing of available Investment Options. Requiring that You designate 100% of Your Policy Value to the designated Investment Options, some of which employ strategies that are intended to reduce the risk of loss and/or manage volatility, may reduce investment returns and may reduce the likelihood that we will be required to use our own assets to pay amounts due under this benefit.
Please note:
●
You may transfer amounts among the designated Investment Options; however, You cannot transfer any amount to any other Subaccount if You elect this death benefit.
●
We have processes and procedures in place that will prevent allocation to a Subaccount that is not a designated Investment Option. These processes and procedures include restricting transfers requested by telephone and internet.
●
You will not receive the optional Annual Step-Up death benefit if You do not choose it when You purchase your Policy.
The Annual Step-Up death benefit may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering an Annual Step-Up death benefit at any time for new sales.
Adjusted Partial Withdrawal
When You request a partial withdrawal, Your guaranteed minimum death benefit will be reduced by an amount called the adjusted partial withdrawal. Under certain circumstances, the adjusted partial withdrawal may be more than the dollar amount of Your withdrawal request. This will generally be the case if the guaranteed minimum death benefit exceeds the Policy Value at the time of withdrawal. It is also possible that if a death benefit is paid after You have made a partial withdrawal, then the total amount paid could be less than the total premium payments.
The formula used to calculate the adjusted partial withdrawal amount is: adjusted partial withdrawal = (amount of the withdrawal * the current death proceeds prior to the withdrawal) / Policy Value prior to the withdrawal.
We have included a detailed explanation of this adjustment with examples in the Appendix - Death Benefit. This is referred to as “adjusted partial withdrawal” in Your Policy. If You have a qualified Policy, minimum required distributions rules may require You to request a partial withdrawal.
Optional Benefit Riders
You may have elected one of the following optional riders previously available for purchase which are no longer available. The following rider grid describes the material features of each of those riders. Please refer to Your personal rider pages and any supplemental mailings for Your specific coverage and features regarding these riders.
Listed below are the abbreviations that will be used in the following grid for Your reference.
 
Abbreviation
Definition
ADB
Additional Death Benefit
Abbreviation
Definition
ADD
Additional Death Distribution
44
Abbreviation
Definition
ADD+
Additional Death Distribution Plus
DB
Death Benefit
DCA
Dollar Cost Averaging
FIP
Family Income Protector
GFV
Guaranteed Future Value
GMAB
Guaranteed Minimum
Accumulation Benefit
GMDB
Guaranteed Minimum Death
Benefit
GMIB
Guaranteed Minimum Income
Benefit
GMLB
Guaranteed Minimum Living
Benefit
GMWB
Guaranteed Minimum Withdrawal
Benefit
GPO
Guaranteed Period Option
GPS
Guaranteed Principal SolutionSM
IE
Income EnhancementSM
Abbreviation
Definition
MAP
Managed Annuity Program
MAV
Minimum Annuitization Value
MAWA
Maximum Annual Withdrawal
Amount
MIB
Minimum Income Base
MRWA
Minimum Remaining Withdrawal
Amount
N/A
Not Applicable
OAM
Open Allocation Method
PAM
Portfolio Allocation Method
RDB
Rider Death Benefit
RIC
Retirement Income Choice®
RMD
Required Minimum Distribution
RWA
Rider Withdrawal Amount
SPO
Systematic Pay Out
TWB
Total Withdrawal Base
WB
Withdrawal Base
WD
Withdrawal
The information below is a summary of riders previously available for purchase which are no longer available. 
Rider Name
Additional Death Distribution 2003
Additional Death Distribution +
Rider Form Number1
RTP 18 0103
ICC12 RTP 170513
RTP 17 0103
ICC12 RTP 180513
Purpose of Rider
This is an Additional Death Benefit Rider which can
pay an additional benefit at time of death to help
alleviate the burden of taxes.
This is an Additional Death Benefit Rider which can
pay an additional benefit at time of death to help
alleviate the burden of taxes.
Availability
●Issue age 0-75 but not yet 76 years old (Policy
application signed on or after May 1, 2020).
●Issue age 0-80 but not yet 81 years old (Policy
application signed prior to May 1, 2020).
●Not available in all states.
●Issue age 0-69 but not yet 70 years old (Policy
application signed on or after May 1, 2020).
●Issue age 0-75 but not yet 76 years old (Policy
application signed prior to May 1, 2020).
●Not available in all states.
Base Benefit and Optional Fees at issue
Percentage of Policy Value – 0.25%
Percentage of Policy Value – 0.55%
Fee Frequency
Assessed each rider anniversary and at rider
termination and equal to the Policy Value multiplied
by rider fee percentage.
Assessed each rider anniversary and at rider
termination and equal to the Policy Value multiplied
by rider fee percentage.
Death Benefit
Amount is paid whenever a death benefit is paid and
the rider is attached.
●Amount paid=ADB Factor x Rider Earnings*
●ADB Factor - 40% for issue ages 0-70 and 25%
for issue ages 71-80 (when application signed date
is prior to May 1, 2020).
●ADB Factor - 40% for issue ages 0-70 and 25%
for issue ages 71-75 (when application signed date
is after May 1, 2020).
*Rider earnings are defined as:
- the policy value on the date the death benefit is
determined; minus
-policy value on the rider date; minus
- premium payments after the rider date; plus
- surrenders after the rider date that exceed the rider
earnings on the date of the surrender.
NOTE: No benefit is payable under the ADD rider if
there are no rider earnings on the date the death
benefit is calculated.
Amount is paid whenever a death benefit is paid and
the rider is attached.
●Prior to 5th rider anniversary = Sum of all fees paid
for this rider since the rider date.
●On or after 5th rider anniversary = Rider Benefit
Base* x Rider Benefit Percentage**.
**The rider benefit percentage = 30% for issue
ages 0-70 and 20% for issue ages 71-75 (when
application signed date is prior to May 1, 2020).
**The rider benefit percentage = 30% for issue
ages 0-69 (when application signed date is after
May 1, 2020).
*The Rider Benefit Base at any time is equal to the
Policy Value less any premiums added after the Rider
Date
NOTE: No benefit is payable under the ADD+ rider
if the Policy Value on the date the death benefit is
paid is less than the premium payments after the
rider date.
Investment Restrictions and/or Designated Funds
Available
N/A
N/A
Withdrawal Benefits
N/A
N/A
45
Rider Name
Additional Death Distribution 2003
Additional Death Distribution +
Rider Form Number1
RTP 18 0103
ICC12 RTP 170513
RTP 17 0103
ICC12 RTP 180513
Automatic Step-Up Benefit
N/A
N/A
Exercising Rider
No further action required to exercise the rider.
No further action required to exercise the rider.
Income Benefit or Other Benefit Payout
Considerations
N/A
N/A
Rider Upgrade
N/A
N/A
Rider Termination
The rider can be added or dropped at any time.  If
the rider is dropped and re-added, the rider will only
cover earnings accumulated since the rider was
re-added.
The rider will remain in effect until:
●you cancel it by notifying our Administrative
Office in writing,
●the Policy is Annuitized or surrendered
●or the additional death benefit is paid.
The rider can be added or dropped at any time.  If
the rider is terminated they must wait one year to
re-add rider.
The rider will remain in effect until:
●you cancel it by notifying our Administrative
Office in writing,
●the Policy is Annuitized or surrendered
●or the additional death benefit is paid.
 
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
Purpose of Rider
This is a Living Benefit Rider
and should be viewed as a way
to permit You to invest in
variable Investment Options
while still having Your Policy
Value and liquidity protected
to the extent provided by this
rider.
This rider is a combination of
two separate annuity
guarantees:
1)A GMWB and
2)A GMAB (a.k.a. principal
protection benefit or
guarantee future value
benefit).
The rider will guarantee that
the Policy Value of the Policy
will be at least as high as the
GFV after a waiting period has
expired.
This is a GLWB rider that
guarantees withdrawals for the
Annuitant's2 lifetime,
regardless of Policy Value.
●The policyholder can
withdraw the RWA each
rider year until the death of
the Annuitant.2
●This benefit is intended to
provide a level of payments
regardless of the
performance of the
designated variable
Investment Options You
select.
This is a GLWB rider that
guarantees withdrawals for the
Annuitant's2 lifetime,
regardless of Policy Value.
●The policyholder can
withdraw the RWA each
rider year until the death of
the Annuitant.2
●This benefit is intended to
provide a level of payments
regardless of the
performance of the
designated variable
Investment Options You
select.
This is a GLWB rider that
guarantees withdrawals for the
Annuitant's2 lifetime,
regardless of Policy Value.
●The policyholder can
withdraw the RWA each
rider year until the death of
the Annuitant.2
●This benefit is intended to
provide a level of payments
regardless of the
performance of the
designated variable
Investment Options You
select.
Availability
●Issue age 0-80, but not yet
81 years old (unless state law
requires a lower maximum
issue age)
●Cannot be added to a Policy
with other active GMLB
riders.
●Issue age 0-85, but not yet
86 years old (unless state law
requires a lower maximum
issue age).
●Single Annuitant ONLY.
Annuitant must be an
Owner (unless Owner is a
non-natural person)
●Maximum of 2 living Joint
Owners (with one being the
Annuitant)
●Cannot be added to a Policy
with other active GMLB
riders.
●Not available on qualified
annuity which has been
continued by surviving
spouse or beneficiary as a
new Owner.
●Issue age 0-85, but not yet
86 years old (unless state law
requires a lower maximum
issue age).
●Single Annuitant ONLY.
Annuitant must be an
Owner (unless Owner is a
non-natural person)
●Maximum of 2 living Joint
Owners (with one being the
Annuitant)
●Cannot be added to a Policy
with other active GMLB
riders.
●Not available on qualified
annuity which has been
continued by surviving
spouse or beneficiary as a
new Owner.
●Issue age 0-85, but not yet
86 years old (unless state law
requires a lower maximum
issue age).
●Single Annuitant ONLY.
Annuitant must be an
Owner (unless Owner is a
non-natural person)
●Maximum of 2 living Joint
Owners (with one being the
Annuitant)
●Cannot be added to a Policy
with other active GMLB
riders.
●Not available on qualified
annuity which has been
continued by surviving
spouse or beneficiary as a
new Owner.
46
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
Base Benefit and Optional
Fees at issue
Percentage of “Principal Back”
TWB - 1.25%
Rider Fees:
Single Life1.50%
Joint Life1.60%
For riders issued prior to the
date of this prospectus, please
reference the “Appendix –
Prior Withdrawal/Growth
Percentages and Rider Fees” in
the Statement of Additional
Information.
Fee based on designated
allocation groups and the
optional benefits selected. If
You elect a combination of
designated allocations from
among the various groups
below, then Your fee will be
based on a weighted average of
Your choices.
Rider Fees:
Single Life
Group A1.85%
Group B1.40%
Group C0.95%
IE0.30%
Joint Life
Group A1.95%
Group B1.50%
Group C1.05%
IE0.50%
For riders issued prior to the
date of this prospectus, please
reference the “Appendix –
Prior Withdrawal/Growth
Percentages and Rider Fees” in
the Statement of Additional
Information.
We use the withdrawal base to
calculate the rider withdrawal
amount and the rider fee. The
withdrawal base on the rider
date is the Policy Value.
Rider Fees:
Single Life1.45%
Joint Life1.55%
For riders issued prior to the
date of this prospectus, please
reference the “Appendix –
Prior Allocation/Withdrawal
Percentages and Rider Fees” in
the Statement of Additional
Information.
Fee Frequency
●Fee is deducted annually
during the accumulation
phase on each rider
anniversary.
●A pro-rated fee is deducted
at the time the rider is
terminated or upgraded.
●The fee is calculated at issue
and each subsequent rider
quarter for the upcoming
quarter based on the fund
values and WB at that point
in time and stored.
●Deducted at each rider
quarterversary in arrears
during the accumulation
phase.
●The fee is calculated on a
quarterly basis.
●A rider fee adjustment will
be applied for subsequent
premium payments and
withdrawals that change the
withdrawal base.
●The base rider fee
adjustment will be
calculated using the same
formula as the base rider fee.
●The rider fee adjustment
may be positive or negative
and will be added to or
subtracted from the rider fee
to be allocated.
●A pro-rated fee is deducted
at the time the rider is
terminated or upgraded.
●The fee is calculated at issue
and each subsequent rider
quarter for the upcoming
quarter based on the fund
values and WB at that point
in time and stored.
●Deducted at each rider
quarterversary in arrears
during the accumulation
phase.
●The fee is calculated on a
quarterly basis and varies
depending on the allocation
option You have chosen.
●A rider fee adjustment will
be applied for transfers
between allocation groups
and for subsequent
premium payments and
withdrawals that change the
withdrawal base.
●The base rider fee
adjustment will be
calculated using the same
formula as the base rider fee.
●The rider fee adjustment
may be positive or negative
and will be added to or
subtracted from the rider fee
to be allocated.
●A pro-rated fee is deducted
at the time the rider is
terminated or upgraded.
●The fee is calculated at issue
and each subsequent rider
quarter for the upcoming
quarter
●Deducted at each rider
quarter and will be deducted
automatically from the
flexible Investment Options
and the select Investment
Options on a pro-rata basis
at the end of each rider
quarter.
●Once select and flexible
Investment Options have
been depleted, fees can be
deducted out of the stable
account, except for riders in
New York.
●The fee is calculated and
stored at issue and at each
subsequent rider quarter for
the upcoming quarter.
●A rider fee adjustment will
be applied for any premium
additions and excess
withdrawals that change the
withdrawal base.
●The rider fee adjustment
may be positive or negative
and will be added to or
subtracted from the rider fee
to be collected.
●A pro-rated fee is deducted
at the time the rider is
terminated.
Death Benefit
N/A
N/A
N/A
N/A
47
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
Designated Investment
Options Available -
Policyholders who add these
riders may only invest in the
Investment Options listed.
Investment Options may not
be available as a designated
fund based on rider issue date.
Requiring that You designate
100% of Your Policy Value to
the designated Investment
Options, some of which
employ strategies that are
intended to reduce the risk of
loss and/or manage volatility,
may reduce investment returns
and may reduce the likelihood
that we will be required to use
our own assets to pay amounts
due under this benefit.
PLEASE NOTE: These
Investment Options may not
be available on all products,
may vary for certain policies
and may not be available for all
policies. Please reference
Investment Options Available
Under the Policy Appendix in
Your prospectus for available
Portfolio Companies. You
cannot transfer any amount to
any other non-designated
subaccount without losing all
Your benefits under this rider.
All funds within the product
are considered designated
Investment Options for this
purpose. You must, however,
adhere to the Portfolio
Allocation Method. See below.
For a list of designated funds
for this rider, please reference
the Appendix - Designated
Investment Options.
For a list of designated funds
for this rider, please reference
the Appendix - Designated
Investment Options.
For a list of select and flexible
Investment Options, please
reference the Appendix -
Transamerica Income EdgeSM
Investment Options.
Allocation Methods
Portfolio Allocation Method
(PAM):
●This program will
automatically allocate assets
from the policyholder's
Subaccounts to a
Subaccount of our choosing
when the Policy Value has
dropped relative to the
guaranteed amount.
●If the Policy Value increases
enough in relation to the
guaranteed amounts, the
money may be moved back
into the Subaccounts
(pro-rata based on the
policyholder's current
Subaccount values).
●The allocation of assets
between the accounts is at
our sole discretion but will
initially use modern
financial theory to
determine the correct
allocation.
●The policyholder may not
allocate premium payments
to, nor transfer Policy Value
into or out of, the PAM
Investment Options.
N/A
N/A
Required Allocations:
A certain percentage of Your
Policy Value on the rider date
must be allocated to the Stable
Account, the select and the
flexible Investment Options as
specified in the applicable Rate
Sheet Prospectus Supplement.
Stable Account
●This is a Fixed Account
option.
●Allocations applied to the
Stable Account will be
credited interest based on a
fixed rate.
●Withdrawals from the Stable
Account are not permitted
until all over Investment
Options are depleted of
value.
Flexible and Select
Options
●You must allocate certain
percentages of Your
premium payments and
Policy Value to these
Investment Options.
●Withdrawals from the
flexible and select
48
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
 
Current PAM Subaccount:
TA Aegon U.S. Government
Securities
 
 
Investment Options will be
deducted on a pro-rated
basis from each Investment
Option that You have
allocated to.
●If You do not wish to
maintain the required
allocation percentages the
rider must be terminated.
For riders issued prior to the
date of this prospectus,
please reference the
“Appendix – Prior
Allocation/Withdrawal
Percentages and Rider Fees”
in the Statement of
Additional Information.
Withdrawal Benefits - See
Hypothetical Adjusted
Withdrawals - Guaranteed
Lifetime Withdrawal Benefit
Riders“ appendix for examples
showing the effect of
withdrawals on the WB.
The GMWB guarantees a
withdrawal amount regardless
of the Policy Value. The
policyholder has 2 withdrawal
guarantees available. Once the
rider is issued, values for both
withdrawal guarantees will be
calculated indefinitely as
follows:
a)7% Principal Back: The
policyholder can withdraw
up to 7% of the 7%
Principal Back TWB per
year until at least the time
at which the 7% Principal
Back MRWA has reached
zero.
b)5% For Life: The
policyholder can withdraw
up to 5% of the 5% For
Life TWB each year starting
with the rider anniversary
following the Annuitant's
59th birthday until at least
the later of the death of the
Annuitant or the time when
the 5% For Life MRWA*
has reached zero.
* The MRWA represents the
total minimum dollar amount
of guaranteed withdrawals the
policyholder has remaining
provided they take no more
than the MAWA each year.
●The policyholder does not
have to take the entire
MAWA in any year.
●If they do not take the full
amount available, the
remaining portion does not
carry over to the next
calendar year.
The percentage is determined
by the attained age of the
Annuitant2 at the time of the
first withdrawal.
Single Life Riders
Age 1st WDJoint Life WD%
0 - 580.00%
59-643.75%
65-805.00%
81 +5.50%
Joint Life Riders
Age 1st WDJoint Life WD%
0 - 580.00%
59-643.25%
65-804.50%
81 +5.00%
●Starting the rider
anniversary following the
Annuitant's259th birthday,
the withdrawal percentage
increases above 0% which
creates a RWA available
under the rider for
withdrawal.
●On each rider anniversary,
the RWA will be reset equal
to the greater of:
 1)The WB multiplied by
the withdrawal
percentage based on the
attained age of the
Annuitant2 at the time of
their first withdrawal if
applicable, and
 2)The RMD amount for
this Policy for the current
calendar year.
●The policyholder does not
have to take the entire RWA
in any year.
●If they do not take the full
amount available, the
remaining portion does not
carry over to the next rider
year.
For riders issued prior to the
date of this prospectus,
The withdrawal percentage is
determined by the attained age
of the Annuitant2 at the time
of the first withdrawal.
Single Life Riders
Age 1st WDJoint Life WD%
0 - 580.00%
59-643.50%
65-804.75%
81 +5.25%
Joint Life Riders
Age 1st WDJoint Life WD%
0 - 580.00%
59-643.00%
65-804.25%
81 +4.75%
●Starting the rider
anniversary following the
Annuitant's259th birthday,
the withdrawal percentage
increases above 0% which
creates a RWA available
under the rider for
withdrawal.
●On each rider anniversary,
the RWA will be reset equal
to the greater of:
 1)The WB multiplied by
the withdrawal
percentage based on the
attained age of the
Annuitant2 at the time of
their first withdrawal if
applicable, and
 2)The RMD amount for
this Policy for the current
calendar year.
●The policyholder does not
have to take the entire RWA
in any year.
●If they do not take the full
amount available, the
remaining portion does not
carry over to the next rider
year.
For riders issued prior to the
date of this prospectus,
The withdrawal percentage is
determined by the attained age
of the Annuitant2 at the time
of the first withdrawal.
Single Life Riders
Age 1st WD during Rider
Years 1-5Single Life WD%
0 - 580.0%
59-643.75%
65-805.00%
81 +5.50%
Joint Life Riders
Age 1st WD during Rider
Years 1-5Joint Life WD%
0 - 580.0%
59-643.25%
65-804.50%
81 +5.00%
Single Life Riders
Age 1st WD during Rider
Years 6-10Single Life WD%
0 - 580.0%
59-644.25%
65-805.50%
81 +6.00%
Joint Life Riders
Age 1st WD during Rider
Years 6-10Joint Life WD%
0 - 580.0%
59-643.75%
65-805.00%
81 +5.50%
Single Life Riders
Age 1st WD during Rider
Years 11+Single Life WD%
0 - 580.0%
59-644.75%
65-806.00%
81 +6.50%
Joint Life Riders
Age 1st WD during Rider
Years 11+Joint Life WD%
0 - 580.0%
59-644.25%
65-805.50%
81 +6.00%
●Starting the rider
anniversary following the
Annuitant's259th birthday,
the withdrawal percentage
49
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
 
 
please see the “Appendix
Prior Withdrawal/Growth
Percentages and Rider Fees”
in the Statement of
Additional Information.
please reference the
“Appendix – Prior
Withdrawal/Growth
Percentages and Rider Fees”
in the Statement of
Additional Information.
increases above 0% which
creates a RWA available
under the rider for
withdrawal.
●On each rider anniversary,
the RWA will be reset equal
to the greater of:
 1)The WB multiplied by
the withdrawal
percentage based on the
attained age of the
Annuitant2 at the time of
their first withdrawal if
applicable, and
 2)The RMD amount for
this Policy for the current
calendar year.
●The policyholder does not
have to take the entire RWA
in any year.
●If they do not take the full
amount available, the
remaining portion does not
carry over to the next rider
year.
For riders issued prior to the
date of this prospectus,
please reference the
“Appendix – Prior
Allocation/Withdrawal
Percentages and Rider Fees”
in the Statement of
Additional Information.
Automatic Step-Up Benefit
N/A
On each rider anniversary, the
WB will be set to the greatest
of:
1)The current WB:
2)The Policy Value on the
rider anniversary;
3)The highest Policy Value on
a rider monthiversarySM*;
or
4)The current WB
immediately prior to
anniversary processing
increased by the growth rate
percentage**
* Item 3) is set to zero if there
have been any excess
withdrawals in the current
rider year.
** Item 4) is set to zero after
the first 10 years or if there
have been any withdrawals in
the current rider year.
A step-up will occur if the
largest value is either 2) or 3)
above. A step-up will allow us
to change the rider fee
percentage after the 1st rider
anniversary.
●If the largest value is 1) or 4)
above, this is not considered
a step-up.
On each rider anniversary, the
WB will be set to the greatest
of:
1)The current WB:
2)The Policy Value on the
rider anniversary;
3)The highest Policy Value on
a rider monthiversarySM*;
or
4)The current WB
immediately prior to
anniversary processing
increased by the growth rate
percentage**
* Item 3) is set to zero if there
have been any excess
withdrawals in the current
rider year.
** Item 4) is set to zero after
the first 10 years or if there
have been any withdrawals in
the current rider year.
A step-up will occur if the
largest value is either 2) or 3)
above. A step-up will allow us
to change the rider fee
percentage after the 5th rider
anniversary.
●If the largest value is 1) or 4)
above, this is not considered
a step-up.
On each rider anniversary, the
rider will receive an automatic
step-up if the WB is equal to
the Policy Value on the rider
anniversary immediately after
the WB reset on the rider
anniversary.
●If the Policy Value is not
greater than the current WB
no automatic step-up will
occur
●The withdrawal percentage
will also increase if You have
crossed into another age
band or rider year duration
prior to the step-up.
●The rider fee percentage
may increase or decrease at
the time of the step-up.
●Owner will have a 30 day
window after the rider
anniversary to reject an
automatic step-up if the
rider fee increased.
●If an Owner rejects an
automatic step-up, they
retain the right to all future
automatic step-ups.
50
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
 
 
●Owner will have a 30 day
window after the rider
anniversary to reject an
automatic step-up if we
increase the rider
fee.—Must be in writing.
●If an Owner rejects an
automatic step-up, they
retain the right to all future
automatic step-ups.
NOTE: The withdrawal
percentage will also increase if
You have crossed into another
age band prior to an automatic
step-up after the election date.
●Owner will have a 30 day
window after the rider
anniversary to reject an
automatic step-up if we
increase the rider
fee.—Must be in writing.
●If an Owner rejects an
automatic step-up, they
retain the right to all future
automatic step-ups.
NOTE: The withdrawal
percentage will also increase if
You have crossed into another
age band prior to an automatic
step-up after the election date.
 
Exercising Rider
“For Life” GMWB:
The policyholder is guaranteed
to be able to withdraw up to
the “For Life” MAWA until the
later of 1) the Annuitant's
death or 2) the “For Life”
MRWA is zero.
“Principal Back” GMWB:
The policyholder is guaranteed
to be able to withdraw up to
the “Principal Back” MAWA
until the “Principal Back”
MRWA is zero.
“GMAB”:
At the end of the GMAB
waiting period (currently 10
years), should the Policy Value
be less than the GFV, the
GMAB feature will add the
difference to the Policy Value
on a pro-rata basis based on
their current account value.
a)The addition to the Policy
will not be considered
premium and should not
affect any other Policy
calculations, including the
GMDB calculations.
b)At the end of the waiting
period, the GMAB will not
provide any more benefits,
unless the policyholder
chooses to upgrade the
rider.
Exercising Base Benefit: The
policyholder is guaranteed to
be able to withdraw up to the
RWA each rider year if the
Policy Value did not reach zero
as a result of an excess
withdrawal. The rider benefits
cease when the Annuitant2 has
died.
Exercising Base Benefit: The
policyholder is guaranteed to
be able to withdraw up to the
RWA each rider year if the
Policy Value did not reach zero
as a result of an excess
withdrawal. The rider benefits
cease when the Annuitant2 has
died.
Exercising the Income
Enhancement Option4:
If qualifications are met, this
optional feature doubles the
income benefit percentage
until the Annuitant2 is no
longer confined (either has left
the facility or deceased).
Qualifications:
–Confinement must be due
to a medical necessity due to
physical or cognitive ailment.
–Must be the Annuitant2 who
is confined.
–Waiting period of 1 year
from the rider date before the
increase in the income benefit
percentage is applicable.
–Elimination period is 180
days within the last 12 months
which can be satisfied during
the waiting period.
–Proof of confinement is
required. This may be a
statement from a Physician or
a hospital or nursing facility
administrator.
–Qualification standards can
be met again on the
Annuitant's2 life.
Exercising Base Benefit: The
policyholder is guaranteed to
be able to withdraw up to the
RWA each rider year (after the
attainment of the minimum
benefit age) without causing an
excess withdrawal, even if the
Policy Value did not reach zero
as a result of an excess
withdrawal. The rider benefits
cease when the Annuitant2 has
died.
Income Benefit or Other
Benefit Payout
Considerations
The GFV is the Policy Value
we are guaranteeing on the
GFV date. After the Rider
Issue Date, the GFV is equal to
the GFV on the Rider Issue
Date, plus a percentage of
premiums (not including
premium enhancements)
received after the Rider Date as
shown in the table below, less
an adjustment for withdrawals.
Year Rec'd% Added to GFV
Growth: Benefit is not elected
separately but is built into the
rider. The WB will grow
annually. This will only be
credited on the rider
anniversary for up to 10 rider
years. If a withdrawal has
occurred in the current rider
year growth will not be
applied.
NOTE: There is not an
adjustment or credit for partial
Growth: Benefit is not elected
separately but is built into the
rider. The WB will grow
annually. This will only be
credited on the rider
anniversary for up to 10 rider
years. If a withdrawal has
occurred in the current rider
year growth will not be
applied.
NOTE: There is not an
adjustment or credit for partial
N/A
51
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
 
1100% 
290% 
380% 
470% 
560% 
6-1050% 
10+0% 
At the end of the GMAB
waiting period (currently 10
years), should the Policy Value
be less than the GFV, we will
add the difference to the Policy
Value on a pro-rata basis based
on their current Policy Value.
years of interest. Growth is not
accumulated daily. Only
calculated at the end of the
year if no withdrawals were
taken.
For riders issued prior to the
date of this prospectus, please
reference the “Appendix –
Prior Withdrawal/Growth
Percentages and Rider Fees” in
the Statement of Additional
Information.
years of interest. Growth is not
accumulated daily. Only
calculated at the end of the
year if no withdrawals were
taken.
For riders issued prior to the
date of this prospectus, please
reference the “Appendix –
Prior Withdrawal/Growth
Percentages and Rider Fees” in
the Statement of Additional
Information.
 
Rider Upgrade
●May upgrade any time after
the 3rd Anniversary by
terminating the rider and
adding the new rider in
place at that time, as long as
the covered lives meet the
age requirements in effect at
that time.
●Must be prior to the
annuitant's 86th birthday
●An upgrade will reset the
MRWA, TWB, MAWA and
the GFV values.
●Rider Fee will be the fee that
applies to the new rider at
the time of upgrade.
N/A
●Upgrades allowed within a
30-day window following
each successive 5th rider
anniversary.
●Rider availability and fees
may vary at time of upgrade
●Upgrades are subject to issue
age restrictions of the rider
at the time of upgrade.
Currently the maximum
upgrade age is 85 years old.
●An upgrade will reset the
WB and RDB.
●Rider Fee Percentage will be
the fee percentage that
applies to the new rider at
the time of upgrade.
●Growth percentage will be
the percentage available at
the time of upgrade.
N/A
Rider Termination
●The rider will be terminated
upon Policy surrender,
Annuitization or upgrade.
●The policyholder must wait
3 years from the Rider Start
Date to terminate.
●After the three-year waiting
period, the policyholder may
terminate the rider at any
time.
●The rider will be terminated
the date we receive Written
Notice from You requesting
termination.
●The rider will be terminated
upon Policy surrender,
Annuitization, Annuitant2
death or upgrade.
●The date the Policy to which
this rider is attached is
assigned or if the Owner is
changed without our
approval.
●Termination allowed within
30 day window following
each successive 5th rider
anniversary.
●The rider will be terminated
the date the date an excess
withdrawal reduces Your
●The rider will be terminated
upon Policy surrender,
Annuitization, Annuitant2
death or upgrade.
●The date the Policy to which
this rider is attached is
assigned or if the Owner is
changed without our
approval.
●Termination allowed within
30 day window following
each successive 5th rider
anniversary.
●The rider will be terminated
the date the date an excess
withdrawal reduces Your
●The rider will be terminated
upon Policy surrender,
Annuitization, Annuitant2
death or upgrade.
●The date the Policy to which
this rider is attached is
assigned or if the Owner is
changed without our
approval.
●Termination allowed within
30 day window following
each successive 5th rider
anniversary.
●The rider will be terminated
the date the date an excess
withdrawal reduces Your
52
Rider Name
Guaranteed Principal
Solutions Rider (2005)3
Retirement Income Max®3
Retirement Income Choice®
1.63
Transamerica Income
EdgeSM3
Rider Form Number1
RGMB 4 0504
RGMB 41 0513
RGMB 41 0111 (NY)
RGMB 37 0809 - (w/o IE)
RGMB 38 0809 - (with IE)
RGMB 51 0616
 
 
Policy Value to zero, or we
receive Written Notice from
You requesting termination.
Policy Value to zero, or we
receive Written Notice from
You requesting termination.
Policy Value to zero, or we
receive Written Notice from
You requesting termination.
(1) 
Rider form number may be found on the bottom left corner of your rider pages.
(2) 
If the rider's Joint Life option has been elected for an additional fee, the benefits and features available could differ from the Single Life Option based on the age of the Annuitant's spouse if younger.
(3) 
This rider and additional options may vary for certain policies and may not be available for all policies. This disclosure explains the material features of the riders. The application and operation of the riders are governed by the terms and conditions of the rider itself.
(4) 
Single and Joint Life Income Enhancement Options are not available in New York.
ADDITIONAL FEATURES
Systematic Payout Option
You can select at any time during the accumulation phase to receive regular withdrawals from Your Policy by using the systematic payout option. Any systematic withdrawal in excess of the cumulative interest credited from the Guaranteed Period Options at the time of the withdrawal may be subject to an Excess Interest Adjustment. Any systematic withdrawal in excess of Your remaining Surrender Charge Free Amount may be subject to a surrender charge. Any systematic withdrawal could reduce Your rider values (perhaps significantly). Systematic withdrawals can be taken monthly, quarterly, semi-annually, or annually. Each withdrawal must be at least $40. Monthly and quarterly systematic withdrawals must generally be taken by electronic funds transfer directly to Your checking or savings account. There is no charge for this benefit.
Keep in mind that withdrawals under the systematic payout option may be taxable, and if taken before age 59½, may be subject to a 10% federal penalty tax. This includes any withdrawals from the policy to pay your selling firm. You should consult your tax advisor.
Liquidity Rider - No Longer Available
The optional Liquidity Rider reduces the number of years each premium payment is subject to surrender charges. You can only elect this rider at the time You purchase the Policy.
The Liquidity Rider may vary for certain policies and may not be available for all policies, in all states, at all times or through all financial intermediaries. We may discontinue offering this benefit at any time for new sales. 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.
Surrender Charge Schedule. The Liquidity Rider reduces the number of years each premium payment is subject to surrender charges from seven years to four years. The surrender charge will remain unchanged for the first four years.
Rider Fee. There is an additional charge for this rider which is a percentage of the daily net asset value in the Separate Account which is deducted in calculating the accumulation unit values. The rider fee is only charged for the first four Policy Years.
Accumulation Unit Values. We intend to administer the removal of the Liquidity Rider fee by changing to a different class of Accumulation Units. This will result in adjusting the number of Accumulation Units and adjusting the unit value of the Subaccounts in which You were invested once the Liquidity Rider fee is no longer charged. The elimination of the fee and the adjustment in the number of Accumulation Units and unit values will not affect Policy Values.
Termination. The rider is irrevocable.
Please note:
●
This feature terminates upon Annuitization and there is a mandatory Annuity Commencement Date.
●
We may credit interest in the Fixed Account (if available) at a different rate if You select this rider.
●
The Liquidity Rider is not suitable for You if You are purchasing the Policy for a long-term investment.
53
Nursing Care and Terminal Condition Waiver
No surrender charges or Excess Interest Adjustments will apply if You take a withdrawal ($1,000 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).
You may exercise this benefit at any time during the accumulation phase. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.
The Nursing Care and Terminal Condition Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.
Unemployment Waiver
No surrender charges or Excess Interest Adjustments will apply to withdrawals after You or Your spouse become unemployed due to:
●
involuntary termination of employment
●
involuntary lay off;
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 Policy Date;
●
unemployed for at least 60 days in a row at the time of withdrawal;
●
must have a minimum Cash Value at the time of withdrawal of $5,000; and
●
You (or Your spouse) must be receiving unemployment benefits.
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 withdrawal.
You may use this benefit at any time during the accumulation phase and for so long as You meet the criteria specified above. This benefit is also available to the Annuitant or Annuitant's spouse if the Owner is not a natural person. There is no restriction on the maximum amount You may withdraw under this benefit. There is no charge for this benefit.
The Unemployment Waiver may vary for certain policies and may not be available for all policies, in all states or at all times.
Telephone and Electronic Transactions
Currently, certain transactions may be made by telephone or other electronic means acceptable to us upon our receipt of the appropriate authorization. We may discontinue this option at any time. To access information and perform transactions electronically, we require You to create an account with a username and password, and to maintain a valid e-mail address.
We will not be liable for following instructions communicated by telephone or electronically we reasonably believe to be genuine. We will employ reasonable procedures to confirm that instructions we receive are genuine. Our procedures require You to provide information to verify Your identity when You call us and we will record conversations with You. We may also require written confirmation of the request. When someone contacts our Administrative Office and follows our procedures, we will assume You are authorizing us to act upon those instructions. For electronic transactions through the internet, You will need to provide Your username and password. You are responsible for keeping Your password confidential and must notify us of any loss, theft or unauthorized use of Your password.
Telephone and other electronic transactions must be received in good order while the New York Stock Exchange is open for regular trading to get same-day pricing of the transaction. Transactions received in good order on non-Business Days or after our close of business on Business Days will get next-day pricing. See OTHER INFORMATION – Sending Forms and Transaction Requests in Good Order. Please note that the telephone and/or electronic device transactions may not always be available. Any telephone, fax machine or other electronic device, whether it is Yours, Your service provider's, or a financial representative(s) can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may delay or prevent our processing of Your request if the volume of transactions is unusually high, we might not have anyone available, or lines available, to take Your transaction. Although we have taken precautions to limit these problems, we cannot promise complete reliability under all circumstances. If You are experiencing problems, You should make Your request by writing to our Administrative Office.
We reserve the right to revoke Your telephone and other electronic transaction privileges at any time without revoking all Owners' privileges. We may deny telephone and electronic transaction privileges to market timers or disruptive traders.
54
Dollar Cost Averaging Program
During the accumulation phase, You may instruct us to automatically make transfers into one or more 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.
Dollar Cost Averaging programs that may be available under Your Policy:
●
Traditional – You may specify the dollar amount to be transferred and the number of transfers, or just the number of transfers, in which case we will calculate the amount to be transferred. Unless a specified date is requested, 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 transfers or 4 quarterly transfers, and the maximum is 24 monthly transfers or 8 quarterly transfers. You can elect to transfer from the Fixed Account, money market or other specified Subaccount. If You elect to transfer from the Fixed Account, or if You elect to transfer from the money market or other specified Subaccount and only the number of transfers is provided, we will transfer 100% of the remaining value in the elected source Subaccount for the final transfer. If the money market or other Subaccount is elected as the source Subaccount and a specified dollar amount is provided with the number of transfers, You must choose if You want to transfer all remaining value out of the source Subaccount or if You would like any remaining value to stay within the 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 Option into a Special Dollar Cost Averaging program. This program is only available for new premium 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). If the value in the source fund is less than the scheduled transfer, 100% of the value remaining in the source fund will be transferred for the final transfer.
Unless a specific date is requested, the Dollar Cost Averaging program will begin the next business day after we have received in good order all necessary information and the minimum required amount. See 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 premium payments while a Dollar Cost Averaging program is running, and You instruct us to add it to the Dollar Cost Averaging program, the amount of the Dollar Cost Averaging transfers will increase proportionally.
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 premium payments, absent new allocation instructions, received after a Dollar Cost Averaging program has completed, will be allocated according to the current premium 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 may be available with the Guaranteed Lifetime Withdrawal Benefits. Any amount in the Dollar Cost Averaging source account or any Fixed Account are ignored for the purposes of Asset Rebalancing. There is no charge for this benefit.
The Dollar Cost Averaging Program may vary for certain policies and may not be available for all policies, in all states or at all times. See Your Policy for availability of the Fixed Account options. We reserve the right to terminate the availability of any Dollar Cost Averaging program at any time.
55
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. 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. Asset rebalancing can be used in conjunction with a Guaranteed Lifetime Withdrawal Benefit. Please note, any amounts rebalanced may be immediately transferred to the Portfolio Allocation Method (PAM) Investment Options as applicable under the Portfolio Allocation Method. There is no charge for this benefit. We reserve the right to terminate the availability of any asset rebalancing program at any time.
Loans
No Loans are available on this Policy.
TAX INFORMATION
NOTE: We have prepared the following information on federal taxes as a general discussion of the subject. It is not intended as tax advice to any taxpayer. The federal 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 tax law or of the current interpretations by the Internal Revenue Service. The discussion briefly references federal estate, gift and generation-skipping transfer taxes, but principally discusses federal income taxes. 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 Policy. You should consult a financial professional about Your own circumstances.
Introduction
Deferred annuity policies 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 Policy until withdrawn. This is referred to as tax deferral. When a non-natural person (e.g., corporation or certain trusts) owns a nonqualified Policy, the Policy will generally not be treated as an annuity for tax purposes. Thus, the Owner must generally include in income any increase in the Policy Value over the investment in the Policy 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 Policy-qualified or nonqualified.
If You purchase the Policy as an individual retirement annuity under section 408(b) of the Internal Revenue Code (or as a part of a traditional individual retirement account or Roth individual retirement account under sections 408(a) and 408A of the Code) or as a part of a 403(b) plan, 457 plan, a pension plan, a profit sharing plan (including a 401(k) plan), or certain other employer sponsored retirement programs, Your Policy is referred to as a qualified Policy. 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 Policy. There are limits on the amount of contributions You can make to a qualified Policy and Your ability to assign the Policy. 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 Policy's provisions, the plan's provisions will control.
If You purchase the Policy other than as part of any arrangement described in the preceding paragraph, the Policy is referred to as a nonqualified Policy.
You will generally not be taxed on increases in the value of Your Policy, whether qualified or nonqualified, until a distribution occurs (e.g., as a surrender, withdrawal, or as annuity payments). 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 Policy. You may also be subject to current taxation if You make a gift of a nonqualified Policy without valuable consideration. All amounts received from the Policy that are includible in income are taxed at ordinary income rates; no amounts received from the Policy are taxable at the lower rates applicable to capital gains.
The Internal Revenue Service (“IRS”) has not reviewed the Policy for qualification as a qualified annuity or IRA, and has not addressed in a ruling of general applicability whether the death benefit options and riders available, with the Policy, if any, comport with qualified annuity or IRA qualification requirements.
The value of living and death benefit options and riders elected may need to be taken into account in calculating minimum required distributions from a qualified plan/or Policy.
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We may occasionally enter into settlements with Owners and beneficiaries to resolve issues relating to the Policy. 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 a 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 Policy. 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 deductions for dividends received by the Separate Account or foreign tax credits attributable to taxes paid by certain underlying fund portfolios to foreign jurisdictions to the extent permitted under federal tax law.
Tax Status of a Nonqualified Policy
Diversification Requirements. In order for a nonqualified variable Policy which is based on a segregated asset account to qualify as an annuity Policy 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 Owners bear the risk that the entire contract could be disqualified as an annuity Policy 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 policies 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 Policy is to be treated as the Owner of the assets held by the insurance company under the Policy 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 Policy would not possess sufficient control over the assets underlying the Policy 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 Policy 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 Policy should not be treated as the Owner of the underlying assets. We reserve the right to modify the policies to bring them into conformity with applicable standards should such modification be necessary to prevent Owners of the policies from being treated as the Owners of the underlying Separate Account assets. Concerned Owners should consult their own financial professionals regarding the tax matter discussed above.
Distribution Requirements. The Code requires that nonqualified policies contain specific provisions for distribution of Policy proceeds upon the death of any Owner. In order to be treated as an annuity Policy for federal income tax purposes, the Code requires that such policies provide that if any Owner dies on or after the annuity starting date and before the entire interest in the Policy 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 Policy must generally be distributed (1) within 5 years after such Owner's date of death or (2) to (or for the benefit of) a designated beneficiary, over the life of such designated beneficiary (or over a period not extending beyond the life expectancy of such beneficiary) and such distribution begin not later than 1 year after the date of the Owner’s death (also known as a “stretch” payout). The designated beneficiary must be an individual. The only method we use for making distribution payments from a nonqualified “stretch” payment option is the required minimum distribution method as set forth in Revenue Ruling 2022-6. The applicable payments are calculated using the Single Life Expectancy Table set forth in Treasury Regulations 1.401(a)(9)-9(b). However, if upon such Owner's death the Owner's surviving spouse is the designated beneficiary of the Policy, then the Policy may be continued with the surviving spouse as the new Owner. If any Owner is a non-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 policies 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 policies satisfy all such Code requirements. The provisions contained in the policies will be reviewed and modified if necessary to assure that they comply with the Code requirements when clarified by regulation or otherwise.
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Taxation of a Nonqualified Policy
The following discussion assumes the Policy qualifies as an annuity Policy 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 Policy until such amounts are surrendered or distributed. For this purpose, the assignment, pledge, or agreement to assign or pledge any portion of the Policy Value as collateral for a loan generally will be treated as a distribution of such portion. You may also be subject to current taxation if You make a gift of a nonqualified Policy without valuable consideration. The taxable portion of a distribution is taxable as ordinary income.
Non-Natural Persons. Pursuant to Section 72(u) of the Code, a nonqualified Policy held by a taxpayer other than a natural person generally will not be treated as an annuity Policy 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 Policy Value over the “investment in the contract”. There are some exceptions to this rule and a prospective purchaser of the Policy that is not a natural person should discuss these rules with a competent financial professional. A Policy 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 financial professional for more information on how this may impact Your Policy.
Different Individual Owner and Annuitant
If the Owner and Annuitant on the Policy are different individuals, there may be negative tax consequences to the Owner and/or beneficiaries under the Policy 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 a legal counsel or financial professional if You are considering designating a different individual as the Annuitant on Your Policy 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 Policy 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 Policy maintains its status as an annuity Policy for federal income tax purposes. You may wish to consult a financial professional 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 or have other tax consequences. You should consult with a financial professional 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 policies, 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:
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Fixed payments-by dividing the “investment in the Policy” on the annuity starting date by the total expected return under the Policy (determined under Treasury regulations) for the term of the payments. This is the percentage of each annuity payment that is excludable.
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Variable payments-by dividing the “investment in the Policy” 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 Policy” has been fully recovered, the full amount of any additional annuity payments is includable in gross income and taxed as ordinary income. The “investment in the Policy” is generally equal to the premiums You pay for the Policy, reduced by any amounts You have previously received from the Policy that are excludible from gross income.
If You select more than one Annuity Payment Option, special rules govern the allocation of the Policy's entire “investment in the Policy” 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 financial professional as to the potential tax effects of allocating amounts to any particular Annuity Payment Option.
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If, after the annuity starting date, annuity payments stop because an Annuitant died, the excess (if any) of the “investment in the Policy” 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 Withdrawals - Nonqualified Policies
When You surrender Your Policy, You are generally taxed on the amount that Your surrender proceeds exceeds the “investment in the Policy”. The “investment in the Policy” is generally equal to the premiums You pay for the Policy, reduced by any amounts You have previously received from the Policy that are excludible from gross income. Withdrawals are generally treated first as taxable income to the extent of the excess in the Policy Value over the “investment in the policy.” Distributions taken under the systematic payout option are treated for tax purposes as withdrawals, not annuity payments. In general, loans, pledges, and collateral assignments as security for a loan are taxed in the same manner as withdrawals and surrenders. You may also be subject to current taxation if You make a gift of a nonqualified Policy without valuable consideration. All taxable amounts received under a Policy are subject to tax at ordinary rather than capital gain tax rates.
If Your Policy contains an Excess Interest Adjustment feature (also known as a market value adjustment), then Your Policy Value immediately before a Policy withdrawal (or transaction taxed like a withdrawal) may have to be increased by any positive Excess Interest Adjustments that result from the transaction. 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 a financial professional.
The Code also provides that amounts received from the Policy that are includible in gross income (including the taxable portion of some annuity payments) 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 withdrawals and other amounts will be exempt from the penalty tax. Amounts received that are not subject to the penalty tax include, among others, any amounts: (1) paid on or after the taxpayer reaches age 59½; (2) paid after an Owner (or where the Owner is a non-natural person, an Annuitant) 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 we cannot verify that the Owner is disabled, we will report such withdrawals to the IRS as early withdrawals with no known exception from the penalty tax.
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 financial professional for more information regarding the imposition of penalty tax.
Guaranteed Lifetime Withdrawal Benefits
For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your Policy, are not entirely clear. It is possible that the withdrawal base (with respect to the Guaranteed Lifetime Withdrawal Benefits) and the guaranteed future value (with respect to the Guaranteed Minimum Accumulation Benefit) could be taken into account to determine the Policy Value that is used to calculate required distributions and the amount of the distribution that would be included in income. The proper treatment of the Income Enhancement Option under a Guaranteed Lifetime Withdrawal Benefit is unclear. It is possible that the IRS could determine that the benefit provides some form of long-term care insurance. In that event, the Internal Revenue Service may determine the Income Enhancement Option is an incidental benefit with adverse consequences for qualification as a qualified annuity, You could be treated as in receipt of some amount of income attributable to the value of the benefit even though You have not received a payment from Your Policy, and the amount of income attributable to guaranteed lifetime withdrawal payments could be affected. In addition, if the Income Enhancement Benefit causes an increase in payments calculated to meet the Required Minimum Distribution requirements it may violate the rules governing such distributions with adverse tax consequences. In view of this uncertainty, You should consult a financial professional with any questions.
Aggregation
All nonqualified deferred annuity policies that are issued by us (or our affiliates) to the same Owner (policyholder) during the same calendar year are treated as one annuity for purposes of determining the amount includable in the Owner's income when a taxable distribution (other than annuity payments) occurs. If You are considering purchasing multiple policies from us (or our affiliates) during the same calendar year, You may wish to consult with a financial professional regarding how aggregation will apply to Your policies.
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Tax-Free Exchanges of Nonqualified Policies
We may issue the nonqualified Policy in exchange for all or part of another annuity contract that You own. Such an exchange will be tax free if certain requirements are satisfied. If the exchange is tax free, Your investment in the Policy immediately after the exchange will generally be the same as that of the annuity contract exchanged, increased by any additional premium payment made as part of the exchange. Your Policy Value immediately after the exchange may exceed Your investment in the Policy. That excess may be includable in income should amounts subsequently be withdrawn or distributed from the Policy (e.g., as a withdrawal, surrender, annuity income payment or death benefit).
If You exchange part of an existing contract for the Policy, and within 180 days of the exchange You received a payment other than certain annuity payments (e.g., You take a withdrawal) from either contract, the exchange may not be treated as a tax free exchange. Rather, some or all of the amount exchanged into the Policy could be includible in Your income and subject to a 10% penalty tax.
You should consult a financial professional in connection with an exchange of all or part of an annuity contract for the Policy, especially if You may take a withdrawal from either contract within 180 days after the exchange.
Medicare Tax
Distributions from nonqualified annuity policies are considered “investment income” for purposes of the 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. We are required to report distributions taken from nonqualified annuity policies as being potentially subject to this tax. While distributions from qualified policies 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 Policy could cause Your other investment income to be subject to the tax. Please consult a financial professional for more information.
Same Sex Relationships
Same sex couples have the right to marry in all states. The parties to each marriage that is valid under the law of any state will each be treated as a spouse as defined in this Policy. Individuals in other arrangements, such as civil unions, registered domestic partnerships, or other similar arrangements, that are treated as a valid marriage under the applicable state law, will each be treated as a spouse as defined in this Policy for state law purposes. However, individuals in other arrangements that are not recognized as marriage under the relevant state law, will not be treated as married or as spouses as defined in this Policy for federal tax purposes. Therefore, exercise of the spousal continuation provisions of this Policy or any riders by individuals who do not meet the definition of “spouse” may have adverse tax consequences and/or may not be permissible. Please consult a financial professional for more information on this subject.
Taxation of Death Benefit Proceeds
Amounts may be distributed from the Policy 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 surrender; (2) if distributed via withdrawals, these amounts are taxed in the same manner as 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 Policies
A transfer of ownership or assignment of a Policy, the designation of an Annuitant or payee or other beneficiary who is not also the Owner, the exchange of a Policy 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. There may be limitations on Your ability to transfer, assign or exchange a qualified Policy. An Owner contemplating any such transaction or designation should contact a competent financial professional with respect to the potential tax effects.
Charges
It is possible that the IRS may take a position that fees for certain optional benefits (e.g., Annual Step-Up 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 withdrawal, which might also be subject to a tax penalty if the withdrawal occurs prior to age 59½. Although we do not believe that the fees associated with any optional benefit provided under the Policy should be treated as taxable withdrawals, the tax rules associated with these benefits are unclear, and we advise that You consult a financial professional prior to selecting any optional benefit under the Policy.
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Federal Estate, Gift and Generation-Skipping Transfer Taxes
The estate and gift tax unified credit basic exclusion amount applicable to individuals is $13.99 million for 2025 and $15 million for 2026. The maximum rate applicable to an estate that exceeds this limit is 40%.
The uncertainty as to how the current law might be modified in the future underscores the importance of seeking guidance from a competent professional to help ensure that Your estate plan adequately addresses Your needs and that of Your beneficiaries under all possible scenarios.
Federal Estate Taxes. While no attempt is being made to discuss the Federal estate tax implications of the Policy in detail, a purchaser should keep in mind that the value of an annuity Policy 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 Policy, 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 professional 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 Policy 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 Policy, or from any applicable payment, and pay it directly to the IRS.
Qualified Policies
The qualified Policy 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 59½ (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, but rather are subject to the required minimum distribution provisions in Section 401(a)(9) of the Code. Some retirement plans are subject to distribution and other requirements that are not incorporated into the policies or our Policy administration procedures. Owners, employers, participants, and beneficiaries are responsible for determining that contributions, distributions, and other transactions with respect to the policies to comply with applicable law.
Distribution Requirements. Under Section 401(a) and/or Section 401(k) Contracts, the underlying tax-qualified plan may require payment of the death benefit in the form of a “qualified pre-retirement survivor annuity,” a “qualified joint and survivor annuity”, or other payment method.
The information below generally applies to Owners who die in 2025 or later years. Post-death required distribution requirements are complex and frequently unclear. Please consult with Your financial professional for information relating to required post-death distributions or for information specific to Your own unique situation.
Upon a Owner’s death, if the Owner does not have a Beneficiary who is an individual, the Owner’s entire interest in the contract must generally be (1) distributed by the end of the calendar year ending five years after the date of death if the Owner died before the Owner was required to receive distributions under the contract or (2) at least as rapidly as the method being used as of the date of the Owner’s death if the Owner died after the Owner was required to begin receiving distributions under the contract. An exception may apply if the Beneficiary is a trust, and all of the trust Beneficiaries are individuals. If the Owner has a Beneficiary, who is an individual, but is not an eligible designated Beneficiary, the Owner’s entire interest in the contract must generally be distributed by the end of the calendar year ending ten years after the date of death.
If the Owner has a Beneficiary who is an eligible designated Beneficiary, the eligible designated Beneficiary may choose to receive the Owner’s interest under the contract either:
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by the end of the calendar year ending ten years after the date of death
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as an annuity over the life of the eligible designated Beneficiary or over a period not extending beyond the life expectancy of that Beneficiary, provided that such distributions begin not later than one year after the date of the Owner’s death.
An eligible designated Beneficiary is a Beneficiary who, meets any of the following criteria as of the date of the Owner’s death:
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is the Owner’s surviving spouse
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the Owner’s child who has not reached the age of majority, but any remaining interest must be distributed within 10 years of when the child reaches the age of majority
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is disabled within the meaning of IRC section 72(m)(7)
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is chronically ill individual within the meaning of section 7702B(c)(2)
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is an individual who is not more than 10 years younger than the Owner
If the Beneficiary is the Owner’s spouse, distributions are not required to be made until the April 1st after the end of the calendar year in which the Owner would have attained age 73 If the Owner dies before distributions begin, the rules discussed above will apply as if the spouse were the Owner. If a spouse is the surviving Beneficiary, the spouse may elect to maintain an investment in the contract to the extent permitted by the Owner’s retirement arrangement.
Traditional Individual Retirement Annuities. In order to qualify as a traditional individual retirement annuity under Section 408(b) of the Code, a Policy must satisfy certain conditions: (i) the Owner must be the Annuitant; (ii) the Policy generally is not transferable by the Owner, e.g., the Owner may not designate a new Owner, designate a contingent Owner or assign the Policy 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 withdrawals according to the requirements in the IRS regulations (minimum required distributions) must begin by the Required Beginning Date; (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 Policy Value; (vii) the entire interest of the Owner is non-forfeitable; and (viii) the premiums must not be fixed. Policies intended to qualify as traditional individual retirement annuities under Section 408(b) of the Code contain such provisions. Amounts in the individual retirement annuity (other than nondeductible contributions) generally are taxed only when distributed from the annuity. Distributions prior to age 59½ (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. Subject to certain exceptions, distributions prior to age 59½ 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 rules that apply to IRA distributions and are taxed as ordinary income.
The IRS has not reviewed this Policy for qualification as a traditional IRA, SIMPLE IRA or SEP IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the Policy comport with qualification requirements.
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 an amount specified in the Code for the year. Secondly, the distributions are taxed differently. The Roth IRA offers tax-free distributions when taken 5 tax years after the first contribution to any Roth IRA of the individual and taken after one of the following: attaining age 59½, to pay for qualified first time home buyer expenses (lifetime maximum of $10,000), or due to death or disability. All other distributions are subject to income tax when taken 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, minimum required distributions at death are generally the same as for traditional IRAs.
The IRS has not reviewed this Policy for qualification as a Roth IRA, and has not addressed in a ruling of general applicability whether any death benefits available under the Policy comport with qualification requirements.
Section 403(b) Plans. Under Section 403(b) of the Code, payments made by public school systems and certain tax exempt organizations to purchase policies for their employees are generally excludable from the gross income of the employee, subject to certain limitations. However, such payments may be subject to Federal Insurance Contributions Act (FICA or Social Security) taxes. The Policy includes a death benefit that in some cases may exceed the greater of the premium payments or the Policy 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, unless certain events have occurred. Specifically distributions of such amounts will be allowed only upon the death of the employee, on or after attainment of age 59½, severance from employment, disability, or financial hardship, except that income attributable to elective
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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 59½. For policies 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 Policy in connection with Section 403(b) plans may wish to consult with their financial professional.
Pursuant to 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) Policy 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 Policy, and transactions under the Policy and any other 403(b) policies 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.
Pension and Profit-Sharing Plans. Sections 401(a) and 403(a) of the Code permit 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 policies to accumulate retirement savings. Adverse tax consequences to the plan, the participant or both may result if the Policy 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(b) of the Code, while not actually providing for a qualified plan as that term is normally used, provides for certain deferred compensation plans established and maintained by state and local governments (and their agencies and instrumentalities) and tax exempt organizations. Under such plans a participant may be able to specify the form of investment in which his or her participation will be made. For non-governmental Section 457(b) plans, all such investments, however, are typically 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(b) plan obligations. In general, all amounts received under a non-governmental Section 457 plan are taxable in the year paid (or in the year paid or made available in the case of a non-governmental 457(b) plan). Distributions from non-governmental 457(b) plans are subject to federal income tax withholding as wages, distributions from governmental 457(b) plans are subject to withholding as “eligible rollover distributions” as described in the section entitled “Withholding.” below. Contributions to and distributions from such plans are limited by the Code and may be subject to penalties. Deferred compensation plans of governments and tax-exempt entities that do not meet the requirements of Section 457(b) are taxed under Section 457(f), which means compensation deferred under the plan is included in gross income in the first year in which the compensation is not subject to substantial risk of forfeiture.
Ineligible Owners-Qualified
We currently will not issue new policies 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.
Taxation of Surrenders and Withdrawals - Qualified Policies
In the case of a withdrawal under a qualified Policy (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 Policy” to Your total account balance or accrued benefit under the retirement plan. Your “investment in the Policy” generally equals the amount of any non-deductible premium payments made by You or on Your behalf. If You do not have any non-deductible premium payments, Your investment in the contract will be treated as zero.
In addition, a penalty tax may be assessed on amounts surrendered from the Policy prior to the date You reach age 59½, unless You meet one of the exceptions to this rule which are similar to the penalty exceptions for distributions from nonqualified policies discussed above. However, the exceptions applicable for qualified policies differ from those provided to nonqualified policies. You should consult a financial professional for more information regarding the application of these exceptions to Your circumstances. You may also be required to begin taking minimum distributions from the Policy by a certain date. The terms of the plan may limit the rights otherwise available to You under the Policy.
Qualified Plan Required 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 Required Beginning Date or (ii) retires, and must be made in a specified form or manner. if a participant in a qualified plan 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 by the Required Beginning Date.
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The actuarial present value of death and/or living benefit options and riders elected may need to be taken into account in calculating required minimum distributions. Please consult with a financial professional to learn more about an optional living or death benefit prior to purchase.
Each Owner is responsible for requesting distributions under the Policy that satisfy applicable tax rules. We do not attempt to provide more than general information about the use of the Policy with the various types of retirement plans. Purchasers of policies for use with any retirement plan should consult a legal counsel and financial professional regarding the suitability of the Policy.
The Code generally requires that interest in a qualified Policy be non-forfeitable.
You should consult a legal counsel or financial professional if You are considering purchasing an enhanced death benefit or other optional rider, or if You are considering purchasing a Policy for use with any qualified retirement plan or arrangement.
Optional Living Benefits
For policies with a Guaranteed Lifetime Withdrawal Benefit or a Guaranteed Minimum Accumulation Benefit the application of certain tax rules, particularly those rules relating to distributions from Your Policy, are not entirely clear. The tax rules for qualified policies 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 Withdrawal Benefit. In view of this uncertainty, You should consult a financial professional before purchasing this Policy as a qualified Policy.
Withholding
The portion of any distribution under a Policy 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 taken. The amount of withholding varies according to the type of distribution. The withholding rates applicable to the taxable portion of periodic payments (other than eligible rollover distributions) are the same as the withholding rates generally applicable to payments of wages. A 10% withholding rate applies to the taxable portion of non-periodic payments. Regardless of whether You elect not to have federal income tax withheld, You are still liable for payment of federal income tax on the taxable portion of the payment. For qualified policies, “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.
Annuity Purchases by Residents of Puerto Rico
The IRS has announced that income received by residents of Puerto Rico under life insurance or annuity policies 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 Policies 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 financial professional regarding U.S., state, and foreign taxation for any annuity Policy purchase.
Foreign Account Tax Compliance Act (“FATCA”)
If the payee of a distribution from the Policy is a foreign financial institution (“FFI”) or a non-financial foreign entity (“NFFE”) within the meaning of the Code as amended by the Foreign Account Tax Compliance Act (“FATCA” ), the distribution could be subject to U.S. federal withholding tax on the taxable amount of the distribution at a 30% rate irrespective of the status of any beneficial Owner of the Policy or the distribution. The rules relating to FATCA are complex, and a financial professional should be consulted if an FFI or NFFE is or may be designated as a payee with respect to the Policy.
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Possible Tax Law Changes
Although the likelihood and nature of legislative or regulatory changes is uncertain, there is always the possibility that the tax treatment of the Policy could change by legislation, regulation, or otherwise. You should consult a financial professional with respect to legal or regulatory developments and their effect on the Policy.
We have the right to modify the Policy to meet the requirements of any applicable laws or regulations, including legislative changes that could otherwise diminish the favorable tax treatment that annuity Owners currently receive.
OTHER INFORMATION
Sending Forms and Transaction Requests in Good Order
We cannot process Your requests for transactions relating to the Policy 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 Policy 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 dated signatures of all Owners (exactly as registered on the Policy) if necessary; Social Security Number or Taxpayer 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 effect 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 requirements 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.
Regulatory Modifications to Policy
We reserve the right to amend the Policy or any riders attached thereto as necessary to comply with specific direction provided by state or federal regulators, through change of law, rule, regulation, bulletin, regulatory directives or agreements.
Anti-Money Laundering (AML) and Sanctions
The Company and the Separate Account are subject to laws and regulations designed to combat money laundering and terrorist financing. The Company, on its own behalf and on behalf of the Separate Account, has implemented and operates an anti-money laundering (“AML”) program. The Company shall not be held liable for any losses that an Owner, Annuitant, or beneficiary may incur as a result of actions taken to prevent suspected violations of AML laws, rules, and regulations.
The Company and the Separate Account are subject to the provisions of various sanctions programs administered and enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). These programs prohibit financial institutions from doing business with certain identified enemies of the United States as set forth in various lists maintained by OFAC. Depending on the program under which a transaction falls, financial institutions must either (i) reject and report the transaction, or (ii) block the transaction, place the funds or assets in a separate blocked transaction account, and report the matter to OFAC. In order to comply with OFAC requirements, the Company reviews applicants, Owners, and Annuitants against the OFAC list and stops processing and rejects any transaction from an individual or entity who is listed on the OFAC list. The Company only accepts premium payments that are not subject to sanctions and in United States currency.
If an Owner or Annuitant is subject to sanctions, the Company is required to block access to an Owner’s Policy and thereby refuse to pay any request for partial withdrawals, surrenders, or other distributions until permitted by OFAC. Further, if additional premium payments are received, we are required under applicable U.S. laws and regulations to place such funds in the blocked account as well. In addition, the Company may be required to block a beneficiary’s request for payment of death benefit proceeds. Blocking access may include transferring Cash Value and death benefit proceeds to the Fixed Account or money market subaccount until permitted by OFAC. The Company shall not be held liable for any losses that an Owner, Annuitant, or beneficiary may incur as a result of sanctions.
Mixed and Shared Funding
The underlying fund portfolios may serve as investment vehicles for variable life insurance policies, variable annuity policies and retirement plans (“mixed funding”) and shares of the underlying fund portfolios also may be sold to Separate Accounts of other insurance companies (“shared funding”). While we currently do not foresee any disadvantages to Owners and participants arising
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from either mixed or shared funding, it is possible that the interests of Owners of various policies and/or participants in various plans for which the underlying fund portfolios serve as investments might at some time be in conflict. We and each underlying fund portfolio’s Board of Directors intend to monitor events in order to identify any material conflicts and to determine what action, if any, to take. Such action could include the sale of underlying fund portfolio shares by one or more of the Separate Accounts, which could have adverse consequences. Such action could also include a decision that separate funds should be established for variable life and variable annuity Separate Accounts. In such an event, we would bear the attendant expenses, but Owners and plan participants would no longer have the economies of scale resulting from a larger combined fund. Please read the prospectuses for the underlying fund portfolios, which discuss the underlying fund portfolios’ risks regarding mixed and shared funding, as applicable. Please see Voting Rights section for how shares held by the Company would be voted.
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, 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 TCL's ability to perform under its principal underwriting agreement, or on our ability to meet our obligations under the Policy.
Distribution of the Policies
Distribution and Principal Underwriting Agreement. We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, LLC (TCL), for the distribution and sale of the policies. We pay commissions to TCL which are passed through to selling firms. (See below). We also pay TCL an “override” that is a percentage of total commissions paid on sales of our policies which is not passed through to the selling firms and we may reimburse TCL for certain expenses it incurs in order to pay for the distribution of the policies. TCL may market the policies through bank affiliated firms, national brokerage firms, regional and independent broker-dealers and independent financial planners.
Compensation to Broker-Dealers Selling the Policies. The policies are offered to the public through broker-dealers (“selling firms”) that are licensed under the federal securities laws; the selling firm and/or its affiliates are also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with TCL as principal underwriter for the policies. We pay commissions through TCL to the selling firms for their sales of the policies.
The selling firms are paid commissions for the promotion and sale of the policies according to one or more schedules. The amount and timing of commissions may vary depending on the selling agreement, and the share purchased, but the commission range is from 1.25% up to 7.2% of premium payments (additional amounts may be paid as overrides to wholesalers).
To the extent permitted by Financial Industry Regulatory Authority (FINRA) rules, the Company and TCL may pay (or allow other broker-dealers to provide) promotional incentives or payments in the form of cash or non-cash compensation or reimbursement to some, but not all, selling firms and their sales representatives. These arrangements are described further below.
The sales representative who sells You the Policy typically receives a portion of the compensation we (and our affiliates) pay to the selling firms, depending on the agreement between the selling firm and its representative and the firm's internal compensation program. These programs may include other types of cash and non-cash compensation and other benefits. Ask Your sales representative for further information about the compensation Your sales representative, and the selling firm that employs Your sales representative, may receive in connection with Your purchase of a Policy. Also inquire about any compensation arrangements that we and our affiliates may have with the selling firm, including the conflicts of interests that such arrangements may create.
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You should be aware that a selling firm or its sales representatives may receive different compensation or incentives for selling one product over another. In some cases, these differences may create an incentive for the selling firm or its sales representatives to recommend or sell the Policy to You. You may wish to take such incentives into account when considering and evaluating any recommendation relating to the policies.
Special Compensation Paid to Affiliated Firms. We and/or our affiliates provide paid-in capital to TCL and we or our affiliates may pay all or a portion of the cost of TCL's operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions. We and/or our affiliates also provide TCL with a percentage of total commissions paid on sales of our policies and provide TCL with capital payments that are not contingent on sales.
TCL's registered representatives and supervisors may receive non-cash compensation, such as attendance at conferences, seminars and trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, payments, loans, loan forgiveness or loan guarantees.
Additional Compensation That We, TCL and/or Our Affiliates Pay to Selected Selling Firms. TCL, in connection with the sales of the policies, may pay certain selling firms additional cash amounts in order to receive enhanced marketing services and increased access to their sales representatives. In exchange for providing TCL with access to their distribution network, such selling firms may receive additional compensation or reimbursement for, among other things, the hiring and training of sales personnel, marketing, sponsoring of conferences, meetings, seminars, events, and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, We, TCL and other parties may provide the selling firms with occasional gifts, meals, tickets or other non-cash compensation as an incentive to sell the policies. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ among selling firms.
During 2025, in general, payments calculated as a percentage of sales ranged from 8 basis point (0.08%) to 50 basis points (0.50%), payments calculated as a percentage of assets under management ranged from 2 basis points (0.02%) to 16 basis points (0.16%), and flat annual fees ranged from $3,000.00 to $655,299.95 (calculated after revenue sharing offsets for sales), which included at times payments for a series of meetings and/or events of other broker-dealers and banks.
 
As of December 31, 2025, TCL had revenue sharing agreements with more than 71 broker dealers and other financial intermediaries including, without limitation: Ameriprise Financial Services, Inc.; Advisor Group, Inc./Osaic, Inc. (Osaic Wealth, Inc., SagePoint, Securities America, Triad, American Portfolios, and Osaic Institutions); Atria Wealth Solutions, Inc. (Cadaret Grant & Co., CUSO Financial, Grove Point Investments, Next Financial, SCF Securities, and Western International Securities, Inc.); Cambridge Investment Research; Centaurus Financial, Inc.; Aretec Group, Inc./Cetera Financial Group, Inc. (Avantax Insurance Agency, Cetera Advisors, LLC, Cetera Advisor Networks, LLC, Cetera Financial Specialists, LLC, Cetera Investment Services, LLC, Cetera Wealth Services,); CFD Investments Inc.; Charles Schwab; Citigroup Global Markets, Inc.; Clear Financial; Commonwealth Financial Network; Community America Financial Solutions LLC/Copper Financial; D.A. Davidson & Co., Inc.; Edward Jones; EF Legacy Securities; Equitable Advisors, LLC; Equity Services, Inc.; Financial Data Services, Inc.; First Trust; Geneos Wealth Management; Great West Financial; Hantz Financial Services, Inc.; Hornor Townsend & Kent Inc.; Independent Financial Group, LLC; Janney Montgomery Scott; J.P. Morgan Securities LLC; Kestra Investment Services; Lincoln Investment; Lion Street Financial; LPL Financial Corp.; Logan Group Securities; Merrill Lynch; Morgan Stanley Smith Barney; MML Investors Services; Mutual of Omaha Investor Services Inc.; National Financial Services, Inc.; Nations Financial Group Inc.; OneAmerica Securities Inc.; Oppenheimer & Co.; Park Avenue Securities; Pershing LLC; Principal Connectivity; PNC Investments; Raymond James and Associates, Inc.; Raymond James Financial Services, Inc.; RBC Capital Markets; Stifel Nicolaus & Company Inc.; Trinity Wealth Securities LLC; UBS Financial Services, Inc.; United Planners Financial Services of America; US Bancorp Investments, Inc.; Voya Financial Advisors, Inc.; and Wells Fargo Advisors, LLC.
For the calendar year ended December 31, 2025, TCL paid approximately $41 million to these brokers and other financial intermediaries in connection with revenue sharing arrangements. TCL expects to have revenue sharing arrangements with a number of brokers and other financial intermediaries in 2026, including some or all of the foregoing brokers and financial intermediaries, among others, on terms similar to those discussed above.
No specific charge is assessed directly to Owners or the Separate Account to cover commissions, non-cash compensation, and other incentives or payments described above. We do intend to recoup commissions and other sales expenses and incentives we pay, however, through fees and charges deducted under the Policy and other corporate revenue.
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APPENDIX
investment options AVAILABLE UNDER THE POLICY
The following is a list of current Portfolio Companies available under the Policy, which are subject to change as discussed in this prospectus.  Depending on the optional benefits you choose, you may not be able to invest in certain Portfolio Companies.
Certain Subaccounts may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any Subaccount at any time. In some cases, a Subaccount not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a Subaccount, please contact our Administrative Office.
More information about the Portfolio Companies is available in the prospectuses for the Portfolio Companies, which may be amended from time to time and can be found online at http://dfinview.com/Transamerica/TAHD/89354G802?site=VAVUL. You can also request this information at no cost by calling our Administrative Office at (800)525-6205.
The current expenses and performance below reflects fee and expenses of the Portfolio Companies, but do not reflect the other fees and expenses that Your Policy may charge. Expenses would be higher and performance would be lower if these other charges were included. Each Portfolio Company’s past performance is not necessarily an indication of future performance. 
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
To maximize total return consistent with the Adviser’s determination of reasonable risk. AB Balanced Hedged Allocation Portfolio - Class B
Advised by: AllianceBernstein L.P.		 0.99% 0.20% 1.19% 17.36% 5.64% 6.74%
Long-term growth of capital. AB Relative Value Portfolio - Class B
Advised by: AllianceBernstein L.P.		 0.86% - 0.86% 10.20% 11.15% 10.30%
To provide high total return (including income and capital gains) consistent with preservation of capital over the long term. American Funds Insurance Series® - Asset Allocation Fund - Class 2
Advised by: Capital Research and Management Company		 0.54% 0.30% 0.84% 26.77% 3.40% 7.00%
To provide growth of capital. American Funds Insurance Series® - Growth Fund - Class 2
Advised by: Capital Research and Management Company		 0.58% 0.30% 0.88% 17.21% 13.89% 12.36%
To achieve long-term growth of capital and income. American Funds Insurance Series® - Growth-Income Fund - Class 2
Advised by: Capital Research and Management Company		 0.53% 0.30% 0.83% 20.41% 9.08% 7.59%
To provide long-term growth of capital. American Funds Insurance Series® - EUPAC FundTM - Class 2(5)
Advised by: Capital Research and Management Company		 0.78% 0.30% 1.08% 15.85% 8.97% 9.77%
To provide as high a level of current income as is consistent with the preservation of capital. American Funds - The Bond Fund of America® - Class 2
Advised by: Capital Research and Management Company		 0.63% 0.30% 0.93% 8.24% 5.60% 6.96%
Seeks income and capital growth consistent with reasonable risk. Fidelity® VIP Balanced Portfolio - Service 2
Advised by: Fidelity Management & Research Company LLC		 0.66% - 0.66% 14.96% 9.24% 10.84%
Seeks long-term capital appreciation. Fidelity® VIP Contrafund® Portfolio - Service 2
Advised by: Fidelity Management & Research Company LLC		 0.79% - 0.79% 21.24% 15.08% 15.49%
 
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investment options AVAILABLE UNDER THE POLICY — (Continued)
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
Seeks long-term growth of capital. Fidelity® VIP Mid Cap Portfolio - Service 2
Advised by: Fidelity Management & Research Company LLC		 0.80% - 0.80% 11.49% 9.83% 10.31%
Seeks capital appreciation. Fidelity® VIP Value Strategies Portfolio - Service 2
Advised by: Fidelity Management & Research Company LLC		 0.84% - 0.84% 7.70% 11.87% 10.54%
To seek the highest total return, composed of current income and capital appreciation, as is consistent with prudent investment risk. State Street Total Return V.I.S. Fund - Class 3
Advised by: State Street Investment Management(4)		 0.95% 0.20% 1.15% 15.48% 6.85% 6.91%
To seek long-term capital appreciation and current income. Transamerica 60/40 Allocation VP - Service
Advised by: Aegon Asset Management UK plc ("AAM")		 0.87% - 0.87% 14.90% 7.88% 7.97%
To seek to provide high total return through a combination of current income and capital appreciation. Transamerica Aegon Bond VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Management, LLC		 0.78% - 0.78% 6.78% -0.60% 1.82%
To seek to achieve maximum total return. Transamerica Aegon Core Bond VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Management, LLC		 0.73% - 0.73% 6.73% -0.38% 1.84%
To seek a high level of current income by investing in high-yield debt securities. Transamerica Aegon High Yield Bond VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Management, LLC		 0.89% - 0.89% 8.27% 3.89% 5.64%
To seek total return gained from the combination of dividend yield, growth of dividends and capital appreciation. Transamerica Aegon Sustainable Equity Income VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Management UK plc		 0.97% - 0.97% 10.99% 8.11% 7.08%
To seek to provide as high a level of total return as is consistent with prudent investment strategies. Transamerica Aegon U.S. Government Securities VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Management, LLC		 0.84% - 0.84% 5.56% -1.52% 0.94%
To seek total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection. Transamerica American Funds Managed Risk VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Milliman Financial Risk Managment LLC		 1.10% - 1.10% 17.88% 14.42% 14.82%
To seek as high a level of current income as is consistent with preservation of capital and liquidity. Transamerica BlackRock Government Money Market VP - Service(2)
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.54% - 0.54% 3.81% 2.91% 1.72%
 
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investment options AVAILABLE UNDER THE POLICY — (Continued)
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
To seek current income and preservation of capital. Transamerica BlackRock iShares Active Asset Allocation - Conservative VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.93% - 0.93% 8.65% 2.65% 4.17%
To seek capital appreciation with current income as a secondary objective. Transamerica BlackRock iShares Active Asset Allocation - Moderate Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.94% - 0.94% 10.64% 5.18% 4.94%
To seek capital appreciation and current income. Transamerica BlackRock iShares Active Asset Allocation - Moderate VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.90% - 0.90% 9.50% 3.98% 4.66%
To seek capital appreciation and income. Transamerica BlackRock iShares Dynamic Allocation - Balanced - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.91% - 0.91% 9.42% 4.24% 4.19%
To seek capital appreciation and income. Transamerica BlackRock iShares Dynamic Allocation - Moderate Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.90% - 0.90% 10.35% 6.72% 5.38%
To seek long-term capital appreciation. Transamerica BlackRock iShares Edge 100 VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.80% - 0.80% 18.54% 9.24% 10.39%
To seek long-term capital appreciation and capital preservation. Transamerica BlackRock iShares Edge 40 VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.71% - 0.71% 11.42% 3.21% 4.65%
To seek long-term capital appreciation and capital preservation. Transamerica BlackRock iShares Edge 50 VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.69% - 0.69% 12.35% 4.14% 5.95%
To seek long-term capital appreciation with capital preservation as a secondary objective. Transamerica BlackRock iShares Edge 75 VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.75% - 0.75% 15.47% 6.70% 8.14%
To seek a combination of capital appreciation and income. Transamerica BlackRock iShares Tactical - Balanced VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.92% - 0.92% 13.00% 3.04% 5.22%
To seek a combination of capital appreciation and income. Transamerica BlackRock iShares Tactical - Conservative VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.94% - 0.94% 10.65% 1.67% 4.43%
 
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investment options AVAILABLE UNDER THE POLICY — (Continued)
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
To seek a combination of capital appreciation and income. Transamerica BlackRock iShares Tactical - Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.95% - 0.95% 15.58% 5.65% 6.85%
To seek to maximize total return. Transamerica BlackRock Real Estate Securities VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 1.11% - 1.11% 9.32% 2.41% 3.41%
To seek capital appreciation with current income as a secondary objective. Transamerica BlackRock Tactical Allocation VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: BlackRock Investment Management, LLC		 0.97% - 0.97% 11.72% 5.42% 6.81%
To seek to balance capital appreciation and income. Transamerica Goldman Sachs Managed Risk - Balanced ETF VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Goldman Sachs Asset Management, L.P.		 0.63% - 0.63% 10.77% 5.10% 5.67%
To seek current income and preservation of capital. Transamerica Goldman Sachs Managed Risk - Conservative ETF VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Goldman Sachs Asset Management, L.P.		 0.66% - 0.66% 10.07% 3.31% 4.43%
To seek capital appreciation as a primary objective and income as a secondary objective. Transamerica Goldman Sachs Managed Risk - Growth ETF VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Goldman Sachs Asset Management, L.P.		 0.66% - 0.66% 12.27% 7.84% 7.65%
To seek long-term capital appreciation. Transamerica Great Lakes Advisors Large Cap Value VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Great Lakes Advisors, LLC		 0.94% - 0.94% 23.65% 14.52% 9.31%
To seek long-term capital appreciation. Transamerica International Focus VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Sands Capital Management, LLC		 1.08% - 1.08% 6.24% 0.74% 5.19%
To seek long-term capital growth, consistent with preservation of capital and balanced by current income. Transamerica Janus Balanced VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Janus Henderson Investors US LLC		 0.99% - 0.99% 13.46% 7.57% 9.31%
To seek long-term capital appreciation. Transamerica Janus Mid-Cap Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Janus Henderson Investors US LLC		 1.09% - 1.09% 7.85% 6.91% 10.87%
To seek current income and preservation of capital. Transamerica JPMorgan Asset Allocation - Conservative VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 0.96% - 0.96% 10.36% 2.09% 4.64%
 
71
investment options AVAILABLE UNDER THE POLICY — (Continued)
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
To seek capital appreciation with current income as a secondary objective. Transamerica JPMorgan Asset Allocation - Moderate Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 1.02% - 1.02% 12.84% 5.57% 7.80%
To seek capital appreciation and current income. Transamerica JPMorgan Asset Allocation - Moderate VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 0.97% - 0.97% 11.54% 3.59% 6.05%
To seek long-term capital appreciation. Transamerica JPMorgan Diversified Equity Allocation VP - Service(3)
Advised by: Transamerica JPMorgan Diversified Equity Allocation VP; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 1.05% - 1.05% 19.06% 8.87% 10.90%
To seek to earn a total return modestly in excess of the total return performance of the S&P 500® Index while maintaining a volatility of return similar to the S&P 500® Index. Transamerica JPMorgan Enhanced Index VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 0.86% - 0.86% 15.90% 14.10% 14.32%
To seek capital appreciation with current income as a secondary objective. Transamerica JPMorgan International Moderate Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 1.12% - 1.12% 17.67% 3.25% 5.51%
To seek current income and preservation of capital. Transamerica JPMorgan Tactical Allocation VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: J.P. Morgan Investment Management, Inc.		 1.05% - 1.05% 8.83% 1.80% 4.15%
To seek high total return through the combination of income and capital appreciation. Transamerica Madison Diversified Income VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Madison Asset Management, LLC		 1.09% - 1.09% 7.22% 2.20% 4.86%
To seek capital appreciation. Transamerica Market Participation Strategy VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: PGIM Quantitative Solutions LLC		 0.98% - 0.98% 10.02% 6.46% 8.15%
Seeks to provide capital appreciation and
income while seeking to manage volatility.		 Transamerica Morgan Stanley Global Allocation Managed Risk - Balanced VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Milliman Financial Risk Managment LLC		 1.24% - 1.24% 14.21% 3.27% 4.10%
To seek high total return. Transamerica Morgan Stanley Global Allocation VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Morgan Stanley Investment Management Inc.		 1.03% - 1.03% 17.51% 4.90% 6.86%
Seeks to track the investment results of an index composed of large- and mid-capitalization developed market equities, excluding the U.S. and Canada. Transamerica MSCI EAFE Index VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: SSGA Funds Management, Inc.		 0.62% 0.15% 0.77% 30.93% 8.53% 7.55%
 
72
investment options AVAILABLE UNDER THE POLICY — (Continued)
        
          Average Annual Total Returns (as of 12/31/25)
Investment Objective Underlying Fund Portfolios and Advisers/Sub-adviser(1) Current Expenses Platform Charges Current Expenses Plus Platform Charges 1 year 5 years 10 years
To seek to provide a high total investment return through investments in a broadly diversified portfolio of stocks, bonds and money market instruments. Transamerica Multi-Managed Balanced VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Aegon USA Investment Mangement, Inc.		 0.89% - 0.89% 12.73% 8.34% 9.46%
To seek maximum real return, consistent with appreciation of capital. Transamerica PineBridge Inflation Opportunities VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: PineBridge Investments LLC		 0.81% - 0.81% 5.35% 0.99% 2.68%
To seek to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index. Transamerica S&P 500 Index VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: SSGA Funds Management, Inc.		 0.38% 0.15% 0.53% 17.37% 13.95% 14.32%
To seek to maximize total return. Transamerica Small/Mid Cap Value VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Systematic Financial Management, L.P.		 1.06% - 1.06% 9.51% 9.29% 9.53%
To seek long-term growth of capital by investing primarily in common stocks of small growth companies. Transamerica T. Rowe Price Small Cap VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: T. Rowe Price Associates, Inc.		 1.08% - 1.08% 9.93% 5.17% 10.18%
To seek maximum long-term total return, consistent with reasonable risk to principal, by investing in a diversified portfolio of common stocks of primarily non-U.S. issuers. Transamerica TSW International Equity VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Thompson, Siegel & Walmsley LLC		 1.11% - 1.11% 31.42% 8.58% 7.27%
To seek to provide investors with long-term capital growth. Transamerica TSW Mid Cap Value Opportunities VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Thompson, Siegel & Walmsley LLC		 1.01% - 1.01% 9.36% 9.05% 8.36%
Seeks to maximize long-term growth Transamerica WMC US Growth VP - Service
Advised by: Transamerica Asset Management, Inc.; Sub-Advised by: Wellington Management Company LLP		 0.89% - 0.89% 17.47% 12.05% 16.13%
(1) 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 objective, investment goals, time horizons, and risk tolerance.
(2) There can be no assurance that any money market portfolio offered under this Policy will be able to maintain a stable net asset value per share during extended periods of low interest rates, and partly as a result of Policy charges, the yield on the money market Subaccount may become extremely low and possibly negative.
(3) Effective on or about November 1, 2025, Transamerica JPMorgan Asset Allocation - Growth VP was renamed Transamerica JPMorgan Diversified Equity Allocation VP
(4) Effective June 30, 25 the investment advisor for State Street Total Return V.I.S. Fund was renamed from State Street Global Advisors (SSGA) to State Street Investment Management (SSIM)
(4) Effective May 1. 2026, American Funds Insurance Series® - International Fund was renamed American Funds Insurance Series® - EUPAC FundTM
 
NOTE: All underlying fund portfolios in the Transamerica Series Trust are advised by Transamerica Asset Management. The entities listed are the sub-advisors unless otherwise indicated.
There are no Portfolios that have been closed to new investments or new investors.
Fixed Options
The following is a list of Fixed Options currently available under the Contract. We may change the features of the Fixed Options listed below, offer new Fixed Options, and terminate existing Fixed Options. We will provide you with written notice before doing so.
73
investment options AVAILABLE UNDER THE POLICY — (Continued)
Depending on the optional benefits you choose, you may not be able to invest in certain Investment Options, as noted below.
Note: If amounts are withdrawn from a Fixed Option before the end of its term, we may apply a Contract Adjustment. This may result in a significant reduction in your Contract value.
Fixed Account Guaranteed Minimum Interest Rate 
Name
Term
Minimum Guaranteed Interest Rate(3)
Traditional DCA1, 2
6 months minimum or 24 months
maximum
0.25%
1 Year Guaranteed Period Option1
1 year
0.25%
3 Year Guaranteed Period Option1
3 years
0.25%
5 Year Guaranteed Period Option1
5 years
0.25%
7 Year Guaranteed Period Option1
7 years
0.25%
Stable Account (Transamerica Income
EdgeSM Rider only)1
Life of the Rider
0.25%
(1) We are currently not offering the fixed account in New York with the exception of the Stable Account for Transamerica Income EdgeSM 1.2 rider if you have elected that rider.
(2) You will have the option of selecting a monthly term or a quarterly term. If quarterly, it would be a minimum of 4 quarters or a maximum of 8 quarters.
(3) The minimum guaranteed interest rate in New York is equal to the non-forfeiture rate in effect at the time of policy issue.
Regarding any state variations on the fixed accounts listed above please see Appendix – State Variations.
74
APPENDIX
Designated Investment Options
The table below identifies the Designated Investment Options available for use with the Death Benefit, Guaranteed Minimum Death Benefits and our Guaranteed Lifetime Withdrawal Benefits. 
 
Annual
Step-Up
Death
Benefit
Retirement
Income Max®
Rider
Retirement
Income Max®
Rider
Retirement
Income Max®
Rider
Retirement
Income
Choice®
1.6 Rider
Retirement
Income
Choice®
1.6 Rider
Retirement
Income
Choice®
1.6 Rider
Subaccounts
 
Prior to
2/1/18
2/1/18 to
4/30/20
Post
5/1/20
Prior to
2/28/19
3/1/19 to
8/31/2020
Post
9/1/2020
AB Balanced Hedged Allocation Portfolio - Class B
√
 
 
 
A
A
B
AB Relative Value Portfolio - Class B
√
 
 
 
 
A
A
American Funds Insurance Series® - Asset Allocation FundSM - Class 2
√
 
 
 
 
A
B
American Funds Insurance Series® - The Bond Fund of AmericaSM - Class 2
√
√
√
√
C
A
C
American Funds Insurance Series® - Growth FundSM - Class 2
√
 
 
 
 
A
A
American Funds Insurance Series® - Growth-Income FundSM - Class 2
√
 
 
 
 
A
A
American Funds Insurance Series® - EUPAC FundTM - Class 2
√
 
 
 
 
A
A
Fidelity® VIP Balanced Portfolio - Service Class 2
√
 
 
 
 
A
B
Fidelity® VIP Contrafund® Portfolio - Service Class 2
√
 
 
 
 
A
A
Fidelity® VIP Mid Cap Portfolio - Service Class 2
√
 
 
 
 
A
A
Fidelity® VIP Value Strategies Portfolio - Service Class 2
√
 
 
 
 
A
A
State Street Total Return V.I.S. Fund - Class 3
√
 
 
 
A
A
B
TA 60/40 Allocation - Service Class
√
 
 
 
A
A
B
TA Aegon Bond - Service Class
√
√
√
√
C
A
C
TA Aegon Core Bond - Service Class
√
√
√
√
C
A
C
TA Aegon High Yield Bond - Service Class
√
 
 
 
 
A
B
TA Aegon Sustainable Equity Income - Service Class
√
 
 
 
 
A
A
TA Aegon U.S. Government Securities - Service Class
√
√
√
√
C
A
C
TA American Funds Managed Risk - Balanced - Service
Class(1)
√
 
√
 
B
A
B
TA BlackRock Government Money Market - Service Class
√
√
√
√
C
A
C
TA BlackRock iShares Active Asset Allocation - Conservative -
Service Class(1)
√
√
√
√
C
A
B
TA BlackRock iShares Active Asset Allocation - Moderate -
Service Class(1)
√
√
√
√
B
A
B
TA BlackRock iShares Active Asset Allocation - Moderate
Growth - Service Class(1)
√
 
 
 
A
A
B
TA BlackRock iShares Dynamic Allocation - Balanced -
Service Class(1)
√
√
√
√
B
A
B
TA BlackRock iShares Dynamic Allocation - Moderate
Growth - Service Class(1)
√
 
 
 
A
A
B
TA BlackRock iShares Edge 40- Service Class
√
 
√
√
C
A
B
TA BlackRock iShares Edge 50 - Service Class
√
 
√
√
B
A
B
TA BlackRock iShares Edge 75 - Service Class
√
 
 
 
A
A
B
TA BlackRock iShares Edge 100 - Service Class
√
 
 
 
 
A
A
TA BlackRock iShares Tactical - Balanced - Service Class
√
 
 
 
B
A
B
TA BlackRock iShares Tactical - Conservative - Service Class
√
√
√
 
C
A
B
75
Designated Investment Options — (Continued)
 
Annual
Step-Up
Death
Benefit
Retirement
Income Max®
Rider
Retirement
Income Max®
Rider
Retirement
Income Max®
Rider
Retirement
Income
Choice®
1.6 Rider
Retirement
Income
Choice®
1.6 Rider
Retirement
Income
Choice®
1.6 Rider
Subaccounts
  
Prior to
2/1/18
2/1/18 to
4/30/20
Post
5/1/20
Prior to
2/28/19
3/1/19 to
8/31/2020
Post
9/1/2020
TA BlackRock iShares Tactical - Growth - Service Class
√
      
A
A
B
TA BlackRock Real Estate Securities - Service Class
√
        
A
A
TA BlackRock Tactical Allocation - Service Class(1)
√
      
B
A
B
TA Goldman Sachs Managed Risk - Balanced ETF - Service
Class(1)
√
√
√
√
B
A
B
TA Goldman Sachs Managed Risk - Conservative ETF -
Service Class(1)
√
√
√
√
C
A
B
TA Goldman Sachs Managed Risk - Growth ETF - Service
Class(1)
√
      
A
A
B
TA Great Lakes Advisors Large Cap Value - Service Class
√
        
A
A
TA International Focus - Service Class
√
        
A
A
TA Janus Balanced - Service Class
√
      
A
A
B
TA Janus Mid-Cap Growth - Service Class
√
        
A
A
TA JPMorgan Asset Allocation - Conservative - Service Class(1)
√
√
√
√
C
A
B
TA JPMorgan Asset Allocation - Moderate - Service Class(1)
√
  
√
√
B
A
B
TA JPMorgan Asset Allocation - Moderate Growth - Service
Class(1)
√
      
A
A
B
  TA JPMorgan Diversified Equity Allocation VP - Service Class √         A A
TA JPMorgan Enhanced Index - Service Class
√
        
A
A
TA JPMorgan International Moderate Growth - Service
Class(1)
√
      
A
A
B
TA JPMorgan Tactical Allocation - Service Class
√
√
√
√
C
A
B
TA Madison Diversified Income - Service Class
√
√
√
√
B
A
B
TA Market Participation Strategy - Service Class(1)
√
      
B
A
B
TA Morgan Stanley Global Allocation - Service Class
√
  
√
√
A
A
B
TA Morgan Stanley Global Allocation Managed Risk -
Balanced - Service Class(1)
√
      
B
A
B
TA MSCI EAFE Index - Service Class
√
        
A
A
TA Multi-Managed Balanced - Service Class
√
      
A
A
B
TA PineBridge Inflation Opportunities - Service Class
√
√
√
√
C
A
C
TA S&P 500 Index - Service Class
√
        
A
A
TA Small Mid Cap Value - Service Class
√
        
A
A
TA T. Rowe Price Small Cap - Service Class
√
        
A
A
TA TSW International Equity - Service Class
√
        
A
A
TA TSW Mid Cap Value Opportunities - Service Class
√
        
A
A
TA WMC US Growth - Service Class
√
        
A
A
Fixed Account
√
√
√
√
C
A
C
(1) 
This Subaccount invests in an underlying fund portfolio that utilized a volatility management strategy as part of its investment objective and/or
76
Designated Investment Options — (Continued)
principal investment strategy. See “Investment Restrictions” earlier in the prospectus for information on how volatility management strategies may impact your policy value in certain optional riders.
Certain designated Investment Options may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any designated Investment Option at any time. In some cases, a designated Investment Option not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a designated Investment Option, please contact your financial intermediary or our Administrative Office.
77
APPENDIX
TRANSAMERICA INCOME EDGESM Investment Options
The table below identifies the Select Investment Options and Flexible Investment Options available for use with the Transamerica Income EdgeSM rider. 
 
Select
Investment
Options
Select
Investment
Options
Flexible
Investment
Options
Flexible
Investment
Options
Subaccounts
Before
1/31/20
Post
1/31/20
Before
1/31/20
Post
1/31/20
AB Balanced Hedged Allocation Portfolio - Class B
 
 
√
√
AB Relative Value Portfolio - Class B
 
 
√
√
American Funds Insurance Series® - Asset Allocation FundSM - Class 2
 
 
√
√
American Funds Insurance Series® - The Bond Fund of AmericaSM - Class 2
√
√
 
 
American Funds Insurance Series® - Growth FundSM - Class 2
 
 
√
√
American Funds Insurance Series® - Growth-Income FundSM - Class 2
 
 
√
√
American Funds Insurance Series® - EUPAC FundTM - Class 2
 
 
√
√
Fidelity® VIP Balanced Portfolio - Service Class 2
 
 
√
√
Fidelity® VIP Contrafund® Portfolio - Service Class 2
 
 
√
√
Fidelity® VIP Mid Cap Portfolio - Service Class 2
 
 
√
√
Fidelity® VIP Value Strategies Portfolio - Service Class 2
 
 
√
√
State Street Total Return V.I.S. Fund - Class 3
 
 
√
√
TA 60/40 Allocation - Service Class
 
 
√
√
TA Aegon Bond - Service Class
√
√
 
 
TA Aegon Core Bond - Service Class
√
√
 
 
TA Aegon High Yield Bond - Service Class
 
 
√
√
TA Aegon Sustainable Equity Income - Service Class
 
 
√
√
TA Aegon U.S. Government Securities - Service Class
√
√
 
 
TA American Funds Managed Risk - Balanced - Service Class(1)
 
 
√
√
TA BlackRock Government Money Market - Service Class
√
√
 
 
TA BlackRock iShares Active Asset Allocation - Conservative - Service Class(1)
 
 
√
√
TA BlackRock iShares Active Asset Allocation - Moderate - Service Class(1)
 
 
√
√
TA BlackRock iShares Active Asset Allocation - Moderate Growth - Service Class(1)
 
 
√
√
TA BlackRock iShares Dynamic Allocation - Balanced - Service Class(1)
 
 
√
√
TA BlackRock iShares Dynamic Allocation - Moderate Growth - Service Class(1)
 
 
√
√
TA BlackRock iShares Edge 40- Service Class
 
 
√
√
TA BlackRock iShares Edge 50 - Service Class
 
 
√
√
TA BlackRock iShares Edge 75 - Service Class
 
 
√
√
TA BlackRock iShares Edge 100 - Service Class
 
 
√
√
TA BlackRock iShares Tactical - Balanced - Service Class
 
 
√
√
TA BlackRock iShares Tactical - Conservative - Service Class
 
 
√
√
TA BlackRock iShares Tactical - Growth - Service Class
 
 
√
√
TA BlackRock Real Estate Securities - Service Class
 
 
√
√
TA BlackRock Tactical Allocation - Service Class(1)
 
 
√
√
TA Goldman Sachs Managed Risk - Balanced ETF - Service Class(1)
 
 
√
√
78
TRANSAMERICA INCOME EDGESM Investment Options — (Continued)
     
 
Select
Investment
Options
Select
Investment
Options
Flexible
Investment
Options
Flexible
Investment
Options
Subaccounts
Before
1/31/20
Post
1/31/20
Before
1/31/20
Post
1/31/20
TA Goldman Sachs Managed Risk - Conservative ETF - Service Class(1)
   
√
√
TA Goldman Sachs Managed Risk - Growth ETF - Service Class(1)
   
√
√
TA Great Lakes Advisors Large Cap Value - Service Class
    
√
√
TA International Focus - Service Class
    
√
√
TA Janus Balanced - Service Class
    
√
√
TA Janus Mid-Cap Growth - Service Class
    
√
√
TA JPMorgan Asset Allocation - Conservative - Service Class(1)
   
√
√
TA JPMorgan Asset Allocation - Moderate - Service Class(1)
   
√
√
TA JPMorgan Asset Allocation - Moderate Growth - Service Class(1)
   
√
√
  TA JPMorgan Diversified Equity Allocation VP - Service Class      √ √
TA JPMorgan Enhanced Index - Service Class
    
√
√
TA JPMorgan International Moderate Growth - Service Class(1)
   
√
√
TA JPMorgan Tactical Allocation - Service Class
    
√
√
TA Madison Diversified Income - Service Class
    
√
√
TA Market Participation Strategy - Service Class(1)
   
√
√
TA Morgan Stanley Global Allocation - Service Class
    
√
√
TA Morgan Stanley Global Allocation Managed Risk - Balanced - Service Class(1)
   
√
√
TA MSCI EAFE Index - Service Class
    
√
√
TA Multi-Managed Balanced - Service Class
    
√
√
TA PineBridge Inflation Opportunities - Service Class
√
√
    
TA S&P 500 Index - Service Class
    
√
√
TA Small Mid Cap Value - Service Class
    
√
√
TA T. Rowe Price Small Cap - Service Class
    
√
√
TA TSW International Equity - Service Class
    
√
√
TA TSW Mid Cap Value Opportunities - Service Class
    
√
√
TA WMC US Growth - Service Class
    
√
√
(1) 
This Subaccount invests in an underlying fund portfolio that utilizes a volatility management strategy as part of its investment objective and/or principal investment strategy. See Investment Restrictions earlier in the prospectus for information on how volatility management strategies may impact your Policy value in certain optional riders.
Certain Subaccounts may not be available in all states, at all times or through all financial intermediaries. We may discontinue offering any Subaccount at any time. In some cases, a Subaccount not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available for electing a Subaccount, please contact your financial intermediary or our Administrative Office.
79
APPENDIX
Excess Interest Adjustment Examples
Surrenders, withdrawals, transfers, death benefits and amounts applied to an annuity 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 (“EIA”). If, at the time of such transactions the guaranteed interest rate set by us for the applicable period has risen since the date of the initial guarantee, the Excess Interest Adjustment will result in a lower Cash Value. However, if the guaranteed interest rate set by us for the applicable period has 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 Policy Value for a Guaranteed Period Option below the premium payments and transfers to that Guaranteed Period Option, less any prior withdrawals and transfers from the Guaranteed Period Option, plus interest at the Policy'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
=
Is the amount (before surrender charges, premium taxes and the application of any
Guaranteed Minimum Death Benefits) being surrendered, withdrawn, transferred,
paid upon death, or applied to an income option that is subject to the Excess Interest
Adjustment.
G
=
Is the guaranteed interest rate for the guaranteed period applicable to “S”;
C
=
Is the current guaranteed interest rate then being offered on new premium payments
for the next longer option period than “M”. If this Policy 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;
and
M
=
Number of months remaining in the current option period for “S”, rounded up to
the next higher whole number of months.
*
=
Multiplication
The following examples are for illustrative purposes only and are calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal. In the following examples ^ denotes exponentiation. Please note the exponentiation represents the compounding of the interest rate.
80
Excess Interest Adjustment Examples — (Continued)
Example 1 (Full Surrender, rates increase by 3%):
Assumptions:
Single premium payment = $50,000
Guaranteed period = 5 Years
Guarantee rate = 5.5% per annum
Current Rate = 8.5% per annum
Guaranteed minimum interest rate = 1.50%
Surrender in the middle of Policy Year 2 (this is represented by 1.5 in this example) 
Summary:
 
Policy Value at middle of Policy Year 2
= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings
= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment
= 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 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S*(G-C)*(M/12) where:
G = .055
C = .085
M = 42
= 50,000.00 * (0.055 - 0.085) * (42/12)
 
= -5,250.00, but Excess Interest Adjustment cannot cause the
Adjusted Policy Value to fall below the Excess Interest
Adjustment floor, so the adjustment is limited to
51,129.21 - 54,181.21 = -3,052.00
Adjusted Policy Value = Policy Value + Excess Interest
Adjustment
= 54,181.21 + (-3,052.00) = 51,129.21
Upon full surrender of the Policy, the net surrender value (Adjusted Policy Value less any Surrender Charge) will never be less than that required by the non-forfeiture laws of Your state.
Example 2 (Full Surrender, rates decrease by 1%):
Assumptions:
Single premium payment = $50,000
Guaranteed period = 5 Years
Guarantee rate = 5.5% per annum
Current Rate = 4.5% per annum
Guaranteed minimum interest rate = 1.50%
Surrender in the middle of Policy Year 2 (this is represented by 1.5 in this example) 
Summary:
 
Policy Value at middle of Policy Year 2
= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings
= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment
= 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 * (1.015) ^ 1.5 = 51,129.21
Excess Interest Adjustment S* (G-C)* (M/12) where:
G = .055
C = .045
M = 42
= 50,000.00 * (.055-.045) * (42/12) = 1,750.00
Adjusted Policy Value
= 54,181.21 + 1,750.00 = 55,931.21
Upon full surrender of the Policy, the net surrender value will never by less than that required by the non-forfeiture laws of Your state. For the purpose of these illustrations no Surrender Charges are assumed.
81
Excess Interest Adjustment Examples — (Continued)
On a withdrawal, we will pay the policyholder the full amount of withdrawal requested (as long as the Policy Value is sufficient). Amounts withdrawn will reduce the Policy Value by an amount equal to: 
R - E + SC
R
=
the requested withdrawal;
E
=
the Excess Interest Adjustment; and
SC
=
the Surrender Charges on (EPW - E): where
EPW
=
the excess partial withdrawal amount.
Example 3 (Partial Withdrawal, rates increase by 1%):
Assumptions:
Single premium payment = $50,000
Guaranteed period = 5 Years
Guarantee rate = 5.5% per annum
Current rate = 6.5% per annum
Partial Withdrawal = $20,000 in the middle of Policy Year 2 (this is represented by 1.5 in this example) 
Summary:
 
Policy Value at middle of Policy Year 2
= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings
= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment
= 4,181.21
Excess Interest Adjustment S*(G-C)*(M/12) where:
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .065
M = 42
= 15,818.79 * (.055 - .065) * (42/12) = -553.66
Remaining Policy Value at middle of Policy Year 2
= 54,181.21 - (R - E + Surrender Charge)
= 54,181.21 - (20,000.00 - (-553.66) + 0.00) = 33,627.55
Example 4 (Partial Withdrawal, rates decrease by 1%):
Assumptions:
Single premium payment = $50,000
Guaranteed period = 5 Years
Guarantee rate = 5.5% per annum
Current rate = 4.5% per annum
Partial Withdrawal = $20,000 in the middle of Policy Year 2 (this is represented by 1.5 in this example) 
Summary:
 
Policy Value at middle of Policy Year 2
= 50,000.00 * (1.055) ^ 1.5 = 54,181.21
Cumulative earnings
= 54,181.21 – 50,000.00 = 4,181.21
Amount free of Excess Interest Adjustment
= 4,181.21
Excess Interest Adjustment S*(G-C)*(M/12) where:
S = 20,000 – 4,181.21 = 15,818.79
G = .055
C = .045
M = 42
= 15,818.79 * (.055 - .045)* (42/12) = 553.66
Remaining Policy Value at middle of Policy Year 2
= 54,181.21 - (R - E + Surrender Charge)
= 54,181.21 - (20,000.00 – 553.66 + 0.00) = 34,734.87
82
APPENDIX
Death Benefit
Adjusted Withdrawals. If You take a withdrawal, then Your death benefit and guaranteed minimum death benefit is reduced by an amount called the adjusted withdrawal. The amount of the reduction depends on the relationship between Your Death Proceeds and Policy Value. The adjusted withdrawal is equal to the gross withdrawal multiplied by the Death Proceeds immediately prior to the withdrawal divided by the Policy Value immediately prior to the withdrawal. The formula is AW = GW x (DP/PV) where:
AW = adjusted withdrawal
GW= gross withdrawal
DP = Death Proceeds prior to the withdrawal = greatest of (PV, CV, or GMDB)
PV = Policy Value prior to the withdrawal
GMDB = guaranteed minimum death benefit prior to the withdrawal
CV = Cash Value prior to the withdrawal
The following examples describe the effect of a surrender on the guaranteed minimum death benefit and Policy Value.
Example 1: Death Proceeds Greater than Policy Value
Assumptions:
GMDB = $75,000
PV = $50,000
DP = $75,000
GW = $15,494
AW = $15,494 x ($75,000/$50,000) = $23,241 
Summary:
 
Reduction in guaranteed minimum death benefit
=$23,241
Reduction in Policy Value
=$15,494
New guaranteed minimum death benefit amount
=$51,759
New Policy Value (after withdrawal)
=$34,506
The guaranteed minimum death benefit is reduced more than the Policy Value because the guaranteed minimum death benefit was greater than the Policy Value immediately prior to the withdrawal.
Example 2: Death Proceeds Equal to Policy Value
Assumptions:
GMDB = $50,000
PV = $75,000
DP = $75,000
GW = $15,494
AW = $15,494 x ($75,000/$75,000) = $15,494 
Summary:
 
Reduction in guaranteed minimum death benefit
=$15,494
Reduction in Policy Value
=$15,494
New guaranteed minimum death benefit amount
=$34,506
New Policy Value (after withdrawal)
=$59,506
The guaranteed minimum death benefit and Policy Value are reduced by the same amount because the Policy Value was greater than the guaranteed minimum death benefit immediately prior to the withdrawal.
These examples are for illustrative purposes only. The purpose of these illustrations is to demonstrate how this feature is calculated using hypothetical values. Your experience will vary based on circumstances at the time of withdrawal.
83
Death Benefit — (Continued)
Hypothetical Example
In this example, certain death benefit values at various points in time are depicted based on hypothetical assumed rates of performance. This example is for illustrative purposes only and assumes a single $100,000 premium payment by a sole Owner and Annuitant who is age 50. It further assumes no subsequent premium payments or withdrawals. 
End of Year
Net Rate of
Return*
Policy Value
(Return of
Premium GMDB)
Return of
Premium
GMDB
Policy Value
(Annual Step-up
GMDB Elected)
Annual
Step-Up
GMDB
Issue
N/A
$100,000
$100,000
$100,000
$100,000
1
-4%
$94,700
$100,000
$94,500
$100,000
2
18%
$110,515
$100,000
$110,093
$110,093
3
15%
$125,655
$100,000
$124,955
$124,955
4
-7%
$115,226
$100,000
$114,334
$124,955
5
2%
$116,033
$100,000
$114,905
$124,955
6
10%
$126,127
$100,000
$124,672
$124,955
7
14%
$142,146
$100,000
$140,257
$140,257
8
-3%
$136,033
$100,000
$133,945
$140,257
9
17%
$157,391
$100,000
$154,706
$154,706
10
6%
$164,788
$100,000
$161,668
$161,668
*
The assumed rate does reflect the deduction of a hypothetical fund fee but does not reflect the deduction of any other fees, charges or taxes. The death benefit values do reflect the deduction of hypothetical base Policy fees and hypothetical death benefit fees. For purposes of this example we assumed a Mortality and Expense Risk Fee and Administrative Charge of 1.30% for the base Policy death benefit (Return of Premium) and 1.50% for Annual Step-Up. Different hypothetical returns and fees would produce different results.
84
APPENDIX
ADDITIONAL DEATH DISTRIBUTIONSM RIDER – No longer available
The following example illustrates the Additional Death DistributionSM additional death benefit payable by this rider as well as the effect of a withdrawal on the Additional Death DistributionSM benefit amount. The Annuitant is less than age 71 on the Rider Date.
Example 1
Assumptions:
Policy Value on the rider date = $100,000
Premiums paid after the rider date before surrender = $25,000
Gross withdrawals after the rider date = $30,000
Policy Value on date of surrender = $150,000 
Summary:
 
Rider earnings on date of surrender (Policy Value on date of surrender – Policy Value on rider date – premiums 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 Policy death benefit (assumed) on the date of death benefit calculation:
$200,000
Policy Value on the date of death benefit calculations:
$175,000
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums 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 Policy death benefit plus additional death benefit amount):
$222,000
Example 2
Assumptions:
Policy Value on the rider date = $100,000
Premiums paid after the rider date before surrender = $0
Gross withdrawals after the rider date = $0
Base Policy death benefit (assumed) on the date of death benefit calculation = $100,000
Policy Value on the date of death benefit calculations = $75,000 
Summary:
 
Rider earnings (= Policy Value on date of death benefit calculations – Policy Value on rider date – premiums 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 Policy death benefit plus additional death benefit amount):
$100,000
85
APPENDIX
ADDITIONAL DEATH DISTRIBUTION+SM RIDER – no longer available
Assume the Additional Death Distribution+SM rider is added to a new Policy opened with $100,000 initial premium payment. The Annuitant is less than age 70 on the rider date. On the first and second rider anniversaries, the Policy Value is $110,000 and $95,000 respectively when the rider fees are deducted. The Annuitant adds a $25,000 premium payment in the 3rd rider year when the Policy Value is equal to $115,000 and then takes a withdrawal of $35,000 during the 4th rider year when the Policy Value is equal to $145,000. After 5 years, the Policy Value is equal to $130,000 and the Death Proceeds are equal to $145,000.
Example 1
Assumptions:
Account value on rider date (equals initial Policy Value since new Policy) = $100,000
Additional death benefit during first rider year = $0
Rider fee on first rider anniversary (= rider fee * Policy Value = 0.55% * $110,000) = $605
Additional death benefit during 2nd rider year (= sum of total rider fees paid) = $605 
Summary:
 
Rider fee on second rider anniversary (= rider fee * Policy 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 premium addition (= account value less premiums added since rider
date = $115,000 – $0)
$115,000.00
Rider benefit base in 3rd rider year after premium addition (= $140,000 - $25,000)
$115,000.00
Rider benefit base in 4th rider year prior to withdrawal (= account value less premiums added since rider date =
$145,000 - $25,000)
$120,000.00
Rider benefit base in 4th rider year after withdrawal = (account value less premiums added since rider date
=$110,000 - $25,000)
$85,000.00
Rider benefit base in 5th rider year (= $130,000 - $25,000)
$105,000.00
Additional death benefit = rider benefit percentage * rider benefit base = 30% * $105,000
$31,500.00
Total Death Proceeds in 5th rider year (= base Policy Death Proceeds + additional death benefit amount = $145,000
+ $31,500)
$176,500.00
86
APPENDIX
GUARANTEED PRINCIPAL SOLUTIONSM RIDER ADJUSTED WITHDRAWALS
The following examples show the effect of withdrawals on the benefits under the Guaranteed Principal SolutionSM rider which is no longer available.
GUARANTEED MINIMUM ACCUMULATION BENEFIT
Gross withdrawals will reduce the guaranteed future value by an amount equal to the greater of:
1) 
the gross withdrawal amount; and
2) 
a pro rata amount, the result of (A / B) * C, where:
A 
is the amount of gross withdrawal;
B 
is the Policy Value immediately prior to the gross withdrawal; and
C 
is the guaranteed future value immediately prior to the gross withdrawal.
The following demonstrates, on a purely hypothetical basis, the effects of withdrawals under the Guaranteed Minimum Accumulation Benefit.
Example 1:
Assumptions:
Policy Value prior to withdrawal (“PV”) = $90,000
Guaranteed future value prior to withdrawal (“GFV”) = $100,000
Gross withdrawal amount (“WD” ) = $10,000
Step One. What is the pro rata value of the amount withdrawn?
1. 
Formula is (WD / PV) * GFV = pro rata amount
2. 
($10,000 / $90,000) * $100,000 = $11,111.11
Step Two. Which is larger, the $10,000 withdrawal or the $11,111.11 pro rata amount?
$11,111.11 pro rata amount
Step Three. After the withdrawal is taken, what will be new guaranteed future value?
$100,000 - $11,111.11 = $88,888.89
Result. If no more withdrawals are taken, the guaranteed future value on the 10th rider anniversary is $88,888.89.
Example 2:
Assumptions:
PV = $120,000
GFV= $100,000
WD= $10,000
Step One. What is the pro rata value of the amount withdrawn?
1. 
Formula is (WD / PV) * GFV = pro rata amount
2. 
($10,000 / $120,000) * $100,000 = $8,333.33
Step Two. Which is larger, the $10,000 withdrawal or the $8,333.33 pro rata amount?
$10,000 withdrawal
Step Three. After the withdrawal is taken, what will be new guaranteed future value?
$100,000 - $10,000 = $90,000
Result. If no more withdrawals are taken, the guaranteed future value on the 10th Rider Anniversary is $90,000.
GUARANTEED LIFETIME WITHDRAWAL BENEFIT
Total Withdrawal Base. Gross withdrawals up to the maximum annual withdrawal amount will not reduce the total withdrawal base. Gross withdrawals in excess of the maximum annual withdrawal amount will reduce the total withdrawal base by an amount equal to the greater of:
1) 
the excess gross withdrawal amount; and
87
GUARANTEED PRINCIPAL SOLUTIONSM RIDER ADJUSTED WITHDRAWALS — (Continued)
2) 
a pro rata amount, the result of (A / B) * C, where:
A 
is the excess gross withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);
B 
is the Policy Value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and
C 
is the total withdrawal base prior to the withdrawal of the excess amount.
Minimum Remaining Withdrawal Amount. Gross withdrawals up to the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by the same amount (dollar-for-dollar). Gross withdrawals in excess of the maximum annual withdrawal amount will reduce the minimum remaining withdrawal amount by an amount equal to the greater of:
1) 
the excess gross partial withdrawal amount; and
2) 
a pro rata amount, the result of (A / B) * C, where:
A 
is the excess withdrawal (the amount in excess of the guaranteed annual withdrawal amount remaining prior to the withdrawal);
B 
is the Policy Value after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and
C 
is the minimum remaining withdrawal amount after the maximum annual withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.
The following demonstrates, on a purely hypothetical basis, the effects of withdrawals under the guaranteed lifetime withdrawal benefit.
When a withdrawal is taken, three parts of the guaranteed lifetime withdrawal benefit can be affected:
1. 
Minimum remaining withdrawal amount (“MRWA”)
2. 
Total withdrawal base (“TWB”)
3. 
Maximum annual withdrawal amount (“MAWA”)
Example 1 (7% “principal back”):
Assumptions:
TWB = $100,000
MRWA = $100,000
7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)
WD = $7,000
Excess withdrawal (“EWD”) = None
PV = $100,000
You = Owner and Annuitant (Age 60)
Step One. Is any portion of the withdrawal greater than the “principal back” maximum annual withdrawal amount?
No. There is no excess withdrawal under the “principal back” guarantee if no more than $7,000 is withdrawn.
Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?
1. 
Total to deduct from the minimum remaining withdrawal amount is $7,000 (there is no excess to deduct)
2. 
$100,000 - $7,000 = $93,000.
Result. In this example, because no portion of the withdrawal was in excess of $7,000, the “principal back” total withdrawal base does not change and the “principal back” minimum remaining withdrawal amount is $93,000.00.
Example 2 (7% “principal back”):
Assumptions:
TWB = $100,000
MRWA = $100,000
7% WD would be $7,000 (7% of the current $100,000 total withdrawal base)
WD = $8,000
EWD = $1,000 ($8,000 - $7,000)
PV = $90,000
You = Owner and Annuitant (Age 60)
88
GUARANTEED PRINCIPAL SOLUTIONSM RIDER ADJUSTED WITHDRAWALS — (Continued)
Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?
Yes. $8,000 - $7,000 = $1,000 (the excess withdrawal amount)
Step Two. Calculate how much of the “principal back” minimum remaining withdrawal amount is affected by the excess withdrawal.
1. 
Formula for pro rata amount is: (EWD / (PV - 7% WD)) * (MRWA - 7% WD)
2. 
($1,000 / ($90,000 - $7,000)) * ($100,000 - $7,000) = $1,120.48
Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,120.48 pro rata amount?
$1,120.48 pro rata amount
Step Four. What is the “principal back” minimum remaining withdrawal amount after the withdrawal has been taken?
1. 
Total to deduct from the minimum remaining withdrawal amount is $7,000 + $1,120.48 (pro rata excess) = $8,120.48
2. 
$100,000 - $8,120.48 = $91,879.52
Result. The “principal back” minimum remaining withdrawal amount is $91,879.52.
NOTE. For the Guaranteed Lifetime Withdrawal Benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $7,000, the “principal back” total withdrawal base would remain at $100,000 and the “principal back” maximum annual withdrawal amount would be $7,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 7% is based on).
New “principal back” total withdrawal base:
Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.
Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.
1. 
The formula is (EWD / (PV - 7% WD)) * TWB before any adjustments
2. 
($1,000 / ($90,000 - $7,000)) * $100,000 = $1,204.82
Step Three. Which is larger, the actual $1,000 excess withdrawal amount or the $1,204.82 pro rata amount?
$1,204.82 pro rata amount.
Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?
$100,000 - $1,204.82 = $98,795.18
Result. The new “principal back” total withdrawal base is $98,795.18
New “principal back” maximum annual withdrawal amount:
Because the “principal back” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 7% “principal back” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.
Step One. What is the new “principal back” maximum annual withdrawal amount?
$98,795.18 (the adjusted total withdrawal base) * 7% = $6,915.66
Result. Going forward, the maximum You can take out in a rider year is $6,915.66 without causing an excess withdrawal for the “principal back” guarantee and further reduction of the “principal back” total withdrawal base.
Example 3 (5% “for life”):
Assumptions:
TWB = $100,000
MRWA = $100,000
5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)
WD = $5,000
Excess withdrawal (“EWD” ) = None
PV = $100,000
You = Owner and Annuitant (Age 60)
Step One. Is any portion of the withdrawal greater than the “for life” maximum annual withdrawal amount?
No. There is no excess withdrawal under the “for life” guarantee if no more than $5,000 is withdrawn.
89
GUARANTEED PRINCIPAL SOLUTIONSM RIDER ADJUSTED WITHDRAWALS — (Continued)
Step Two. What is the minimum remaining withdrawal amount after the withdrawal has been taken?
1. 
Total to deduct from the minimum remaining withdrawal amount is $5,000 (there is no excess to deduct).
2. 
$100,000 - $5,000 = $95,000.
Result. In this example, because no portion of the withdrawal was in excess of $5,000, the “for life” total withdrawal base does not change and the “for life” minimum remaining withdrawal amount is $95,000.00.
Example 4 (5% “for life”):
Assumptions:
TWB = $100,000
MRWA = $100,000
5% WD would be $5,000 (5% of the current $100,000 total withdrawal base)
WD = $7,000
EWD = $2,000 ($7,000 - $5,000)
PV = $90,000
You = Owner and Annuitant (Age 60)
Step One. Is any portion of the total withdrawal greater than the maximum annual withdrawal amount?
Yes. $7,000 - $5,000 = $2,000 (the excess withdrawal amount)
Step Two. Calculate how much of the “for life” minimum remaining withdrawal amount is affected by the excess withdrawal.
1. 
Formula for pro rata amount is: (EWD / (PV - 5% WD)) * (MRWA - 5% WD)
2. 
($2,000 / ($90,000 - $5,000)) * ($100,000 - $5,000) = $2,235.29
Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,235.29 pro rata amount?
$2,235.29 pro rata amount
Step Four. What is the “for life” minimum remaining withdrawal amount after the withdrawal has been taken?
1. 
Total to deduct from the minimum remaining withdrawal amount is $5,000 + $2,235.29 (pro rata excess) = $7,235.29
2. 
$100,000 - $7,235.29 = $92,764.71
Result. The “for life” minimum remaining withdrawal amount is $92,764.71.
NOTE. For the Guaranteed Lifetime Withdrawal Benefit, because there was an excess withdrawal amount, the total withdrawal base needs to be adjusted as well as a new lower maximum annual withdrawal amount. Had the withdrawal for this example not been more than $5,000, the “for life” total withdrawal base would remain at $100,000 and the “for life” maximum annual withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the total withdrawal base is also changed (this is the amount the 5% is based on).
New “for life” total withdrawal base:
Step One. The total withdrawal base is only reduced by the excess withdrawal amount or the pro rata amount if greater.
Step Two. Calculate how much the total withdrawal base is affected by the excess withdrawal.
1. 
The formula is (EWD / (PV - 5% WD)) * TWB before any adjustments
2. 
($2,000 / ($90,000 - $5,000)) * $100,000 = $2,352.94
Step Three. Which is larger, the actual $2,000 excess withdrawal amount or the $2,352.94 pro rata amount?
$2,352.94 pro rata amount.
Step Four. What is the new total withdrawal base upon which the maximum annual withdrawal amount is based?
$100,000 - $2,352.94 = $97,647.06
Result. The new “for life” total withdrawal base is $97,647.06
90
GUARANTEED PRINCIPAL SOLUTIONSM RIDER ADJUSTED WITHDRAWALS — (Continued)
New “for life” maximum annual withdrawal amount:
Because the “for life” total withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new maximum annual withdrawal amount for the 5% “for life” guarantee that will be available starting on the next rider anniversary. This calculation assumes no more activity prior to the next rider anniversary.
Step One. What is the new “for life” maximum annual withdrawal amount?
$97,647.06 (the adjusted total withdrawal base) * 5% = $4,882.35
Result. Going forward, the maximum You can take out in a rider year is $4,882.35 without causing an excess withdrawal for the “for life” guarantee and further reduction of the “for life” total withdrawal base.
91
APPENDIX
PAM METHOD TRANSFERS
NOTE: The Guaranteed Principal SolutionSM rider is no longer available to elect. For previously elected rider, to make the Guaranteed Principal SolutionSM rider available, we monitor Your Policy Value and guarantees under the rider daily and periodically transfer amounts between Your selected Investment Options and the PAM Subaccount. We determine the amount and timing of PAM Method transfers between the Investment Options and the PAM Subaccount according to a mathematical model. For further clarification on how PAM works, reference Optional Benefit Riders for the Guaranteed Principal SolutionSM rider Allocation Method information in the body of the prospectus.
The mathematical model is designed to calculate how much of Your Policy Value should be allocated to the PAM Subaccount. Based on this calculation and threshold amounts, transfers into or out of the PAM Subaccount may occur. The formula is:
Percent of Policy Value required in PAM Subaccount (or X) = e-Dividend*Time *(1- NormDist(d1))
where:
e = Base of the Natural Logarithm
NormDist = Cumulative Standard Normal Distribution
d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
In order to calculate the percent of Policy Value required in the PAM Subaccount, we must first calculate d1:
d1 = [ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
where:
ln = Natural Logarithm Function
G = Guarantee Ratio
R = Rate
F = Fees
V = Volatility
T = Time
After calculating d1, the percent of Policy Value required in the PAM Subaccount can be calculated. Once calculated, appropriate transfers into or out of the PAM Subaccount may occur based on the transfer threshold amounts.
Following is a brief discussion of the values used in the formula.
◆
The POLICY VALUE includes the value in both the Investment Options and in the PAM Subaccount.
◆
The GUARANTEE RATIO is the Policy Value divided by 7% “Principal Back” Minimum Remaining Withdrawal Amount.
◆
The RATE is the interest rate used for the PAM Method. It is based on a long-term expectation based on historical interest rates and may vary over time.
◆
The FEES is an approximation of average Policy fees and charges associated with policies that have elected the Guaranteed Principal SolutionSM rider. This value may change over time.
◆
The VOLATILITY represents the volatility of the returns of Policy Value for all in force policies and is based on the long-term expectation of the degree to which the Policy Values tend to fluctuate. This value may vary over time.
◆
The TIME is an approximation based on actuarial calculations of historical average number of years (including any fraction) which we anticipate remain until any potential payments are made under the benefit. This value may vary over time.
◆
The PERCENT OF POLICY VALUE TO BE ALLOCATED TO THE PAM SUBACCOUNT is computed for each Policy. Ultimately the allocation for a Policy takes into account the guarantees under the rider and the limit on allocations to the PAM Subaccount.
◆
The CUMULATIVE STANDARD NORMAL DISTRIBUTION function assumes that random events are distributed according to the classic bell curve. For a given value it computes the percentage of such events which can be expected to be less than that value.
◆
The NATURAL LOGARITHM function for a given value, computes the power to which e must be raised, in order to result in that value. Here, e is the base of the natural logarithms, or approximately 2.718282.
◆
The FIXED ACCOUNT TRANSFER THRESHOLD (FATT) is the percentage that the Guarantee Ratio must be below before any of the Policy Value can be transferred to the PAM Subaccount. This threshold is set to a fixed percentage at rider issue and is then recalculated after each PAM Subaccount transfer.
92
PAM METHOD TRANSFERS — (Continued)
◆
The SEPARATE ACCOUNT TRANSFER THRESHOLD (SATT) is the percentage that the Guarantee Ratio must exceed before any of the Policy Value can be transferred from the PAM Subaccount. This threshold is set to a fixed percentage at rider issue and is then recalculated after each PAM Subaccount transfer.
Example:
Day 1: Policy Value Declines by 10%
For purposes of this example we will assume that the Policy Value declines by 10% to $90,000 the day after the rider issue date from the initial premium amount of $100,000 producing a guarantee ratio of 90% ($90,000/$100,000). We will also assume:
Rate = 3%
Volatility = 15%
Fees = 3.05%
Time = 10
FATT = 95%
SATT =105%
First we calculate d1.
d1=[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1=[ln(.90)+(.03 – .0305 +.5*.15 ^ 2)* 10]/[.15 * 10^.5]
d1=.658832
Using the value we just calculated for d1 we can now calculate the percent of Policy Value required in the PAM Subaccount.
Percent of Policy Value in PAM Subaccount (or X) = e-Dividend*Time *(1-NormDist(d1))
X= (2.718282 ^ -.0305 * 10) * (1 – NormDist(.004509))
X = 36.7235%
Therefore, 36.7235% of the Policy Value is transferred to the PAM Subaccount since the guarantee ratio (90%) is less than the FATT (95%), resulting in a total transfer of $33,051.15.
Day 2: Policy Value Recovers to 99% of Initial Value after the 10% Decline
For purposes of this example we will assume that after the Policy Value declined to $90,000 it recovered the next day to $99,000 producing a guarantee ratio of 99% ($99,000/$100,000). We will also assume:
Rate = 2%
Volatility = 15%
Fees = 3.05%
Time = 10
FATT = 85.5% (G last transfer *.95) = (.9*.95)
SATT = 94.5% (G last transfer *1.05) = (.9*1.05)
PAM Subaccount Value = $33,051.15
Value in other Investment Options = $65,948.85 ($99,000 - $33,051.15)
PAM Subaccount Value as percent of Policy Value = $33,051.15 / $99,000 = 33.3850%
First we calculate d1.
d1=[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1=[ln(.99)+(.02 – .0305 +.5*.15 ^ 2)* 10]/[.15 * 10^.5]
d1= -.005376
Using the value we just calculated for d1 we can now calculate the percent of Policy Value required in the PAM Subaccount.
Percent of Policy Value in PAM Subaccount (or X) = e-Dividend*Time *(1 - NormDist(d1))
X= (2.718282 ^ -.0305 * 10) * (1 – NormDist(-0.005376))
X = 37.0143%
Although the GR is greater than the SATT, since the percentage required in the PAM Subaccount (37.0143%) is greater than the amount allocated to the PAM Subaccount (33.3850%), none of the Policy Value will be transferred to the PAM Subaccount. Consequently, the amount in the PAM Subaccount will remain $33,051.15 and the FATT and SATT will not recalculate.
Day 3: Policy Value Recovers to 105% of Initial Value after the increase to 99% of Initial Value
93
PAM METHOD TRANSFERS — (Continued)
For purposes of this example we will assume that after the Policy Value recovered further the next to $105,000 producing a guarantee ratio of 105% ($105,000/$100,000). We will also assume:
Rate = 3%
Volatility = 15%
Fees = 3.05%
Time = 10
FATT = 85.5%
SATT = 94.5%
PAM Subaccount Value = $33,051.15
Value in other Investment Options = $71,948.85 ($105,000 - $33,051.15)
PAM Subaccount Value as percent of Policy Value = $33,051.15 / $105,000 = 31.4773%
First we calculate d1.
d1=[ln(G)+(R – F +.5*V ^ 2)* T]/[V * T^.5]
d1=[ln(1.05)+(.03 – .0305 +.5*.15 ^ 2)* 10]/[.15 * 10^.5]
d1= .329488
Using the value we just calculated for d1 we can now calculate the percent of Policy Value required in the PAM Subaccount.
Percent of Policy Value in PAM Subaccount (or X) = e-Dividend*Time *(1 - NormDist(d1))
X= (2.718282 ^ -.0305 * 10) * (1 – NormDist(.329488))
X = 27.3394%
While the mathematical model would suggest we transfer only a portion of the Policy Value in the PAM Subaccount into Your Investment Options (leaving 27.3394% in the PAM Subaccount), all of the Policy Value in the PAM Subaccount will be transferred into Your Investment Options. If the Guarantee Ratio equals or exceeds 100%. Because the Policy Value is greater than or equal to the value of the guarantee, and there is no current need for any Policy Value to be allocated to the PAM Subaccount.
94
APPENDIX
Guaranteed Lifetime Withdrawal Benefit - Transamerica Income EdgeSM rider – REBALANCING EXAMPLES
NOTE: The following demonstrates, on a purely hypothetical basis, the rebalancing mechanics of this Guaranteed Lifetime Withdrawal Benefit. The Investment Restrictions, rider fee percentages and withdrawal percentages for Your rider may vary from the percentages used below.
Rebalancing Examples
The following examples assume the initial premium allocations listed in the table below, which we assume satisfy the premium investment requirements provided in the Rate Sheet Prospectus Supplement. 
Investment Option Allocations:
Initial Premium
Allocations
Initial Premium
Allocation Percentages
Stable Account
$20,000
20%
Select Investment Option Fund A
$13,000
13%
Select Investment Option Fund B
$13,000
13%
Select Investment Option Fund C
$4,000
4%
Total Select Investment Options
$30,000
30%
Flexible Investment Option Fund A
$14,000
14%
Flexible Investment Option Fund B
$14,000
14%
Flexible Investment Option Fund C
$22,000
22%
Total Flexible Investment Options
$50,000
50%
Total Investments
$100,000
100%
Example 1: Calculation at rider issue for the rebalance allocations:
The Stable Account portion of the Policy Value is not included in the quarterly Rebalance, therefore the rebalancing allocation percentages are calculated by multiplying the initial premium allocation percentages for the Select Investment Options and Flexible Investment Options by a ratio. The ratio is calculated by taking 100%, divided by 100% less the Stable Account premium allocation percentage. The ratio for this example would be 100% / (100% - 20%) = 1.25. 
Investment Option Allocations:
Initial
Allocations
Initial Allocation
Percentages
Rebalancing
Allocation
Percentages
Stable Account
$20,000
20%
N/A
Total Select Investment Options
$30,000
30%
37.5%
Total Flexible Investment Options
$50,000
50%
62.5%
Total Investments
$100,000
100%
100%
Whole percentages are required for the rebalancing percentages and must sum up to equal 100%. To satisfy this requirement and ensure the rebalancing allocation requirement is met for each of the Investment Options, the sum of the Select Investment Options rebalancing percentage is rounded to the nearest whole percent (hereafter referred to as Select Rebalance Total) but no less than the minimum allocation for rebalance. The Select Rebalance Total is deducted from 100% to get the Total Flexible Investment Options rebalancing percentage (hereafter referred to as Flexible Rebalance Total). The Select Rebalance Total and Flexible Rebalance Total percentages are the end result which will be achieved by the quarterly Rebalance.
95
Guaranteed Lifetime Withdrawal Benefit - Transamerica Income EdgeSM rider – REBALANCING EXAMPLES — (Continued)
Table 1: 
Investment Option Allocations:
Unrounded
Rebalancing
Percentages
Rounded
Rebalancing
Percentages
Stable Account
N/A
N/A
Total Select Investment Options
37.5%
38%(1)
Total Flexible Investment Options
62.5%
62%(2)
Total Investments
100%
100%
(1)Select Rebalance Total
(2)Flexible Rebalance Total
We apply the same ratio and rounding to each individual Investment Option chosen and sum up the total Select and total Flexible Investment Options separately. The totals are compared to Select Rebalance Total and Flexible Rebalance Total to determine where any adjustments need to be made. In the example below, adjustments will need to be made to the Select Investment Options to bring the total percentage up to 38% and the Flexible Investment Options down to 62%, per the result from Table 1.
Table 2: 
Investment Option Allocations:
Initial
Allocations
Initial
Percentages
Rebalancing
Percentages
Stable Account
$20,000
20%
N/A
Select Investment Option Fund A
$13,000
13%
16%
Select Investment Option Fund B
$13,000
13%
16%
Select Investment Option Fund C
$4,000
4%
5%
Total Select Investment Options
$30,000
30%
37%
Flexible Investment Option Fund A
$14,000
14%
18%
Flexible Investment Option Fund B
$14,000
14%
18%
Flexible Investment Option Fund C
$22,000
22%
28%
Total Flexible Investment Options
$50,000
50%
64%
Total Investments
$100,000
100%
101%
To get the total Select Investment Options rebalancing percent to equal 38%, we must add 1% to one of the funds. Any adjustments will first be made equally to the fund(s) with the greatest allocation. If there are multiple funds with the greatest allocation and the adjustments cannot be divided equally, we will adjust in alphabetical order the fund(s) with the greatest allocation. In the example below, we made the adjustment to the Select Investment Option Fund A.
To get the total Flexible Investment Options rebalancing percent to equal 62%, we must subtract 2% from one or more funds. Since there is only one fund with the greatest allocation, we have made the adjustment to the Flexible Investment Option Fund C.
96
Guaranteed Lifetime Withdrawal Benefit - Transamerica Income EdgeSM rider – REBALANCING EXAMPLES — (Continued)
Table 3: 
Investment Option Allocations:
Initial
Allocations
Initial
Percentages
Rebalancing
Percentages
Stable Account
$20,000
20%
N/A
Select Investment Option Fund A
$13,000
13%
17%
Select Investment Option Fund B
$13,000
13%
16%
Select Investment Option Fund C
$4,000
4%
5%
Total Select Investment Options
$30,000
30%
38%
Flexible Investment Option Fund A
$14,000
14%
18%
Flexible Investment Option Fund B
$14,000
14%
18%
Flexible Investment Option Fund C
$22,000
22%
26%
Total Flexible Investment Options
$50,000
50%
62%
Total Investments
$100,000
100%
100%
Example 2: Calculation for first quarter rebalance:
At the end of the first Rider Quarter, assume that the Investment Options have the following values:
Table 4: 
Investment Option Allocations:
Allocation
Amounts before
Rebalance
Allocation Percentage
of rebalancing funds
Prior to Rebalance
Stable Account
$20,050
N/A
Select Investment Option Fund A
$13,090
17%
Select Investment Option Fund B
$11,550
15%
Select Investment Option Fund C
$3,850
5%
Total Select Investment Options
$28,490
37%
Flexible Investment Option Fund A
$13,090
17%
Flexible Investment Option Fund B
$14,630
19%
Flexible Investment Option Fund C
$20,790
27%
Total Flexible Investment Options
$48,510
63%
Total Investments
$97,050
100%
The result of the Rebalance back to the rebalancing percentages from Table 3 is:
97
Guaranteed Lifetime Withdrawal Benefit - Transamerica Income EdgeSM rider – REBALANCING EXAMPLES — (Continued)
Table 5: 
Investment Option Allocations:
Allocation
amounts after
Rebalance
Allocation of
Rebalancing
after Rebalance
Allocation of
Policy Value
Rebalance
Stable Account
$20,050
N/A
21%
Select Investment Option Fund A
$13,090
17%
13%
Select Investment Option Fund B
$12,320
16%
13%
Select Investment Option Fund C
$3,850
5%
4%
Total Select Investment Options
$29,260
38%
30%
Flexible Investment Option Fund A
$13,860
18%
14%
Flexible Investment Option Fund B
$13,860
18%
14%
Flexible Investment Option Fund C
$20,020
26%
21%
Total Flexible Investment Options
$47,740
62%
49%
Total Investments
$97,050
100%
100%
This rebalancing process will continue on a quarterly basis while this rider is in force.
98
APPENDIX
Hypothetical Adjusted withdrawals -Guaranteed Lifetime Withdrawal Benefit Riders
This appendix explains the material features of the Retirement Income Max® and Retirement Income Choice® 1.6 riders which are no longer available to elect.
When a withdrawal is taken, three parts of the Guaranteed Lifetime Withdrawal Benefit can be affected:
1. 
Withdrawal Base (“WB”) (also referred to as Total Withdrawal Base (“TWB”) for some riders);
2. 
Rider Withdrawal Amount (“RWA”) (also referred to as Maximum Annual Withdrawal Amount (“MAWA”) for some riders); and
3. 
Rider Death Benefit (“RDB”) (also referred to as Minimum Remaining Withdrawal Amount (“MRWA”) for some riders (if applicable)).
Withdrawal Base. Gross withdrawals in a rider year up to the rider withdrawal amount will not reduce the withdrawal base. Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the withdrawal base by an amount equal to the greater of:
1) 
the excess gross withdrawal amount; and
2) 
a pro rata amount, the result of (A / B) * C, where:
A 
is the excess withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B 
is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and
C 
is the withdrawal base prior to the withdrawal of the excess amount.
Rider Death Benefit. Gross withdrawals in a rider year up to the rider withdrawal amount will reduce the rider death benefit by the amount withdrawn (dollar-for-dollar). Gross withdrawals in a rider year in excess of the rider withdrawal amount will reduce the rider death benefit by an amount equal to the greater of:
1) 
the excess gross withdrawal amount; and
2) 
a pro rata amount, the result of (A / B) * C, where:
A 
is the excess gross withdrawal (the amount in excess of the rider withdrawal amount remaining prior to the withdrawal);
B 
is the Policy Value after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount; and
C 
is the rider death benefit after the rider withdrawal amount has been withdrawn, but prior to the withdrawal of the excess amount.
The following demonstrates, on a purely hypothetical basis, the effects of withdrawals under a Guaranteed Lifetime Withdrawal Benefit. The withdrawal percentages shown may not be available on all riders. Certain features (growth and rider death benefits) may not be available on all riders. For information regarding a specific rider, please refer to that rider section in this prospectus.
Example 1 (Base):
Assumptions:
WB = $100,000
Withdrawal Percentage = 5%
RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)
Gross withdrawal (“GPWD”) = $5,000
Excess withdrawal (“EWD” ) = None
Policy Value (“PV” ) = $100,000
Question: Is any portion of the withdrawal greater than the rider withdrawal amount?
No. There is no excess withdrawal under the guarantee since no more than $5,000 is withdrawn.
Result. In this example, because no portion of the withdrawal was in excess of $5,000, the withdrawal base does not change.
99
Hypothetical Adjusted withdrawals -Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)
Example 2 (Excess Withdrawal):
Assumptions:
WB = $100,000
Withdrawal Percentage = 5%
RWA = 5% withdrawal would be $5,000 (5% of the current $100,000 withdrawal base)
GPWD = $7,000
EWD = $2,000 ($7,000 - $5,000)
PV = $90,000
NOTE. For the Guaranteed Lifetime Withdrawal Benefit, because there was an excess withdrawal amount, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $5,000, the withdrawal base would remain at $100,000 and the rider withdrawal amount would be $5,000. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).
New withdrawal base:
Step One. The withdrawal base is reduced only by the amount of the excess withdrawal or the pro rata amount, if greater.
Step Two. Calculate how much the withdrawal base is affected by the excess withdrawal.
1. 
The formula is (EWD / (PV - 5% withdrawal)) * WB before any adjustments
2. 
($2,000 / ($90,000 - $5,000)) * $100,000 = $2,352.94
Step Three. Which is larger, the actual $2,000 excess withdrawal or the $2,352.94 pro rata amount?
$2,352.94 pro rata amount.
Step Four. What is the new withdrawal base upon which the rider withdrawal amount is based?
$100,000 - $2,352.94 = $97,647.06
Result. The new withdrawal base is $97,647.06
New rider withdrawal amount:
Because the withdrawal base was adjusted (due to the excess withdrawal) we have to calculate a new rider withdrawal amount for the 5% guarantee that will be available starting on the next calendar anniversary. This calculation assumes no more activity prior to the next calendar anniversary.
Question: What is the new rider withdrawal amount?
$97,647.06 (the adjusted withdrawal base) * 5% = $4,882.35
Result. Going forward, the maximum You can take out in a year is $4,882.35 without causing an excess withdrawal for the guarantee and further reduction of the withdrawal base (assuming there are no future automatic step-ups).
Example 3 (Base demonstrating growth):
Assumptions:
WB = $100,000
Withdrawal Percentage = 5%
WB in 10 years (assuming an annual growth rate percentage of 5.0%) = $100,000 * (1 + .05) ^ 10 = $162,889
RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)
Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the growth stops on the 10th rider anniversary.
GPWD = $8,144
EWD = None
PV = $90,000 in 10 years
Question: Is any portion of the withdrawal greater than the rider withdrawal amount?
No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.
Result. In this example, because no portion of the withdrawal was in excess of $8,144, the withdrawal base does not change.
100
Hypothetical Adjusted withdrawals -Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)
Example 4 (Base demonstrating WB growth with Additional Death Payment Option):
Assumptions:
Withdrawal Percentage = 5%
WB at rider issue = $100,000
WB in 10 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 10 = $162,889
RDB (optional additional death benefit for additional cost) = $100,000
RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)
Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken, and the growth stops on the 10th rider anniversary.
GPWD = $8,144
EWD = None
PV = $90,000 in 10 years
Step One. Is any portion of the withdrawal greater than the rider withdrawal amount?
No. There is no excess withdrawal under the guarantee if no more than $8,144 is withdrawn.
Step Two. What is the rider death benefit after the withdrawal has been taken?
1. 
Total to deduct from the rider death benefit is $8,144 (there is no excess to deduct)
2. 
$100,000 - $8,144 = $91,856.
Result. In this example, because no portion of the withdrawal was in excess of $8,144, the total withdrawal base does not change and the rider death benefit reduces to $91,856.
Example 5 (Base with WB growth with Additional Death Payment Option illustrating excess withdrawal):
Assumptions:
Withdrawal Percentage = 5%.
WB at rider issue = $100,000
Automatic step-up never occurs and no withdrawals are taken in the first 10 rider years.
WB in 10 years (assuming an annual growth rate percentage of 5%) = $100,000 * (1 + .05) ^ 10 = $162,889.
RDB (optional additional death benefit for additional cost) = $100,000
RWA = 5% withdrawal beginning 10 years from the rider date would be $8,144 (5% of the then-current $162,889 withdrawal base)
Please Note: Withdrawals under these riders can begin prior to the 10th rider anniversary, but the WB growth will not occur during the rider years when a withdrawal is taken and the growth stops on the 10th rider anniversary.
GPWD = $10,000
EWD = $1,856 ($10,000 - $8,144)
PV = $90,000 in 10 years
Step One. Is any portion of the total withdrawal greater than the rider withdrawal amount?
Yes. $10,000 - $8,144 = $1,856 (the excess withdrawal amount)
Step Two. Calculate how much of the rider death benefit is affected by the excess withdrawal.
1. 
Formula for pro rata amount is: (EWD / (PV - 5% withdrawal)) * (RDB - 5% withdrawal)
2. 
($1,856 / ($90,000 - $8,144)) * ($100,000 - $8,144) = $2,082.74
Step Three. Which is larger, the actual $1,856 excess withdrawal amount or the $2,082.74 pro rata amount?
$2,082.74 pro rata amount.
Step Four. What is the rider death benefit after the withdrawal has been taken?
1. 
Total to deduct from the rider death benefit is $8,144 (RWA) + $2,082.74 (pro rata excess) = $10,226.74
2. 
$100,000 - $10,226.74 = $89,773.26.
Result. The rider benefit is $89,773.26.
101
Hypothetical Adjusted withdrawals -Guaranteed Lifetime Withdrawal Benefit Riders — (Continued)
Note: Because there was an excess withdrawal amount in this example, the withdrawal base needs to be adjusted and a new lower rider withdrawal amount calculated. Had the withdrawal for this example not been more than $8,144, the withdrawal base would remain at $162,889 and the rider withdrawal amount would be $8,144. However, because an excess withdrawal has been taken, the withdrawal base is also reduced (this is the amount the 5% is based on).
102
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Max® rider
The Retirement Income Max® rider can no longer be elected. The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Retirement Income Max® rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% 
Rider Year
Hypothetical
Policy Value
Subsequent
Premium
Payment
Withdrawal
Excess WB
Adjustment
Growth
Amount*
High
MonthiversarySM
Value
Withdrawal
Base
Rider
Withdrawal
Amount
 
$100,000
$
$
$
$
$100,000
$100,000
$6,300
1
$102,000
$
$
$
$
$102,000
$100,000
$6,300
1
$105,060
$
$
$
$
$105,060
$100,000
$6,300
1
$107,161
$
$
$
$
$107,161
$100,000
$6,300
1
$110,376
$
$
$
$
$110,376
$100,000
$6,300
1
$112,584
$
$
$
$
$112,584
$100,000
$6,300
1
$115,961
$
$
$
$
$115,961
$100,000
$6,300
1
$118,280
$
$
$
$
$118,280
$100,000
$6,300
1
$121,829
$
$
$
$
$121,829
$100,000
$6,300
1
$124,265
$
$
$
$
$124,265
$100,000
$6,300
1
$120,537
$
$
$
$
$124,265
$100,000
$6,300
1
$115,716
$
$
$
$
$124,265
$100,000
$6,300
1
$109,930
$
$
$
$105,000
$124,265
$124,2651
$7,829
2
$112,129
$
$
$
$
$112,129
$124,265
$7,829
2
$115,492
$
$
$
$
$115,492
$124,265
$7,829
2
$117,802
$
$
$
$
$117,802
$124,265
$7,829
2
$121,336
$
$
$
$
$121,336
$124,265
$7,829
2
$124,976
$
$
$
$
$124,976
$124,265
$7,829
2
$177,476
$50,000
$
$
$
$177,476
$174,265
$10,979
2
$175,701
$
$
$
$
$177,476
$174,265
$10,979
2
$172,187
$
$
$
$
$177,476
$174,265
$10,979
2
$167,022
$
$
$
$
$177,476
$174,265
$10,979
2
$163,681
$
$
$
$
$177,476
$174,265
$10,979
2
$166,955
$
$
$
$
$177,476
$174,265
$10,979
2
$170,294
$
$
$
$182,979
$177,476
$182,9792
$11,528
3
$166,888
$
$
$
$
$166,888
$182,979
$11,528
3
$171,895
$
$
$
$
$171,895
$182,979
$11,528
3
$173,614
$
$
$
$
$173,614
$182,979
$11,528
3
$178,822
$
$
$
$
$178,822
$182,979
$11,528
3
$175,246
$
$
$
$
$178,822
$182,979
$11,528
3
$151,741
$
$20,000
$9,676
$
$
$173,303
$
3
$154,775
$
$
$
$
$
$173,303
$
3
$159,419
$
$
$
$
$
$173,303
$
3
$161,013
$
$
$
$
$
$173,303
$
3
$165,843
$
$
$
$
$
$173,303
$
3
$174,135
$
$
$
$
$
$173,303
$
103
Hypothetical Example of the Withdrawal Base Calculation -Retirement Income Max® rider — (Continued)
Rider Year
Hypothetical
Policy Value
Subsequent
Premium
Payment
Withdrawal
Excess WB
Adjustment
Growth
Amount*
High
MonthiversarySM
Value
Withdrawal
Base
Rider
Withdrawal
Amount
3
$181,101
$
$
$
$
$
$181,1011
$11,409
(1) 
Automatic Step Up Applied
(2) 
Growth Applied
* 
Growth Percentage = 5%
104
APPENDIX
Hypothetical Example of the Withdrawal Base Calculation -Transamerica Income EdgeSM rider
The Transamerica Income EdgeSM Rider can no longer be elected. The following table demonstrates, on a purely hypothetical basis, the withdrawal base calculation for the Transamerica Income EdgeSM rider using an initial premium payment of $100,000 for a Single Life Option rider at an issue age of 80. All values shown are post transaction values. The assumed withdrawal percentage in the example below is 6.30% 
Rider Year
Hypothetical
Policy Value
Subsequent
Premium
Payment
Withdrawal
Excess WB
Adjustment
Withdrawal
Base
Rider
Withdrawal
Amount
 
$100,000
$
$
$
$100,000
$6,000
1
$102,000
$
$
$
$100,000
$6,000
1
$105,060
$
$
$
$100,000
$6,000
1
$107,161
$
$
$
$100,000
$6,000
1
$110,376
$
$
$
$100,000
$6,000
1
$112,584
$
$
$
$100,000
$6,000
1
$115,961
$
$
$
$100,000
$6,000
1
$118,280
$
$
$
$100,000
$6,000
1
$121,829
$
$
$
$100,000
$6,000
1
$124,265
$
$
$
$100,000
$6,000
1
$120,537
$
$
$
$100,000
$6,000
1
$115,716
$
$
$
$100,000
$6,000
1
$109,930
$
$
$
$109,930
$6,596
2
$112,129
$
$
$
$109,930
$6,596
2
$115,492
$
$
$
$109,930
$6,596
2
$117,802
$
$
$
$109,930
$6,596
2
$121,336
$
$
$
$109,930
$6,596
2
$124,976
$
$
$
$109,930
$6,596
2
$177,476
$50,000
$
$
$159,930
$9,596
2
$175,701
$
$
$
$159,930
$9,596
2
$172,187
$
$
$
$159,930
$9,596
2
$167,022
$
$
$
$159,930
$9,596
2
$163,681
$
$
$
$159,930
$9,596
2
$166,955
$
$
$
$159,930
$9,596
2
$170,294
$
$
$
$170,2941
$10,218
3
$166,888
$
$
$
$170,294
$10,218
3
$171,895
$
$
$
$170,294
$10,218
3
$173,614
$
$
$
$170,294
$10,218
3
$178,822
$
$
$
$170,294
$10,218
3
$175,246
$
$
$
$170,294
$10,218
3
$151,741
$
$20,000
$10,314
$159,980
$
3
$154,775
$
$
$
$159,980
$
3
$159,419
$
$
$
$159,980
$
3
$161,013
$
$
$
$159,980
$
3
$165,843
$
$
$
$159,980
$
3
$174,135
$
$
$
$159,980
$
3
$181,101
$
$
$
$181,1011
$10,866
(1)Automatic Step-Up Applied
105
 
APPENDIX
statE Variations
The following section describes modifications to this prospectus required by one or more state insurance departments as of the date of this prospectus. Unless otherwise noted, variations apply to all forms of policies we issue. References to certain state's variations do not imply that we actually offer policies in each such state. These variations are subject to change without notice and additional variations may be imposed as specific states approve new riders. The Company will amend this prospectus upon notification of any additional variations received from one or more state insurance departments.
California. The Policy may be canceled by returning the Policy. A refund will be paid within 30 days from the date notice of cancellation was received and refund will include any fees or charges. Owners age 60 or above have the option to elect immediate investment in Investment Options of their choice, and receive Policy Value if they cancel; or, they may allocate the initial premium payment to the money market portfolio for 35 calendar days at the end of which the Policy Value is moved to the Investment Options of their choice, and they would receive return of premium if they cancel. Owners of the Transamerica Income EdgeSM rider, age 60 or above have the option to elect immediate investment consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement, or, they may allocate the initial premium payment to the Stable Account as permitted in the applicable Rate Sheet Prospectus Supplement and the remaining premium to the money market portfolio for 35 calendar days (unless the Owner specifies that initial premium should be allocated to the underlying Subaccount(s)) at the end of which the Policy Value is moved to the Investment Options of their choice consistent with the allocations permitted in the applicable Rate Sheet Prospectus Supplement. The Nursing Care and Terminal Condition and the Unemployment Waivers are not available. The Income EnhancementSM is not available under the Retirement Income Choice® 1.6 rider. Restrictions on ownership change and assignments are not permitted. The Fixed Account is not available.
Connecticut. During the right to cancel period, prior to delivery of the Policy, the Owner will receive return of premium. The Unemployment Waiver is not available. There is no Excess Interest Adjustment upon Annuitization. Service charge cannot be assessed at time of surrender. Transfer restrictions apply if more than one transfer is made in a 30 day period. The Income EnhancementSM is not available under the Retirement Income Choice® 1.6 rider. The Retirement Income Max®, Retirement Income Choice® 1.6 and Transamerica Income EdgeSM riders will not terminate for unapproved ownership changes and assignments, however, we have the right to reject certain ownership changes and assignments involving institutional investors, settlement companies or other similar organizations.
Florida. Owners have a 21 day right to cancel period and will receive return of premium. The Unemployment Waiver is not available. Excess Interest Adjustment is not applied upon Annuitization or death. The Annuity Commencement Date is not allowed until after the first Policy Year. The Retirement Income Max® rider will terminate if the Policy to which this rider is attached has an ownership change or the Policy is assigned. The Transamerica Income EdgeSM rider will not terminate due to a misstatement of age.
New York. Under the right to cancel provision the premium payment allocated to the Fixed Account, if any, plus the Policy Value in the Separate Account, if any, including any fees and charges is returned. If the Policy is a replacement, the right to cancel period is extended to 60 days. Additional Death DistributionSM rider, Additional Death Distribution+SM rider and the Income EnhancementSM under the Retirement Income Choice® 1.6 rider, the Unemployment Waiver and telephone transactions are not available. There is no Excess Interest Adjustment. The death benefit payable during the accumulation phase is the greater of Policy Value or guaranteed minimum death benefit. The Policy Value is used upon Annuitization. The Annuity Commencement Date cannot be earlier than the first Policy anniversary. Guaranteed Principal SolutionSM, Retirement Income Max® and Retirement Income Choice® 1.6 rider fees cannot be deducted from the Fixed Account if available. Restrictions on ownership change and assignments are not permitted. Transamerica Income EdgeSM rider fees cannot be deducted from the Stable Account.
North Dakota. Right to cancel period is 20 days.
Oregon. The Retirement Income Choice® 1.6 rider will not terminate upon assignment or ownership changes.
Washington. Retirement Income Choice® 1.6 designated funds excludes fixed account and does not allow funds to be allocated to the Dollar Cost Averaging fixed account. The Guaranteed Principal SolutionSM rider fee cannot be deducted from the fixed account.
Washington. Retirement Income Choice® 1.6 designated funds excludes fixed account and does not allow funds to be allocated to the Dollar Cost Averaging fixed account. The Guaranteed Principal SolutionSM rider fee cannot be deducted from the fixed account.
 
106
APPENDIX
FINANCIAL INTERMEDIARY VARIATIONS
Transamerica Inspire Variable Annuity (the “Policy”)
This appendix describes variations in the availability of Investment Options, Policy benefits, and other Policy features – including restrictions, limitations, and other variations – which are not otherwise described in the prospectus and may apply depending on the broker-dealer through which the Policy is sold.
 
Please note that there may be other financial intermediary variations not described below or otherwise in the prospectus. For example, your financial intermediary may not recommend a particular Investment Option or benefit to you. Any such other financial intermediary variations are unknown to Transamerica, and due to several factors (e.g., the manner in which financial intermediaries make recommendations, and the terms of our selling agreements), Transamerica does not believe it can obtain information about them without unreasonable effort or expense.
 
You should discuss with your financial professional any limitations, restrictions, or other variations related to the Investment Options, Policy benefits, or other Policy features that may apply through your financial professional’s broker-dealer. In some cases, an option not available through a financial intermediary may be obtained by contacting us directly. For more information on the options available, please contact your financial intermediary or our Administrative Office.
 
Not Applicable1
 
1 This includes all product offerings in New York State
 
 
107
where to find additional information
The Statement of Additional Information (SAI) dated May 1, 2026 contains more information about the Policy and the Separate Account. The SAI has been filed with the SEC and is incorporated by reference into this prospectus. The SAI is posted on our website, http://dfinview.com/Transamerica/TAHD/89354G802?site=VAVUL. For a free paper copy of the SAI, to request other information about the Policies, and to make investor inquiries call us at (800)525-6205 or write us at:
Transamerica Life Insurance Company or Transamerica Financial Life Insurance Company
6400 C Street SW
Cedar Rapids, IA 52499
Reports and other information about the Separate Account are available on the SEC’s website at sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.
EDGAR Contract Identifier No. is #C000180728 for TLIC and #C000180730 for TFLIC

STATEMENT OF ADDITIONAL INFORMATION
TRANSAMERICA INSPIRE® VARIABLE ANNUITY
Issued through 
Transamerica Life Insurance Company
Separate Account VA B (EST. 1/19/1990)
6400 C Street SW
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com
Transamerica Financial Life Insurance Company
Separate Account VA BNY (EST. 9/27/1994)
6400 C Street SW
Cedar Rapids, Iowa 52499-0001
(800)525-6205
www.transamerica.com
This Statement of Additional Information expands upon subjects discussed in the current prospectus for the Transamerica Inspire® Variable Annuity offered by Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company (“us,” “we” , “our” or “Company” ). You may obtain a copy of the current prospectus, dated May 1, 2026, by calling (800) 525-6205, or write us at the addresses listed above. The prospectus sets forth information that a prospective investor should know before investing in a policy. Terms used in the current prospectus for the policy and in this Statement of Additional Information have the same meaning.
This Statement of Additional Information (SAI) is not a prospectus and should be read only in conjunction with the prospectuses for the policy and the underlying fund portfolios.
Dated: May 1, 2026
TABLE OF CONTENTS
 
Information About Us________________________________________________________________
3
The Separate Accounts________________________________________________________________
3
3
THE POLICY—GENERAL PROVISIONS___________________________________________________
5
Owner__________________________________________________________________________
5
Entire Contract____________________________________________________________________
6
Misstatement of Age or Sex_____________________________________________________________
6
6
Annuity Payment Options_____________________________________________________________
6
Death Benefit_____________________________________________________________________
7
Death of Owner____________________________________________________________________
8
Assignment_______________________________________________________________________
8
Evidence of Survival_________________________________________________________________
8
Non-Participating___________________________________________________________________
8
Amendments______________________________________________________________________
8
Employee and Agent Purchases__________________________________________________________
8
INVESTMENT EXPERIENCE____________________________________________________________
8
Accumulation Units_________________________________________________________________
8
Annuity Unit Value and Annuity Payment Rates_______________________________________________
10
HISTORICAL PERFORMANCE DATA______________________________________________________
11
Money Market Yields_________________________________________________________________
11
Total Returns______________________________________________________________________
12
Other Performance Data_______________________________________________________________
13
Adjusted Historical Performance Data______________________________________________________
13
services__________________________________________________________________________
13
RECORDS AND REPORTS______________________________________________________________
13
DISTRIBUTION OF THE POLICIES_______________________________________________________
13
CUSTODY OF ASSETS_________________________________________________________________
14
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM____________________________________
14
FINANCIAL STATEMENTS______________________________________________________________
14
 
Prior Withdrawal/ Growth Percentages and Rider Fees____________________________________________
15
 
Prior Withdrawal/Growth Percentages and Rider Fees____________________________________________
18
 
Prior Allocation/Withdrawal Percentages and Rider Fees__________________________________________
21
ii
Information About Us
Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company, located at 6400 C Street SW, Cedar Rapids, Iowa 52499, is the insurance company issuing the Policy.
We are engaged in the sale of life insurance and annuity policies. Transamerica Life Insurance Company was incorporated under the laws of the State of Iowa on April 19, 1961 as NN Investors Life Insurance Company Inc., and is licensed in the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands and all states except New York. Transamerica Financial Life Insurance Company was incorporated under the laws of the State of New York on October 3, 1947 as Zurich Life Insurance Company and is licensed in all states and the District of Columbia. We are a wholly-owned indirect subsidiary of Transamerica Corporation which conducts most 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 Ltd., the securities of which are publicly traded. Aegon Ltd., a holding company, conducts its business through subsidiary companies engaged primarily in the insurance business.
All obligations arising under the policies, including the promise to make annuity payments, and payment of any amounts held in the Fixed Account are general corporate obligations of ours and subject to our claims paying ability. Accordingly, no financial institution, brokerage firm or insurance agency is responsible for our financial obligations arising under the policies.
We are relying on the exemption provided by Rule 12h-7 under the 1934 Act. In reliance on that exemption, we do not file periodic and current reports that we would be otherwise required to file pursuant to Section 15(d) of the 1934 Act.
The Separate Accounts
Separate Account VA B (the “Separate Account”), 6400 C Street S.W., Cedar Rapids, Iowa, was established by the Company on January 19, 1990, and is a unit investment trust registered with the SEC and operating under Iowa law. The Separate Account has various Subaccounts each of which invests solely in a corresponding Portfolio of the Fund.
Separate Account VA BNY (the “Separate Account”), 440 Mamaroneck Avenue, Harrison, New York, was established by the Company on September 27, 1994, and is a unit investment trust registered with the SEC and operating under New York law. The Separate Account has various Subaccounts, each of which invests solely in a corresponding Portfolio of the Fund.
The Separate Accounts are registered with the SEC as unit investment trusts under the 1940 Act (the “1940 Act”). However, the SEC does not supervise the management, the investment practices, or the policies of the separate accounts.
Cybersecurity (continued from “Principal Risks” section of the Prospectus)
OPPORTUNITIES and CHALLENGES
The increasing digitalization of the financial services landscape has intensified the financial and reputational risk presented by cybersecurity threats. As our business becomes more technology driven and our digital reliance increases, we become a greater target for cybercriminals, and more vulnerable to threats such as ransomware attacks.
What Transamerica is doing
Transamerica maintains a well-documented information security program which is based on ISO 27000 series and incorporates aspects of COBIT, NIST, SANS, as well as other industry-recognized frameworks and standards. The program is designed to protect the infrastructure, information systems, and the information in Transamerica’s systems from unauthorized access, use, or other malicious acts by enabling the organization to identify risks, implement appropriate protections, and detect and respond to cybersecurity events. Transamerica has established strong security policies, procedures, guidelines, and standards that are reviewed regularly for compliance with applicable laws, regulations, and alignment with industry standards. Our cybersecurity program covers aspects of security management: data handling and classification; access controls and identity management; business continuity and disaster recovery; configuration management; asset management; risk assessment; data disposal; information security incident response; system operations; vulnerability and patch management; system, application, and network security and monitoring; systems and application development and performance; physical and environmental controls; data privacy; vendor and third- party service provider management; consistent use of multi-factor authentication; cybersecurity awareness training; and encryption.
We continue to take steps to strengthen our information security program, infrastructure, and ability to respond to cyberattacks, for example, by further developing our information security teams and strengthening controls. Transamerica’s Risk Management teams also periodically assess known potential cyber risk factors, together with the first line functions such as the Security Operations Center, with known trends or material incidents reported to Transamerica’s Management and Supervisory Boards as necessary.
 
3
OVERVIEW
Information security and privacy regulation
Transamerica’s businesses are regulated with respect to information security, data breach response, privacy, and data use at both the federal and state levels. At the federal level, various Transamerica companies are subject to the Gramm-Leach-Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and the Health Insurance Portability and Accountability Act (HIPAA), amongst other laws. At the state level, Departments of Insurance and Financial Services typically administer a series of privacy and information security laws, guidance, and regulations that impact several Transamerica businesses. New York Department of Financial Services Rule 500 (NYDFS Rule 500). amended its Part 500 Cybersecurity Rules to adopt heightened information security requirements in relation to areas such as cybersecurity governance, cybersecurity risk assessments, and incident reporting with staggered compliance dates with the last one ending in Nov of 2025. In addition, in recent years numerous state legislatures have passed or have attempted to pass additional, more broad-based general consumer privacy laws, such as the California Consumer Privacy Act. Additional laws and regulations with respect to these topics are also anticipated to be promulgated and to go into effect in the coming years, and they may be administered by new or different state agencies or by the offices of state Attorneys General. The White House, SEC, and other regulators have also increased their focus on companies’ cybersecurity vulnerabilities and risks, including in relation to third-party service providers. The SEC adopted the Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure by Public Companies in 2023 (the “Rule”). The Rule enhances and standardizes disclosures for public companies with regard to their cybersecurity risk strategy, management, and governance. The Rule also requires the reporting of a cybersecurity incident within four business days of determining that an incident is deemed material. In 2024, the SEC also amended Regulation S-P, the implementing regulation for GLBA applicable to broker-dealers, investment companies, registered investment advisers, and transfer agents. The Amendments include new requirements related to incident response programs, customer notifications of data breaches, service provider oversight, and other related matters. In September 2024, the Department of Labor (DOL) released an update to its 2021 cybersecurity guidance for plan sponsors, fiduciaries, recordkeepers and plan participants. This guidance has now been updated to confirm that the agency’s 2021 guidance generally applies to ERISA-covered employee benefit plans, including health and welfare plans.
Operational Risks
A computer system failure or security breach of Transamerica’s IT systems or that of critical third parties may disrupt Transamerica’s business, damage Transamerica’s reputation and adversely affect Transamerica’s results of operations, financial condition, and cash flows.
Transamerica relies heavily on computer and information systems and internet and network connectivity (collectively, “IT systems”) to conduct a large portion of its business operations. This includes the need to implement procedures designed to securely store, process, transmit and dispose of confidential information, including personal information, through a number of complex systems. In many cases this also includes transmission and processing to or through customers, business partners, (semi-) governmental agencies and third-party service providers. Computer system failures, cyber-crime attacks, or security or data privacy breaches may materially disrupt Transamerica’s business operations, damage Transamerica’s reputation, result in regulatory and litigation exposure, investigation and remediation costs, and materially and adversely affect Transamerica’s results of operations, financial condition and cash flows.
The information security risk that Transamerica faces includes the risk of malicious outside forces using public networks and other methods, including social engineering and the exploitation of targeted offline processes, to attack Transamerica’s systems and information and potentially demand ransom. It also includes inside threats, both malicious and accidental. For example, human error, bugs and vulnerabilities that may exist in Transamerica’s systems or software, unauthorized user activity, and lack of sufficiently automated processing or sufficient logging and monitoring can result in improper information exposure or failure or delayed detection of such activity in a timely manner. Transamerica also faces risk in this area due to its reliance in many cases on third-party systems, any of which may face cyber and information security risks of their own. Third-party administrators or distribution partners used by Transamerica or its subsidiaries may not adequately secure their own IT systems or may not adequately keep pace with the dynamic changes in this area. Potential bad actors that target Transamerica and applicable third parties may include, but are not limited to, criminal organizations, foreign government bodies, political factions, and others.
In recent years, information security risk has increased due to a number of developments in how information systems are used, not only by companies such as Transamerica, but also by society in general. Threats have increased in frequency and magnitude, and are expected to continue to increase, as criminals and other bad actors become more organized and employ more sophisticated techniques. At the same time companies increasingly make information systems and data available through the internet, mobile devices or other network connections to customers, employees and business partners, thereby expanding the attack surface that bad actors can potentially exploit. Transamerica also faces increased cybersecurity risks due to the number of Transamerica’s and Transamerica’s service providers’ and partners’ employees who are working remotely, which creates additional opportunities for cybercriminals to launch social engineering attacks and exploit vulnerabilities in non-corporate IT environments. The White House, SEC and other regulators have also increased their focus on cybersecurity vulnerabilities and risks.
4
Large financial institutions such as and including Transamerica have been, and will continue to be, subject to information security attacks. The nature of these attacks will also continue to be unpredictable, and in many cases, may arise from circumstances that are beyond Transamerica’s control. Attackers are also increasingly using tools and techniques that are specifically designed to circumvent controls, to evade detection and even to remove or obfuscate forensic evidence. As a result, Transamerica may be unable to timely or effectively detect, identify, contain, investigate or remediate IT systems in response to future cyberattacks. Especially if and to the extent Transamerica fails to adequately invest in defensive infrastructure, timely response capabilities, technology, controls and processes, or to effectively execute against its information security strategy, it may suffer material adverse consequences.
Transamerica maintains cyber liability insurance to help decrease the financial impact of cyber-attacks and information security events, subject to the terms and conditions of the policy; however, such insurance may not be sufficient to cover applicable losses that Transamerica may suffer.
A breach of data privacy or security obligations may disrupt Transamerica’s business, damage Transamerica’s reputation and adversely affect financial conditions and results of operations.
Pursuant to applicable laws, various government and semi-governmental and other administrative bodies have established numerous rules protecting the privacy and security of personal information and other confidential or sensitive information held by Transamerica. Notably, certain of Transamerica’s businesses are subject to laws and regulations enacted by US federal and state governments and/or various regulatory organizations relating to the privacy and/or information security of the information of customers, employees or others.
Numerous other legislators and regulators with jurisdiction over Transamerica’s businesses are considering or have already enacted enhanced information security risk management and privacy laws and regulations, with the overall number and scope of such laws and regulations continuing to increase year over year. A number of Transamerica companies are also subject to contractual restrictions with respect to the use and handling of the sensitive information of Transamerica’s clients and business partners.
Transamerica, and its employees, third-party providers and business partners have access to, and routinely process, the personal information of consumers and employees. Transamerica relies on a large number of processes and controls to protect the confidentiality, integrity and availability of personal information and other confidential information that is accessible to, or in the possession of, Transamerica, its systems, employees and business partners. It is possible that Transamerica or its third parties could, intentionally or unintentionally, inappropriately disclose or misuse personal or confidential information. Transamerica’s data or data in its possession could also be the subject of an unauthorized information security attack. If Transamerica fails to maintain adequate processes and controls or if Transamerica or its business partners fail to comply with relevant laws and regulations, policies and procedures, misappropriation or intentional or unintentional inappropriate disclosure or misuse of personal information or other confidential information could occur. Such control inadequacies or non-compliance could cause disrupted operations and misstated or unreliable financial data, materially damage Transamerica’s reputation or lead to increased regulatory scrutiny or civil or criminal penalties or (class action) litigation, which, in turn, could have a material adverse effect on Transamerica’s business, financial condition and results of operations.
In addition, Transamerica analyzes personal information and customer data to better manage its business, subject to applicable laws and regulations and other restrictions. It is possible that additional regulatory or other restrictions regarding the use of such information may be imposed. Additional privacy and information security obligations have been imposed by various governments with jurisdiction over Transamerica or its subsidiaries in recent years, and more similar obligations are likely to be imposed in the near future across Transamerica’s operations. Such restrictions and obligations could have material impacts on Transamerica’s business, financial conditions and results of operations.
In order to supplement the description in the prospectus, the following provides additional information about us and the policy, which may be of interest to a prospective purchaser.
THE POLICY—GENERAL PROVISIONS
Owner
The policy shall belong to the Owner upon issuance of the policy after completion of an Enrollment Form and delivery of the initial Premium Payment. While the Annuitant is living, the Owner may: (1) assign the policy; (2) surrender the policy; (3) amend or modify the policy with our 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 policy. 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 we have been notified of a community or marital property interest in the policy, we will rely on our good faith belief that no such interest exists and will assume no responsibility for inquiry.
5
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 policy. It may be necessary to open a probate estate in order to exercise ownership rights to the policy.
The Owner may change the ownership of the policy in a Written Notice. When this change takes effect, all rights of ownership in the policy will pass to the new Owner. A change of ownership may have tax consequences.
When there is a change of 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 we have made or action we have taken before recording the change. Changing the Owner does not change the designation of the Beneficiary or the Annuitant.
Entire Contract
The entire contract consists of the policy and any application, endorsements and riders. If any portion of the policy or rider attached thereto shall be found to be invalid, unenforceable or illegal, the remainder shall not in any way be affected or impaired thereby, but shall have the same force and effect as if the invalid, unenforceable or illegal portion had not been inserted.
Misstatement of Age or Sex
During the Accumulation Phase. If the age of any person whose life or age a benefit provided under a guaranteed benefit has been misstated, any such benefit will be that which would have been purchased on the basis of the correct age. If that person would not have been eligible for that guaranteed benefit at the correct age, (i) the benefit will be rescinded; and (ii) any charges that were deducted for the benefit will be refunded and applied to the total account value of the policy.
We reserve the right to terminate the contract at any time if we discover a misstatement or fraudulent representation of any information provided in connection with the issuance or ongoing administration of the policy.
After the Annuity Commencement Date. We may require proof of the Annuitant’s or Owner’s age and/or sex before any payments associated with any benefits are made. If the age or sex of the Annuitant and/or Owner has been misstated, we will change the payment associated with any benefits payable to that which the Premium Payments would have purchased for the correct age or sex. The dollar amount of any underpayment made by us shall be paid in full with the next payment due such person, Beneficiary, or payee. The dollar amount of any overpayment made by us due to any misstatement shall be deducted from payments subsequently accruing to such person or Beneficiary. Any underpayment or overpayment will include interest specified in Your policy, 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 us.
Reallocation of Annuity Units After the Annuity Commencement Date
After the Annuity Commencement Date, You may reallocate the value of a designated number of Annuity Units of a Subaccount then credited to a policy into an equal value of Annuity Units of one or more other Subaccounts or the Fixed Account. The reallocation shall be based on the relative value of the Annuity Units of the account(s) or Subaccount(s) at the end of the Market 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 Annuity Units in the account or Subaccount from which the transfer is being made. If the monthly income of the Annuity Units remaining in an account or Subaccount after a reallocation is less than $10, we reserve the right to include the value of those Annuity Units as part of the transfer. The request must be in writing to our Administrative Office. There is no charge assessed in connection with such reallocation. A reallocation of Annuity Units may be made up to four times in any given Policy Year.
After the Annuity Commencement Date, no transfers may be made from the Fixed Account to the Separate Account.
Annuity Payment Options
During the lifetime of the Annuitant and before the Annuity Commencement 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 us in good order at least thirty (30) days before the Annuity Commencement Date (elections less than 30 days require prior approval). If no election is made before the Annuity Commencement Date, annuity payments will be made under life income with variable payments for 10 years certain using the existing Policy Value of the Separate Account. The default options may be restricted with respect to Qualified Policies.
The person who elects an Annuity Payment Option can also name one or more Beneficiaries to receive any unpaid, guaranteed amount at the death of the Annuitant. Naming these Beneficiaries cancels any prior choice of a Beneficiary.
6
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 us in writing and we agree.
Adjusted Age. For the Life Income and Joint and Survivor Annuity Payment Options, the adjusted age is the Annuitant's actual age nearest birthday, on the Annuity Commencement Date, adjusted as described in Your policy. This adjustment assumes an increase in life expectancy, and therefore it results in lower payments than without such an adjustment.
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 policy. For annuity payments the tables are based on a 3% effective annual AIR and the “Annuity 2000” (male, female and unisex if required by law) mortality table projected for improvement using projection scale G. The rates were projected dynamically using an assumed annuity commencement date of 2020. The “Annuity 2000” mortality rates are adjusted based on improvements in mortality to more appropriately reflect increased longevity. The dollar amount of additional Variable Annuity Payments will vary based on the investment performance of the Subaccount(s) of the Separate Account selected by the Annuitant or Beneficiary. For certain Qualified Policies the use of unisex mortality tables may be required.
Determination of the First Variable Payment. The amount of the first variable payment depends upon the sex (if consideration of sex is allowed under state and Federal law) and adjusted age of the Annuitant.
Determination of Additional Variable Payments. All Variable Annuity Payments other than the first are calculated using Annuity Units which are credited to the policy. The number of 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 Annuity Unit value of that Subaccount on the Annuity Commencement Date. The number of Annuity Units of each particular Subaccount credited to the policy 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. This amount is equal to the sum of the amounts determined by multiplying the number of Annuity Units of each particular Subaccount credited to the policy by the Annuity Unit value for the particular Subaccount on the date the payment is made.
Death Benefit
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 us will constitute due proof of death. If the Annuitant dies after the Annuity Commencement Date, no death benefit is payable and the amount payable will depend on the annuity income option.
Upon receipt in good order of this proof and an election of a method of settlement, the death benefit generally will be paid within seven days, or as soon thereafter as we have sufficient information about the Beneficiary(ies) to make the payment. The death benefit may be paid as a lump sum, as annuity payments or as otherwise permitted by the Company in accordance with applicable law, unless a settlement agreement is effective at the death of the Owner preventing such election.
If an Owner is not an Annuitant, and dies prior to the Annuity Commencement Date, the new Owner may surrender the policy at any time for the amount of the Cash Value. If the new Owner is not the deceased Owner's spouse, the Cash Value will be distributed in accordance with the applicable provisions of the Internal Revenue Code, or be used to provide payments to a designated Beneficiary within one year of such Owner’s death that will be made for life of the Beneficiary or for a period not extending beyond the life expectancy of the Beneficiary. If the sole new Owner is the deceased Owner's surviving spouse, such spouse may elect to continue the policy as the new 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 us Written Notice. 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 we receive the notice. We 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 designation.
7
Death of Owner
Federal tax law requires that if any Owner (including any joint Owner who has become a current Owner) dies before the Annuity Commencement Date, then the entire value of the policy 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 Commencement Date. See the TAX INFORMATION section in the prospectus for more information about these rules. Other rules may apply to Qualified Policies.
Assignment
During the lifetime of the Annuitant You may assign any rights or benefits provided by the policy if Your policy is a Nonqualified Policy. An assignment will not be binding on us until a copy has been filed at our Administrative Office. Your rights and benefits and those of the Beneficiary are subject to the rights of the assignee. We assume 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.
Unless You so direct by filing Written Notice with us, no Beneficiary may assign any payments under the policy 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 Policies is restricted to comply with the Code.
Evidence of Survival
We reserve 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 we receive such evidence.
Non-Participating
The policy will not share in our surplus earnings; no dividends will be paid.
Amendments
No change in the policy is valid unless made in writing by us and approved by one of our officers. No registered representative has authority to change or waive any provision of the policy.
We reserve the right to amend the policies 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 policy may be acquired by an employee or registered representative of any broker/dealer authorized to sell the policy or their immediate family, or by an officer, director, trustee or bona-fide full-time employee of ours or our affiliated companies or their immediate family. In such a case, we may, at our sole discretion, credit an amount equal to a percentage of each Premium Payment to the policy due to lower acquisition costs we experience on those purchases. We may offer certain employer sponsored savings plans, reduced fees and charges including, but not limited to, the annual service charge, 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 we are not presently aware which could result in reduced sales or distribution expenses. Credits to the policy or reductions in these fees and charges will not be unfairly discriminatory against any Owner.
INVESTMENT EXPERIENCE
A “net investment factor” is used to determine the value of Accumulation Units and Annuity Units, and to determine annuity payment rates.
Accumulation Units
Allocations of a Premium Payment directed to a Subaccount are credited in the form of Accumulation Units. Each Subaccount has a distinct Accumulation Unit value. The number of units credited is determined by dividing the Premium Payment or amount transferred to the Subaccount by the Accumulation Unit value of the Subaccount as of the end of the Valuation Period during which the allocation is made. For each Subaccount, the Accumulation Unit value for a given Market 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 portfolio, expenses, and deductions of certain charges affect the value of an Accumulation Unit.
8
Upon allocation to the selected Subaccount, Premium Payments are converted into Accumulation Units of the Subaccount. The number of Accumulation Units to be credited is determined by dividing the dollar amount allocated to each Subaccount by the value of an Accumulation Unit for that Subaccount as next determined after the Premium Payment is received at the Administrative Office or, in the case of the initial Premium Payment, when the Enrollment Form is completed, whichever is later. The value of an Accumulation Unit for each Subaccount was arbitrarily established at $10 at the inception of each Subaccount. Thereafter, the value of an 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 an 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 an 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 Accumulation Unit value.
The net investment factor for any Subaccount for any Valuation Period is determined by dividing (A + B - C) by (D) and subtracting (E) from the result, where the net result of:
A 
the net asset value per share of the shares held in the Subaccount determined at the end of the current Valuation Period, plus
B 
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
C 
a per share credit or charge for any taxes determined by us to have resulted during the Valuation Period from the investment operations of the Subaccount;
D 
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
E 
is an amount representing the Separate Account charge and any optional benefit fees, if applicable.
Illustration of Separate Account Accumulation Unit Value Calculations
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 at 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 of 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 total 1.50% on an annual basis; On a daily basis, this
equals 0.000041096.
 
Then, the net investment factor =
(11.57 + 0 – 0)
- 0.000041096 = Z = 1.014871185
 
(11.40)
 
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Formula for Determining Accumulation Unit Value 
Accumulation Unit Value = A * B
Where:
 
A =
The Accumulation Unit value for the immediately preceding Valuation Period.
 
Assume A = $X
B =
The net investment factor for the current Valuation Period.
 
Assume B = Y
Then, the Accumulation Unit value = $X * Y = $Z
Annuity Unit Value and Annuity Payment Rates
The amount of Variable Annuity Payments will vary with Annuity Unit values. Annuity unit values rise if the net investment performance of the Subaccount exceeds the Assumed Investment Return of 3% annually. Conversely, Annuity Unit values fall if the net investment performance of the Subaccount is less than the annual Assumed Investment Return. The value of a variable Annuity Unit in each Subaccount was established at $10 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 Market Day;
B 
is the net investment factor for that Subaccount for the Valuation Period; and
C 
is the Assumed Investment Return adjustment factor for the Valuation Period.
The Assumed Investment Return adjustment factor for the Valuation Period is the product of discount factors of .99986634 per day to recognize the 3% effective annual AIR. The Valuation Period is the period from the close of the immediately preceding Market Day to the close of the current Market Day.
The net investment factor for the policy used to calculate the value of a variable Annuity Unit in each Subaccount for the Valuation Period is determined by dividing (i) by (ii) and subtracting (iii) from the result, where:
(i) 
is the result of:
(1)
the net asset value of a fund share held in that Subaccount determined at the end of the current Valuation Period; plus
(2)
the per share amount of any dividend or capital gain distributions made by the fund for shares held in that Subaccount if the ex-dividend date occurs during the Valuation Period; plus or minus
(3)
a per share charge or credit for any taxes reserved for, which we determine 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 0.60% of the daily net asset value of shares held in that Subaccount.
The dollar amount of subsequent Variable Annuity Payments will depend upon changes in applicable 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 Commencement Date. The policy contains a table for determining the adjusted age of the Annuitant.
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Calculations for Annuity Unit
Value and Variable Annuity Payments
Formula for Determining Annuity Unit Value 
Annuity Unit Value = A * B * C
Where:
 
A =
Annuity Unit value for the immediately preceding Valuation Period.
 
Assume A = $X
B =
Net investment factor for the Valuation Period for which the annuity value is being calculated.
 
Assume B = Y
C =
A factor to neutralize the annual Assumed Investment Return of 3% built into the Annuity Tables
used.
 
Assume C = Z
Then, the Annuity Unit value is: $X * Y * Z = $Q
Formula for Determining Amount of
First Monthly Variable Annuity Payment 
First monthly variable annuity payment =
A * B
 
$1,000
 
Where:
 
A =
The Adjusted Policy Value as of the Annuity Commencement Date.
 
Assume A = $X
B =
The annuity purchase rate per $1,000 of Adjusted Policy Value based upon the option selected, the
sex and adjusted age of the Annuitant according to the tables contained in the policy.
 
Assume B = $Y
 
Then, the first monthly variable annuity payment =
$X * $Y
= $Z
 
1,000
 
Formula for Determining the Number of Annuity Units
Represented by Each Monthly Variable Annuity Payment 
Number of Annuity Units =
A
 
B
 
Where:
 
A =
The dollar amount of the first monthly variable annuity payment.
 
Assume A = $X
B =
The Annuity Unit value for the valuation date on which the first monthly payment is due.
 
Assume B = $Y
 
Then, the number of Annuity Units =
$X
= Z
 
$Y
 
HISTORICAL PERFORMANCE DATA
Money Market Yields
We may from time to time disclose the current annualized yield of the money market Subaccount, which invests in the corresponding 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 corresponding 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
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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 policy that are attributable to the hypothetical account. The charges and deductions include the per unit charges for the hypothetical account for (i) the administrative charges and (ii) the mortality and expense risk fee. Current yield will be calculated according to the following formula. 
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 policy, the yield for the money market Subaccount will be lower than the yield for the corresponding money market portfolio. The yield calculations do not reflect the effect of any premium taxes.
We 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 one 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 corresponding money market portfolio, the types and quality of portfolio securities held by the corresponding money market portfolio and its operating expenses.
Total Returns
We 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.
Total returns will be calculated using Subaccount unit values which we calculate on each Market Day based on the performance of the Separate Account's underlying fund portfolio and the deductions for the mortality and expense risk fee and the administrative charges. 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.
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Other Performance Data
We may from time to time also disclose average annual total returns in a non-standard format in conjunction with the standard format described above.
We 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. 
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 policy charges that are currently in effect.
services
We perform administrative services for the policies. These services include issuance of the policies, maintenance of records concerning the policies, and certain valuation services.
RECORDS AND REPORTS
We will maintain all records and accounts relating to the Separate Account. As presently required by the 1940 Act, as amended, and regulations promulgated thereunder, we 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 premiums deducted from Your checking account, or regular annuity payments we send to You) You may only receive quarterly confirmations.
DISTRIBUTION OF THE POLICIES
We have entered into a principal underwriting agreement with our affiliate, Transamerica Capital, Inc. (“TCL”), for the distribution and sale of the policies. We may reimburse TCL for certain expenses it incurs in order to pay for the distribution of the policies (e.g., commissions payable to selling firms selling the Policies, as described below).
TCL's home office is located at 1801 California St. Suite 5200 Denver, Colorado 80202. TCL is an indirect, wholly owned subsidiary of Aegon USA. TCL is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934, and is a member of Financial Industry Regulatory Authority (“FINRA”). TCL is not a member of the Securities Investor Protection Corporation.
We currently offer the policies on a continuous basis. We anticipate continuing to offer the policies, but reserve the right to discontinue the offering. The policies are offered to the public through sales representatives of broker-dealers (“selling firms”) that have entered into selling agreements with us and with TCL. TCL compensates these selling firms for their services. Sales representatives with these selling firms are appointed as our insurance agents.
We and our affiliates provide paid-in-capital to TCL and pay for TCL's operating and other expenses, including overhead, legal and accounting fees. We may also pay TCL an “override” payment based on the pricing of the product which becomes part of TCL's assets. TCL paid no amounts in commissions in connection with the sale of the Policies.
We and/or TCL or another affiliate may pay certain selling firms additional cash amounts for: (1) marketing allowances, which may include marketing services and increased access to their sales representatives; (2) sales promotions relating to the policies; (3) costs associated with sales conferences and educational seminars for their sales representatives; and (4) other sales expenses of the selling
13
firms. We and/or TCL may make bonus payments to certain selling firms based on aggregate sales or persistency standards. These additional payments are not offered to all selling firms, and the terms of any particular agreement governing the payments may vary among selling firms. Differences in compensation paid to a selling firm or its sales representatives for selling one product over another may create conflicts of interests for such firms or its sales representatives.
CUSTODY OF ASSETS
We hold 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 our general account assets. We maintain 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 Separate Account is afforded by our fidelity bond, presently in the amount of $5,000,000, covering the acts of our officers and employees.
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The statutory-basis financial statements and supplementary information of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company as of December 31, 2025 and December 31, 2024, and for each of the two years in the period ended December 31, 2025, appearing in this Prospectus and Registration Statement have been audited by Ernst & Young LLP, independent auditor, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
The financial statements of each of the subaccounts of Separate Account VA B and Separate Account VA BNY as of December 31, 2025, and for each of the two years in the period ended December 31, 2025, incorporated by reference to the Form N-VPFS dated April 24, 2026, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon incorporated by reference elsewhere herein, and are incorporated in reliance upon such report given on the authority of such firm as experts in accounting and auditing.
The statutory-basis financial statements and supplementary information of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company for the year ended December 31, 2023 have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting.
FINANCIAL STATEMENTS
All required statutory financial statements are included in Part B of this Registration Statement. Required Separate Account VA B financial statements are incorporated by reference to N-VPFS (811-06032) filed on April 24, 2026. Required Separate Account VA BNY financial statements are incorporated by reference to N-VPFS (811-08750) filed on April 24, 2026.
The values of Your interest in the Separate Account will be affected solely by the investment results of the selected Subaccount(s). The statutory-basis financial statements and schedules of Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company should be considered only as bearing on our ability to meet our obligations under the policies. They should not be considered as bearing on the investment performance of the assets held in the Separate Account.
14
APPENDIX
Prior Withdrawal/ Growth Percentages and Rider Fees
To the extent they have changed, the table(s) below identifies the historical changes to the Rate Sheet Prospectus Supplements for the Retirement Income Max® rider. All Rate Sheet Prospectus Supplements are also available on the EDGAR system at sec.gov.
Rider fee Percentages 
Date
Percentage
Prior to February 1, 2018
1.25%
February 1, 2018 to June 30, 2018
1.35%
 
Date
Single Life
Joint Life
July 1, 2018 to November 30, 2019
1.35%
1.45%
December 1, 2019 to April 30, 2020
1.45%
1.55%
On or after May 1, 2020
1.50%
1.60%
New york Rider fee Percentages 
Date
Percentage
Prior to February 1, 2018
1.25%
February 1, 2018 to November 30, 2019
1.35%
 
Date
Single Life
Joint Life
December 1, 2019 to April 30, 2020
1.45%
1.55%
On or after May 1, 2020
1.50%
1.60%
Growth Percentages 
Date
Percentage
Prior to February 1, 2018
5.50%
February 1, 2018 to April 30, 2020
7.20%
May 1, 2020 to August 31, 2020
6.50%
On or after September 1, 2020
5.00%
Withdrawal Percentages 
Date
Age at time of first withdrawal
Singe Life Percentage
Joint Life Percentage
Prior to February 1, 2018
0-58
59-64
65-79
≥80
0.00%
4.20%
5.20%
6.20%
0.00%
3.70%
4.70%
5.70%
February 1, 2018 to February 28, 2019
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
6.00%
0.00%
3.50%
4.50%
5.50%
March 1, 2019 to November 30, 2019
0-58
59-64
65-69
70-74
75-79
≥80
0.00%
4.00%
5.25%
5.40%
5.50%
5.75%
0.00%
3.50%
4.75%
4.90%
5.00%
5.25%
15
Prior Withdrawal/ Growth Percentages and Rider Fees — (Continued)
Date
Age at time of first withdrawal
Singe Life Percentage
Joint Life Percentage
December 1, 2019 to April 30, 2020
0-58
59-64
65-74
75-79
≥80
0.00%
4.00%
5.00%
5.25%
5.75%
0.00%
3.50%
4.50%
4.75%
5.25%
May 1, 2020 to August 31, 2020
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
5.50%
0.00%
3.50%
4.50%
5.00%
On or after September 1, 2020
0-58
59-64
65-80
≥81
0.00%
3.75%
5.00%
5.50%
0.00%
3.25%
4.50%
5.00%
New York single life Withdrawal Percentages 
Date
Age at time of first withdrawal
Singe Life Percentage
Prior to February 1, 2018
0-58
59-64
65-79
≥80
0.00%
4.20%
5.20%
6.20%
February 1, 2018 to February 28, 2018
0-58
59-64
65-79
≥80
N/A
4.00%
5.00%
6.00%
March 1, 2019 to April 30, 2019
0-58
59-64
65-69
70-74
75-79
≥80
N/A
4.00%
5.15%
5.40%
5.50%
5.75%
May 1, 2019 to November 30, 2019
0-58
59-64
65-70
71-74
75-79
≥80
N/A
4.00%
5.15%
5.40%
5.50%
5.75%
December 1, 2019 to April 30, 2020
0-58
59-64
65-74
75-79
≥80
N/A
4.00%
5.00%
5.25%
5.75%
May 1, 2020 to August 31, 2020
0-58
59-64
65-79
≥80
N/A
4.00%
5.00%
5.50%
On or after September 1, 2020
0-58
59-64
65-80
≥81
N/A
3.75%
5.00%
5.50%
16
Prior Withdrawal/ Growth Percentages and Rider Fees — (Continued)
New York Joint life Withdrawal Percentages 
Date
Age at time of first withdrawal
Joint Life Percentage
Prior to February 1, 2018
0-58
59-64
65-79
≥80
0.00%
0.00%
4.70%
5.70%
February 1, 2018 to February 28, 2019
0-61
62-64
65-79
≥80
N/A
3.50%
4.50%
5.50%
March 1, 2019 to April 30, 2020
0-61
62-64
65-74
75-79
≥80
N/A
3.50%
4.50%
5.00%
5.25%
May 1, 2020 to August 31, 2020
0-61
62-64
65-79
≥80
N/A
3.50%
4.50%
5.00%
On or after September 1, 2020
0-58
59-64
65-80
≥81
N/A
3.25%
4.50%
5.00%
17
APPENDIX
Prior Withdrawal/Growth Percentages and Rider Fees
To the extent they have changed, the table(s) below identifies the historical changes to the Rate Sheet Prospectus Supplements for the Retirement Income Choice® 1.6 rider. All Rate Sheet Prospectus Supplements are also available on the EDGAR system at sec.gov.
Rider fee Percentages  
Date
Rider Benefit
Single Life Option
Joint Life Option
June 1, 2017 to June 30, 2018
Base Benefit Designated Allocation Group A
1.45%
1.45%
Base Benefit Designated Allocation Group B
1.10%
1.10%
Base Benefit Designated Allocation Group C
0.70%
0.70%
Death Benefit
0.40%
0.35%
Income Enhancement
0.30%
0.50%
  
Date
Rider Benefit
Single Life Option
Joint Life Option
July 1, 2018 to February 28, 2019
Base Benefit Designated Allocation Group A
1.40%
1.50%
Base Benefit Designated Allocation Group B
1.15%
1.25%
Base Benefit Designated Allocation Group C
0.80%
0.90%
Death Benefit
0.40%
0.35%
Income Enhancement
0.30%
0.50%
  
Date
Rider Benefit
Single Life Option
Joint Life Option
March 1, 2019 to August 31, 2020
Base Benefit Designated Allocation Group A
1.50%
1.60%
Base Benefit Designated Allocation Group B
1.50%
1.60%
Base Benefit Designated Allocation Group C
1.50%
1.60%
Death Benefit
0.40%
0.35%
Income Enhancement
0.30%
0.50%
  
Date
Rider Benefit
Single Life Option
Joint Life Option
On or after September 1, 2020
Base Benefit Designated Allocation Group A
1.85%
1.95%
Base Benefit Designated Allocation Group B
1.40%
1.50%
Base Benefit Designated Allocation Group C
0.95%
1.05%
Death Benefit
0.40%
0.35%
Income Enhancement
0.30%
0.50%
new york Rider fee Percentages  
Date
Rider Benefit
Single Life Option
Joint Life Option
June 1, 2017 to June 30, 2018
Base Benefit Designated Allocation Group A
1.45%
1.45%
Base Benefit Designated Allocation Group B
1.10%
1.10%
Base Benefit Designated Allocation Group C
0.70%
0.70%
Death Benefit
0.40%
0.35%
  
Date
Rider Benefit
Single Life Option
Joint Life Option
July 1, 2018 to February 28, 2019
Base Benefit Designated Allocation Group A
1.40%
1.50%
Base Benefit Designated Allocation Group B
1.15%
1.25%
Base Benefit Designated Allocation Group C
0.80%
0.90%
Death Benefit
0.40%
0.35%
  
18
Prior Withdrawal/Growth Percentages and Rider Fees — (Continued)
Date
Rider Benefit
Single Life Option
Joint Life Option
March 1, 2019 to August 31, 2020
Base Benefit Designated Allocation Group A
1.50%
1.60%
Base Benefit Designated Allocation Group B
1.50%
1.60%
Base Benefit Designated Allocation Group C
1.50%
1.60%
Death Benefit
0.40%
0.35%
  
Date
Rider Benefit
Single Life Option
Joint Life Option
On or after September 1, 2020
Base Benefit Designated Allocation Group A
1.85%
1.95%
Base Benefit Designated Allocation Group B
1.40%
1.50%
Base Benefit Designated Allocation Group C
0.95%
1.05%
Death Benefit
0.40%
0.35%
Growth Percentages 
Date
Percentage
May 1, 2016 to February 28, 2019
5.50%
March 1, 2019 to November 30, 2019
6.00%
December 1, 2019 to April 30, 2020
5.25%
On or after May 1, 2020
5.00%
Withdrawal Percentages 
Date
Age at time of first withdrawal
Singe Life Percentage
Joint Life Percentage
Prior to January 1, 2017
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
6.00%
0.00%
3.75%
4.75%
5.75%
January 1, 2017 to June 30, 2018
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
6.00%
0.00%
3.50%
4.50%
5.50%
July 1, 2018 to February 28, 2019
0-58
59-64
65-79
≥80
0.00%
4.50%
5.50%
6.00%
0.00%
4.00%
5.00%
5.50%
March 1, 2019 to April 30, 2020
0-58
59-64
65-69
70-74
75-79
≥80
0.00%
4.00%
5.10%
5.20%
5.50%
6.00%
0.00%
3.50%
4.60%
4.70%
5.00%
5.50%
May 1, 2020 to August 31, 2020
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
5.50%
0.00%
3.50%
4.50%
5.00%
On or after September 1, 2020
0-58
59-64
65-80
≥81
0.00%
3.50%
4.75%
5.25%
0.00%
3.00%
4.25%
4.75%
19
Prior Withdrawal/Growth Percentages and Rider Fees — (Continued)
New york Withdrawal Percentages 
Date
Age at time of first withdrawal
Singe Life Percentage
Joint Life Percentage
Prior to January 1, 2017
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
6.00%
0.00%
3.75%
4.75%
5.75%
January 1, 2017 to June 30, 2018
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
6.00%
0.00%
3.50%
4.50%
5.50%
July 1, 2018 to February 28, 2019
0-58
59-64
65-79
≥80
0.00%
4.50%
5.50%
6.00%
0.00%
4.00%
5.00%
5.50%
March 1, 2019 to April 30, 2020
0-58
59-64
65-66
67-69
70-74
75-79
≥80
0.00%
4.00%
5.00%
5.10%
5.20%
5.50%
6.00%
0.00%
3.50%
4.05%
4.25%
4.70%
5.00%
5.50%
May 1, 2020 to August 31, 2020
0-58
59-64
65-79
≥80
0.00%
4.00%
5.00%
5.50%
0.00%
3.50%
4.50%
5.00%
On or after September 1, 2020
0-58
59-64
65-80
≥81
0.00%
3.50%
4.75%
5.25%
0.00%
3.00%
4.25%
4.75%
20
APPENDIX
Prior Allocation/Withdrawal Percentages and Rider Fees
To the extent they have changed, the table(s) below identifies the historical changes to the Rate Sheet Prospectus Supplements for the Transamerica Income EdgeSM rider. All Rate Sheet Prospectus Supplements are also available on the EDGAR system at sec.gov.
Rider fee Percentages 
Date
Percentage
November 14, 2016 to April 30, 2017
1.40%
May 1, 2017 to November 30, 2019
1.25%
December 1, 2019 to April 30, 2020
1.35%
May 1, 2020 to August 31, 2020
1.45%
 
Date
Single Life
Joint Life
On or after September 1, 2020
1.45%
1.55%
Required Allocation Percentages 
 
 
Premium
Rebalance
 
 
Minimum
Maximum
Minimum
Maximum
Prior to February 1, 2018
Stable
Account
20%
20%
N/A
N/A
Select
Investment
Options
20%
80%
25%
100%
Flexible
Investment
Options
0%
60%
0%
75%
 
 
 
Premium
Rebalance
 
 
Minimum
Maximum
Minimum
Maximum
February 1, 2018 to June 30, 2018
Stable
Account
25%
25%
N/A
N/A
Select
Investment
Options
0%
75%
0%
100%
Flexible
Investment
Options
0%
75%
0%
100%
 
 
 
Premium
Rebalance
 
 
Minimum
Maximum
Minimum
Maximum
July 1, 2018 to April 30, 2020
Stable
Account
20%
20%
N/A
N/A
Select
Investment
Options
0%
80%
0%
100%
Flexible
Investment
Options
0%
80%
0%
100%
21
Prior Allocation/Withdrawal Percentages and Rider Fees — (Continued)
 
 
 
Premium
Rebalance
 
 
Minimum
Maximum
Minimum
Maximum
On or after May 1, 2020
Stable
Account
30%
30%
N/A
N/A
Select
Investment
Options
0%
70%
0%
100%
Flexible
Investment
Options
0%
70%
0%
100%
Withdrawal Percentages 
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Single Life Option
Rider Years 1-3
Withdrawal
Percentage -
Joint Life Option
Rider Years 4+
Withdrawal
Percentage -
Single Life Option
Rider Years 4+
Withdrawal
Percentage -
Joint Life Option
Prior to July 1, 2018
0-58
0.00%
0.00%
0.00%
0.00%
59-64
4.00%
3.50%
5.00%
4.50%
65-79
5.00%
4.50%
6.00%
5.50%
≥80
6.00%
5.50%
7.00%
6.50%
single life Withdrawal Percentages 
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Single Life Option
Rider Years 4-6
Withdrawal
Percentage -
Single Life Option
Rider Years 7+
Withdrawal
Percentage -
Single Life Option
July 1, 2018 to February 28, 2019
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-79
5.00%
6.00%
7.00%
≥80
6.00%
7.00%
8.00%
March 1, 2019 to November 30, 2019
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-69
5.25%
6.25%
7.25%
70-74
5.50%
6.50%
7.50%
75-79
5.75%
6.75%
7.75%
≥80
6.00%
7.00%
8.00%
December 1, 2019 to April 30, 2020
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-69
5.00%
6.00%
7.00%
70-74
5.25%
6.25%
7.25%
75-79
5.50%
6.50%
7.50%
≥80
5.75%
6.75%
7.75%
May 1, 2020 to August 31, 2020
0-58
0.00%
0.00%
0.00%
59-64
4.00%
4.75%
5.50%
65-79
5.00%
5.75%
6.50%
≥80
5.50%
6.25%
7.00%
 
22
Prior Allocation/Withdrawal Percentages and Rider Fees — (Continued)
 
Age at time
of
first
withdrawal
Rider Years 1-5
Withdrawal
Percentage -
Single Life Option
Rider Years 6-10
Withdrawal
Percentage -
Single Life Option
Rider Years 11+
Withdrawal
Percentage -
Single Life Option
On or after September 1, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.75%
4.25%
4.75%
65-80
5.00%
5.50%
6.00%
≥81
5.50%
6.00%
6.50%
joint life Withdrawal Percentages 
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Joint Life Option
Rider Years 4-6
Withdrawal
Percentage -
Joint Life Option
Rider Years 7+
Withdrawal
Percentage -
Joint Life Option
July 1, 2018 to February 28, 2019
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.25%
65-79
4.50%
5.50%
6.25%
≥80
5.50%
6.50%
7.25%
March 1, 2019 to November 30, 2019
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.50%
65-69
4.75%
5.75%
6.75%
70-74
5.00%
6.00%
7.00%
75-79
5.25%
6.25%
7.25%
≥80
5.50%
6.50%
7.50%
December 1, 2019 to April 30, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.50%
65-69
4.50%
5.50%
6.50%
70-74
4.75%
5.75%
6.75%
75-79
5.00%
6.00%
7.00%
≥80
5.25%
6.25%
7.25%
May 1, 2020 to August 31, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.25%
5.00%
65-79
4.50%
5.25%
6.00%
≥80
5.00%
5.75%
6.50%
 
 
Age at time
of
first
withdrawal
Rider Years 1-5
Withdrawal
Percentage -
Single Life Option
Rider Years 6-10
Withdrawal
Percentage -
Single Life Option
Rider Years 11+
Withdrawal
Percentage -
Single Life Option
On or after September 1, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.25%
3.75%
4.25%
65-80
4.50%
5.00%
5.50%
≥81
5.00%
5.50%
6.00%
23
Prior Allocation/Withdrawal Percentages and Rider Fees — (Continued)
New York single life Withdrawal Percentages 
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Single Life Option
Rider Years 4-6
Withdrawal
Percentage -
Single Life Option
Rider Years 7+
Withdrawal
Percentage -
Single Life Option
July 1, 2018 to February 28, 2019
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-79
5.00%
6.00%
7.00%
≥80
6.00%
7.00%
8.00%
March 1, 2019 to November 30, 2019
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-69
5.25%
6.25%
7.25%
70-74
5.50%
6.50%
7.50%
75-79
5.75%
6.75%
7.75%
≥80
6.00%
7.00%
8.00%
December 1, 2019 to April 30, 2020
0-58
0.00%
0.00%
0.00%
59-64
4.00%
5.00%
6.00%
65-69
5.00%
6.00%
7.00%
70-74
5.25%
6.25%
7.25%
75-79
5.50%
6.50%
7.50%
≥80
5.75%
6.75%
7.75%
May 1, 2020 to August 31, 2020
0-58
0.00%
0.00%
0.00%
59-64
4.00%
4.75%
5.50%
65-79
5.00%
5.75%
6.50%
≥80
5.50%
6.25%
7.00%
 
 
Age at time
of
first
withdrawal
Rider Years 1-5
Withdrawal
Percentage -
Single Life Option
Rider Years 6-10
Withdrawal
Percentage -
Single Life Option
Rider Years 11+
Withdrawal
Percentage -
Single Life Option
On or after September 1, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.75%
4.25%
4.75%
65-80
5.00%
5.50%
6.00%
≥81
5.50%
6.00%
6.50%
New York joint life Withdrawal Percentages 
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Joint Life Option
Rider Years 4-6
Withdrawal
Percentage -
Joint Life Option
Rider Years 7+
Withdrawal
Percentage -
Joint Life Option
July 1, 2018 to February 28, 2019
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.25%
65-79
4.50%
5.50%
6.25%
≥80
5.50%
6.50%
7.25%
March 1, 2019 to November 30, 2019
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.50%
65-69
4.75%
5.75%
6.45%
70-74
5.00%
6.00%
7.00%
75-79
5.25%
6.25%
7.25%
≥80
5.50%
6.50%
7.50%
24
Prior Allocation/Withdrawal Percentages and Rider Fees — (Continued)
 
Age at time
of
first
withdrawal
Rider Years 1-3
Withdrawal
Percentage -
Joint Life Option
Rider Years 4-6
Withdrawal
Percentage -
Joint Life Option
Rider Years 7+
Withdrawal
Percentage -
Joint Life Option
December 1, 2019 to April 30, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.50%
5.50%
65-69
4.50%
5.50%
6.20%
70-74
4.75%
5.75%
6.75%
75-79
5.00%
6.00%
7.00%
≥80
5.25%
6.25%
7.25%
May 1, 2020 to August 31, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.50%
4.25%
5.00%
65-79
4.50%
5.25%
6.00%
≥80
5.00%
5.75%
6.50%
 
 
Age at time
of
first
withdrawal
Rider Years 1-5
Withdrawal
Percentage -
Single Life Option
Rider Years 6-10
Withdrawal
Percentage -
Single Life Option
Rider Years 11+
Withdrawal
Percentage -
Single Life Option
On or after September 1, 2020
0-58
0.00%
0.00%
0.00%
59-64
3.25%
3.75%
4.25%
65-80
4.50%
5.00%
5.50%
≥81
5.00%
5.50%
6.00%
25

 

 
 
FINANCIAL STATEMENTS – STATUTORY BASIS 
AND SUPPLEMENTARY INFORMATION
 
Transamerica Life Insurance Company
Years Ended December 31, 2025, 2024 and 2023
 
 
 
 
 
1
 
Transamerica Life Insurance Company
 
Financial Statements – Statutory Basis
and Supplementary Information
 
Years Ended December 31, 2025, 2024 and 2023
 
Contents
Report of Independent Auditors1
Balance Sheets – Statutory Basis6
Statements of Operations – Statutory Basis7
Statements of Changes in Capital and Surplus – Statutory Basis8
Statements of Cash Flow – Statutory Basis10
1. Organization and Nature of Business12
2. Basis of Presentation and Summary of Significant Accounting Policies13
3. Accounting Changes and Correction of Errors31
4. Fair Values of Financial Instruments33
5. Investments44
6. Policy and Contract Attributes78
7. Reinsurance98
8. Income Taxes101
9.Capital and Surplus110
10. Securities Lending111
11. Retirement and Compensation Plans113
12. Related Party Transactions114
13. Managing General Agents and Third-Party Administrators121
14. Commitments and Contingencies122
15. Sales, Transfers, and Servicing of Financial Assets and Extinguishments of Liabilities127
16. Subsequent Events129
Appendix A – Listing of Affiliated Companies130
Statutory-Basis Financial Statement Schedules132
Summary of Investments – Other Than Investments in Related Parties134
Supplementary Insurance Information135
Reinsurance136
 
 
2
 
 
Report of Independent Auditors
 
To the Board of Directors of
Transamerica Life Insurance Company 
 
Opinion
 
We have audited the statutory-basis financial statements of Transamerica Life Insurance Company (the Company), which comprise the balance sheets as of December 31, 2025 and 2024, and the related statements of operations, changes in capital and surplus and cash flows for the year then ended, and the related notes to the financial statements (collectively referred to as the “financial statements”).
 
Unmodified Opinion on Statutory Basis of Accounting
 
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, on the basis of accounting described in Note 2.
 
Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company at December 31, 2025 and 2024, or the results of its operations or its cash flows for the years then ended.
 
Basis for Opinion
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
 
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
As described in Note 2 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the Iowa Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.
 
1
 
 
Report of Other Auditors on 2023 Financial Statements
 
The statutory-basis financial statements of the Company for the year ended December 31, 2023, were audited by another auditor who expressed an adverse opinion with respect to conformity with U.S. generally accepted accounting principles and an unmodified opinion with respect to conformity with accounting practices prescribed or permitted by the Iowa Insurance Division on those statements on April 11, 2024.
 
Responsibilities of Management for the Financial Statements
 
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the financial statements are issued.
 
Auditor’s Responsibilities for the Audit of the Financial Statements
 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
 
2
 
 
In performing an audit in accordance with GAAS, we:
 
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.
 
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
 
/s/ Ernst & Young LLP
April 24, 2026
Philadelphia, PA
 
3
 
 

Report of Independent Auditors

 
To the Board of Directors of Transamerica Life Insurance Company
 
Opinions
 
We have audited the accompanying statutory basis financial statements of Transamerica Life Insurance Company (the “Company”), which comprise the statements of operations - statutory basis, of changes in capital and surplus - statutory basis, and of cash flow - statutory basis for the year ended December 31, 2023, including the related notes and supplementary insurance information for the year ended December 31, 2023, and reinsurance for the year ended December 31, 2023 listed in the accompanying index (collectively referred to as the “financial statements”). 
 
Unmodified Opinion on Statutory Basis of Accounting
 
In our opinion, the accompanying financial statements present fairly, in all material respects, the results of its operations and its cash flows for the year ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division described in Note 2.
 
Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the results of its operations or its cash flows for the year ended December 31, 2023.
 
Basis for Opinions
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
 
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the Iowa Insurance Division, which is a basis of accounting other than accounting principles generally accepted in the United States of America.
 
The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
4
 
 
 
Responsibilities of Management for the Financial Statements
 
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the Iowa Insurance Division. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.
 
Auditors’ Responsibilities for the Audit of the Financial Statements
 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
 
In performing an audit in accordance with US GAAS, we:
 
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. 
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.
 
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
 
 
/s/PricewaterhouseCoopers LLP
Chicago, Illinois
April 11, 2024
 
 
5
 
Transamerica Life Insurance Company
 
Balance Sheets – Statutory Basis
(Dollars in Millions)
 
           
 
December 31
    
2025
    
2024
 
Admitted assets
         
Cash, cash equivalents and short-term investments
 $1,103   $1,939 
Bonds
  49,696    51,162 
Preferred stocks
  40    44 
Common stocks
  2,684    2,952 
Mortgage loans on real estate
  8,818    8,885 
Real estate
  37    39 
Policy loans
  2,376    2,239 
Securities lending reinvested collateral assets
  1,657    1,667 
Derivative assets
  247    399 
Receivable for derivative cash collateral
  531    466 
Other invested assets
  3,053    3,293 
Total cash and invested assets
  70,242    73,085 
           
Accrued investment income
  613    669 
Premiums deferred and uncollected
  63    70 
Net deferred income tax asset
  689    802 
Variable annuity reserve hedge offset deferral
  645    883 
Excess of loss reinsurance asset
   —     3,024 
Other assets
  1,999    1,464 
Separate account assets
  109,592    103,494 
Total admitted assets
 $183,843   $183,491 
           
Liabilities and capital and surplus
         
Aggregate reserves for policies and contracts
 $54,409   $58,055 
Policy and contract claim reserves
  919    1,048 
Liability for deposit-type contracts
  671    693 
Other policyholders’ funds
  49    47 
Transfers from separate accounts due or accrued
  (236)    (254) 
Funds held under reinsurance treaties
  7,097    7,046 
Asset valuation reserve
  1,292    1,358 
Derivative liabilities
  934    1,481 
Payable for collateral under securities loaned and
other transactions
  1,735    1,764 
Borrowed money
  650    1,500 
Other liabilities
  1,450    1,334 
Separate account liabilities
  109,592    103,494 
Total liabilities
  178,562    177,566 
Total capital and surplus
  5,281    5,925 
Total liabilities and capital and surplus
 $183,843   $183,491 
See accompanying notes.
 
6
 
Transamerica Life Insurance Company
 
Statements of Operations – Statutory Basis
(Dollars in Millions)
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
Revenues
              
Premiums and other considerations
 $15,032   $18,767   $9,516 
Net investment income
  3,589    3,743    3,597 
Commissions and expense allowances on reinsurance
ceded
  (729)    428    329 
Reserve adjustment on reinsurance ceded
  (183)    (133)    (139) 
Consideration received on reinsurance recapture and
novations
  104    243    140 
Fee revenue and other income
  1,785    1,805    2,119 
Total revenue
  19,598    24,853    15,562 
                
Benefits and expenses
              
Death benefits
  2,609    2,713    2,433 
Annuity benefits
  1,579    1,485    1,466 
Accident and health benefits
  1,170    1,104    1,046 
Surrender benefits
  18,364    18,845    14,692 
Other benefits
  288    282    257 
Net increase (decrease) in reserves
  (3,666)    1,302    (5,482) 
Commissions
  1,550    1,442    1,343 
Taxes, licenses and fees
  177    176    163 
Funds withheld ceded investment income
  307    180    95 
Net transfers to (from) separate accounts
  (6,011)    (6,163)    (4,801) 
IMR adjustment due to reinsurance
  217     —     248 
General insurance expenses and other
  1,303    1,151    1,291 
Total benefits and expenses
  17,887    22,517    12,751 
Gain (loss) from operations before dividends
and federal income taxes
  1,711    2,336    2,811 
Dividends to policyholders
  7    8    8 
Gain (loss) from operations before federal income taxes
  1,704    2,328    2,803 
Federal income tax (benefit) expense
  (61)    (37)    75 
Net gain (loss) from operations
  1,765    2,365    2,728 
Net realized capital gains (losses), after tax and
amounts transferred to interest maintenance reserve
  (575)    (1,439)    (1,999) 
Net income (loss)
 $1,190   $926   $729 
 
See accompanying notes.
7
 
Transamerica Life Insurance Company
 
Statements of Changes in Capital and Surplus – Statutory Basis
(Dollars in Millions)
 
    
Common Stock
    
Paid-in Surplus
    
Special Surplus Funds
    
Unassigned Surplus
    
Total Capital and Surplus
 
Balance at January 1, 2023
 $7   $4,664   $380   $612   $5,663 
Net income (loss)
   —      —      —     729    729 
Change in net unrealized capital gains/losses,
    net of taxes
   —      —     136    1,148    1,284 
Change in net deferred income tax asset
   —      —      —     149    149 
Change in nonadmitted assets
   —      —      —     (417)    (417) 
Change in asset valuation reserve
   —      —      —     (191)    (191) 
Change in surplus as a result of reinsurance
   —      —      —     (435)    (435) 
Dividends to stockholders
   —      —      —     (858)    (858) 
Other changes - net
   —     8     —     (14)    (6) 
Balance at December 31, 2023
 $7   $4,672   $516   $723   $5,918 
Merger of LIICA Re II and TPRe
   —      —     36    576    612 
Balance at January 1, 2024
 $7   $4,672   $552   $1,299   $6,530 
Net income (loss)
   —      —      —     926    926 
Change in net unrealized capital gains/losses,
    net of taxes
   —      —     524    (1,173)    (649) 
Change in net deferred income tax asset
   —      —      —     8    8 
Change in nonadmitted assets
   —      —      —     (7)    (7) 
Change in asset valuation reserve
   —      —      —     (46)    (46) 
Change in surplus as a result of reinsurance
   —      —      —     (257)    (257) 
Dividends to stockholders
   —      —      —     (415)    (415) 
Other changes - net
   —     (11)     —     (154)    (165) 
Balance at December 31, 2024
 $7   $4,661   $1,076   $181   $5,925 
 
Continued on next page.
8
 
Transamerica Life Insurance Company
 
Statements of Changes in Capital and Surplus – Statutory Basis
(Dollars in Millions)
 
    
Common Stock
    
Paid-in Surplus
    
Special Surplus Funds
    
Unassigned Surplus
    
Total Capital and Surplus
 
Balance at December 31, 2024
 $7   $4,661   $1,076   $181   $5,925 
Net income (loss)
   —      —      —     1,190    1,190 
Change in net unrealized capital gains/losses,
    net of taxes
   —      —     (49)    2    (47) 
Change in net deferred income tax asset
   —      —      —     (431)    (431) 
Change in nonadmitted assets
   —      —      —     413    413 
Change in asset valuation reserve
   —      —      —     66    66 
Change in surplus as a result of reinsurance
   —      —      —     1,029    1,029 
Paid-in surplus adjustment
   —      —      —     824    824 
Return of contributed capital
   —     (399)     —      —     (399) 
Dividends to stockholders
   —      —      —     (200)    (200) 
Change in excess of loss reinsurance asset
   —      —      —     (3,025)    (3,025) 
Other changes - net
   —     (13)     —     (51)    (64) 
Balance at December 31, 2025
 $7   $4,249   $1,027   $(2)   $5,281 
 
See accompanying notes.
9
 
Transamerica Life Insurance Company
 
Statements of Cash Flow – Statutory Basis
(Dollars in Millions)
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
Operating activities
              
Premiums and annuity considerations
 $17,582   $18,865   $13,933 
Net investment income
  3,455    3,666    3,580 
Other income
  2,009    2,159    1,940 
Benefit and loss related payments
  (24,156)    (24,428)    (19,702) 
Net transfers from separate accounts
  5,853    6,094    4,842 
Commissions and operating expenses
  (3,183)    (2,976)    (2,787) 
Dividends paid to policyholders
  (5)    (5)    (5) 
Federal income taxes (paid) received
  (42)    12    18 
Net cash provided by (used in) operating activities
 $1,513   $3,387   $1,819 
                
Investing activities
              
Proceeds from investments sold, matured or repaid
 $24,876   $6,828   $8,889 
Costs of investments acquired
  (26,448)    (9,550)    (8,332) 
Net change in policy loans
  (137)    (131)    (81) 
Net cash provided by (used in) investing activities
 $(1,709)   $(2,853)   $476 
                
Financing and miscellaneous activities
              
Capital and paid in surplus received (returned)
 $402   $(16)   $6 
Dividends to stockholders
  (200)    (415)    (858) 
Net deposits (withdrawals) on deposit-type contracts
  (36)    (32)    (45) 
Net change in borrowed money
  (850)    (236)    (1,354) 
Net change in funds held under reinsurance treaties
  51    (433)    43 
Net change in payable for collateral under securities lending and other transactions
  (28)    (1,335)    828 
Other cash (applied) provided
  21    482    (30) 
Net cash provided by (used in) financing and
miscellaneous activities
 $(640)   $(1,985)   $(1,410) 
                
Net increase (decrease) in cash, cash
equivalents and short-term investments
  (836)    (1,451)    885 
                
Cash, cash equivalents and short-term
investments:
              
Beginning of year*
   1,939    3,390    2,420 
End of year
 $1,103   $1,939   $3,305 
See accompanying notes.
*Refer to Note 1 for information on the merger impacting the comparability of ending 2023 and beginning 2024 cash balances.
10
 
Transamerica Life Insurance Company
 
Statements of Cash Flow – Statutory Basis
(Dollars in Millions)
 
                
 
Year Ended December 31
Supplemental disclosures of cash flow information
  
2025
    
2024
    
2023
 
                
Non-cash activities during the year not included in the Statutory Statements of Cash Flows:
              
                
Receipt of bonds, other invested assets and interest  
related to affiliated reinsurance treaty
 $2,537   $ —    $792 
Increase of funds withheld related to affiliated
reinsurance agreement
   —      —     (4,394) 
 
See accompanying notes.
 
11
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
Years Ended December 31, 2025, 2024 and 2023
 
1.
Organization and Nature of Business
 
Transamerica Life Insurance Company (the Company) is a stock life insurance company domiciled in the State of Iowa, and is owned by Commonwealth General Corporation (CGC). CGC is an indirect, wholly-owned subsidiary of Aegon Ltd., a holding company organized under the laws of Bermuda.
 
On December 9, 2025, the Company merged with LIICA Re II Inc. (LIICA Re II) and Transamerica Pacific Reinsurance (TPRe), both affiliated captive insurance companies regulated in Vermont, with the Company as the surviving entity. As part of the merger, the Company assumed all assets and liabilities of both the captive companies, and the merger plans were approved by the Iowa Insurance Division (IID) and the Captive Insurance Division of the Vermont Department of Financial Regulation.
 
The merger was accounted for as a statutory merger according to requirements in SSAP No. 68, Business Combinations. As such, financial statements for the reporting periods ended December 31, 2025 and 2024 were combined and the recorded assets, liabilities and surplus of LIICA Re II and TPRe on a US statutory basis prior to the mergers were carried forward to the merged company without elimination of aspects of affiliate reinsurance activity and other related party transactions that do not impact total capital and surplus or net income between the merged entities. Additionally, the historical income tax positions were not recomputed on a merged entity basis. This treatment has no impact to income or capital and surplus of the Company. Amounts reported for the year ended December 31, 2023 were not combined as part of the merger, in accordance with the explicit permission of the IID. As a result of the merger, LIICA Re II and TPRe's common stock were deemed canceled by operation of law.
 
Summarized financial information for the Company, LIICA Re II and TPRe presented separately for the period prior to the merger is as follows:
 
                          
 
Year Ended December 31, 2024
    
Company
    
LIICA Re II
    
TPRe
    
Eliminations
    
Merged Totals
 
Total assets
 $179,107   $2,267   $2,612   $(495)   $183,491 
Total liabilities
  173,182    2,007    2,377     —     177,566 
Capital and surplus
  5,925    260    235    (495)    5,925 
Total revenue
  24,709    38    106     —     24,853 
Total benefits and expenses
  22,409    (18)    126     —     22,517 
Net income (loss)
  912    48    (34)     —     926 
 
12
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Nature of Business
 
The Company sells individual life insurance, including indexed universal life, whole life, term life, and final expense whole life. It also sells variable and registered index-linked annuities (RILA). In addition, the Company offers supplemental health insurance, group life insurance, group annuity contracts and stable value solutions. The Company is licensed in 49 states and the District of Columbia, Guam, Puerto Rico, and US Virgin Islands. Sales of the Company’s products are primarily through a network of independent agents and broker-dealers, affiliated agencies, and financial institutions.
 
 
2.
Basis of Presentation and Summary of Significant Accounting Policies
 
The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the IID, which differ from accounting principles generally accepted in the United States of America (GAAP).
 
The IID recognizes only statutory accounting practices prescribed or permitted by the State of Iowa for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the Iowa Insurance Law. The National Association of Insurance Commissioners' (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed or permitted practices by the State of Iowa. The Commissioner of Insurance has the right to permit specific practices that deviate from prescribed practices.
 
The following is a summary of the accounting practices permitted and prescribed by the IID and reflected in the Company’s financial statements which differs from NAIC SAP:
 
The State of Iowa has adopted prescribed accounting practices that differ from the NAIC SAP related to the reported value of certain assets supporting the Company's guaranteed and RILA separate accounts. As prescribed by Iowa Administrative Code 508A.1.4, the Company is entitled to generally value these assets at amortized cost, whereas the assets would be required to be reported at fair value under Statement of Statutory Accounting Principles (SSAP) No. 56, Separate Accounts, of the NAIC SAP. There are no impacts to the Company’s income or surplus as a result of utilizing these prescribed practices.
 
Pursuant to Iowa Administrative Code 521A.5(1)c, the State of Iowa has allowed a permitted accounting practice that differs from the NAIC SAP related to the valuation of a foreign insurance subsidiary, controlled and affiliated (SCA) entity. With the explicit permission of the IID, the Company values Transamerica Life (Bermuda) Ltd. (TLB), a foreign SCA, in accordance with SSAP No. 97, Subsidiary, Controlled and Affiliated Entities, paragraph 8.b.i, as a U.S. insurance SCA entity at its underlying audited U.S. statutory equity. Absent this permitted practice, TLB would be valued in accordance with SSAP No. 97, paragraph 8.b.iv, as a foreign insurance SCA at its audited foreign statutory basis financial statements with certain adjustments.
 
13
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
A reconciliation of the Company's net income (loss) and capital and surplus between NAIC SAP and practices prescribed and permitted by the State of Iowa is shown below:
 
    
SSAP #
    
F/S Page
    
F/S Line
    
2025
    
2024
    
2023
 
                               
Net income (loss), State of Iowa basis
  
XXX
    
XXX
    
XXX
   $1,190   $926   $729 
State prescribed practices that are an
increase(decrease) from NAIC SAP:
                             
  None                     —      —      —  
State permitted practices that are an
increase(decrease) from NAIC SAP:
                             
  None                     —      —      —  
Net income (loss), NAIC SAP
  
XXX
    
XXX
    
XXX
   $1,190   $926   $729 
                               
Statutory surplus, state of Iowa basis
  
XXX
    
XXX
    
XXX
   $5,281   $5,925   $5,918 
State prescribed practices that are an increase(decrease) from NAIC SAP:
                             
  None                     —      —      —  
State permitted practices that are an
increase(decrease) from NAIC SAP:
                             
TLB valuation
  97    2    2.2    294    272    47 
Excess of loss reinsurance asset
  4    
Balance Sheet
    
Excess of loss reinsurance asset
     —     3,024     —  
Statutory surplus, NAIC SAP
  
XXX
    
XXX
    
XXX
   $4,987   $2,629   $5,871 
 
The IID issued a no objection letter for the Company to recognize previously held permitted practices issued by the Captive Insurance Division of the Vermont Department of Financial Regulation to LIICA Re II and TPRe. The permitted practices allowed the captives to include as an admitted asset the value of excess of loss (XOL) reinsurance assets. These historical permitted practices were included on a merged entity basis for the period ended December 31, 2024. The XOL reinsurance assets, totaling $3,024 at December 31, 2024, are for the benefit of the Company. The permitted practice terminated upon the merger of LIICA Re II and TPRe into the Company and has no impact at December 31, 2025.
 
Use of Estimates
 
The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
14
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The effects of the following variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material. Significant accounting policies and variances from GAAP are as follows:
 
Investments
 
Investments in bonds, except those to which the Securities Valuation Office (SVO) of the NAIC has ascribed a NAIC designation of 6, are reported at amortized cost using the interest method. Bonds containing call provisions, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value, often referred to as yield-to-worst method. Bonds ascribed a NAIC designation of 6 are reported at the lower of amortized cost or fair value with unrealized gains and losses reported in changes in capital and surplus. Prepayment penalty or acceleration fees received in the event a bond is liquidated prior to its scheduled termination date are reported as investment income.
 
Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer's senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, and therefore, are reported at amortized cost or fair value based upon their NAIC rating.
 
For GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale.
 
Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. These securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium using either the retrospective or prospective methods. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. For statutory reporting, the retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.
 
For GAAP, all securities purchased or retained that represent beneficial interests in securitized assets, other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used.
15
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairment.
 
For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairments.
 
For GAAP, for debt securities classified as available-for-sale, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered. If either criterion is met, the amortized cost is written down to fair value through earnings as an impairment. If neither criterion is met, the securities are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to earnings, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.
 
Investments in unaffiliated redeemable preferred stocks in good standing (those with NAIC designations 1 to 3) are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in unaffiliated redeemable preferred stocks not in good standing (those with NAIC designations 4 to 6) are reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. Investment in perpetual preferred stocks are reported at fair value, not to exceed any currently effective call price. Investment in mandatory convertible preferred stocks (regardless if the preferred stock is redeemable or perpetual) are reported at fair value, not to exceed any currently effective call price, in the periods prior to conversion. For preferred stocks reported at fair value, the related net unrealized capital gains and losses for all NAIC designations are reported in accordance with SSAP No. 7, Asset Valuation Reserve and Interest Maintenance Reserve.
16
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in net unrealized capital gains or losses and are reported in changes in capital and surplus.
 
Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in changes in capital and surplus.
 
The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.
 
If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the Statements of Operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.
 
Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized. Prepayment penalty or acceleration fees received in the event a loan is liquidated prior to its scheduled termination date are reported as investment income.
 
Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, an allowance for credit loss is recognized in earnings at time of purchase or origination based on an expected lifetime credit loss, which is an amount that represents the portion of the amortized cost basis of the mortgage loans that the Company does not expect to collect.
17
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus as part of the change in asset valuation reserve (AVR), rather than being included as a component of earnings as would be required under GAAP.
 
Land is reported at cost. Real estate occupied by the Company is reported at depreciated cost net of encumbrances. Real estate held for the production of income is reported at depreciated cost net of encumbrances. Real estate the Company classifies as held for sale is measured at lower of carrying amount or fair value less encumbrances and estimated costs 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.
 
Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.
 
The Company has interests in joint ventures and limited partnerships. The Company carries these investments based on its interest in the underlying 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 Statements of Operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.
 
Investments in Low Income Housing Tax Credit (LIHTC) properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company. The carrying value is amortized over the life of the investment. Amortization is calculated as a ratio of the current year tax credits and tax benefits compared to the total expected tax credits and tax benefits over the life of the investment.
18
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Cash equivalents are short-term highly liquid investments with original maturities of three months or less (principally stated at amortized cost) or money market mutual funds which are reported at fair value.
 
Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.
 
Other invested assets include surplus notes which are valued at either amortized cost (those that have an NAIC designation of 1 or 2) or the lesser of amortized cost or fair value (those that have an NAIC designation of 3 through 6).
 
Policy loans are reported at unpaid principal balances.
 
Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.
 
Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. Due and accrued amounts determined to be uncollectible are written off through the Statements of Operations.
 
Valuation Reserves
 
Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying Balance Sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the Statements of Operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.
 
The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.
19
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, 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. Replications, income generation and held for other investment/risk management activities do not qualify for hedge accounting under SSAP No. 86, Derivatives.
 
(A)
Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability (amortized cost or fair value). Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and the risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.
 
(B)
Derivative instruments are also used in replication (synthetic asset) transactions (RSAT). A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.
 
(C)
Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative relates (amortized cost or fair value).
 
(D)
Derivative instruments held for other investment/risk management activities are measured at fair value with value adjustments recorded in unassigned surplus.
 
20
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the hedged asset or liability changes, the value of the hedging derivative is expected to move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.
 
The Company is exposed to credit-related losses in the event of non-performance by counterparties to derivative instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of 'BBB' or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company's behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets.
 
Instruments:
 
Interest rate swaps may be used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Cross currency swaps may be used to mitigate risks when the Company holds foreign denominated assets or liabilities; therefore, converting the asset or liability to a U.S. dollar denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus. If a swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
21
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Total return swaps may be used in the asset/liability management process to mitigate the delta 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 the Standard and Poor’s 500 (S&P) or other global market financial index) and floating leg (tied to Secured Overnight Financing Rate (SOFR)) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal.  Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Variance swaps may be 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; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal. The variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Bond forwards may be used to hedge the interest rate risk (rho) that future liability claims increase as rates decrease, leading to higher guarantee values. Bond return swaps are also used to hedge interest rate risk of the underlying liability by exchanging performance and interest of a treasury asset for a funding level plus spread. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
22
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Futures contracts may be used to hedge the liability risk associated with when the Company issues products providing the customer a return based on various global market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.
 
The Company may issue products providing the customer a return based on the various global equity market indices. The Company uses options to hedge the liability option risk associated with these products. The costs to acquire options are treated as book value and amortized into income over the duration of the deal. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Options are marked to fair value in the Balance Sheets and fair value adjustments are recorded as unassigned surplus in the financial statements.
 
Caps may be used in the asset/liability management process to mitigate the interest rate risk created due to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. The costs to acquire caps are treated as book value and amortized into income over the duration of the deal. 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 equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR 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 use zero cost collars to hedge the interest rate risk associated with rising short term interest rates, whereby the exposure would otherwise adversely impact the Company’s capital generation. The collar position(s) help range bound the floating rate by combining a cap and floor position. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
23
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
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 may issue fixed liabilities that have a guaranteed minimum crediting rate. The Company may use receiver swaptions, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract that is subsequently amortized throughout the life of the swaption. These swaptions are marked to fair value in the Balance Sheets and the fair value adjustment is recorded in unassigned surplus. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
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 may replicate investment grade corporate bonds, sovereign debt, or commercial mortgage backed securities by combining a highly rated security as a cash component with a written credit default swap which, in effect, converts the high quality asset into an investment grade corporate asset, sovereign debt, or commercial mortgage backed security. 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 complies with the specific rules established in AVR for replication transactions whereby the representative issuer defaults. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
24
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company may designate and account for fair value hedges when the effectiveness requirements of SSAP No. 86 are achieved. The following hedge type relationships are considered: (A) an interest rate swap that converts a fixed rate asset to a floating rate asset; (B) an interest rate swap that converts a fixed rate liability to a floating rate liability; (C) a cross currency interest rate swap that converts a foreign denominated fixed rate asset to a U.S. dollar floating rate asset; and (D) a cross currency interest rate swap that converts a foreign denominated fixed rate liability to a U.S. dollar floating rate liability.
 
The Company may designate and account for cash flow hedges when the effectiveness requirements of SSAP No. 86 are achieved. The following hedge-type relationships are considered: (A) an interest rate swap that converts a floating rate asset to a fixed rate asset; (B) an interest rate swap that converts a floating rate liability to a fixed rate liability; (C) a cross currency interest rate swap that converts a foreign denominated floating rate asset to a U.S. dollar fixed rate asset; (D) a cross currency interest rate swap that converts a foreign denominated floating rate liability to a U.S. dollar fixed rate liability; and (E) a forward starting interest rate swap to hedge the forecasted purchases of fixed rate assets.
 
Any deferred gain (loss) related to forecasted transaction cash flow hedging is recognized in income as the purchased asset affects income. If the forecasted transaction no longer qualifies for hedge accounting or if the forecasted transaction is no longer probable, the forward-starting swap will cease to be valued at amortized cost and will be marked to market through surplus. For the year ended December 31, 2025, 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.
 
The Company may enter into derivative transactions that economically mitigate risk associated with interest rate, exchange rate, credit, and equity movements within the marketplace. Due to the natural economic benefits of the hedge in relation to the hedged item, the Company chooses not to seek hedge accounting in these instances. Examples of these types of derivative transactions and the associated risks are as follows: (A) futures that hedge equity risk on universal life liabilities; (B) futures, options, swaps, or forward contracts that hedge the equity or interest rate risk on minimum rate guarantee liabilities; (C) credit default swap purchases of protection that hedge the credit risk of specific bonds; (D) interest rate caps that hedge a rapidly rising interest rate environment and withdrawal activity in pension products; and (E) interest rate swaptions that hedge the risk of a low interest rate environment on in-force recurring premium products.
The Company may enter into replicated (synthetic asset) transactions used for purposes other than hedging by the following: (A) combining a written credit default swap with a highly rated cash instrument to synthetically create corporate debt; (B) combining a written credit default swap with a highly rated cash instrument to synthetically create sovereign debt; or (C) combining a written credit default swap with a highly rated cash instrument to synthetically create a portfolio of commercial mortgage backed securities.
 
Securities Lending Assets and Liabilities
 
The Company loans securities to third parties under agent-managed securities lending programs accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the Balance Sheets (Securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s Balance Sheets. Under GAAP, the reinvested collateral is included within invested assets and is not reported as a single line item.
25
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Other Assets and Other Liabilities
 
Other assets consist primarily of cash surrender value of company owned life insurance, receivable from parent, subsidiaries and affiliates, disallowed IMR and general insurance accounts receivable.
 
Other liabilities consist primarily of amounts withheld by the Company, accrued expenses, remittances, custody offset, and municipal repurchase agreements. Municipal repurchase agreements are investment contracts issued to municipalities that pay either a fixed or floating rate of interest on the guaranteed deposit balance. The floating interest rate is based on a market index. The related liabilities are equal to the policyholder deposit and accumulated interest. These municipal repurchase agreements require a minimum of 95% of the fair value of the securities transferred to be maintained as collateral.
 
Separate Accounts
 
The majority of separate accounts held by the Company, primarily for individual policyholders as well as for group pension plans, do not have any minimum guarantees, and the investment risks associated with fair value changes are borne by the policyholder. The assets in the accounts consist of underlying mutual fund shares, common stocks, long-term bonds and short-term investments.
 
Assets held in trust for purchases of variable life, variable universal life, variable annuity and certain non-indexed guaranteed annuity contracts (which guarantee certain returns as specified in the contracts) and the Company's corresponding obligation to the contract owners are shown separately in the Balance Sheets. The assets and liabilities in the separate accounts are carried on a fair value basis. Income and gains and losses with respect to these assets accrue to the benefit of the policyholders 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 individual variable life insurance policies typically provide a guaranteed minimum death benefit.
 
Certain other modified guaranteed annuity separate accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed certain returns as specified in the contracts. These modified guaranteed annuity separate account assets and liabilities are carried at amortized cost. Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the Company’s Statements of Operations as a component of net transfers from separate accounts.
26
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the Statements of Operations. These guarantees are included in the general account due to the nature of the guaranteed return.
 
Surplus funds transferred from the general account to the separate accounts, commonly referred to as seed money, and earnings accumulated on seed money are reported as surplus in the separate accounts until transferred or repatriated to the general account. The transfer of such funds between the separate account and the general account is reported as surplus contributed or withdrawn during the year.
 
Aggregate Reserves for Policies and Contracts
 
Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum or guaranteed cash value, or the amount required by law. For direct business issued after October 1964, the Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the month of death. For policies assumed during 1992 from former affiliates, Monumental General Insurance Company and Monumental Life Insurance Group, Inc., and for all business from company mergers occurring in 1998, the Company waives deduction of deferred fractional premium upon death of the insured and returns any portion of the final premium paid beyond the month of death. For fixed premium life insurance business resulting from company mergers occurring in 2004 and 2007, the Company waives deduction of deferred fractional premiums upon death of the insured and refunds portions of premiums unearned after the date of death. Where appropriate, the Company holds a non-deduction and/or refund reserve. The reserve for these benefits is computed using aggregate methods. The reserves are equal to the greater of the cash surrender value and the legally computed reserve.
 
For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.
 
Surrender values are not promised in excess of the legally computed reserves. For annual premium variable life insurance there is an extra premium charged to the policyholder before the premium is transferred to the Separate Accounts. An additional reserve for this policy is held in the General Account that is a multiple of the reserve that would otherwise be held. For interest sensitive whole life, the reserves held in the General Account are equal to the cash surrender value.
 
27
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
In accordance with SSAP No. 51, Life Contracts, and No. 54, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is not included as a factor in the health contract premium deficiency calculation.
 
Policy and Contract Claim Reserves
 
Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the Balance Sheets date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.
 
Deposit-Type Contracts
 
Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include guaranteed investment contracts (GICs), funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums, benefits or changes in reserves in the Statements of Operations. Interest on these policies is reflected in other benefits.
 
Premiums and Annuity Considerations
 
Revenues for life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability using deposit accounting.
 
Policyholder Dividends
 
Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.
 
28
 
Reinsurance
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Coinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies and the terms of the reinsurance contracts. Gains associated with reinsurance of in force blocks of business are included in unassigned surplus and amortized into income as earnings emerge on the reinsured block of business. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.
 
Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.
 
Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.
 
Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.
 
Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.
 
Under GAAP, for certain reinsurance agreements whereby assets are retained by the ceding insurer (such as funds withheld or modified coinsurance) and a return is paid based on the performance of underlying investments, the assets and liabilities for these reinsurance arrangements must be adjusted to reflect the fair value of the invested assets. The NAIC SAP does not contain a similar requirement.
 
29
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Deferred Income Taxes
 
The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period's adjusted statutory capital and surplus, plus 3) the amount of remaining gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three-part test plus the sum of all deferred tax liabilities.
 
Policy Acquisition Costs
 
The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of insurance and investment contracts are deferred.
 
Value of Business Acquired
 
Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract changes, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.
 
Subsidiaries and Affiliated Companies
 
Investments in SCA are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97.
 
The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP. Dividends or distributions received from an investee are recognized in investment income when declared to the extent that they are not in excess of the undistributed accumulated earnings attributable to an investee. Changes in investments in SCA’s are recorded as a change to the carrying value of the investment with a corresponding amount recorded directly to unrealized gain/loss (capital and surplus).
 
30
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Nonadmitted Assets
 
Certain assets designated as "nonadmitted", primarily net deferred tax assets, reinsurance receivables, agent's balances and other assets not specifically identified as an admitted asset within the NAIC SAP, are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the Balance Sheets to the extent that they are not impaired.
 
Statements of Cash Flow
 
Cash, cash equivalents and short-term investments in the Statements of Cash Flow represent cash balances and investments with initial maturities of one year or less and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.
 
3.
Accounting Changes and Correction of Errors
 
The Company's policy is to disclose recently adopted accounting pronouncements that have been classified by the NAIC as a new statutory accounting principle (SAP) concept change, as well as items classified by the NAIC as SAP clarification changes that have been adopted and have had a material impact on the financial position or results of operations of the Company.
 
Recent Accounting Pronouncements
 
Effective January 1, 2025, the NAIC implemented substantive revisions to SSAP No. 26, Bonds and SSAP No. 43, Asset-Backed Securities, incorporating concepts from the principles-based bond definition (PBBD) project regarding the criteria for reporting long-term bonds. In accordance with the NAIC’s transition guidance specific to the project, this update does not constitute a change in accounting principle. The updated guidance has led to modifications in how tables within footnotes 4, 5 and 15 are presented, which may differ from the presentation used in previous reporting periods.
 
31
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Effective January 1, 2025, the NAIC adopted revisions to SSAP No. 21, Other Admitted Assets, to reflect accounting and reporting guidance for investments that do not meet the requirements of PBBD, and for residual tranches or interests/loss positions.
 
The aggregate book adjusted carrying value for securities reclassified from Schedule D to Schedule BA was $5. The measurement basis for the transferred securities did not change. There was no impact to the Company’s net income or capital and surplus.
 
On January 10, 2024, the Statutory Accounting Principles Working Group (SAPWG) adopted INT 23-04, Scottish Re Life Reinsurance Liquidation Questions, effective for reporting periods on or after December 31, 2023. INT 23-04 provides clarity that the Scottish Re liquidation should be accounted for as a commutation or recapture and reported as such, including all relevant disclosures. An impairment analysis shall be conducted and any remaining receivables in dispute or not secured by a trust shall be non-admitted. Refer to Note 7 for further detail.
 
On August 13, 2023, the SAPWG adopted INT 23-01, Net Negative (Disallowed) Interest Maintenance Reserve, effective immediately. INT 23-01 provides optional, limited-time guidance, which allows the admittance of net negative (disallowed) IMR if certain conditions are met, up to 10% of adjusted general account capital and surplus. Refer to Note 5 for further detail.
Correction of Errors
 
There were additional errors identified in prior year financial statements that have been corrected in the years presented in the financial statements in accordance with SSAP No. 3, Accounting Changes and Corrections of Errors. These errors do not have a material impact on the financial statements, individually or in aggregate, and therefore have not been separately disclosed.
 
Reclassifications
 
Certain amounts in prior year financial statement balances and footnote disclosures have been reclassified to conform to the current year presentation.
32
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
4.
Fair Values of Financial Instruments
 
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 
Determination of Fair Value
 
The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/or estimated cash flows.
 
To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
 
Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.
 
33
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, 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, Fair Value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:
 
Level 1 -   Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.
 
Level 2 -
Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
 
a)
Quoted prices for similar assets or liabilities in active markets
b)
Quoted prices for identical or similar assets or liabilities in non-active markets
c)
Inputs other than quoted market prices that are observable
d)
Inputs that are derived principally from or corroborated by observable market data through correlation or other means
 
Level 3 - 
Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
 
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
 
Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying Balance Sheets for these financial instruments is either reported at fair value or amortized cost (which approximates fair value). Cash is not included in the below tables.
 
Short-Term Notes Receivable from Affiliates: The carrying amounts reported in the accompanying Balance Sheets for these financial instruments approximate their fair value.
 
Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indices, third-party pricing services, brokers, external fund managers and internal models.
 
34
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of Level 1 and Level 2 values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.
 
Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.
 
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, are determined primarily by using indices, third-party pricing services and internal models.
 
Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the Balance Sheets date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the Balance Sheets date. The estimated fair values of swaps, including equity, interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.
 
Policy Loans: The book value of policy loans is considered to approximate the fair value of the loan, which is stated at unpaid principal balance.
 
35
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, 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 Equivalents and Short-Term Investments and Bonds and Stocks.
 
Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are primarily valued either using third-party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.
 
Investment Contract Liabilities: Fair value for the Company's liabilities under investment contracts, which include deferred annuities and GICs, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.
 
Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying Balance Sheets approximate their fair values. These are included in the investment contract liabilities.
 
Fair values for the Company's insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company's overall management of interest rate risk, such that the Company's exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.
 
The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.
 
36
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, 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, 2025 and 2024, respectively:
 
37
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                          
 
December 31, 2025
    
Aggregate Fair Value
    
Admitted Value
    
(Level 1)
    
(Level 2)
    
(Level 3)
 
Admitted assets
                        
Cash equivalents and short-term investments, other than affiliates
 $1,081   $1,081   $1,011   $70   $ —  
Bonds
                        
Asset-backed securities
  8,486    8,486    229    7,683    574 
Issuer credit obligations
  37,782    41,210    3,775    33,950    57 
Preferred stocks, other than affiliates
  40    40     —     39    1 
Common stocks, other than affiliates
  73    73    7    5    61 
Mortgage loans on real estate
  8,030    8,818     —      —     8,030 
Other invested assets
  213    235     —     200    13 
Derivative assets:
                        
Options
  75    75     —     75     —  
Interest rate swaps
  80    80     —     80     —  
Currency swaps
  66    26     —     66     —  
Credit default swaps
  34    18     —     34     —  
Equity swaps
  43    43     —     43     —  
Interest rate futures
  2    2    2     —      —  
Equity futures
  3    3    3     —      —  
Derivative assets total
  303    247    5    298     —  
Policy loans
  2,376    2,376     —     2,376     —  
Securities lending reinvested collateral
  1,458    1,458    1,343    115     —  
Separate account assets
  108,416    108,398    99,066    8,165    1,185 
                          
Liabilities
                        
Investment contract liabilities
 $11,269   $11,436   $ —    $195   $11,074 
Derivative liabilities:
                        
Options
  19    19     —     19     —  
Interest rate swaps
  1,121    721     —     1,121     —  
Currency swaps
  9    42     —     9     —  
Credit default swaps
   —     5     —      —      —  
Equity swaps
  102    102     —     102     —  
Interest rate futures
  1    1    1     —      —  
Equity futures
  44    44    44     —      —  
Derivative liabilities total
  1,296    934    45    1,251     —  
Payable for securities lending
  1,657    1,657     —     1,657     —  
Payable for derivative cash collateral
  78    78     —     78     —  
Separate account liabilities
  96,928    97,017    2    96,917    9 
 
38
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                          
 
December 31, 2024
    
Aggregate Fair Value
    
Admitted Value
    
(Level 1)
    
(Level 2)
    
(Level 3)
 
Admitted assets
                        
Cash equivalents and short-term investments, other than affiliates
 $1,465   $1,465   $1,462   $3   $ —  
Short-term notes receivable from affiliates
  450    450     —     450     —  
Bonds
  45,903    51,162    4,334    40,738    831 
Preferred stocks, other than affiliates
  44    44     —     44     —  
Common stocks, other than affiliates
  90    90    4     —     86 
Mortgage loans on real estate
  7,752    8,885     —      —     7,752 
Other invested assets
  298    337     —     283    15 
Derivative assets:
                        
Options
  63    63     —     63     —  
Interest rate swaps
  105    105     —     105     —  
Currency swaps
  110    70     —     110     —  
Credit default swaps
  62    38     —     62     —  
Equity swaps
  119    119     —     119     —  
Interest rate futures
  2    2    2     —      —  
Equity futures
  2    2    2     —      —  
Derivative assets total
  463    399    4    459     —  
Policy loans
  2,239    2,239     —     2,239     —  
Securities lending reinvested collateral
  1,537    1,537    1,537     —      —  
Separate account assets
  102,011    102,098    95,458    5,955    598 
                          
Liabilities
                        
Investment contract liabilities
 $10,097   $9,763   $ —    $204   $9,893 
Derivative liabilities:
                        
Options
  5    5     —     5     —  
Interest rate swaps
  1,849    1,417     —     1,849     —  
Currency swaps
  1    2     —     1     —  
Credit default swaps
  (2)    5     —     (2)     —  
Equity swaps
  37    37     —     37     —  
Interest rate futures
  1    1    1     —      —  
Equity futures
  14    14    14     —      —  
Derivative liabilities total
  1,905    1,481    15    1,890     —  
Payable for securities lending
  1,667    1,667     —     1,667     —  
Payable for derivative cash collateral
  96    96     —     96     —  
Separate account liabilities
  91,620    91,698    2    91,609    9 
39
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables provide information about the Company's financial assets and liabilities measured at fair value as of December 31, 2025 and 2024:
 
                     
 
2025
    
Level 1
    
Level 2
    
Level 3
    
Total
 
Assets:
                   
Bonds
                   
Asset-backed securities
 $ —    $14   $1   $15 
Issuer credit obligations
   —     9    6    15 
Total bonds
   —     23    7    30 
Preferred stock
                   
Industrial and miscellaneous
   —     40     —     40 
Total preferred stock
   —     40     —     40 
Common stock
                   
Industrial and miscellaneous
  7    5    61    73 
Total common stock
  7    5    61    73 
Cash equivalents and short-term investments
                   
Industrial and miscellaneous
   —     3     —     3 
Money market mutual funds
  896     —      —     896 
Total cash equivalents and short-term investments
  896    3     —     899 
Derivative assets
  4    188     —     192 
Separate account assets
  98,701    4,118     —     102,819 
Total assets
 $99,608   $4,377   $68   $104,053 
Liabilities:
                   
Derivative liabilities
 $45   $303   $ —    $348 
Separate account liabilities
  2     —      —     2 
Total liabilities
 $47   $303   $ —    $350 
 
40
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                     
 
2024
    
Level 1
    
Level 2
    
Level 3
    
Total
 
Assets:
                   
Bonds
                   
Government
 $ —    $2   $ —    $2 
Industrial and miscellaneous
   —     26    2    28 
Total bonds
   —     28    2    30 
Preferred stock
                   
Industrial and miscellaneous
   —     44     —     44 
Total preferred stock
   —     44     —     44 
Common stock
                   
Industrial and miscellaneous
  4     —     86    90 
Total common stock
  4     —     86    90 
Cash equivalents and short-term investments
                   
Money market mutual funds
  1,176     —      —     1,176 
Total cash equivalents and short-term investments
  1,176     —      —     1,176 
Other long term
   —     5     —     5 
Derivative assets
  4    281     —     285 
Separate account assets
  95,290    4,021     —     99,311 
Total assets
 $96,474   $4,379   $88   $100,941 
Liabilities:
                   
Derivative liabilities
 $15   $799   $ —    $814 
Separate account liabilities
  2     —      —     2 
Total liabilities
 $17   $799   $ —    $816 
 
Bonds classified as Level 2 are valued using inputs from third party pricing services or broker quotes. Bonds classified as Level 3 are primarily those valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilize significant inputs that are not market observable.
 
Preferred stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes.
 
Common stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes.
 
Common stock classified as Level 3 are comprised primarily of shares in the FHLB of Des Moines, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB.
 
Money market mutual funds and other cash or cash equivalents classified as Level 2 are valued using inputs from third party pricing services.
 
41
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Derivatives classified as Level 2 represent over-the-counter contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other over-the-counter trades, or external pricing services.
 
Separate account assets and liabilities are valued and classified in the same way as general account assets and liabilities (described above).
 
The following tables summarize the changes in assets classified as Level 3 for 2025 and 2024:
 
    
Beginning Balance at January 1, 2025
    
Transfers in (Level 3)
    
Transfers out (Level 3)
    
Total Gains (Losses) Included in Net income (a)
    
Total Gains (Losses) Included in Surplus (b)
 
Bonds
                        
Asset-backed securities
 $1   $ —    $ —    $(1)   $1 
Issuer credit obligations
  1    13    1     —     (9) 
Preferred stock
   —      —      —      —     (1) 
Common stock
  86     —      —     (3)    7 
Total
 $88   $13   $1   $(4)   $(2) 
 
    
Purchases
    
Issuances
    
Sales
    
Settlements
    
Ending Balance at December 31, 2025
 
Bonds
                        
Asset-backed securities
 $ —    $ —    $ —    $ —    $1 
Issuer credit obligations
  3     —      —      —     7 
Preferred stock
  1     —      —      —      —  
Common stock
  16     —     45     —     61 
Total
 $20   $ —    $45   $ —    $69 
 
(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
 
    
Beginning Balance at January 1, 2024
    
Transfers in (Level 3)
    
Transfers out (Level 3)
    
Total Gains (Losses) Included in Net income (a)
    
Total Gains (Losses) Included in Surplus (b)
 
Bonds
                        
Other
 $1   $20   $1   $(1)   $(17) 
Common stock
  100     —      —     1    (4) 
Total
 $101   $20   $1   $ —    $(21) 
 
42
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
    
Purchases
    
Issuances
    
Sales
    
Settlements
    
Ending Balance at December 31, 2024
 
Bonds
                        
Other
 $ —    $ —    $ —    $ —    $2 
Common stock
  16     —     27     —     86 
Total
 $16   $ —    $27   $ —    $88 
 
(a)
Recorded as a component of Net Realized Capital Gains (Losses) on Investments in the Statements of Operations
(b)
Recorded as a component of Change in Net Unrealized Capital Gains (Losses) in the Statements of Changes in Capital and Surplus
 
Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.
 
Nonrecurring Fair Value Measurements
 
As indicated in Note 2, real estate held for sale is measured at the lower of carrying amount or fair value less encumbrances and estimated costs to sell. At December 31, 2025 and 2024, the Company held no properties classified as held-for-sale.
43
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
5.
Investments
 
Bonds and Stocks
 
The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:
 
    
Book Adjusted Carrying Value
    
Gross Unrealized Gains
    
Gross Unrealized Losses
    
Estimated Fair Value
 
December 31, 2025
                   
ICOs:
                   
U.S. Government obligations (exempt from RBC)
 $4,440   $3   $1,074   $3,369 
Other U.S. Government obligations (not exempt from RBC)
  299     —     63    236 
Non-U.S. sovereign jurisdiction securities
  791    20    75    736 
Municipal bonds - general obligations (direct & guaranteed)
  231    3    25    209 
Municipal bonds - special revenue
  1,792    3    289    1,506 
Corporate bonds
  32,336    733    2,513    30,556 
Single entity backed obligation
  1,246    5    146    1,105 
Bank loans - acquired
  64     —     10    54 
Mortgage loans that qualify as SVO identified credit tenant loan - unaffiliated
  11    1     —     12 
Total ICOs
 $41,210   $768   $4,195   $37,783 
                     
ABS:
                   
Financial asset-backed securities - self liquidating:
                   
Agency RMBS - not/partially guaranteed (not exempt from RBC)
 $63   $ —    $8   $55 
Non-agency CLOs/CBOs/CDOs - unaffiliated
  414    2    2    414 
Non-agency CMBS - unaffiliated
  1,837    20    80    1,777 
Non-agency RMBS - unaffiliated
  476    55    8    523 
Other financial ABS - unaffiliated
  2,781    103    87    2,797 
Financial ABS - not self-liquidating:
                   
Equity backed securities - unaffiliated
  36     —      —     36 
Non-financial ABS - full analysis:
                   
Lease backed transactions - unaffiliated
  738    11    3    746 
Other non-financial ABS - unaffiliated
  262    5     —     267 
Non-financial ABS - practical expedient:
                   
Lease backed transactions - unaffiliated
  1,300    15    15    1,300 
Other non-financial ABS - unaffiliated
  579    6    15    570 
Total ABS
 $8,486   $217   $218   $8,485 
Common stock
 $58   $15   $ —    $73 
Preferred stock
 $40   $ —    $ —    $40 
   $49,794   $1,000   $4,413   $46,381 
44
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
    
Book Adjusted Carrying Value
    
Gross Unrealized Gains
    
Gross Unrealized Losses
    
Estimated Fair Value
 
December 31, 2024
                   
Bonds:
                   
United States Government and agencies
 $5,182   $ —    $1,284   $3,898 
State, municipal and other government
  3,131    9    536    2,604 
Hybrid securities
  249    8    9    248 
Industrial and miscellaneous
  34,923    478    3,621    31,780 
Mortgage and other asset-backed securities
  7,677    162    466    7,373 
Total unaffiliated bonds
  51,162    657    5,916    45,903 
Unaffiliated preferred stocks
  44     —      —     44 
   $51,206   $657   $5,916   $45,947 
 
    
Cost
    
Gross Unrealized Gains
    
Gross Unrealized Losses
    
Estimated Fair Value
 
Unaffiliated common stocks
 $88   $2   $ —    $90 
 
The carrying amount and estimated fair value of items held as bonds and short-term investments at December 31, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
 
           
 
December 31, 2025
December 31:
  
Carrying Value
    
Fair Value
 
Due in one year or less
 $1,968   $1,972 
Due after one year through five years
  7,305    7,454 
Due after five years through ten years
  10,587    10,458 
Due after ten years through twenty years
  12,717    11,342 
Due after twenty years
  8,837    6,759 
Subtotal
  41,414    37,985 
Mortgage and other asset-backed securities
  8,466    8,468 
Total
 $49,880   $46,453 
45
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2025 and 2024 is as follows:
 
                     
 
2025
 
Equal to or Greater than 12 Months
Less than 12 Months
    
Estimated Fair Value
    
Gross Unrealized Losses
    
Estimated Fair Value
    
Gross Unrealized Losses
 
ICOs:
                   
U.S. Government obligations (exempt from RBC)
 $1,669   $624   $1,521   $451 
Other U.S. Government obligations (not exempt from RBC)
  231    63     —      —  
Non-U.S. sovereign jurisdiction securities
  376    73    52    1 
Municipal bonds - general obligations (direct & guaranteed)
  118    25    17     —  
Municipal bonds - special revenue
  1,238    287    111    2 
Corporate bonds
  13,137    2,399    2,284    115 
Single entity backed obligation
  850    144    82    1 
Bank loans - acquired
  5     —     32    10 
Mortgage loans that qualify as SVO identified credit tenant loan - unaffiliated
   —      —      —      —  
Total ICOs
 $17,624   $3,615   $4,099   $580 
                     
ABS:
                   
Financial asset-backed securities - self liquidating:
                   
Agency RMBS - not/partially guaranteed (not exempt from RBC)
 $52   $8   $1   $ —  
Non-agency CLOs/CBOs/CDOs - unaffiliated
  32    1    207    1 
Non-agency CMBS - unaffiliated
  1,087    79    92     —  
Non-agency RMBS - unaffiliated
  88    7    35    2 
Other financial ABS - unaffiliated
  802    83    471    3 
Financial ABS - not self-liquidating:
                   
Equity backed securities - unaffiliated
  1     —      —      —  
Non-financial ABS - full analysis:
                   
Lease backed transactions - unaffiliated
  81    2    52    1 
Other non-financial ABS - unaffiliated
   —      —     53     —  
Non-financial ABS - practical expedient:
                   
Lease backed transactions - unaffiliated
  201    15    170     —  
Other non-financial ABS - unaffiliated
  177    16    107     —  
Total ABS
 $2,521   $211   $1,188   $7 
Common stock
 $ —    $ —    $48   $ —  
Preferred stock
 $11   $ —    $29   $ —  
   $20,156   $3,826   $5,364   $587 
46
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                     
 
2024
 
Equal to or Greater than 12 Months
Less than 12 Months
    
Estimated Fair Value
    
Gross Unrealized Losses
    
Estimated Fair Value
    
Gross Unrealized Losses
 
United States Government and agencies
 $1,518   $649   $2,307   $635 
State, municipal and other government
  1,848    512    557    24 
Hybrid securities
  75    8    49    1 
Industrial and miscellaneous
  14,344    3,316    7,937    305 
Mortgage and other asset-backed securities
  3,445    438    1,393    28 
Total bonds
 $21,230   $4,923   $12,243   $993 
Common stocks-unaffiliated
 $ —    $ —    $1   $ —  
   $21,230   $4,923   $12,244   $993 
 
During 2025, 2024 and 2023, respectively, there were $67, $7 and $13, of asset-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold for a period of time to recover the amortized cost basis.
 
For asset-backed and structured securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield, in 2025, 2024 and 2023, the Company recognized OTTI of $28, $0 and $25, respectively.
47
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following asset-backed and structured securities were held at December 31, 2025, for which an OTTI was recognized during the current reporting period:
 
CUSIP
  
Amortized Cost Before Current Period OTTI
    
Present Value of Projected Cash Flows
    
Recognized OTTI
    
Amortized Cost After OTTI
    
Fair Value at Time of OTTI
 
Date of Financial Statement Where Reported
 61762TAH9  $3   $2   $1   $2   $2 
3/31/2025
BAE3K7RU3-TA
   —      —      —      —      —  
3/31/2025
 86362AAA6   1     —     1     —      —  
3/31/2025
 44421MAA8   13    11    2    11    11 
3/31/2025
 36260JAD9   4    3    1    3    3 
3/31/2025
 23345LAA7   21    18    3    18    18 
3/31/2025
 36269KAA3   4    4     —     4    4 
3/31/2025
 26207AAF0   2    2     —     2    2 
3/31/2025
 83164HP46    —      —      —      —      —  
3/31/2025
 83164HKQ2    —      —      —      —      —  
3/31/2025
 46651AA2   4    3    1    3    3 
3/31/2025
 61691YAJ0   5    4    1    4    4 
3/31/2025
 5490TAA0   2    2     —     2    2 
3/31/2025
 12654YAA7   2    2     —     2    2 
3/31/2025
 14576AAB8   1    1     —     1    1 
3/31/2025
 86190BAB0   2    2     —     2    2 
3/31/2025
 10901AAA4   2    2     —     2    2 
3/31/2025
 12510HAC4   1    1     —     1    1 
3/31/2025
 86190BAD6   1    1     —     1    1 
3/31/2025
 83162CTG8   1    1     —     1    1 
3/31/2025
 46616VAA8   1    1     —     1    1 
3/31/2025
 67190AAB2   2    2     —     2    2 
3/31/2025
BAE2LRK94-TA
   —      —      —      —      —  
6/30/2025
BAE1PAJF7-TA
   —      —      —      —      —  
6/30/2025
BAE2XVVY5-TA
   —      —      —      —      —  
6/30/2025
 12640WAG5   1    1     —     1    1 
6/30/2025
 61762TAH9   1     —     1     —      —  
9/30/2025
 12640WAG5    —      —      —      —      —  
9/30/2025
 98162JAG1   26     —     26     —     9 
9/30/2025
             $37             
 
48
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The unrealized losses of asset-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, 2025 and 2024 is as follows:
 
                     
 
2025
2024
    
Losses 12 Months or More
    
Losses Less Than 12 Months
    
Losses 12 Months or More
    
Losses Less Than 12 Months
 
Year ended December 31:
                   
The aggregate amount of unrealized losses
 $219   $7   $449   $28 
The aggregate related fair value of securities with unrealized losses
  2,521    1,089    3,460    1,485 
 
At December 31, 2025 and 2024, 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 2,445 and 2,911 securities with a carrying amount of $23,982 and $26,152, and an unrealized loss of $3,826 and $4,923. Of this portfolio, at December 31, 2025 and 2024, 97.8% and 96.9% were investment grade with associated unrealized losses of $3,731 and $4,767, respectively.
 
At December 31, 2025 and 2024, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 596 and 1,543 securities with a carrying amount of $5,903 and $13,236, and an unrealized loss of $587 and $993. Of this portfolio, at December 31, 2025 and 2024, 97.1% and 97.3% were investment grade with associated unrealized losses of $569 and $977, respectively.
 
At December 31, 2025 and 2024, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.
 
At December 31, 2025 and 2024, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 11 and 5 securities, respectively, with a cost of $48 and $1 and an insignificant unrealized loss.
 
49
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table provides the number of 5GI securities, aggregate book adjusted carrying value and aggregate fair value by investment type:
 
    
Number of 5GI Securities
    
Book / Adjusted Carrying Value
    
Fair Value
 
December 31, 2025
              
Issuer credit obligations, amortized cost
  3   $11   $11 
Total
  3   $11   $11 
                
December 31, 2024
              
Bond, amortized cost
  9   $42   $24 
Total
  9   $42   $24 
 
The Company did not have any offsetting assets and liabilities at December 31, 2025 and 2024.
 
During 2025 and 2024, respectively, the Company sold, redeemed or otherwise disposed of 50 and 69 securities as a result of a callable feature which generated investment income of $9 and $16 as a result of a prepayment penalty and/or acceleration fee.
 
Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses are reflected in the following table. The amounts exclude maturities and include transfers associated with reinsurance agreements, if applicable.
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
                
Proceeds
 $10,370   $4,303   $7,301 
                
Gross realized gains
 $130   $85   $184 
Gross realized losses
  (482)    (143)    (747) 
Net realized capital gains (losses)
 $(352)   $(58)   $(563) 
 
The Company had gross realized losses, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks, for the years ended December 31, 2025, 2024 and 2023 of $88, $42 and $106, respectively.
 
At December 31, 2025 and 2024, the Company had recorded investments in restructured securities of $28 and $2.
 
50
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Concentrations of Credit Risk
 
Credit risk represents the risk that a counterparty will fail to perform on its contractual obligations. The Company’s investment portfolio includes exposures that may be subject to concentrations of credit risk by industry sector and asset class. Such concentrations arise when multiple issuers share similar economic characteristics or are exposed to common industry‑specific, regulatory or macroeconomic factors that could affect their ability to meet contractual obligations.
 
The Company’s significant concentrations of credit risk are primarily related to corporate fixed‑income investments and structured securities diversified across a range of industries and asset classes.
 
Communications (Stable)
 
The Company maintains material exposure to issuers within the communications sector, including cable, media and telecommunications companies. Credit risk within this sector is influenced by competitive pressures, technological change, capital intensity and regulatory considerations that may impact issuer cash flows and overall credit quality.
 
Consumer Cyclical (Stable)
 
The Company holds investments in consumer cyclical industries, including retailers, restaurants, gaming entities and lodging and leisure companies. Credit risk within this sector is sensitive to changes in discretionary consumer spending, employment conditions, inflationary pressures and broader economic cycles that may affect revenues and profitability.
 
Consumer Noncyclical (Mostly Stable)
 
The Company’s consumer noncyclical exposure includes issuers in the food and beverage, consumer products, supermarkets, tobacco, healthcare and pharmaceutical industries. Credit risk in these sectors is influenced by factors such as pricing power, input cost volatility, regulatory environments, healthcare policy developments, and the relative stability of consumer demand.
 
Government and Government‑Related Securities (Stable)
 
The Company also invests in government and government‑related securities, including U.S. Treasury securities, municipal obligations, supranational entities and non‑U.S. sovereign issuers. Credit risk for these investments is largely associated with changes in fiscal conditions, interest rates and geopolitical developments.
 
51
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Real Estate Investment Trusts (Stable)
 
The Company holds investments in real estate investment trusts diversified across property types. Credit risk within this sector is influenced by real estate market fundamentals, occupancy levels, rental rate trends, operating cost pressures and access to capital markets.
 
Structured Securities (Stable)
 
Beyond corporate fixed‑income securities, the Company holds structured securities, including asset‑backed securities and commercial mortgage‑backed securities. Credit risk related to these investments is primarily influenced by the performance of the underlying collateral, the level of structural credit enhancement and prevailing macroeconomic conditions.
 
Technology (Stable)
 
The Company’s technology exposure includes issuers engaged in hardware manufacturing, software development and semiconductor production. Credit risk within this sector is affected by rapid technological advancement, capital investment requirements, product demand cycles and, in certain cases, global supply chain dynamics.
 
Transportation (Stable)
 
Transportation‑related exposure includes airlines, automotive manufacturers, railroads and transportation service providers. Credit risk within this sector is affected by fuel and operating costs, labor dynamics, trade and tariff policies, supply chain disruptions and overall economic activity.
 
Utilities and Infrastructure-Related (Stable)
 
The Company also maintains exposure to regulated and infrastructure‑oriented issuers, including electric utilities and other utility‑related entities. Credit risk in this sector is influenced by capital expenditure requirements, regulatory frameworks, weather‑related events and sensitivity to interest rate movements.
 
The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of unrealized losses in each of the above sectors and does not consider those investments to be other-than-temporarily impaired as of December 31, 2025.
 
52
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Mortgage Loans
 
The credit quality of mortgage loans by type of property for the years ended December 31, 2025 and 2024 were as follows:
 
December 31, 2025
              
  
Farm
    
Commercial
    
Total
 
AAA - AA
 $ —    $4,506   $4,506 
A
  26    3,906    3,932 
BBB
  6    269    275 
B
   —     105    105 
   $32   $8,786   $8,818 
 
December 31, 2024
              
  
Farm
    
Commercial
    
Total
 
AAA - AA
 $ —    $4,553   $4,553 
A
  30    3,643    3,673 
BBB
  3    591    594 
BB
   —     1    1 
B
   —     79    79 
   $33   $8,867   $8,900 
 
The above tables exclude residential mortgage loans.
 
The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company's mortgage lending process, taking into account such factors as projected future cash flows, net operating income and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.
 
During 2025, the Company issued mortgage loans with a maximum interest rate of 6.57% and a minimum interest rate of 5.07% for commercial loans. The maximum percentage of any one admitted loan to the value of the security (exclusive of insured or guaranteed or purchase money mortgages) originated or acquired during the year ending December 31, 2025 at the time of origination was 64%. During 2024, the Company issued mortgage loans with a maximum interest rate of 7.26% and a minimum interest rate of 5.66% for commercial loans. The maximum percentage of any one admitted loan to the value of the security (exclusive of insured or guaranteed or purchase money mortgages) originated or acquired during the year ending December 31, 2024 at the time of origination was 68%.
 
53
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
During 2025 and 2024, the Company issued agricultural loans with both a maximum and minimum interest rate of 0% and 6.55%, respectively.
 
During 2025 and 2024, the Company did not reduce the interest rate on any outstanding mortgage loans.
 
The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2025 and 2024:
 
         
Commercial
      
  
Farm
    
All Other
    
Total
 
December 31, 2025
              
Recorded Investment (All)
              
Current
 $29   $8,786   $8,815 
180+ Days Past Due
  3     —     3 
                
Accruing interest 180+
              
days past due
              
Recorded investment
  3     —     3 
                
Participant or Co-lender in Mortgage Loan Agreement
              
Recorded Investment
 $28   $763   $791 
 
54
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
         
Commercial
      
  
Farm
    
All Other
    
Total
 
December 31, 2024
              
Recorded Investment (All)
              
Current
 $29   $8,848   $8,877 
30-59 Days Past Due
  4     —     4 
60-89 Days Past Due
   —     12    12 
180+ Days Past Due
   —     7    7 
                
Accruing interest 180+
              
days past due
              
Recorded investment
   —     7    7 
                
Participant or Co-lender in Mortgage Loan Agreement
              
Recorded Investment
 $29   $795   $824 
 
At December 31, 2025 and 2024, the Company held $3 and $7, respectively, of mortgage loans that were non-income producing for the previous 180 days. There was an insignificant amount of accrued interest related to these mortgage loans at December 31, 2025 and 2024. 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, 2025 and 2024, there were no taxes, assessments and other amounts advanced and not included in the mortgage loan total.
 
At December 31, 2025 and 2024, the Company held 0 and 2 impaired loans with or without a related allowance for credit losses. There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2025 and 2024, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans. There were no average recorded investments in impaired loans during 2025 and 2024.
 
The Company had an allowance for credit losses on mortgage loans of $0, $15 and $0 at December 31, 2025, 2024, and 2023.
 
As of December 31, 2025 and 2024, the Company had no mortgage loans derecognized as a result of foreclosure.
 
55
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
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, 2025, 2024 and 2023, the Company has recognized no interest income on impaired loans or on a cash basis.
 
At December 31, 2025 and 2024, the Company held a mortgage loan loss reserve in the AVR of $103 and $97, respectively.
 
The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:
 
 
                             
Geographic Distribution
 
Property Type Distribution
 
December 31
   
December 31
 
2025
2024
   
2025
2024
                             
Pacific
  27 %   29 %  
Apartment
  52 %   52 %
South Atlantic
  21     21    
Industrial
  24     22  
Middle Atlantic
  13     12    
Office
  13     14  
E. North Central
  11     11    
Retail
  11     12  
Mountain
  10     8                  
W. South Central
  8     9                  
W. North Central
  5     5                  
New England
  3     3                  
E. South Central
  2     2                  
 
At December 31, 2025 and 2024, the Company had no mortgage loans with a total net admitted asset value that had been restructured in accordance with SSAP No. 36, Troubled Debt Restructuring. There were no realized losses during the years ended December 31, 2025, 2024 and 2023 related to such restructurings. At December 31, 2025 and 2024, there were no commitments to lend additional funds to debtors owing receivables.
 
56
 
Real Estate
 
The fair value of property is determined based on an appraisal from a third-party appraiser, along with information obtained from discussions with internal asset managers and a listing broker regarding recent comparable sales data and other relevant property information. There were no impairment losses taken on real estate in 2025, 2024 and 2023 to write the book value down to the current fair value.
 
As of December 31, 2025 and 2024, there are no properties classified as held for sale. During 2025, there were no properties classified as held for sale disposed, resulting in no net realized gains. During 2024, four properties classified as held for sale were disposed, resulting in an insignificant net realized gain. Any associated gains and losses from these held for sale disposals were included in net realized capital gains (losses) within the Statements of Operations.
 
The Company disposed of other properties during 2025, 2024 and 2023 resulting in an insignificant amount of net realized gains. These gains and losses were included in net realized capital gains (losses) within the Statements of Operations.
 
The carrying value of the Company's real estate assets at December 31, 2025 and 2024 was as follows:
 
    
2025
    
2024
 
Home office properties
 $37   $39 
   $37   $39 
 
Accumulated depreciation on real estate at December 31, 2025 and 2024, was $35 and $33, respectively.
 
Other Invested Assets
 
The Company recorded impairments of $20, $4 and $0 throughout years 2025, 2024 and 2023, respectively. These impairments were primarily related to private equity funds. The impairments were taken because the decline in fair value of the funds were deemed to be other than temporary and a recovery in value from the remaining underlying investments in the funds were not anticipated. These write-downs are included in net realized capital gains (losses) within the Statements of Operations.
 
57
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Tax Credits
 
The Company invests in projects designed to generate federal and state tax credits and other tax benefits through ownership interests in tax credit structures, including partnerships and limited liability entities. These investments primarily relate to affordable housing and historic rehabilitation. The Company’s objective in making these investments is to realize value through the receipt and utilization of tax credits and related tax benefits rather than through operating income or appreciation of the underlying assets.
 
Tax credits generated by these investments may be transferable or certificated in certain jurisdictions or non‑transferable and usable only against the Company’s income tax liabilities. The investments are accounted for in accordance with SSAP No. 93 and SSAP No. 94, as applicable.
 
Tax credits generated from these investments are recognized as assets in accordance with SSAP No. 94 and are recorded at amounts expected to be realized through utilization or, where applicable, transfer or sale. The recognition of tax credits impacts the Company’s statutory financial position through the recording of admitted or nonadmitted tax credit assets.
 
Utilization of tax credits reduces income tax expense and current tax payable, favorably affecting statutory results of operations. Unused tax credits remain recorded as assets and are evaluated for admissibility and recoverability based on expected future taxable income, statutory limitations, and credit expiration provisions. Tax credits not expected to be realized are reduced through nonadmission or impairment, which negatively impacts statutory surplus and results of operations in the period recognized. Tax credit benefits recognized in 2025 and 2024 was $31 and $17, respectively, and other tax benefits recognized was $3 and $3. The balance of the investment recognized as of December 31, 2025 and 2024 is $53 and $58, respectively.
 
During the year ended December 31, 2025 and 2024, the Company recognized ($13) and ($14), respectively, of investment amortization related to investments generating tax credits and other tax benefits. This amortization was recognized as a component of net investment income.
 
The Company recognized an insignificant amount of non-income tax related activity associated with these investments as a component of net investment income during 2025 and 2024.
 
There were no other returns allocated to these investments recognized outside of income tax expense.
 
The following schedule reflects the aggregate amount of tax credits expected to be generated in each of the subsequent five years and thereafter, disaggregated between transferable/certificated and non‑transferable tax credits:
 
58
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Year
  
Transferable/
Certificated
    
Nontransferable
    
Total
 
2026
 $ —    $12   $12 
2027
   —     11    11 
2028
   —     10    10 
2029
   —     6    6 
2030
   —     5    5 
2031 and After
   —     4    4 
   $ —    $48   $48 
 
59
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company has commitments related to investments in tax credit structures, including obligations to make additional capital contributions upon the occurrence of specified events. The table below presents these commitments and the periods in which such amounts are expected to be funded:
 
Year
  
Tax Credit
 
2026
 $1 
2027
  2 
2028
   —  
2029
   —  
2030
   —  
2031 and After
   —  
   $3 
 
The Company is not subject to regulatory review for any underlying projects as of December 31, 2025 and 2024.
 
The Company did not recognize impairment losses on tax credit investments as of December 31, 2025 and 2024.
 
The following tables provide the carrying value of tax credits, disaggregated by transferable/certificated and non-transferable, gross of any related tax liabilities by jurisdiction and in total as of December 31, 2025 and 2024:
 
             
   
December 31, 2025
Description of State Transferable and Non-Transferable Tax Credits
Jurisdiction
  
Carrying Value
    
Unused Amount*
 
Low-Income Housing Tax Credits
MA
 $ —    $5 
Economic Redevelopment and Growth Tax Credits
NJ
   —     11 
Low-Income Housing Tax Credits
CA
  13    30 
Low-Income Housing Tax Credits
United States
  46    49 
Total
XXX
 $59   $95 
 
             
   
December 31, 2024
Description of State Transferable and Non-Transferable Tax Credits
Jurisdiction
  
Carrying Value
    
Unused Amount
 
Economic Redevelopment and Growth Tax Credits
NJ
 $1   $16 
Low-Income Housing Tax Credits
CA
   —     15 
Low-Income Housing Tax Credits
United States
  58    59 
Total
XXX
 $59   $90 
60
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company did not have any non-transferable state tax credits.
 
The following tables provide total unused tax credits by jurisdiction, disaggregated by transferable/certificated and non-transferable as of December 31, 2025 and 2024:
 
                  
December 31, 2025
 
Jurisdiction
  
Transferable/Certificated
    
Nontransferable
    
Total
 
State:
                
Massachusetts
MA
 $5   $ —    $5 
New Jersey
NJ
  11     —     11 
California
CA
  30     —     30 
Federal
XXX
   —     49    49 
Total
XXX
 $46   $49   $95 
 
                  
December 31, 2024
 
Jurisdiction
  
Transferable/Certificated
    
Nontransferable
    
Total
 
State:
                
New Jersey
NJ
 $16   $ —    $16 
California
CA
  15     —     15 
Federal
XXX
   —     59    59 
Total
XXX
 $31   $59   $90 
 
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.
 
The following tables identify tax credits by transferable/certificated and non-transferable classifications and identify the admitted and nonadmitted portions of each classification as of December 31, 2025 and 2024:
 
           
December 31, 2025
    
Total Admitted
    
Total Nonadmitted
 
State:
         
Transferable
 $13   $ —  
Non-transferable
   —      —  
           
Federal:
         
Transferable
 $ —    $ —  
Non-transferable
  46     —  
61
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
           
December 31, 2024
    
Total Admitted
    
Total Nonadmitted
 
State:
         
Transferable
 $1   $ —  
Non-transferable
   —      —  
           
Federal:
         
Transferable
 $ —    $ —  
Non-transferable
  58     —  
 
Derivatives
 
Amounts disclosed in this Derivatives section do not include derivatives utilized in the hedging of variable annuity guarantees in accordance with SSAP No. 108, Derivatives Hedging Variable Annuity Guarantees. Please see the subsequent section “Derivatives Hedging Variable Annuity Guarantees” for results associated with those derivatives.
 
The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company's behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities). Fair value of derivative contracts, aggregated at a counterparty level at December 31, 2025 and 2024 was as follows:
 
    
2025
    
2024
 
Fair value - positive
 $337   $484 
Fair value - negative
  (1,330)    (1,926) 
 
At December 31, 2025, 2024 and 2023, the Company has recorded unrealized gains (losses) of ($78), $132 and ($433), respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain (loss). The Company did not recognize any unrealized gains or losses during 2025, 2024 and 2023 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.
 
The maximum term over which the Company is hedging its exposure to the variability of future cash flows is approximately 18 years for forecasted hedge transactions. At December 31, 2025 and 2024, 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, 2025 and 2024, the Company has no accumulated deferred gains 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.
 
62
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Summary of realized gains (losses) by derivative type for the years ended December 31, 2025, 2024 and 2023:
 
    
2025
    
2024
    
2023
 
Options:
              
Calls
 $(110)   $5   $13 
Puts
  (4)    1    (1) 
Total options
 $(114)   $6   $12 
Swaps:
              
Interest rate
 $ —    $(6)   $ —  
Credit
  3     —      —  
Foreign exchange
  8     —      —  
Total return
  (788)    (1,570)    (1,092) 
Total swaps
 $(777)   $(1,576)   $(1,092) 
Futures - net positions
  753    442    41 
Total realized gains (losses)
 $(138)   $(1,128)   $(1,039) 
 
The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2025 and 2024:
 
                     
 
Asset(1)
Liability(1)
    
2025
    
2024
    
2025
    
2024
 
Derivative component of RSATs
                   
Credit default swaps
 $47   $63   $(4)   $(5) 
Interest rate swaps
  10    8     —      —  
(1) Asset and liability classification is based on the positive (asset) or negative
(liability) book/adjusted carrying value (BACV) of each derivative.
 
63
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2025 and 2024:
 
                     
 
Asset(1)
Liability(1)
    
2025
    
2024
    
2025
    
2024
 
Derivative component of RSATs
                   
Credit default swaps
 $34   $59   $3   $4 
Interest rate swaps
  11    9     —      —  
Total
 $45   $68   $3   $4 
(1) Asset and liability classification is based on the positive (asset) or negative
(liability) BACV of each derivative.
 
The Company did not have net realized gains (losses) on derivatives held for other than hedging purposes for the years ended December 31, 2025, 2024 and 2023.
 
As stated in Note 2, the Company replicates investment grade corporate bonds, sovereign debt, and commercial mortgage backed securities by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.
 
64
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2025 and 2024:
 
                     
      
2025
Rating Agency Designation of Referenced Credit Obligations (1)
  
NAIC Designation
    
Estimated Fair Value of Credit Default Swaps
    
Maximum Amount of Future Payments under Credit Default Swaps
    
Weighted Average Years to Maturity (2)
 
AAA/AA/A
  1                
Single name credit default swaps(3)
      $8   $591    2.0 
Credit default swaps referencing indices
        —     32    39.4 
Subtotal
       8    623    3.9 
BBB
  2                
Single name credit default swaps(3)
       20    598    2.1 
Credit default swaps referencing indices
       10    629    2.1 
Subtotal
       30    1,227    2.1 
Total
      $38   $1,850    2.7 
 
(1)
The rating agency designations are based on availability and the blending of the applicable ratings among Moody's Investors Service, S&P, and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.
(2)
The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
(3)
Includes corporate, foreign government and state entities.
 
65
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                     
      
2024
Rating Agency Designation of Referenced Credit Obligations
  
NAIC Designation
    
Estimated Fair Value of Credit Default Swaps
    
Maximum Amount of Future Payments under Credit Default Swaps
    
Weighted Average Years to Maturity(2)
 
AAA/AA/A
  1                
Single name credit default swaps(3)
      $12   $978    2.2 
Credit default swaps referencing indices
        —     32    40.4 
Subtotal
       12    1,010    3.4 
BBB
  2                
Single name credit default swaps (3)
       35    1,461    1.9 
Credit default swaps referencing indices
       16    992    2.6 
Subtotal
       51    2,453    2.2 
BB
  3                
Single name credit default swaps (3)
        —     85    0.9 
Subtotal
        —     85    0.9 
Total
      $63   $3,548    2.5 
(1)
The rating agency designations are based on availability and the blending of the applicable ratings among Moody's Investors Service, S&P, and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.
(2)
The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
(3)
Includes corporate, foreign government and state entities.
 
The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2025 and 2024, there were not any potential future recoveries available to offset the $1,850 and $3,548, respectively, from the table above.
66
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:
 
                     
 
Contract or Notional Amount*
Fair Value
    
2025
    
2024
    
2025
    
2024
 
Derivative assets:
                   
Credit default swaps
 $1,530   $3,343   $34   $62 
Currency swaps
  520    905    66    110 
Equity futures
   —      —     3    2 
Equity swaps
  2,801    3,770    43    120 
Interest rate swaps
  1,594    1,367    24    29 
Options
  317    314    75    63 
Derivative liabilities:
                   
Credit default swaps
  609    715     —     (2) 
Currency swaps
  826    135    9    1 
Equity futures
   —      —     44    13 
Equity swaps
  4,233    2,494    102    37 
Interest rate swaps
  7,754    6,719    986    1,101 
Options
  (1,079)    (597)    19    5 
 
*Futures are presented in contract format. Swaps and options are presented in notional format.
 
Derivatives Hedging Variable Annuity Guarantees
 
The hedged obligation consists of guaranteed benefits on variable annuity contracts and resembles a long dated put option where claim payment is made whenever account value is less than a guaranteed amount, adjusted for applicable fees. Changes in interest rates impact the present value of future product cash flows (discount rate) as well as the value of investments comprising the account value to be assessed against the guarantee. Under this VM-21 compliant clearly defined hedging strategy, interest rate risk may be hedged by a duration matched portfolio of interest sensitive derivatives such as treasury bond forwards, treasury futures, interest rate swaps, interest rate swaptions or treasury future options. With approval of the IID, the guaranteed benefits included are variable annuity contracts with Guaranteed Minimum Death Benefit and Guaranteed Minimum Income Benefit riders, excluding contracts assumed via reinsurance. Total return on the designated portfolio of derivatives remains highly effective in covering the interest rate risk of the hedged obligation. Hedge effectiveness is measured in accordance with the requirements outlined under SSAP No. 108 and entails assessment of the total return on the designated portfolio of derivatives against changes in the fair value of the hedged obligation due to interest rate movements on a cumulative basis.
 
67
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Scheduled amortization for SSAP No. 108 derivatives as of December 31, 2025 is as follows:
 
Amortization Year
  
Deferred Assets
    
Deferred Liabilities
 
2026
 $(137)   $51 
2027
  (137)    51 
2028
  (137)    51 
2029
  (137)    51 
2030
  (137)    51 
2031
  (137)    51 
2032
  (117)    51 
2033
  (89)    46 
2034
  (55)    32 
2035
  (3)    5 
Total
 $(1,086)   $440 
 
The following table is a reconciliation of the total deferred balance (net of tax) of SSAP No. 108 derivatives:
 
    
Total Deferred Balance
 
1.  Balance at January 1, 2024
 $445 
2.  Amortization
  63 
3.  Deferred Recognition
  (501) 
4.  Balance at December 31, 2024 [1-(2+3)]
 $883 
5.  Amortization
  88 
6.  Deferred Recognition
  149 
7.  Balance at December 31, 2025 [4-(5+6)]
 $646 
 
The following tables provide information regarding SSAP No. 108 hedging instruments:
 
    
2025
    
2024
 
Amortized cost
 $ —    $(3) 
Fair value
  (78)    (672) 
 
68
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
December 31, 2025
                   
    
Net Investment Income
    
Realized Gain (Loss)
    
Unrealized Gain (Loss)
    
Total*
 
Derivative performance
 $(9)   $(467)   $591   $115 
                     
SSAP No. 108 Adjustments
                   
Portion of the derivative performance attributed to natural offset
  7    83    (16)    74 
Deferred
  2    384    (575)    (189) 
*Totals shown are pre-tax
                   
 
December 31, 2024
                   
    
Net Investment Income
    
Realized Gain (Loss)
    
Unrealized Gain (Loss)
    
Total*
 
Derivative performance
 $(1)   $409   $(1,524)   $(1,116) 
                     
SSAP No. 108 Adjustments
                   
Portion of the derivative performance attributed to natural offset
  15    (148)    615    482 
Deferred
  (14)    (261)    909    634 
*Totals shown are pre-tax
                   
 
           
 
Year Ended December 31
    
2025
    
2024
 
Prior year fair value of hedged item
 $1,663   $630 
Current year fair value of hedged item
  1,538    1,663 
Change in fair value attributable to interest rates
 $(125)   $1,033 
Portion of the fair value change attributed to the hedged risk
 $(124)   $1,032 
 
69
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Restricted Assets
 
The following tables show the pledged or restricted assets as of December 31, 2025 and 2024, respectively:
 
                          
 
Gross (Admitted & Nonadmitted) Restricted
 
2025
         
G/A Supporting
                
         
Separate
    
Total S/A
    
S/A Assets
      
    
Total General
    
Account (S/A)
    
Restricted
    
Supporting
      
Restricted Asset Category
  
Account (G/A)
    
Activity
    
Assets
    
G/A Activity
    
Total
 
Collateral held under security lending agreements
 $1,657   $ —    $ —    $ —    $1,657 
Subject to repurchase agreements
  296     —      —      —     296 
FHLB capital stock
  39     —      —      —     39 
On deposit with states
  57     —      —      —     57 
Pledged as collateral to FHLB (including assets backing funding agreements)
  3,909     —      —      —     3,909 
Pledged as collateral not captured in other categories
  2,585     —      —      —     2,585 
Other restricted assets
  5,918     —      —      —     5,918 
Collateral assets received and on balance sheet
  78     —      —      —     78 
Assets held under modco reinsurance agreements
  132     —      —      —     132 
Assets held under funds withheld reinsurance agreements
  4,877     —      —      —     4,877 
Total restricted assets
 $19,548   $ —    $ —    $ —    $19,548 
 
70
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Gross (Admitted & Nonadmitted) Restricted Percentage
                        Gross      
                        (Admitted &    Admitted 
                        Nonadmitted)    Restricted to 
    Total From         Total    Total    Restricted    Total 
    Prior Year    Increase/    Nonadmitted    Admitted    to Total    Admitted 
Restricted Asset Category   (2024)    (Decrease)    Restricted    Restricted    Assets    Assets 
Collateral held under security lending agreements  $1,667   $(10)   $ —    $1,657    0.89%   0.90%
Subject to repurchase agreements   306    (10)    —     296    0.16%   0.16%
FHLB capital stock   77    (38)    —     39    0.02%   0.02%
On deposit with states   57    —     —     57    0.03%   0.03%
Pledged as collateral to FHLB (including assets backing funding agreements)   3,956    (47)    —     3,909    2.11%   2.13%
Pledged as collateral not captured in other categories   3,085    (500)    —     2,585    1.39%   1.41%
Other restricted assets   7,920    (2,002)    —     5,918    3.19%   3.22%
Collateral assets received and on balance sheet   —     78    —     78    0.04%   0.04%
Assets held under modco reinsurance agreements   —     132    —     132    0.07%   0.07%
Assets held under funds withheld reinsurance agreements   —     4,877    —     4,877    2.63%   2.65%
Total restricted assets  $17,068   $2,480   $ —    $19,548    10.53%   10.63%
 
The amounts reported as other restricted assets in the table above represent assets held in trust related to reinsurance.
 
71
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables show the pledged or restricted assets in other categories as of December 31, 2025 and 2024, respectively:
 
                          
 
Gross (Admitted & Nonadmitted) Restricted
 
2025
              
Total S/A
    
S/A Assets
      
         
G/A Supporting
    
Restricted
    
Supporting G/A
      
Description of Assets
  
Total G/A
    
S/A Activity (a)
    
Assets
    
Activity (b)
    
Total
 
Derivatives
 $2,495   $ —    $ —    $ —    $2,495 
Secured funding agreements
  58     —      —      —     58 
AMBAC
  32     —      —      —     32 
Total
 $2,585   $ —    $ —    $ —    $2,585 
Amount of total pledged under derivative contracts
  2,495                   2,495 
Total excluding derivative collateral (total minus amount of total pledged under derivative contracts)
 $90   $ —    $ —    $ —    $90 
 
  Gross (Admitted & Nonadmitted) Restricted Percentage
                   Gross      
                   (Admitted &    Admitted 
                   Nonadmitted)    Restricted to 
    Total From Prior         Total    Restricted    Total 
    Year    Increase/    Admitted    to Total    Admitted 
Description of Assets   (2024)    (Decrease)    Restricted    Assets    Assets 
Derivatives  $3,052   $(557)   $2,495    1.35%   1.36%
Secured funding agreements   1    57    58    0.03%   0.03%
AMBAC   32    —     32    0.02%   0.02%
Total  $3,085   $(500)   $2,585    1.40%   1.41%
Amount of total pledged under derivative contracts   —     2,495    2,495    1.35%   1.36%
Total excluding derivative collateral (total minus amount of total pledged under derivative contracts)  $3,085   $(2,995)   $90    0.05%   0.05%
 
 
72
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2025 and 2024:
 
                          
 
2025
    
BACV
    
BACV
    
BACV
    
Fair Value
    
Fair Value
 
Collateral Assets
  
Collateral
    
Modco
    
FWH
    
Collateral
    
Modco
 
General Account
                        
Cash
 $78   $52   $67   $78   $52 
Securities lending collateral assets
  1,657     —      —     1,657     —  
Other
   —     81    4,809     —     78 
Total collateral assets
 $1,735   $133   $4,876   $1,735   $130 
 
  2025
         % of BACV to           
         Total Assets    % of BACV to    BACV 
    Fair Value    (Admitted and    Total Admitted    FWH Including 
Collateral Assets   FWH    Nonadmitted)    Assets    Modco 
General Account                    
Cash  $67    0.26%   0.27%  $119 
Securities lending collateral assets   —     2.19%   2.23%   —  
Other   4,544    6.45%   6.59%   4,890 
Total collateral assets  $4,611    8.90%   9.09%  $5,009 
 
         
    Amount    % of Liability to Total Liabilities 
Recognized obligation to return collateral asset  $1,763    2.53%
 
  2024
Collateral Assets   Carrying Value    Fair Value    % of CV to Total Assets (Admitted and Nonadmitted)    % of CV to Total Admitted Assets 
Cash  $94   $94    0.12%   0.12%
Securities lending collateral assets   1,667    1,667    2.16    2.2 
Other   2    2    —     —  
Total collateral assets  $1,763   $1,763    2.28%   2.32%
 
    Amount    % of Liability to Total Liabilities 
Recognized obligation to return collateral asset  $1,763    2.53%
73
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Net Investment Income
 
Detail of net investment income is presented below:
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
Income:
              
Bonds
 $2,404   $2,235   $2,170 
Preferred stocks
  3    4    5 
Common stocks
  271    481    392 
Mortgage loans on real estate
  385    384    383 
Real estate
  9    9    9 
Policy loans
  114    112    110 
Cash, cash equivalents and short-term investments
  56    113    95 
Derivatives
  392    421    403 
Other invested assets
  144    177    200 
Gross investment income
  3,778    3,936    3,767 
Less: investment expenses
  177    180    198 
Net investment income before amortization of IMR
  3,601    3,756    3,569 
Amortization of IMR
  (12)    (13)    28 
Net investment income
 $3,589   $3,743   $3,597 
 
At December 31, 2025 and 2024, the Company excluded investment income due and accrued of $2 and $5, respectively. There was $2 and $0 excluded for mortgage loans or real estate for 2025 and 2024.
 
The gross, nonadmitted and admitted amounts for interest income due and accrued are presented in the following table:
 
           
 
Year Ended December 31
    
2025
    
2024
 
Gross
 $615   $674 
Nonadmitted
 $2   $5 
Admitted
 $613   $669 
 
At December 31, 2025 and 2024, the Company had cumulative amounts for paid-in-kind interest of $25 and $1, respectively, included in the principle balance.
 
74
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Realized Capital Gains (Losses)
 
Net realized capital gains (losses) on investments, including OTTI, are summarized below:
 
                
 
Realized
 
Year Ended December 31
    
2025
    
2024
    
2023
 
                
Bonds
 $(440)   $(101)   $(669) 
Preferred stocks
  1    1     —  
Common stocks
  2    2    (8) 
Mortgage loans on real estate
  (19)    (21)    (1) 
Cash, cash equivalents and short-term investments
   —      —     (1) 
Derivatives
  (566)    (1,471)    (2,043) 
Variable annuity reserve hedge offset
   —      —     (44) 
Other invested assets
  17    46    27 
Net realized capital gains (losses), before taxes
  (1,005)    (1,544)    (2,739) 
Federal income tax effect
  4     —     106 
Transfer from (to) IMR
  426    105    634 
Net realized capital gains (losses) on investments
 $(575)   $(1,439)   $(1,999) 
 
75
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Unrealized Capital Gains (Losses)
 
The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses were as follows:
 
                
 
Change in Unrealized
 
Year Ended December 31
    
2025
    
2024
    
2023
 
                
Bonds
 $(30)   $42   $10 
Preferred stocks
  (1)     —     1 
Common stocks
  13    (6)    1 
Affiliated entities
  (157)    (260)    443 
Mortgage loans on real estate
  15    (15)     —  
Cash equivalents and short-term investments
  (2)     —      —  
Derivatives
  223    268    600 
Other invested assets
  (107)    (104)    327 
Change in unrealized capital gains (losses), before taxes
  (46)    (75)    1,382 
Taxes on unrealized capital gains (losses)
  (1)    13    (98) 
Change in unrealized capital gains (losses), net of tax*
 $(47)   $(62)   $1,284 
 
*2024 variance to Statement of Changes in Capital and Surplus related to an immaterial prior period correction included within the "Other changes - net" line.
 
76
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Admitted Disallowed IMR
 
The Company has admitted net negative (disallowed) IMR in accordance with the following criteria:
 
A.
Fixed income investments generating IMR losses comply with the reporting entity’s documented investment or liability management policies.
B.
IMR losses for fixed income related derivatives are all in accordance with prudent and documented risk management procedures, in accordance with a reporting entity’s derivative use plans and reflect symmetry with historical treatment in which unrealized derivative gains were reversed to IMR and amortized in lieu of being recognized as realized gains upon derivative termination.
C.
Any deviation to (a) was either because of a temporary and transitory timing issue or related to a specific event, such as a reinsurance transaction, that mechanically made the cause of IMR losses not reflective of reinvestment activities.
D.
Asset sales that were generating admitted negative IMR were not compelled by liquidity pressures (e.g., to fund significant cash outflows including, but not limited to excess withdrawals and collateral calls).
 
The aggregate net negative (disallowed) IMR allocation is presented in the following table for the years ended December 31, 2025 and 2024:
 
    
Total
    
General Account
    
Insulated Separate Account
    
Non-Insulated Separate Account
 
2025
 $347   $347   $ —    $ —  
2024
  149    149     —      —  
 
The allocation of the admitted negative (disallowed) IMR is presented in the following table for the years ended December 31, 2025 and 2024:
 
    
Total
    
General Account
    
Insulated Separate Account
    
Non-Insulated Separate Account
 
2025
 $347   $347   $ —    $ —  
2024
  133    133     —      —  
 
77
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The calculation of adjusted capital and surplus with consideration of the negative (disallowed) IMR is presented in the following table for the years ended December 31, 2025 and 2024:
 
    
2025
    
2024
 
Prior period, as of September 30, the most recent statement filed with the IID, general account capital and surplus
 $5,647   $5,912 
From prior period SAP financials:
         
Net positive goodwill (admitted)
   —      —  
EDP equipment & operating system software (admitted)
   —      —  
Net DTAs (admitted)
  741    800 
Net negative (disallowed) IMR (admitted)
  238    114 
Adjusted capital and surplus
 $4,668   $4,998 
 
The admitted net negative (disallowed) IMR represents 7.43% and 2.66% of adjusted capital and surplus for 2025 and 2024.
 
The Company did not have gains/losses associated with derivatives sold allocated to IMR during 2025 and 2024.
 
6.
Policy and Contract Attributes
 
Insurance Liabilities
 
Policy reserves, deposit-type contracts and policy claims at December 31, 2025 and 2024 were as follows:
 
           
 
Year Ended December 31
    
2025
    
2024
 
           
Life insurance reserves
 $30,386   $35,987 
Annuity reserves and supplementary contracts with life contingencies
  16,839    14,816 
Accident and health reserves (including long term care)
  7,184    7,252 
Total policy reserves
 $54,409   $58,055 
           
Deposit-type contracts
  671    693 
Policy claims
  919    1,048 
Total policy reserves, deposit-type contracts and claim liabilities
 $55,999   $59,796 
 
78
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Life Insurance Reserves
 
The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 Commissioner's Standard Ordinary Mortality Tables, the 1912, 1941 and 1961 Standard Industrial Mortality Tables, the 1960 Commissioner's Standard Group Mortality Table, the American Men, Actuaries and American Experience Mortality Tables. The reserves are calculated using interest rates ranging from 0.75 to 6.50 percent and are computed principally on the Net Level Premium Valuation and the Commissioner's Reserve Valuation Method. Reserves for universal life policies are based on account balances adjusted for the Commissioner's Reserve Valuation Method or Actuarial Guideline XXXVIII. Term insurance issued after July 1, 2017 and Indexed Universal life Insurance issued after January 1, 2020 follow Valuation Manual section 20 (VM-20) reserve requirements.
 
Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.
 
The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death.
 
Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, reserves are determined by computing the regular reserve for the plan at the true age and holding, in addition, the unearned portion of the extra premium charge for the year. Effective July 1, 2017, for substandard term insurance policies, per VM-20 requirements, the substandard rating is applied to the reserve mortality. For certain flexible premium and fixed premium universal life insurance products, reserves are calculated utilizing the Commissioner's Reserve Valuation Method for universal life policies and recognizing any substandard ratings.
 
As of December 31, 2025 and 2024, the Company had insurance in force aggregating $26,514 and $31,676, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the IID. The Company established policy reserves of $1,272 and $2,055 to cover these deficiencies as of December 31, 2025 and 2024, respectively.
 
Participating life insurance policies were issued by the Company in prior years which entitle policyholders to a share in the earnings of the participating policies, provided that a dividend distribution, which is determined annually based on mortality and persistency experience of the participating policies, is authorized by the Company. Participating insurance constituted less than 0.05% of ordinary life insurance in force at December 31, 2025 and 2024.
 
79
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Annuity Reserves and Supplementary Contracts Involving Life Contingencies
 
Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest.
 
Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 1.25 to 11.75 percent and mortality rates, where appropriate, from a variety of tables.
 
Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.
 
For variable annuities with guaranteed living benefits and variable annuities with minimum guaranteed death benefits the Company complies with VM-21. VM-21 specifies statutory reserve requirements for variable annuity contracts with benefit guarantees (VACARVM) and without benefit guarantees and related products. The VM-21 reserve calculation covers all variable annuity products. Examples of covered guaranteed benefits include guaranteed minimum accumulation benefits, return of premium death benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The aggregate reserve for contracts falling within the scope of VM-21 is equal to the stochastic reserves plus the additional standard projection amount. The Company establishes a voluntary reserve in addition to the reserve required under VM-21 to help manage volatility associated with unhedged base contract cashflows. The VA voluntary reserve totaled $125 and $0 as of December 31, 2025 and 2024, respectively.
 
Both the stochastic reserves and the standard projection are determined as the conditional tail expectation (CTE)-70 of the scenario reserves. To determine the CTE-70 values, the Company used 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and Society of Actuaries. The stochastic reserves uses prudent estimate assumptions based on Company experience, while the standard projection uses the assumptions prescribed in VM-21 for determining the additional standard projection amount.
 
Accident and Health Liabilities
 
Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.
80
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the Company had no premium deficiency reserve related to accident and health policies.
 
The Company’s primary method utilized to estimate premium adjustments for contracts subject to redetermination is to review experience periodically and to adjust premiums for differences between the experience anticipated at the time of redetermination and that underlying the original premiums. The Company has not limited its degree of discretion contractually; however, in some states it has agreed not to raise premiums in order to recoup past losses. The Company forgoes premium changes on existing policies at its option if the administrative cost and other business issues associated with the change outweigh the direct financial impact of the change. Also, the Company has extra-contractually guaranteed the current premium scale for certain policies.
 
For indeterminate premium products, a full schedule of current and anticipated premium rates is developed at the point of issue. Premium rate adjustments are considered when anticipated future experience foretells deviations from the original profit standards. The source of deviation (mortality, persistency, expense, etc.) is an important consideration in the re-rating decision as well as the potential effect of a rate change on the future experience of the existing block of business.
 
The Company does not write any accident and health business that is subject to the Affordable Care Act risk sharing provisions.
 
Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. Unpaid claims include amounts for losses and related adjustment expenses and are estimates of the ultimate net costs of all losses, reported and unreported. These estimates are subject to the impact of future changes in claim severity, frequency and other factors.
 
81
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:
 
    
Unpaid Claims Liability Beginning of Year
    
Claims
Incurred
    
Claims
Paid
    
Unpaid Claims Liability End of Year
 
Year ended December 31, 2025
                   
2025
 $ —    $1,249   $508   $741 
2024 and prior
  2,176    (92)    687    1,397 
    2,176   $1,157   $1,195    2,138 
Active life reserve
 $5,476             $5,414 
Total accident and health reserves
 $7,652             $7,552 
                     
    
Unpaid Claims Liability Beginning of Year
    
Claims
Incurred
    
Claims
Paid
    
Unpaid Claims Liability End of Year
 
Year ended December 31, 2024
                   
2024
 $ —    $1,233   $470   $763 
2023 and prior
  2,000    54    641    1,413 
    2,000   $1,287   $1,111    2,176 
Active life reserve
 $5,508             $5,476 
Total accident and health reserves
 $7,508             $7,652 
 
The change in the Company's unpaid claims reserve was ($92) and $54 for the years ended December 31, 2025 and 2024, respectively, for health claims that were incurred prior to those Balance Sheets date. The change in 2025 was due to the closed block Supplemental Health portions running off and reducing reserves. The change in 2024 was due to worse than expected experience primarily due to higher medical claims.
 
82
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Activity in the liability for unpaid claims adjustment expense is summarized as follows:
 
    
Liability Beginning of Year
    
Incurred
    
Paid
    
Liability End of Year
 
Year ended December 31, 2025
                   
2025
 $ —    $36   $19   $17 
2024 and prior
  44    (10)    1    33 
   $44   $26   $20   $50 
                     
Year ended December 31, 2024
                   
2024
 $ —    $38   $22   $16 
2023 and prior
  42    (12)    2    28 
   $42   $26   $24   $44 
 
There was no significant change in the claim adjustment expense provision for insured events of prior years during 2025.
 
Premium and Annuity Considerations Deferred and Uncollected
 
Reserves on the Company's traditional life insurance products are computed using mean and interpolated or mid-terminal reserving methodologies. The mean 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. The interpolated methodologies do not require the establishment of such assets, however, it is required to hold unearned premium liabilities. At December 31, 2025 and 2024, the gross premiums and net of loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:
 
                     
 
2025
2024
    
Gross
    
Net of Loading
    
Gross
    
Net of Loading
 
Life and annuity:
                   
Ordinary first-year business
 $2   $ —    $1   $ —  
Ordinary renewal business
  12    11    24    19 
Group life direct business
  1    1    10    6 
   $15   $12   $35   $25 
 
83
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Deposit-type Contracts
 
Tabular interest on funds not involving life contingencies has been determined primarily by formula.
 
The Company issues certain funding agreements with well-defined class-based annuity purchase rates defining either specific or maximum purchase rate guarantees. However, these funding agreements are not issued to or for the benefit of an identifiable individual or group of individuals. These contracts are classified as deposit-type contracts in accordance with SSAP No. 50.
 
Included in the liability for deposit-type contracts at December 31, 2025 and 2024 are approximately $12 and $10, 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 the principal and interest for these funding agreements are afforded equal priority as other policyholders. As of December 31, 2025 and 2024, there were no contractual maturities.
 
84
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Withdrawal Characteristics of Annuity Reserves and Deposit Funds
 
A portion of the Company's policy reserves and other policyholders' funds (including separate account liabilities) relates to liabilities established on a variety of the Company's annuity, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on annuity and deposit fund products, by withdrawal characteristics, is summarized as follows:
 
                           
 
December 31
 
2025
Individual Annuities:
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $212   $5,093   $ —    $5,305    7 %
At book value less surrender charge
                         
of 5% or more
  902     —      —     902    1  
At fair value
  5     —     58,930    58,935    82  
Total with adjustment or at fair value
  1,119    5,093    58,930    65,142    90  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  5,504     —      —     5,504    8  
Not subject to discretionary withdrawal
                         
provision
  1,089     —     632    1,721    2  
Total individual annuity reserves
  7,712    5,093    59,562    72,367    100 %
Less reinsurance ceded
  4,593     —      —     4,593       
Net individual annuities reserves
 $3,119   $5,093   $59,562   $67,774       
Amount included in book value
                         
less surrender charge above that
                         
will move to book value without
                         
adjustment in the year after the
                         
statement date
 $196   $ —    $ —    $196       
 
85
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                           
 
December 31
 
2025
Group Annuities:
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $5,615   $8   $ —    $5,623    11 %
At book value less surrender charge
                         
of 5% or more
  15     —      —     15     —    
At fair value
   —      —     32,153    32,153    63  
Total with adjustment or at fair value
  5,630    8    32,153    37,791    74  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  2,146     —      —     2,146    4  
Not subject to discretionary withdrawal
                         
provision
  11,070     —     74    11,144    22  
Total group annuities reserves
  18,846    8    32,227    51,081    100 %
Less reinsurance ceded
  5,251     —      —     5,251       
Net group annuities reserves
 $13,595   $8   $32,227   $45,830       
 
                           
 
December 31
 
2025
Deposit-type contracts (no life contingencies):
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $ —    $ —    $ —    $ —     0 %
Total with adjustment or at fair value
   —      —      —      —     0  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  198     —      —     198    25  
Not subject to discretionary withdrawal
                         
provision
  477    99    20    596    75  
Total deposit-type contracts
  675    99    20    794    100 %
Less reinsurance ceded
  4     —      —     4       
Net deposit-type contracts
 $671   $99   $20   $790       
 
86
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Reconciliation to the Annual Statement:
  
Amount
 
Life & Accident & Health Annual Statement:
    
Exhibit 5, Annuities section, total (net)
 $15,737 
Exhibit 5, Supp contracts with life contingencies section, total (net)
  977 
Exhibit 7, Deposit-type contracts, net balance at the end of the
    
                 current year after reinsurance
  671 
Subtotal
  17,385 
Separate Accounts Annual Statement:
    
Exhibit 3, Annuities section, total
  96,227 
Exhibit 3, Supp contracts with life contingencies section, total
  663 
Other contract deposit funds
  119 
Subtotal
  97,009 
Combined total
 $114,394 
 
                           
 
December 31
 
2024
Individual Annuities:
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $286   $2,208   $ —    $2,494    4 %
At book value less surrender charge
                         
of 5% or more
  880     —      —     880    1  
At fair value
  6     —     58,835    58,841    84  
Total with adjustment or at fair value
  1,172    2,208    58,835    62,215    89  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  6,024     —      —     6,024    9  
Not subject to discretionary withdrawal
                         
provision
  1,043     —     569    1,612    2  
Total individual annuity reserves
  8,239    2,208    59,404    69,851    100 %
Less reinsurance ceded
  5,303     —      —     5,303       
Net individual annuity reserves
 $2,936   $2,208   $59,404   $64,548       
Amount included in book value
                         
less surrender charge above that
                         
will move to book value without
                         
adjustment in the year after the
                         
statement date
 $160   $ —    $ —    $160       
 
87
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                           
 
December 31
 
2024
Group Annuities:
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $4,842   $10   $ —    $4,852    12 %
At book value less surrender charge
                         
of 5% or more
  17     —      —     17     —    
At fair value
   —      —     29,901    29,901    70  
Total with adjustment or at fair value
  4,859    10    29,901    34,770    82  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  2,299     —      —     2,299    5  
Not subject to discretionary withdrawal
                         
provision
  5,516     —     68    5,584    13  
Total group annuity reserves
  12,674    10    29,969    42,653    100 %
Less reinsurance ceded
  794     —      —     794       
Net group annuity reserves
 $11,880   $10   $29,969   $41,859       
 
                           
 
December 31
 
2024
Deposit-type contracts (no life contingencies):
  
General Account
    
Separate Account with Guarantees
    
Separate Account Non-Guaranteed
    
Total
 
Percent
Subject to discretionary withdrawal
                         
with adjustment:
                         
With fair value adjustment
 $ —    $ —    $ —    $ —     0 %
Total with adjustment or at fair value
   —      —      —      —     0  
At book value without adjustment
                         
(minimal or no charge or adjustment)
  207     —      —     207    26  
Not subject to discretionary withdrawal
                         
provision
  492    87    18    597    74  
Total deposit-type contracts
  699    87    18    804    100 %
Less reinsurance ceded
  6     —      —     6       
Net deposit-type contracts
 $693   $87   $18   $798       
 
88
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Reconciliation to the Annual Statement:
  
Amount
 
Life & Accident & Health Annual Statement:
    
Exhibit 5, Annuities section, total (net)
 $13,876 
Exhibit 5, Supp contracts with life contingencies section, total (net)
  940 
Exhibit 7, Deposit-type contracts, net balance at the end of the
    
current year after reinsurance
  693 
Subtotal
  15,509 
Separate Accounts Annual Statement:
    
Exhibit 3, Annuities section, total
  90,994 
Exhibit 3, Supp contracts with life contingencies section, total
  597 
Other contract deposit funds
  105 
Subtotal
  91,696 
Combined total
 $107,205 
 
The amount of reserves on life products, by withdrawal characteristics, is summarized as follows:
 
                
 
December 31
 
2025
 
General Account
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Term policies with cash value
 $ —    $314   $434 
Universal life
  12,317    12,120    12,536 
Universal life with secondary guarantees
  5,610    5,190    13,523 
Indexed universal life with secondary
              
guarantees
  10,848    7,833    9,006 
Other permanent cash value life
              
insurance
  2    4,816    7,169 
Variable universal life
  954    953    1,039 
Not subject to discretionary withdrawal
              
or no cash values
              
Term policies without cash value
   —      —     7,988 
Accidental death benefits
   —      —     44 
Disability - active lives
   —      —     37 
Disability - disabled lives
   —      —     162 
Miscellaneous reserves
   —      —     1,381 
Total (gross)
  29,731    31,226    53,319 
Reinsurance ceded
  6,967    6,809    22,933 
Total (net)
 $22,764   $24,417   $30,386 
 
89
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                
 
December 31
 
2025
 
Separate Account - Guaranteed
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Variable universal life
 $699   $699   $699 
Total (net)
 $699   $699   $699 
 
                
 
December 31
 
2025
 
Separate Account - Nonguaranteed
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Variable universal life
 $11,024   $11,023   $11,023 
Total (net)
 $11,024   $11,023   $11,023 
 
90
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Reconciliation to the Annual Statement:
  
Amount
 
Life & Accident & Health Annual Statement:
    
Exhibit 5, Life insurance section, total (net)
 $29,686 
Exhibit 5, Accidental death benefits section total (net)
  26 
Exhibit 5, Disability - active lives section, total (net)
  19 
Exhibit 5, Disability - disabled lives section, total (net)
  141 
Exhibit 5, Miscellaneous reserves section, total (net)
  514 
Subtotal
  30,386 
Separate Accounts Annual Statement:
    
Exhibit 3, Life insurance section, total
  11,722 
Subtotal
  11,722 
Combined total
 $42,108 
 
                
 
December 31
 
2024
 
General Account
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Term policies with cash value
 $ —    $296   $430 
Universal life
  12,610    12,060    14,295 
Universal life with secondary guarantees
  5,479    5,360    16,322 
Indexed universal life with secondary
              
guarantees
  9,239    6,513    7,572 
Other permanent cash value life
              
insurance
  2    4,797    7,142 
Variable universal life
  709    708    1,025 
Not subject to discretionary withdrawal
              
or no cash values
              
Term policies without cash value
   —      —     8,007 
Accidental death benefits
   —      —     46 
Disability - active lives
   —      —     36 
Disability - disabled lives
   —      —     159 
Miscellaneous reserves
   —      —     2,155 
Total (gross)
  28,039    29,734    57,189 
Reinsurance ceded
  5,048    4,909    21,202 
Total (net)
 $22,991   $24,825   $35,987 
 
91
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                
 
December 31
 
2024
 
Separate Account - Guaranteed
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Variable universal life
 $690   $690   $690 
Total (net)
 $690   $690   $690 
 
92
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                
 
December 31
 
2024
 
Separate Account - Nonguaranteed
    
Account Value
    
Cash Value
    
Reserve
 
Subject to discretionary withdrawal,
              
surrender values, or policy loans:
              
Variable universal life
 $8,906   $8,904   $10,198 
Total (net)
 $8,906   $8,904   $10,198 
 
Reconciliation to the Annual Statement:
  
Amount
 
Life & Accident & Health Annual Statement:
    
Exhibit 5, Life insurance section, total (net)
 $34,633 
Exhibit 5, Accidental death benefits section total (net)
  25 
Exhibit 5, Disability - active lives section, total (net)
  17 
Exhibit 5, Disability - disabled lives section, total (net)
  136 
Exhibit 5, Miscellaneous reserves section, total (net)
  1,176 
Subtotal
  35,987 
Separate Accounts Annual Statement:
    
Exhibit 3, Life insurance section, total
  10,888 
Subtotal
  10,888 
Combined total
 $46,875 
 
93
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Separate Accounts
 
Information regarding the separate accounts of the Company as of and for the years ended December 31, 2025, 2024 and 2023 is as follows:
 
         
Nonindexed
    
Nonindexed
           
         
Guarantee
    
Guarantee
    
Nonguaranteed
      
    
Guaranteed
    
Less Than or
    
Greater
    
Separate
      
    
Indexed
    
Equal to 4%
    
Than 4%
    
Accounts
    
Total
 
Premiums, deposits and other
                        
considerations for the year
                        
ended December 31, 2025
 $ —    $ —    $10   $6,601   $6,611 
                          
Reserves for separate accounts
                        
as of December 31, 2025 with
                        
assets at:
                        
Fair value
 $ —    $111   $ —    $102,832   $102,943 
Amortized cost
  5,089    699     —      —     5,788 
Total as of December 31, 2025
 $5,089   $810   $ —    $102,832   $108,731 
                          
Reserves for separate accounts by
                        
withdrawal characteristics as of
                        
December 31, 2025:
                        
With fair value adjustment
 $5,089   $12   $ —    $ —    $5,101 
At fair value
   —      —      —     102,106    102,106 
At book value without fair
                        
value adjustment and with
                        
current surrender charge of
                        
less than 5%
   —     699     —      —     699 
Subtotal
  5,089    711     —     102,106    107,906 
Not subject to discretionary
                        
withdrawal
   —     99     —     726    825 
Total separate account reserve
                        
liabilities at December 31, 2025
 $5,089   $810   $ —    $102,832   $108,731 
 
94
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
         
Nonindexed
    
Nonindexed
           
         
Guarantee
    
Guarantee
    
Nonguaranteed
      
    
Guaranteed
    
Less Than or
    
Greater
    
Separate
      
    
Indexed
    
Equal to 4%
    
Than 4%
    
Accounts
    
Total
 
Premiums, deposits and other
                        
considerations for the year
                        
ended December 31, 2024
 $ —    $ —    $10   $7,999   $8,009 
                          
Reserves for separate accounts
                        
as of December 31, 2024 with
                        
assets at:
                        
Fair value
 $ —    $100   $ —    $99,374   $99,474 
Amortized cost
  2,419    690     —      —     3,109 
Total as of December 31, 2024
 $2,419   $790   $ —    $99,374   $102,583 
                          
Reserves for separate accounts by
                        
withdrawal characteristics as of
                        
December 31, 2024:
                        
With fair value adjustment
 $2,419   $14   $ —    $ —    $2,433 
At fair value
   —      —      —     98,719    98,719 
At book value without fair
                        
value adjustment and with
                        
current surrender charge of
                        
less than 5%
   —     690     —      —     690 
Subtotal
  2,419    704     —     98,719    101,842 
Not subject to discretionary
                        
withdrawal
   —     86     —     655    741 
Total separate account reserve
                        
liabilities at December 31, 2024
 $2,419   $790   $ —    $99,374   $102,583 
 
95
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
         
Nonindexed
    
Nonindexed
           
         
Guarantee
    
Guarantee
    
Nonguaranteed
      
    
Guaranteed
    
Less Than or
    
Greater
    
Separate
      
    
Indexed
    
Equal to 4%
    
Than 4%
    
Accounts
    
Total
 
Premiums, deposits and other
                        
considerations for the year
                        
ended December 31, 2023
 $ —    $ —    $10   $6,075   $6,085 
                          
Reserves for separate accounts
                        
as of December 31, 2023 with
                        
assets at:
                        
Fair value
 $710   $85   $ —    $96,283   $97,078 
Amortized cost
   —     684     —      —     684 
Total as of December 31, 2023
 $710   $769   $ —    $96,283   $97,762 
                          
Reserves for separate accounts by
                        
withdrawal characteristics as of
                        
December 31, 2023:
                        
With fair value adjustment
 $710   $18   $ —    $ —    $728 
At fair value
   —      —      —     95,712    95,712 
At book value without fair
                        
value adjustment and with
                        
current surrender charge of
                        
less than 5%
   —     684     —      —     684 
Subtotal
  710    702     —     95,712    97,124 
Not subject to discretionary
                        
withdrawal
   —     68     —     571    639 
Total separate account reserve
                        
liabilities at December 31, 2023
 $710   $770   $ —    $96,283   $97,763 
 
96
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
Transfer as reported in the Summary of
              
Operations of the separate accounts
              
statement:
              
Transfers to separate accounts
 $6,697   $8,100   $6,167 
Transfers from separate accounts
  (12,679)    (14,225)    (10,944) 
Net transfers from separate accounts
  (5,982)    (6,125)    (4,777) 
Miscellaneous reconciling adjustments
  (29)    (38)    (24) 
Net transfers as reported in the Summary
              
of Operations of the life, accident and health
              
annual statement
 $(6,011)   $(6,163)   $(4,801) 
 
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, 2025 and 2024, the Company’s separate account statement included legally insulated assets of $104,492 and $101,121, respectively. The assets legally insulated from general account claims at December 31, 2025 and 2024 are attributed to the following products:
 
    
2025
    
2024
 
Group annuities
 $30,371   $28,064 
Variable annuities
  61,792    61,483 
Fixed universal life
  735    727 
Variable universal life
  4,792    9,365 
Variable life
  6,739    1,367 
Modified separate accounts
  60    114 
Registered market value annuity product - SPL
  3    1 
Total separate account assets
 $104,492   $101,121 
 
At December 31, 2025 and 2024, the Company held separate account assets not legally insulated from the general account in the amount of $5,100 and $2,373, respectively.
 
Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To  compensate the general account for the risk taken, the separate account paid risk charges of $521, $551, $570, $584 and $579, to the general account in 2025, 2024, 2023, 2022 and 2021, respectively. During the years ended December 31, 2025, 2024, 2023, 2022 and 2021, the general account of the Company had paid $49, $41, $63, $56 and $45, respectively, toward separate account guarantees.
 
97
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the Company reported guaranteed separate account assets at amortized cost in the amount of $5,577 and $2,784, respectively, based upon the prescribed practice granted by the State of Iowa as described in Note 2. These assets had a fair value of $5,593 and $2,699 at December 31, 2025 and 2024, respectively, which would have resulted in an unrealized gain/(loss) of $16 and ($86), respectively, had these assets been reported at fair value.
 
The Company does not participate in securities lending transactions within the separate account.
 
7.
Reinsurance
 
Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company coinsures up to 100% of select policies or 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.
 
98
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Premiums and annuity considerations include the following reinsurance amounts:
 
                
 
Year Ended December 31
    
2025
    
2024
    
2023
 
                
Direct premiums
 $20,078   $19,907   $16,262 
Reinsurance assumed - non affiliates
  945    886    866 
Reinsurance assumed - affiliates
  (15)    68    (10) 
Reinsurance ceded - non affiliates
  (1,483)    (1,503)    (2,547) 
Reinsurance ceded - affiliates
  (4,493)    (591)    (5,055) 
Net premiums earned
 $15,032   $18,767   $9,516 
 
The Company received reinsurance recoveries in the amount of $3,349, $3,294 and $3,327 during 2025, 2024 and 2023, respectively. At December 31, 2025 and 2024, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $828 and $858, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2025 and 2024 of $37,863 and $37,420, respectively, of which $17,693 and $16,315 were ceded to affiliates, respectively.
 
During 2025, 2024 and 2023, amortization of deferred gains associated with previously transacted reinsurance agreements was released into income in the amount of ($1,228) (($1,030) after tax), $387 ($255 after tax) and $684 ($429 after tax), respectively.
 
Effective December 9, 2025, the Company entered into a reinsurance agreement with Dawn Re, Inc., an affiliate, to cede universal life with secondary guarantee insurance business. As part of the transaction, the Company paid $3,903 in net reinsurance consideration and ceded $5,884 of reserves. Additionally, a pre-tax IMR asset of $275 was ceded with the transaction. The transaction generated a realized gain of $1,706, which was deferred to equity.
 
Effective June 30, 2025, the Company, through its subsidiary LIICA Re II which subsequently merged into TLIC effective December 9, 2025, entered into an agreement with Ironwood Re Corp. (IRC) to transfer, by novation, rights and obligations under the coinsurance agreement covering certain universal life insurance policies issued by TLB to IRC. As part of this transaction, the Company (through LIICA Re II) paid consideration of $68 to release reserves of $397, resulting in a net pre-tax income impact of $329.
 
Effective December 31, 2023, the Company entered into a reinsurance agreement whereby the Company ceded fixed deferred annuity business to an affiliated entity, Transamerica Bermuda Re, Ltd. (TBRe). The Company paid a ceding commission of $138 in addition to reinsurance premiums of $4,394 in the form of a funds withheld payable and ceded $4,394 of statutory reserves. The transaction resulted in a pre-tax loss of $138, which has been included in the Statements of Operations.
 
99
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Effective July 1, 2023, the Company ceded universal life with secondary guarantee (SGUL) insurance business to an unaffiliated entity. The Company paid considerations of $1,057 in assets and cash, ceded $1,436 of reserves and $555 of policy loans. After a $199 realized loss, the transaction resulted in a pre-tax gain of $179.
 
Effective July 1, 2023, the Company recaptured a specific list of policies from an affiliate, LIICA Re II. As a result, the Company received $5 in cash and $114 in policyholder reserves. The transaction resulted in a pre-tax loss of $109 which has been included in the Statements of Operations.
 
Effective July 1, 2023, the Company recaptured a specific list of policies from an affiliate, TPRe. As a result, the Company received $12 in cash and $33 in policyholder reserves. The transaction resulted in a pre-tax loss of $21 which has been included in the Statements of Operations.
 
The Company is party to an affiliated coinsurance arrangement, effective July 1, 2022, under which it assumes the remaining in force universal life business from TLB, net of third-party reinsurance. Refer to the preceding table for premiums earned from reinsurance assumed from affiliates, including reinsurance assumed under this agreement.
 
In January 2018, Scottish Re Group announced a sale and restructuring plan and commenced Chapter 11 (reorganization) procedures for some of its subsidiaries. In December 2018, the Delaware Department of Insurance began oversight procedures of Scottish Re (U.S.), Inc. (SRUS), with whom the Company is a counterparty for some of its reinsurance activities. SRUS was ordered into receivership for the purposes of rehabilitation on March 6, 2019. On May 16, 2019, the IID suspended the certificate of authority for SRUS but later clarified that reserve credit could be taken on reinsurance agreements entered into prior to the revocation date if a recovery analysis could be illustrated. On July 19, 2023, a Motion for Liquidation of SRUS was granted, resulting in any related treaty coverage ending on September 30, 2023. The Company reported gross receivables on billed and unbilled claims of $164 and $261 as of December 31, 2025, respectively, all of which have been fully non-admitted.
100
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
8.
Income Taxes
 
The net deferred income tax asset at December 31, 2025 and 2024 and the change from the prior year are comprised of the following components:
 
                
 
December 31, 2025
    
Ordinary
    
Capital
    
Total
 
Gross Deferred Tax Assets
 $2,072   $275   $2,347 
Statutory Valuation Allowance Adjustment
   —      —      —  
Adjusted Gross Deferred Tax Assets
  2,072    275    2,347 
Deferred Tax Assets Nonadmitted
  863     —     863 
Subtotal (Net Deferred Tax Assets)
  1,209    275    1,484 
Deferred Tax Liabilities
  484    311    795 
Net Admitted Deferred Tax Assets (Liabilities)
 $725   $(36)   $689 
                
 
December 31, 2024
    
Ordinary
    
Capital
    
Total
 
Gross Deferred Tax Assets
 $2,597   $215   $2,812 
Statutory Valuation Allowance Adjustment
   —     2    2 
Adjusted Gross Deferred Tax Assets
  2,597    213    2,810 
Deferred Tax Assets Nonadmitted
  1,169     —     1,169 
Subtotal (Net Deferred Tax Assets)
  1,428    213    1,641 
Deferred Tax Liabilities
  542    297    839 
Net Admitted Deferred Tax Assets (Liabilities)
 $886   $(84)   $802 
                
 
Change
    
Ordinary
    
Capital
    
Total
 
Gross Deferred Tax Assets
 $(525)   $60   $(465) 
Statutory Valuation Allowance Adjustment
   —     (2)    (2) 
Adjusted Gross Deferred Tax Assets
  (525)    62    (463) 
Deferred Tax Assets Nonadmitted
  (306)     —     (306) 
Subtotal (Net Deferred Tax Assets)
  (219)    62    (157) 
Deferred Tax Liabilities
  (58)    14    (44) 
Net Admitted Deferred Tax Assets (Liabilities)
 $(161)   $48   $(113) 
 
The Company recognized all of its deferred tax liabilities as of December 31, 2025 and 2024.
 
101
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The main components of deferred income tax amounts are as follows:
 
                
 
Year Ended December 31
    
    
2025
    
2024
    
Change
 
Deferred Tax Assets:
              
Ordinary
              
Policyholder reserves
 $492   $701   $(209) 
Investments
  227    227     —  
Deferred acquisition costs
  683    721    (38) 
Policyholder dividends accrual
  6    6     —  
Compensation and benefits accrual
  45    43    2 
Receivables - nonadmitted
  131    147    (16) 
Net operating loss carry-forward
  48    331    (283) 
Tax credit carry-forward
  317    340    (23) 
Other
  123    81    42 
Subtotal
  2,072    2,597    (525) 
                
Statutory valuation allowance adjustment
   —      —      —  
Nonadmitted
  863    1,169    (306) 
Admitted ordinary deferred tax assets
  1,209    1,428    (219) 
                
Capital
              
Investments
  179    192    (13) 
Net capital loss carry-forward
  96    23    73 
Other
   —      —      —  
Subtotal
  275    215    60 
                
Statutory valuation allowance adjustment
   —     2    (2) 
Nonadmitted
   —      —      —  
Admitted capital deferred tax assets
  275    213    62 
Admitted deferred tax assets
 $1,484   $1,641   $(157) 
 
                
 
Year Ended December 31
    
    
2025
    
2024
    
Change
 
Deferred Tax Liabilities:
              
Ordinary
              
Investments
 $409   $450   $(41) 
Policyholder reserves
  6    77    (71) 
Other
  69    15    54 
Subtotal
  484    542    (58) 
Capital
              
Investments
  310    297    13 
Other
  1     —     1 
Subtotal
  311    297    14 
Deferred tax liabilities
  795    839    (44) 
Net admitted deferred tax assets (liabilities)
 $689   $802   $(113) 
 
102
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
As a result of the 2017 Tax Cuts and Jobs Act, the Company’s tax reserve deductible temporary difference decreased by ($396). This change results in an offsetting $396 deductible temporary difference that has been fully amortized into taxable income as of December 31, 2025.
 
At December 31, 2025, the Company removed its valuation allowance of $2 related to capital deferred tax assets in excess of deferred tax liabilities on LIICA Re II. Subsequent to the merger of TLIC, LIICA Re II, and TPRe, the Company now has sufficient capital deferred tax liabilities to offset its capital deferred tax assets and a valuation allowance is no longer required.
 
On July 4, 2025, the One Big Beautiful Bill (Bill) was passed into US law. The Company has no material tax impacts related to the Bill in its December 31, 2025 results.

The Inflation Reduction Act was enacted during the third quarter 2022 reporting period on August 16, 2022. The act included a provision which subjects high earning corporate taxpayers to the Corporate Alternative Minimum Tax (CAMT). The Company is part of an affiliated group that has determined it is a nonapplicable reporting entity for CAMT in 2023, 2024, or 2025 and has not included any impacts of the CAMT in the financial statements as of December 31, 2025.
 
As discussed in Note 2, for the years ended December 31, 2025 and 2024, 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, 2025
      
Ordinary
    
Capital
    
Total
 
Admission Calculation Components SSAP No. 101
              
 (2)(a)
Federal Income Taxes Paid in Prior Years
              
 
Recoverable Through Loss Carrybacks
 $ —    $ —    $ —  
 (2) 
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)
  641    48    689 
 
1.  Adjusted Gross Deferred Tax Assets
              
 
Expected to be Realized Following the
              
 
Balance Sheet Date
  789    59    848 
 
2.  Adjusted Gross Deferred Tax Assets
              
 
Allowed per Limitation Threshold
  
XXX
    
XXX
    689 
 (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
  568    227    795 
 (2)(d)
Deferred Tax Assets Admitted as the result of
application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))
 $1,209   $275   $1,484 
103
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                  
   
December 31, 2024
      
Ordinary
    
Capital
    
Total
 
Admission Calculation Components SSAP No. 101
              
  (2) 
Federal Income Taxes Paid in Prior Years
              
 
Recoverable Through Loss Carrybacks
 $ —    $ —    $ —  
 (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)
  778    24    802 
 
1.  Adjusted Gross Deferred Tax Assets
              
 
Expected to be Realized Following the
              
 
Balance Sheet Date
  1,037    32    1,069 
 
2.  Adjusted Gross Deferred Tax Assets
              
 
Allowed per Limitation Threshold
  
XXX
    
XXX
    768 
 (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
  650    189    839 
 (2)(d)
Deferred Tax Assets Admitted as the result of
application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))
 $1,428   $213   $1,641 
104
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, 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
 $ —    $ —    $ —  
 (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)    24    (113) 
 
1.  Adjusted Gross Deferred Tax Assets
              
 
Expected to be Realized Following the
              
 
Balance Sheet Date
  (248)    27    (221) 
 
2.  Adjusted Gross Deferred Tax Assets
              
 
Allowed per Limitation Threshold
  
XXX
    
XXX
    (79) 
 (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
  (82)    38    (44) 
 (2)(d)
Deferred Tax Assets Admitted as the result of
application of SSAP No. 101, Total (2(a) + 2(b) + 2(c))
 $(219)   $62   $(157) 
 
  December 31
    2025    2024 
Ratio Percentage Used To Determine Recovery          
Period and Threshold Limitation Amount   707%   780%
Amount of Adjusted Capital and Surplus Used To          
Determine Recovery Period and Threshold          
Limitation in 2(b)2 Above  $4,592   $5,123 
 
 
The impact of tax planning strategies at December 31, 2025 and 2024 was as follows:
 
                
 
December 31, 2025
    
Ordinary
    
Capital
    
Total
 
    
Percent
    
Percent
    
Percent
 
Impact of Tax Planning Strategies:
              
                
(% of Total Adjusted Gross DTAs)
  0%   0%   0%
                
(% of Total Net Admitted Adjusted Gross DTAs)
  0%   0%   0%
 
105
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                
 
December 31, 2024
    
Ordinary
    
Capital
    
Total
 
    
Percent
    
Percent
    
Percent
 
Impact of Tax Planning Strategies:
              
                
(% of Total Adjusted Gross DTAs)
  0%   0%   0%
                
(% of Total Net Admitted Adjusted Gross DTAs)
  2%   0%   2%
 
The Company's tax planning strategies as of December 31, 2024 include the use of reinsurance-related tax planning strategies.
 
Current income taxes incurred consist of the following major components:
 
                
 
Year Ended December 31
    
    
2025
    
2024
    
Change
 
Current Income Tax
              
                
Federal
 $(61)   $(37)   $(24) 
Subtotal
  (61)    (37)    (24) 
Federal income tax on net capital gains
  (4)     —     (4) 
Federal and foreign income taxes incurred
 $(65)   $(37)   $(28) 
 
                
 
Year Ended December 31
    
    
2024
    
2023
    
Change
 
Current Income Tax
              
                
Federal
 $(37)   $75   $(112) 
Subtotal
  (37)    75    (112) 
Federal income tax on net capital gains
   —     (106)    106 
Federal and foreign income taxes incurred
 $(37)   $(31)   $(6) 
 
106
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:
 
  Year Ended December 31
    2025    2024    2023 
                
Current income taxes incurred  $(65)   $(37)   $(31) 
                
Change in deferred income taxes   431    (8)    (149) 
(without tax on unrealized gains and losses)               
Total income tax reported  $366   $(45)   $(180) 
                
Income before taxes  $916   $784   $312 
Federal statutory tax rate   21.00%   21.00%   21.00%
Expected income tax expense (benefit) at               
statutory rate  $192   $165   $66 
                
Increase (decrease) in actual tax reported resulting from:               
                
Pre-tax income of disregarded subsidiaries  $(7)   $11   $6 
Dividends received deduction   (87)    (128)    (127) 
Tax-exempt income   (3)    (4)    (4) 
Nondeductible expenses   6    5    3 
Pre-tax items reported net of tax   219    (51)    (97) 
Tax credits   (26)    (27)    (21) 
Prior period tax return adjustment   10    24    (18) 
Change in statutory valuation allowance   (2)    1    —  
Change in uncertain tax positions   (18)    —     —  
Deferred tax change on other items in surplus   77    (38)    13 
Other   5    (3)    (1) 
Total income tax reported  $366   $(45)   $(180) 
 
The Company's federal income tax return is consolidated with other includible affiliated companies. Please see the listing of companies in Appendix A. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not been filed for 2025.
 
The amounts, origination dates and expiration dates of operating loss and tax credit carryforwards available for tax purposes:
 
107
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Description
  
Amount
 
Origination Dates
  
Expiration Dates
 
Operating Loss
 $231 
12/31/2024
   N/A  
Operating Loss Total
 $231        
             
Foreign Tax Credit
 $11 
12/31/2024
  
12/31/2034
 
Foreign Tax Credit Total
 $11        
             
General Business Credit
 $2 
12/31/2009
  
12/31/2029
 
General Business Credit
  26 
12/31/2011
  
12/31/2031
 
General Business Credit
  32 
12/31/2012
  
12/31/2032
 
General Business Credit
  40 
12/31/2013
  
12/31/2033
 
General Business Credit
  25 
12/31/2014
  
12/31/2034
 
General Business Credit
  56 
12/31/2015
  
12/31/2035
 
General Business Credit
  7 
12/31/2016
  
12/31/2036
 
General Business Credit
  10 
12/31/2017
  
12/31/2037
 
General Business Credit
  7 
12/31/2018
  
12/31/2038
 
General Business Credit
  8 
12/31/2019
  
12/31/2039
 
General Business Credit
  14 
12/31/2020
  
12/31/2040
 
General Business Credit
  17 
12/31/2021
  
12/31/2041
 
General Business Credit
  19 
12/31/2022
  
12/31/2042
 
General Business Credit
  16 
12/31/2023
  
12/31/2043
 
General Business Credit
  15 
12/31/2024
  
12/31/2044
 
General Business Credit
  14 
12/31/2025
  
12/31/2045
 
General Business Credit Total
 $308        
 
The Company has net capital loss carryforwards which expire as follows: 2028: $76, 2029: $30 and 2030: $354.
 
The Company did not have any income tax expense available for recoupment in the event of future losses for December 31, 2025, 2024 and 2023.
 
The Company did not have any deposits admitted under Internal Revenue Code Section 6603 for December 31, 2025 and 2024.
 
108
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The total amount of the unrecognized tax benefits that if recognized would affect the effective income tax rate:
 
    
Unrecognized Tax Benefits
 
Balance at January 1, 2024
 $18 
Tax positions taken during prior period
   —  
Balance at December 31, 2024
 $18 
Tax positions taken during prior period
  (18) 
Balance at December 31, 2025
 $ —  
 
The Company is not subject to the repatriation transition tax.
 
The Company did not have any alternative minimum tax credit carryovers as of December 31, 2025 and 2024.
 
The Company classifies interest and penalties related to income taxes as income tax expense. The amount of interest and penalties accrued on the Balance Sheets as income taxes includes the following:
 
    
Interest
    
Penalties
    
Total payable (receivable)
 
Balance at January 1, 2023
 $2   $ —    $2 
Interest expense (benefit)
  2     —     2 
Cash received (paid)
  (1)     —     (1) 
Balance at December 31, 2023
 $3   $ —    $3 
Interest expense (benefit)
  1     —     1 
Cash received (paid)
  (2)     —     (2) 
Balance at December 31, 2024
 $2   $ —    $2 
Interest expense (benefit)
  (2)     —     (2) 
Cash received (paid)
   —      —      —  
Balance at December 31, 2025
 $ —    $ —    $ —  
 
The IRS has completed its examination of 2014 - 2017 with an expected refund for 2014 pending Joint Committee on Taxation approval. The 2018 amended tax return remains under audit, and the IRS opened exam on the 2019 tax return. Federal income tax returns filed in 2020 through 2024 remain open, subject to potential future examination. The statute of limitations for all other tax years have been closed. The Company believes there are adequate defenses against, or sufficient provisions established related to any open or contested tax positions.
109
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
 
9.
Capital and Surplus
 
The Company has authorized 1,000,000 common stock shares at $10 per share par value, of which 676,190 shares were issued and outstanding at December 31, 2025 and 2024.
 
The Company is subject to limitations, imposed by the State of Iowa, on the payment of dividends and other distributions to its parent companies. Total distributions, within the preceding 12-month period, are generally limited to the greater of (a) 10 percent of surplus as regards to policyholders as of the preceding December 31 (excluding any reported special surplus), or (b) statutory net gain from operations for the preceding year. Dividend payments are further limited by the availability of unassigned funds at the time of the payment. Iowa law grants the Commissioner authority to approve, or in some cases non-disapprove, distributions requested in excess of these limitations.
 
On December 21, 2022, the Company purchased 250,000 shares of TBRe to become its sole shareholder. TBRe received additional capital contributions from the Company of $490 on December 29, 2023.
 
The Company received regulatory approval to recharacterize its gross paid‑in and contributed surplus to unassigned surplus pursuant to the quasi‑reorganization provisions of SSAP No. 72, Surplus and Quasi-Reorganizations, effective December 9, 2025. This restatement does not impact total surplus, net income, dividends to stockholders or the valuation of any assets or liabilities.
 
    
Change in Year Surplus
    
Change in Gross Paid-in and Contributed Surplus
 
2025
 $824   $(824) 
 
On November 28, 2025, the Company received a capital contribution of $425 from CGC.
 
On June 24, 2025, the Company paid an ordinary common stock dividend of $200 to CGC.
 
On December 19, 2024, the Company paid an ordinary common stock dividend of $150 to CGC.
 
On June 20, 2024, the Company paid an ordinary common stock dividend of $265 to CGC.
 
On December 14, 2023, the Company paid an ordinary common stock dividend of $300 to CGC.
 
On November 9, 2023, the Company received a return of capital of $267 from TLB.
 
110
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
On September 29, 2023, the Company paid an ordinary common stock dividend of $200 to CGC.
 
On June 21, 2023, the Company paid an ordinary common stock dividend of $300 to CGC.
 
On March 30, 2023, the Company paid an ordinary common stock dividend of $58 to CGC.
 
Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on various risk factors. At December 31, 2025 and 2024, the Company met the minimum RBC requirements.
 
The Company held special surplus funds in the amount of $645 and $883, as of December 31, 2025 and 2024, respectively, for derivatives hedging variable annuity guarantees as required under SSAP No. 108.
 
The Company held special surplus funds in the amount of $382 and $193, as of December 31, 2025 and 2024, respectively, for admitted disallowed IMR as required under INT 23-01.
 
10.
Securities Lending
 
The Company participates in an agent-managed securities lending program in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or other domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government or other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.
 
At December 31, 2025 and 2024, respectively, securities with a fair value of $1,611 and $1,394 were on loan under securities lending agreements. At December 31, 2025 and 2024, 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 $1,657 and $1,667 at December 31, 2025 and 2024, respectively.
 
111
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The contractual maturities of the securities lending collateral positions are as follows:
 
           
 
Fair Value
    
2025
    
2024
 
Open
 $1,657   $1,667 
Total collateral received
 $1,657   $1,667 
 
The Company receives primarily cash collateral in an amount in excess of the fair value of the securities lent. The Company reinvests the cash collateral into higher yielding securities than the securities which the Company has lent to other entities under the arrangement.
 
The maturity dates of the reinvested securities lending collateral are as follows:
 
                     
 
2025
2024
    
Amortized Cost
    
Fair
Value
    
Amortized Cost
    
Fair
Value
 
Open
 $79   $79   $130   $130 
30 days or less
  540    540    658    658 
31 to 60 days
  285    285    263    263 
61 to 90 days
  190    190    318    318 
91 to 120 days
  120    120    105    105 
121 to 180 days
  129    129    150    150 
181 to 365 days
  200    200    43    43 
2 to 3 years
  35    35     —      —  
Greater than 3 years
  79    79     —      —  
Total
  1,657    1,657    1,667    1,667 
Securities received
   —      —      —      —  
Total collateral reinvested
 $1,657   $1,657   $1,667   $1,667 
 
For securities lending, the Company’s source of cash used to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $1,659 (fair value of $1,657) that are currently tradable securities that could be sold and used to pay for the $1,657 in collateral calls that could come due under a worst-case scenario.
 
112
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table presents collateral associated with securities lending transactions that extend beyond one year for 2025 and 2024:
 
Description of collateral
  
2025
    
2024
 
ABS credit cards
 $26   $ —  
ABS autos
  54     —  
ABS other non-housing
  35     —  
Total collateral extending beyond one year of the reporting date
 $115   $ —  
 
11.
Retirement and Compensation Plans
 
Defined Contribution Plans
 
The Company’s employees participate in a contributory defined contribution plan sponsored by Transamerica Corporation (TA Corp) which is qualified under Section 401(k) of the Internal Revenue Code. Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key employees. The Company will contribute an amount up to four percent of the participant's eligible earnings per the plan's matching formula. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. Benefits expense of $21, $21 and $18 was allocated to the Company for the years ended December 31, 2025, 2024 and 2023, respectively.
 
Defined Benefit Plans
 
The Company’s employees participate in a qualified defined benefit pension plan sponsored by TA Corp. Generally, employees of the Company who customarily work at least 20 hours per week and complete six months of continuous service and meet the other eligibility requirements are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on the employee’s eligible compensation. The plan provides benefits based on a cash balance formula. The plan is subject to the reporting and disclosure requirements of the ERISA.
 
TA Corp sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory. The benefits are based on the employee's eligible compensation. The plans provide benefits based on a cash balance formula. The plans are unfunded and nonqualified under the IRS Code.
 
113
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 102, Pensions. Pension expenses were $13, $13 and $11 for the years ended December 31, 2025, 2024 and 2023, respectively.
 
In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the plans. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses was $2, $2 and $4 for the years ended December 31, 2025, 2024 and 2023, respectively.
 
Other Plans
 
TA Corp has established deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2025, 2024 and 2023 was insignificant.
 
12.
Related Party Transactions
 
The Company shares certain officers, employees and general expenses with affiliated companies.
 
The Company is party to a shared services and cost sharing agreement among and between the Transamerica companies, under which various affiliated companies may perform specified administrative functions in connection with the operation of the Company, in consideration of reimbursement of actual costs of services rendered. The Company and an affiliate, Transamerica Financial Life Insurance Company (TFLIC), are parties to a Shared Services and Cost Sharing Agreement whereby both provide accounting, administrative, and other advisory services in accordance with the agreement. The net amount received by the Company as a result of being a party to these agreements was $1,421, $436 and $2 during 2025, 2024 and 2023, respectively. Fees charged between affiliates approximate their cost.
 
The Company is party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors (AURA), LLC whereby AURA serves as the administrator and advisor for the Company’s mortgage loan operations. The Company paid $31, $29 and $30 for these services during 2025, 2024 and 2023, respectively.
 
114
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company is party to an Investment Management Agreement with AEGON USA Investment Management (AUIM), LLC whereby AUIM acts as a discretionary investment manager for the Company. The Company paid $109, $98 and $98 for these services during 2025, 2024 and 2023, respectively.
 
The Company has an administration service agreement with Transamerica Asset Management to provide administrative services to the Transamerica Series Trust. The Company received $109, $119 and $115 for these services during 2025, 2024 and 2023, respectively.
 
Transamerica Capital, LLC provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $432, $23 and $10 for the years ended December 31, 2025, 2024 and 2023, respectively.
 
During 2025, the Company purchased $43 of other invested assets from a modified separate account of the Company. In addition, the Company sold $150 of other invested assets to TFLIC and a modified separate account of the Company for $130 and $20, respectively.
 
Receivables from (payables to) affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2025, 2024 and 2023, the Company received (paid) net interest of $26, $28 and $21 from (to) affiliates, respectively. At December 31, 2025 and 2024, respectively, the Company reported net receivables (payables) from (to) affiliates of $641 and $256. Terms of settlement require that these amounts are settled within 90 days of quarter-end per the requirements of SSAP No. 25, Affiliates and Other Related Parties.
 
At December 31, 2025, the Company has outstanding intercompany notes receivables of $500, as shown below:
 
              
Receivable from
  
Amount
 
Due  By
Interest Rate
TA Corp
 $175 
March 27, 2026
  4.34 %
TA Corp
  25 
April 25, 2026
  4.34  
TA Corp
  75 
June 20, 2026
  4.32  
TA Corp
  75 
June 25, 2026
  4.32  
TA Corp
  150 
June 30, 2026
  4.32  
115
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2024, the Company had outstanding intercompany notes receivables of $550, as shown below:
 
              
Receivable from
  
Amount
 
Due By
Interest Rate
TA Corp
 $275 
March 27, 2025
  5.33 %
TA Corp
  25 
April 26, 2025
  5.33  
TA Corp
  75 
June 21, 2025
  5.30  
TA Corp
  75 
June 25, 2025
  5.30  
ULI Funding LLC
  100 
December 30, 2025
  4.70  
 
At December 31, 2025 and 2024, the Company had no short-term intercompany notes payable.
 
The Company utilizes the look-through approach in valuing its investment in the following entities.
 
    
Book Adjusted Carrying Value
 
Real Estate Alternatives Portfolio 3, LLC
 $13 
Real Estate Alternatives Portfolio 4 HR, LLC
  147 
Real Estate Alternatives Portfolio 4 MR, LLC
  9 
Aegon Workforce Housing Fund 2, L.P.
  140 
Natural Resources Alternatives Portfolio I, LLC
  308 
Natural Resources Alternatives Portfolio II, LLC
  138 
Natural Resources Alternatives Portfolio 3, LLC
  213 
TA Private Equity Assets LLC
  317 
Zero Beta Fund, LLC
  4 
TA-APOP I, LLC
  263 
TA-APOP I-A, LLC
  109 
 
These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97 entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.
 
116
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables show the disclosures for all SCA investments, except 8bi entities, Balance Sheets value (admitted and nonadmitted) and the NAIC responses for the SCA filings as of December 31, 2025 and 2024:
 
                      
December 31, 2025
SCA Entity
Percentage of SCA Ownership
  
Gross Amount
    
Admitted Amount
    
Nonadmitted Amount
 
SSAP No. 97 8a Entities
                    
  None      — %  $ —    $ —    $ —  
Total SSAP No. 97 8a Entities
  
XXX
   $ —    $ —    $ —  
SSAP No. 97 8b(ii) Entities
                    
  None      — %  $ —    $ —    $ —  
Total SSAP No. 97 8b(ii) Entities
  
XXX
   $ —    $ —    $ —  
SSAP No. 97 8b(iii) Entities
                    
AEGON Direct Marketing Services, Inc.
  73 %  $ —    $ —    $ —  
AEGON Financial Services Group
  100      —      —      —  
Garnet Assurance Corporation
  100      —      —      —  
Garnet Assurance Corporation III
  100      —      —      —  
Life Investors Alliance LLC
  100      —      —      —  
Real Estate Alternatives Portfolio 3A, Inc.
  91      —      —      —  
Transamerica Asset Management, Inc.
  77     155    155     —  
Transamerica Fund Services, Inc.
  44      —      —      —  
Total SSAP No. 97 8b(iii) Entities
  
XXX
   $155   $155   $ —  
SSAP No. 97 8b(iv) Entities
                    
Transamerica Bermuda Re, Ltd.
  100 %  $520   $520   $ —  
Total SSAP No. 97 8b(iv) Entities
  
XXX
   $520   $520   $ —  
Total SSAP No. 97 8b Entities (except 8bi entities)
  
XXX
   $675   $675   $ —  
Aggregate Total
  
XXX
   $675   $675   $ —  
117
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
                      
December 31, 2024
SCA Entity
Percentage of SCA Ownership
  
Gross Amount
    
Admitted Amount
    
Nonadmitted Amount
 
SSAP No. 97 8a Entities
                    
  None      — %  $ —    $ —    $ —  
Total SSAP No. 97 8a Entities
  
XXX
   $ —    $ —    $ —  
SSAP No. 97 8b(ii) Entities
                    
  None      — %  $ —    $ —    $ —  
Total SSAP No. 97 8b(ii) Entities
  
XXX
   $ —    $ —    $ —  
SSAP No. 97 8b(iii) Entities
                    
AEGON Direct Marketing Services, Inc.
  73 %  $ —    $ —    $ —  
AEGON Financial Services Group
  100      —      —      —  
Garnet Assurance Corporation
  100      —      —      —  
Garnet Assurance Corporation III
  100      —      —      —  
Life Investors Alliance LLC
  100      —      —      —  
Real Estate Alternatives Portfolio 3A, Inc.
  91      —      —      —  
Transamerica Asset Management, Inc.
  77     149    149     —  
Transamerica Fund Services, Inc.
  44      —      —      —  
Total SSAP No. 97 8b(iii) Entities
  
XXX
   $149   $149   $ —  
SSAP No. 97 8b(iv) Entities
                    
Transamerica Bermuda Re, Ltd.
  100 %  $434   $434   $ —  
Total SSAP No. 97 8b(iv) Entities
  
XXX
   $434   $434   $ —  
Total SSAP No. 97 8b Entities (except 8bi entities)
  
XXX
   $583   $583   $ —  
Aggregate Total
  
XXX
   $583   $583   $ —  
 
118
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table shows the NAIC responses for the SCA filings (except 8bi entities):
 
December 31, 2025
 
SCA Entity
  
Type of NAIC Filing*
    
Date of Filing to the NAIC
    
NAIC Valuation Amount (1)
    
NAIC Response Received Y/N
    
NAIC Disallowed Entities Valuation Method, Submission Required Y/N
    
Code**
 
SSAP No. 97 8a Entities
                             
  None              $ —                 
Total SSAP No. 97 8a Entities
   —      —    $ —      —      —      —  
SSAP No. 97 8b(ii) Entities
                             
  None              $ —                 
Total SSAP No. 97 8b(ii) Entities
   —      —    $ —      —      —      —  
SSAP No. 97 8b(iii) Entities
                             
AEGON Direct Marketing Services, Inc.
   NA         $ —      —      —     
I
 
AEGON Financial Services Group
   NA           —      —      —     
I
 
Garnet Assurance Corporation
   NA           —      —      —     
I
 
Garnet Assurance Corporation III
   NA           —      —      —     
I
 
Life Investors Alliance LLC
   NA           —      —      —     
I
 
Real Estate Alternatives Portfolio 3A, Inc.
   NA           —      —      —     
I
 
Transamerica Asset Management, Inc.
  
S2
    
10/14/2025
    123    
Y
    
N
    
I
 
Transamerica Fund Services, Inc.
   NA                —      —     
I
 
Total SSAP No. 97 8b(iii) Entities
   —      —    $123     —      —      —  
SSAP No. 97 8b(iv) Entities
                             
Transamerica Bermuda Re, Ltd.
  
S2
    
10/14/2025
   $514    
Y
    
N
    
I
 
Total SSAP No. 97 8b(iv) Entities
   —      —    $514     —      —      —  
Total SSAP No. 97 8b Entities (except 8bi entities)
   —      —    $637     —      —      —  
Aggregate Total
   —      —    $637     —      —      —  
*S1 - Sub1, S2 - Sub2 or RDF - Resubmission of Disallowed Filing
** I - Immaterial or M - Material
(1) NAIC Valuation Amount is as of the Filing Date to the NAIC
 
119
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
December 31, 2024
 
SCA Entity
  
Type of NAIC Filing*
    
Date of Filing to the NAIC
    
NAIC Valuation Amount (1)
    
NAIC Response Received Y/N
    
NAIC Disallowed Entities Valuation Method, Submission Required Y/N
    
Code**
 
SSAP No. 97 8a Entities
                             
  None              $ —                 
Total SSAP No. 97 8a Entities
   —      —    $ —      —      —      —  
SSAP No. 97 8b(ii) Entities
                             
  None              $ —                 
Total SSAP No. 97 8b(ii) Entities
   —      —    $ —      —      —      —  
SSAP No. 97 8b(iii) Entities
                             
AEGON Direct Marketing Services, Inc.
   NA         $ —      —      —     
I
 
AEGON Financial Services Group
   NA           —      —      —     
I
 
Garnet Assurance Corporation
   NA           —      —      —     
I
 
Garnet Assurance Corporation III
   NA           —      —      —     
I
 
Life Investors Alliance LLC
   NA           —      —      —     
I
 
Real Estate Alternatives Portfolio 3A, Inc.
   NA           —      —      —     
I
 
Transamerica Asset Management, Inc.
  
S2
    
11/4/2024
    136    
Y
    
N
    
I
 
Transamerica Fund Services, Inc.
   NA                —      —     
I
 
Total SSAP No. 97 8b(iii) Entities
   —      —    $136     —      —      —  
SSAP No. 97 8b(iv) Entities
                             
Transamerica Bermuda Re, Ltd.
  
S2
    
11/4/2024
   $502    
Y
    
N
    
I
 
Total SSAP No. 97 8b(iv) Entities
   —      —    $502     —      —      —  
Total SSAP No. 97 8b Entities (except 8bi entities)
   —      —    $638     —      —      —  
Aggregate Total
   —      —    $638     —      —      —  
*S1 - Sub1, S2 - Sub2 or RDF - Resubmission of Disallowed Filing
** I - Immaterial or M - Material
(1) NAIC Valuation Amount is as of the Filing Date to the NAIC
 
120
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company has two Limited Purpose Subsidiaries (LPS) with prescribed practices whereby under Iowa Administrative Code 191-99.11(3), the LPS are entitled to admit the following assets that would not be admissible under the NAIC SAP:
 
TLIC Oakbrook Reinsurance, Inc. (TORI)
Credit linked note
TLIC Watertree Reinsurance, Inc. (TWRI)
Excess of loss reinsurance asset
 
The monetary effect on net income and surplus as a result of using an accounting practice that differed from NAIC SAP, the amount of the investment in the insurance SCA per reported statutory equity, and amount of the investment if the insurance SCA has completed statutory financial statements in accordance with the NAIC SAP. The SCAs are valued in the Company’s financial statements at zero in accordance with SSAP No. 97.
 
                     
 
Monetary Effect on NAIC SAP
Amount of Investment
SCA Entity
(Investments in Insurance SCA Entities)
  
Net
Income Increase (Decrease)
    
Surplus
Increase (Decrease)
    
Per
Reported Statutory Equity
    
If the Insurance SCA Had Completed Statutory Financial Statements*
 
TORI
 $ —    $(3,053)   $841   $ —  
TWRI
   —     (1,384)    631     —  
 
*Per AP&P Manual (without permitted or prescribed practices)
 
Had the above SCA entities not been permitted to recognize the credit linked note or the excess of loss reinsurance asset as admitted assets in the financial statements, the risk-based capital would have been below the control level which would have triggered a regulatory event.
 
Information regarding the Company's affiliated reinsurance transactions is available in Note 7.
 
Information regarding the Company’s affiliated guarantees is available in Note 14.
 
13.
Managing General Agents and Third-Party Administrators
 
The Company utilizes managing general agents (MGA) and third-party administrators (TPA) in its operation. There were no MGA's/TPA's that wrote premiums in excess of 5% of the Company's surplus.
 
121
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
14.
Commitments and Contingencies
 
At December 31, 2025 and 2024, the Company has mortgage loan commitments of $43 and $179, respectively.
 
The Company has contingent commitments of $835 and $812, as of December 31, 2025 and 2024, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $3 and $2, respectively.
 
The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2025 and 2024 was $9 and $13, respectively.
 
At December 31, 2025, the minimum aggregate rental commitments are as follows:
 
Year
  
Amount
 
2026
 $10 
2027
  9 
2028
  8 
2029
  4 
2030
  2 
 
Private placement commitments outstanding as of December 31, 2025 and 2024 were $328 and $238, respectively.
 
The Company did not sell any “to-be-announced” (TBA) securities as of December 31, 2025 and 2024.
 
The Company may pledge cash as collateral for derivative transactions. When cash is pledged as collateral, it is derecognized and a receivable is recorded to reflect the eventual return of that cash by the counterparty. The amount of cash collateral pledged by the Company as of December 31, 2025 and 2024, respectively, was $531 and $466.
 
At December 31, 2025 and 2024, securities in the amount of $51 and $114, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company's Balance Sheets as the Company does not have the ability to sell or repledge the collateral.
122
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table provides the nature and circumstances of guarantee as of December 31, 2025 and 2024:
 
Nature and Circumstances of Guarantee
 
Liability Recognition of Guarantee
 
Ultimate Financial Statement Impact if Action Under the Guarantee is Required
 
Maximum Potential Amount of Future Payments (Undiscounted) the Guarantor Could be Required to Make Under the Guarantee
 
Current Status of Payment or Performance Risk of Guarantees
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.
 
$
—
 
Payment would impact Investment Expenses, which will ultimately roll up to Net investment income.
 
$
—
 
No payments required as of December 31, 2025. Current assessment of risk of making payments under guarantees is remote.
                 
The Company has guaranteed to the Hong Kong Insurance Authority that it will provide the financial support to TLB for maintaining TLB’s solvency at all times so as to enable TLB to promptly meet its obligations and liabilities. If at any time the value of TLB’s assets do not exceed its liabilities by the prevailing acceptable level of solvency, the Company will increase the paid up share capital of TLB or provide financial assistance to TLB to maintain the acceptable level of solvency. An acceptable level of solvency is net assets at one hundred and fifty percent of the required margin of solvency as stipulated under the Insurance Companies (Margin of Solvency) Regulation.
 
Exempt. Guarantee is on behalf of a wholly owned subsidiary.
 
None. Capital contributions to wholly owned subsidiaries would not affect the Company's financial position.
 
Unlimited
 
None pending as of December 31, 2025. The current assessment of risk of making payments under these guarantees is remote.
                 
The Company has guaranteed that TLB will (1) maintain tangible net worth of at least equal to the greater of 165% of S&P’s Risk-Based Capital and the minimum required by regulatory authorities in all jurisdictions in which TLB operates, (2) have, at all times, sufficient cash to pay all contractual obligations in a timely manner and (3) have a maximum operating leverage ratio of 20 times. The Company can terminate this agreement upon thirty days written notice, but not until TLB attains a rating from S&P’s the same as without the support from this agreement, or the entire book of TLB business is transferred provided that it is transferred to an entity with a rating from S&P that is the same as or better than the Company’s then current rating or AA, whichever is lower.
 
Exempt. Guarantee is on behalf of a wholly owned subsidiary.
 
None. Capital contributions to wholly owned subsidiaries would not affect the Company's financial position.
 
Unlimited
 
None pending as of December 31, 2025. The current assessment of risk of making payments under these guarantees is remote.
                 
The Company has provided a guarantee to TLB’s Hong Kong and 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.
 
Exempt. Guarantee is on behalf of a wholly owned subsidiary.
 
None. Capital contributions to wholly owned subsidiaries would not affect the Company's financial position.
 
274
 
None pending as of December 31, 2025. The current assessment of risk of making payments under these guarantees is remote.
                 
Total
 
$
—
     
$
274
   
 
123
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table provides an aggregate compilation of guarantee obligations as of December 31, 2025 and 2024:
 
           
 
December 31
    
2025
    
2024
 
Aggregate maximum potential of future payments
of all guarantees (undiscounted)
 $274   $268 
Current liability recognized in financial statements:
         
Noncontingent liabilities
   —      —  
Contingent liabilities
   —      —  
Ultimate financial statement impact if action required:
         
Investments in SCA
  274    268 
Total impact if action required
 $274   $268 
 
During 2019, the Company entered into an agreement with AURA, LLC to commit to purchase certain tax credit investments up to a maximum of $100. Under the terms of the agreement, the Company provides certain commitments to purchase tax credit investments that are part of tax credit funds in the event certain conditions are met. The Company acquired five tax credit investments during 2025 or 2024 under this agreement. As of December 31, 2025 and 2024, there is $46 and $48 committed to these purchases.
 
The Company is a member of the FHLB of Des Moines. Through its membership, the Company establishes the option to access funds through secured borrowing arrangements with the FHLB. It is part of the Company's strategy to utilize these funds for asset and liability management and other strategic initiatives. The Company has determined the actual/estimated long-term maximum borrowing capacity as $5,255 and $5,320 at December 31, 2025 and 2024, respectively. The Company calculated this amount in accordance with the terms and conditions of agreement with FHLB of Des Moines.
 
124
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the Company purchased/owned the following FHLB stock as part of the agreement:
 
           
 
Year Ended December 31
    
2025
    
2024
 
Membership Stock:
         
Class A
 $ —    $ —  
Class B
  10    10 
Activity Stock
  29    68 
Excess Stock
   —      —  
Total
 $39   $78 
 
At December 31, 2025 and 2024, membership stock (Class A and B) eligible for redemption and the anticipated timeframe for redemption was as follows:
 
    
Less Than 6 Months
    
6 Months to Less Than 1 Year
    
1 to Less Than 3 Years
    
3 to 5 Years
 
December 31, 2025
                   
Membership Stock
                   
Class A
 $ —    $ —    $ —    $ —  
Class B
   —      —      —     10 
Total
 $ —    $ —    $ —    $10 
                     
    
Less Than 6 Months
    
6 Months to Less Than 1 Year
    
1 to Less Than 3 Years
    
3 to 5 Years
 
December 31, 2024
                   
Membership Stock
                   
Class A
 $ —    $ —    $ —    $ —  
Class B
   —      —      —     10 
Total
 $ —    $ —    $ —    $10 
 
At December 31, 2025 and 2024, the amount of collateral pledged and the maximum amount pledged to the FHLB was as follows:
 
    
Fair Value
    
Carry Value
 
December 31, 2025
         
Total Collateral Pledged
 $3,524   $3,909 
Maximum Collateral Pledged
  3,526    3,977 
           
    
Fair Value
    
Carry Value
 
December 31, 2024
         
Total Collateral Pledged
 $3,433   $3,956 
Maximum Collateral Pledged
  3,995    4,603 
 
125
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the borrowings from the FHLB were as follows:
 
           
 
December 31,
    
2025
    
2024
 
    
General Account
    
General Account
 
           
Debt 1
 $650   $1,500 
Total
 $650   $1,500 
 
1 The maximum amount of borrowing during 2025 and 2024 was $1,650 and $1,725, respectively.
 
As of December 31, 2025, the weighted average interest rate on FHLB advances was 4.162% with a weighted average term of 3.9 years. As of December 31, 2024, the weighted average interest rate on FHLB advances was 4.415% with a weighted average term of 0.9 years.
 
At December 31, 2025 and 2024, the borrowings from the FHLB were not subject to prepayment penalties.
 
The Company has issued synthetic GIC primarily to tax-qualified institutional entities such as 401(k) plans and other retirement plans and college savings plans with a book value totaling $26,256 and $32,000 as of December 31, 2025 and 2024, respectively. In a synthetic GIC, the Company generally guarantees book value withdrawals by plan participants from plan-owned assets by paying the difference between book value and the fair value of those assets in the event the book value exceeds fair value upon termination. The Company mitigates the related investment risk through certain contractual provisions and approval of the investment guidelines applicable to the plan-owned assets. Funding requirements to date have been minimal and management does not anticipate future funding requirements having a material financial impact. There were no related reserves as of December 31, 2025 and 2024.
 
The Company may be a party to legal proceedings involving a variety of issues incidental to its business, including class action lawsuits. Lawsuits may be brought in any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company's legal proceedings are subject to many variables, and given their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not material to the Company's financial position.
126
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company was named in a class action lawsuit alleging that certain monthly deduction rate increases on universal life insurance products in 2022 and 2023 were improper. The Company has entered into a settlement agreement in the amount of $57, pending approval by the court.
 
The Company was named in a class action lawsuit alleging that policyholders were entitled to persistency bonuses on certain Direct Recognition Life policies. Plaintiffs have issued a best‑and‑final settlement demand of $115, which will be submitted for internal governance approval and is also subject to court approval.
 
The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company, except where right of offset against other taxes paid is allowed by law. Amounts available for future offsets are recorded as an asset on the Company’s Balance Sheets. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $12 and $14 and an offsetting premium tax benefit $7 and $9 at December 31, 2025 and 2024, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $2, $10 and $0 for the years ended December 31, 2025, 2024 and 2023, respectively.
 
15.
Sales, Transfers, and Servicing of Financial Assets and Extinguishments of Liabilities
 
The Company is party to municipal repurchase agreements which were established via bilateral trades and accounted for as secured borrowings. For municipal repurchase agreements, the Company rigorously manages asset/liability risks via an integrated risk management framework. The Company’s liquidity position is monitored constantly, and factors heavily in the management of the asset portfolio. Projections comparing liquidity needs to available resources in both adverse and routine scenarios are refreshed monthly. The results of these projections on time horizons ranging from 16 months to 24 months are the basis for the near-term liquidity planning. This liquidity model excludes new business (non-applicable for the spread business), renewals and other sources of cash and assumes all liabilities are paid off on the earliest dates required. Interest rate risk is carefully managed, in part through rigorously defined and monitored derivatives programs.
 
127
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables provide information on the securities sold under the municipal repurchase agreements for four quarters of 2025 and 2024:
 
December 31, 2025
                   
    
First Quarter
    
Second Quarter
    
Third Quarter
    
Fourth Quarter
 
Maximum Amount
                   
BACV
  
XXX
    
XXX
    
XXX
   $301 
Fair Value
 $460   $245   $327   $310 
                     
Ending Balance
                   
BACV
  
XXX
    
XXX
    
XXX
   $313 
Fair Value
 $460   $245   $327   $321 
 
December 31, 2024
                   
    
First Quarter
    
Second Quarter
    
Third Quarter
    
Fourth Quarter
 
Maximum Amount
                   
BACV
  
XXX
    
XXX
    
XXX
   $315 
Fair Value
 $200   $266   $323   $320 
                     
Ending  Balance
                   
BACV
  
XXX
    
XXX
    
XXX
   $306 
Fair Value
 $200   $266   $323   $308 
 
                               
 
2025
2024
    
NAIC 1
    
NAIC 2
    
Total
    
NAIC 1
    
NAIC 2
    
Total
 
ICO - BACV
 $276   $38   $314   $257   $49   $306 
ICO - FV
  283    38    321    259    50    309 
 
These securities have maturity dates that range from January 15, 2026 to November 15, 2079.
128
 
Transamerica Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table provides information on the cash collateral received and liability to return collateral under the municipal repurchase agreements for four quarters of 2025 and 2024:
 
December 31, 2025
                   
    
First Quarter
    
Second Quarter
    
Third Quarter
    
Fourth Quarter
 
Maximum Amount
                   
Cash
 $311   $207   $232   $117 
                     
Ending Balance (1)
                   
Cash
 $311   $207   $81   $117 
(1) The remaining collateral held was greater than 90 days from contractual maturity.
 
December 31, 2024
                   
    
First Quarter
    
Second Quarter
    
Third Quarter
    
Fourth Quarter
 
Maximum Amount
                   
Cash
 $154   $197   $221   $113 
                     
Ending Balance(1)
                   
Cash
 $154   $197   $80   $113 
(1) The remaining collateral held was greater than 90 days from contractual maturity.
 
The Company does not maintain or utilize dollar repurchase agreements.
 
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 Company did not sell or reacquire any securities with an NAIC designation of 3 or below during 2025.
 
16.
Subsequent Events
 
The financial statements are adjusted to reflect events that occurred between the Balance Sheets date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the Balance Sheets date (Type I). Events that are indicative of conditions that arose after the Balance Sheets date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has not identified any Type I or Type II subsequent events for the year ended December 31, 2025 through April 24, 2026.
 
129
 
Transamerica Life Insurance Company
 
Appendix A – Listing of Affiliated Companies
 
Transamerica Corporation
 
EIN:  42-1484983
 
AFFILIATIONS SCHEDULE
 
YEAR ENDED DECEMBER 31, 2025
 
   
Entity Name
FEIN
   
Transamerica Corporation
42-1484983
AEGON Direct Marketing Services Inc
42-1470697
AEGON Financial Services Group Inc
41-1479568
AEGON Institutional Markets Inc
61-1085329
AEGON Management Company
35-1113520
AEGON USA Real Estate Services Inc
61-1098396
AEGON USA Realty Advisors of CA
20-5023693
AUSA Properties Inc
27-1275705
Commonwealth General Corporation
51-0108922
Creditor Resources Inc
42-1079584
CRI Solutions Inc
52-1363611
Financial Planning Services Inc
23-2130174
Garnet Assurance Corporation
11-3674132
Garnet Assurance Corporation II
14-1893533
Garnet Assurance Corporation III
01-0947856
Ironwood Re Corp
47-1703149
LIICA RE II
20-5927773
Money Services Inc
42-1079580
Monumental General Administrators Inc
52-1243288
Pearl Holdings Inc I
20-1063558
Pearl Holdings Inc II
20-1063571
Real Estate Alternatives Portfolio 3A Inc
20-1627078
River Ridge Insurance Company
20-0877184
Stonebridge Benefit Services Inc
75-2548428
TLIC Oakbrook Reinsurance Inc.
47-1026613
TLIC Watertree Reinsurance, Inc.
81-3715574
Transamerica Affordable Housing Inc
94-3252196
Transamerica Asset Management
59-3403585
Transamerica Bermuda Re, Ltd
98-1701849
Transamerica Casualty Insurance Company
31-4423946
Transamerica Corporation (OREGON)
98-6021219
Transamerica Finance Corporation
95-1077235
Transamerica Financial Life Insurance Company
36-6071399
 
130
 
Transamerica Life Insurance Company
 
Appendix A – Listing of Affiliated Companies
 
Transamerica Corporation
 
EIN:  42-1484983
 
AFFILIATIONS SCHEDULE
 
YEAR ENDED DECEMBER 31, 2025
 
   
Entity Name
FEIN
   
Transamerica Fund Services Inc
59-3403587
Transamerica Life Insurance Company
39-0989781
Transamerica Pacific Re, Inc.
85-1028131
Transamerica Resources Inc
52-1525601
Transamerica Stable Value Solutions Inc
27-0648897
Transamerica Trust Company
42-0947998
Transamerica United Financial Services LLC
52-1263786
World Fin Group Ins Agency of Massachusetts Inc
04-3182849
World Financial Group Inc
42-1518386
World Financial Group Ins Agency of Hawaii Inc
99-0277127
World Financial Group Insurance Agency of WY Inc
42-1519076
Zahorik Company Inc
95-2775959
Zero Beta Fund LLC
26-1298094
   
 
 
131
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statutory-Basis Financial
Statement Schedules
 
132
 
 
Report of Independent Auditors
 
To the Board of Directors of
Transamerica Life Insurance Company 
 
We have audited the statutory-basis financial statements of Transamerica Life Insurance Company (the Company) as of December 31, 2025 and 2024 and for the years then ended, and have issued our report thereon dated April 24, 2026. Our audit of the statutory-basis financial statements included the financial statement supplementary information, which includes Schedule I Summary of Investments – Other Than Investments in Related Parties, Schedule III – Supplementary Insurance Information, and Schedule IV - Reinsurance (the “supplementary information”). These schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s supplementary information based on our audit.
 
In our opinion, the supplementary information present fairly, in all material respects, the information set forth therein when considered in conjunction with the statutory-basis financial statements.
 
/s/ Ernst & Young LLP
April 24, 2026
Philadelphia, PA
 
133
 
Transamerica Life Insurance Company
 
Summary of Investments – Other Than
Investments in Related Parties
(Dollars in Millions)
 
December 31, 2025
 
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
 $4,098   $3,605   $4,739 
States, municipalities and political
subdivisions
  2,042    1,733    2,042 
Foreign governments
  791    735    791 
Hybrid securities
   —      —      —  
All other corporate bonds
  41,625    39,695    41,624 
Preferred stocks
  42    40    40 
Total fixed maturities
  48,598    45,808    49,236 
                
Equity securities
              
Common stocks:
              
Industrial, miscellaneous and all other
  58    73    73 
Total equity securities
  58    73    73 
                
Mortgage loans on real estate
  8,818         8,818 
Real estate
  37         37 
Policy loans
  2,376         2,376 
Other long-term investments
  1,002         1,002 
Receivable for securities
  10         10 
Receivable for derivative cash collateral
posted to counterparty
  531         531 
Securities lending
  1,657         1,657 
Cash, cash equivalents and short-term
investments
  1,103         1,103 
Total investments
 $64,190        $64,843 
 (1) Equity securities are reported at original cost. Fixed maturities are reported at original cost reduced by repayments and adjusted for amortization of premiums and accrual of discounts.
(2) Bonds of $31 are held at fair value rather than amortized cost. Preferred stock of $40 are held at fair value.
134
 
Transamerica Life Insurance Company
 
Supplementary Insurance Information
(Dollars in Millions)
 
SCHEDULE III
 
    
Future Policy Benefits and Expenses
    
Unearned Premiums
    
Policy and Contract Liabilities
    
Premium Revenue
    
Net Investment Income*
    
Benefits, Claims Losses and Settlement Expenses
    
Other Operating Expenses*
 
Year ended December 31, 2025
                                  
Individual life
 $28,785   $ —    $478   $(365)   $1,914   $(1,718)   $1,815 
Individual health
  6,273    98    267    595    397    789    169 
Group life and health
  2,397    17    136    836    130    587    299 
Annuity
  16,839     —     38    13,966    1,148    20,686    (4,740) 
   $54,294   $115   $919   $15,032   $3,589   $20,344   $(2,457) 
                                    
Year ended December 31, 2024
                                  
Individual life
 $34,414   $ —    $576   $3,467   $1,983   $4,960   $1,418 
Individual health
  6,304    100    306    625    391    943    196 
Group life and health
  2,404    17    130    833    158    517    345 
Annuity
  14,816     —     36    13,842    1,211    19,311    (5,173) 
   $57,938   $117   $1,048   $18,767   $3,743   $25,731   $(3,214) 
                                    
Year ended December 31, 2023
                                  
Individual life
 $29,961   $ —    $493   $2,410   $1,882   $2,870   $1,808 
Individual health
  6,083    105    317    665    382    807    221 
Group life and health
  2,455    19    124    788    134    520    370 
Annuity
  13,873     —     49    5,653    1,199    10,215    (4,060) 
   $52,372   $124   $983   $9,516   $3,597   $14,412   $(1,661) 
 
*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.
 
135
 
Transamerica Life Insurance Company
 
Reinsurance
(Dollars in Millions)
 
SCHEDULE IV
 
                             
      
Gross Amount
    
Ceded to Other Companies
    
Assumed From Other Companies
    
Net Amount
 
Percentage of Amount Assumed to Net
Year ended December 31, 2025
                         
Life insurance in force
 $820,838   $459,377   $203,762   $565,223    36 %
                             
                             
Premiums:
                         
 
Individual life
 $4,592   $5,879   $922   $(365)    (253 )%
 
Individual health
  643    52    4    595    1  
 
Group life and health
  867    32    1    836    0  
 
Annuity
  13,976    13    3    13,966    0  
     $20,078   $5,976   $930   $15,032    6 %
                             
                             
Year ended December 31, 2024
                         
Life insurance in force
 $805,576   $494,708   $234,794   $545,662    43 %
                             
                             
Premiums:
                         
 
Individual life
 $4,495   $1,971   $943   $3,467    27 %
 
Individual health
  673    53    5    625    1  
 
Group life and health
  886    54    1    833    0  
 
Annuity
  13,853    16    5    13,842    0  
     $19,907   $2,094   $954   $18,767    5 %
                             
                             
Year ended December 31, 2023
                         
Life insurance in force
 $798,119   $540,679   $262,185   $519,625    50 %
                             
                             
Premiums:
                         
 
Individual life
 $4,598   $3,029   $841   $2,410    35 %
 
Individual health
  717    58    6    665    1  
 
Group life and health
  898    112    2    788    0  
 
Annuity
  10,049    4,403    7    5,653    0  
     $16,262   $7,602   $856   $9,516    9 %
136
 
 
 

 

 

 
 
FINANCIAL STATEMENTS – STATUTORY BASIS
AND SUPPLEMENTARY INFORMATION
 
Transamerica Financial Life Insurance Company
Years Ended December 31, 2025, 2024 and 2023
 
 
Transamerica Financial Life Insurance Company
 
Financial Statements – Statutory Basis
and Supplementary Information
 
Years Ended December 31, 2025, 2024 and 2023
 
Contents
 
Report of Independent Auditors1
Balance Sheets – Statutory Basis6
Statements of Operations – Statutory Basis7
Statements of Changes in Capital and Surplus – Statutory Basis8
Statements of Cash Flow – Statutory Basis10
Reinsurance11
1. Organization and Nature of Business11
2. Basis of Presentation and Summary of Significant Accounting Policies11
3. Accounting Changes and Correction of Errors25
4. Fair Values of Financial Instruments27
5. Investments34
6. Policy and Contract Attributes56
7. Reinsurance72
8. Income Taxes73
9. Capital and Surplus80
10. Securities Lending81
11. Retirement and Compensation Plans82
12. Related Party Transactions83
13. Managing General Agents and Third-Party Administrators88
14. Commitments and Contingencies88
15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities90
16. Subsequent Events91
Appendix A – Listing of Affiliated Companies92
Statutory-Basis Financial Statement Schedules94
Summary of Investments – Other Than96
Supplementary Insurance Information97
Reinsurance98
 
 
 
 
 
Report of Independent Auditors
 
The Board of Directors
Transamerica Financial Life Insurance Company
 
Opinion
 
We have audited the statutory-basis financial statements of Transamerica Financial Life Insurance Company (the Company), which comprise the balance sheets as of December 31, 2025 and 2024, and the related statements of operations, changes in capital and surplus and cash flows for the years then ended, and the related notes to the financial statements (collectively referred to as the “financial statements”).
 
Unmodified Opinion on Statutory Basis of Accounting
 
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, on the basis of accounting described in Note 2.
 
Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the financial position of the Company at December 31, 2025 and 2024, or the results of its operations or its cash flows for the years then ended.
 
Basis for Opinion
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
1
 
 
 
 
 
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
As described in Note 2 to the financial statements, the Company prepared these financial statements using accounting practices prescribed or permitted by the New York Department of Financial Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America. The effects on the financial statements of the variances between these statutory accounting practices described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material and pervasive.
 
Report of Other Auditors on 2023 Financial Statements
 
The statutory-basis financial statements of the Company for the year ended December 31, 2023 were audited by another auditor who expressed an adverse opinion with respect to conformity with U.S. generally accepted accounting principles and an unmodified opinion with respect to conformity with accounting practices prescribed or permitted by the New York Department of Financial Services on those statements on April 11, 2024.
 
Responsibilities of Management for the Financial Statements
 
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the financial statements are issued.
 
Auditor’s Responsibilities for the Audit of the Financial Statements
 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
2
 
 
 
 
 
In performing an audit in accordance with GAAS, we:
 
 •Exercise professional judgment and maintain professional skepticism throughout the audit.
 •Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 •Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
 •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 •Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time.
 
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
 
 
/s/ Ernst & Young LLP
April 9, 2026
Philadelphia, PA
 
3
 
 
 
 
 

Report of Independent Auditors

 
 
To the Board of Directors of Transamerica Financial Life Insurance Company
 
Opinions
 
We have audited the accompanying statutory basis financial statements of Transamerica Financial Life Insurance Company (the “Company”), which comprise the statements of operations - statutory basis, of changes in capital and surplus - statutory basis, and of cash flow - statutory basis for the year ended December 31, 2023, including the related notes and supplementary insurance information for the year ended December 31, 2023, and reinsurance for the year ended December 31, 2023 listed in the accompanying index (collectively referred to as the “financial statements”).
 
Unmodified Opinion on Statutory Basis of Accounting
 
In our opinion, the accompanying financial statements present fairly, in all material respects, the results of its operations and its cash flows for the year ended December 31, 2023, in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services described in Note 2.
 
Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
In our opinion, because of the significance of the matter discussed in the “Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles” section of our report, the accompanying financial statements do not present fairly, in accordance with accounting principles generally accepted in the United States of America, the results of its operations or its cash flows for the year ended December 31, 2023.
 
Basis for Opinions
 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (US GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
 
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
 
As described in Note 2 to the financial statements, the financial statements are prepared by the Company on the basis of the accounting practices prescribed or permitted by the New York Department of Financial Services, which is a basis of accounting other than accounting principles generally accepted in the United States of America.
 
The effects on the financial statements of the variances between the statutory basis of accounting described in Note 2 and accounting principles generally accepted in the United States of America, although not reasonably determinable, are presumed to be material.
 
 
4
 
 
 
 
Responsibilities of Management for the Financial Statements
 
Management is responsible for the preparation and fair presentation of the financial statements in accordance with the accounting practices prescribed or permitted by the New York Department of Financial Services. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
 
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date the financial statements are available to be issued.
 
Auditors’ Responsibilities for the Audit of the Financial Statements
 
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with US GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
 
In performing an audit in accordance with US GAAS, we:
 
 
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
 
 
/s/PricewaterhouseCoopers LLP
Chicago, Illinois
April 11, 2024
5
 
 
Transamerica Financial Life Insurance Company
 
Balance Sheets – Statutory Basis
(Dollars in Millions)
 
  December 31
  2025 2024
Admitted assets        
Cash, cash equivalents and short-term investments $210  $243 
Bonds  4,729   4,586 
Preferred stocks  4   4 
Common stocks  3   3 
Mortgage loans on real estate  1,539   1,725 
Policy loans  172   160 
Securities lending reinvested collateral assets  312   301 
Derivatives  23   21 
Other invested assets  386   273 
Total cash and invested assets  7,378   7,316 
Accrued investment income  52   52 
Premiums deferred and uncollected  6   6 
Net deferred income tax asset  21   21 
Other assets  32   45 
Separate account assets  22,603   20,993 
Total admitted assets $30,092  $28,433 
Liabilities and capital and surplus        
Aggregate reserves for policies and contracts $5,899  $5,863 
Policy and contract claim reserves  33   32 
Liability for deposit-type contracts  31   32 
Transfers from separate accounts due or accrued  (56)   (65) 
Asset valuation reserve  93   106 
Derivatives  64   43 
Payable for collateral under securities loaned and other transactions  325   319 
Remittances and items not allocated  206   219 
Other liabilities  70   60 
Separate account liabilities  22,603   20,993 
Total liabilities  29,268   27,602 
Total capital and surplus  824   831 
Total liabilities and capital and surplus $30,092  $28,433 
 
See accompanying notes.
 
6
 
 
 
 
Transamerica Financial Life Insurance Company
 
Statements of Operations – Statutory Basis
(Dollars in Millions)
 
  Year Ended December 31
  2025 2024 2023
Revenues      
Premiums and annuity considerations $4,336  $5,047  $3,517 
Net investment income  286   310   330 
Fee revenue and other income  250   254   238 
Total revenue  4,872   5,611   4,085 
Benefits and expenses            
Death benefits  76   91   92 
Annuity benefits  140   131   180 
Accident and health benefits  77   72   69 
Surrender benefits  5,285   4,867   3,902 
Other benefits  15   14   11 
Net increase (decrease) in reserves  36   (284)   (360) 
Commissions  97   98   89 
Net transfers to (from) separate accounts  (1,195)   209   (365) 
General insurance expenses and other  164   175   153 
Total benefits and expenses  4,695   5,373   3,771 
Gain (loss) from operations before federal income taxes  177   238   314 
Federal income tax (benefit) expense  17   15   24 
Net gain (loss) from operations  160   223   290 
Net realized capital gains (losses), after tax and
    amounts transferred to interest maintenance reserve		  (22)   (87)   (100) 
Net income (loss) $138  $136  $190 
 
See accompanying notes.
 
7
 
 
 
Transamerica Financial Life Insurance Company
 
Statements of Changes in Capital and Surplus – Statutory Basis
(Dollars in Millions)
 
  Common
Stock		 Paid-in
Surplus		 
Special
Surplus
Funds
 Unassigned Surplus 
Total
Capital and
Surplus
Balance at January 1, 2023 $2  $684  $7  $154  $847 
Net income (loss)   —     —     —    190   190 
Change in net unrealized capital gains/losses, net of taxes   —     —     —    14   14 
Change in net deferred income tax asset   —     —     —    1   1 
Change in nonadmitted assets   —     —     —    6   6 
Change in asset valuation reserve   —     —     —    (8)   (8) 
Return of capital   —    (1)    —     —    (1) 
Dividends to stockholders   —     —     —    (170)   (170) 
Other changes - net   —    1   5   25   31 
Balance at December 31, 2023 $2  $684  $12  $212  $910 
Net income (loss)   —     —     —    136   136 
Change in net unrealized capital gains/losses, net of taxes   —     —    9   (26)   (17) 
Change in nonadmitted assets   —     —     —    (4)   (4) 
Change in asset valuation reserve   —     —     —    8   8 
Return of capital   —    1    —     —    1 
Dividends to stockholders   —     —     —    (200)   (200) 
Other changes - net   —    (1)   2   (4)   (3) 
Balance at December 31, 2024 $2  $684  $23  $122  $831 
 
Continued on next page.
 
8
 
 
 
Transamerica Financial Life Insurance Company
 
Statements of Changes in Capital and Surplus – Statutory Basis
(Dollars in Millions)
 
  Common
Stock		 Paid-in
Surplus		 
Special Surplus
Funds
 Unassigned Surplus 
Total Capital and
Surplus
Balance at December 31, 2024 $2  $684  $23  $122  $831 
Net income (loss)   —     —     —    138   138 
Change in net unrealized capital gains/losses, net of taxes   —     —    2   (26)   (24) 
Change in net deferred income tax asset   —     —     —    9   9 
Change in nonadmitted assets   —     —     —    (12)   (12) 
Change in asset valuation reserve   —     —     —    13   13 
Dividends to stockholders   —     —     —    (130)   (130) 
Other changes - net   —    (1)   1   (1)   (1) 
Balance at December 31, 2025 $2  $683  $26  $113  $824 
 
See accompanying notes.
 
9
 
 
 
Transamerica Financial Life Insurance Company
 
Statements of Cash Flow – Statutory Basis
(Dollars in Millions)
 
  Year Ended December 31
  2025 2024 2023
Operating activities            
Premiums and annuity considerations $4,337  $5,048  $3,518 
Net investment income  293   328   333 
Other income  251   253   238 
Benefit and loss related payments  (5,595)   (5,180)   (4,262) 
Net transfers from separate accounts  1,204   (209)   395 
Commissions and operating expenses  (263)   (275)   (240) 
Federal income taxes (paid) received  (1)   (36)   (23) 
Net cash provided by (used in) operating activities $226  $(71)  $(41) 
Investing activities            
Proceeds from investments sold, matured or repaid $4,537  $717  $680 
Costs of investments acquired  (4,656)   (330)   (408) 
Net change in policy loans  (12)   (10)   (7) 
Net cash provided by (used in) investing activities $(131)  $377  $265 
Financing and miscellaneous activities            
Capital and paid in surplus received (returned) $(1)  $(1)  $1 
Net deposits (withdrawals) on deposit-type contracts  (2)   2   1 
Net change in borrowed money   —    (20)    —  
Net change in payable for collateral under securities lending and other transactions  6   (40)   (104) 
Other cash (applied) provided  (1)   (1,051)   1,090 
Dividends to stockholders  (130)   (200)   (170) 
Net cash provided by (used in) financing and miscellaneous activities $(128)  $(1,310)  $818 
Net increase (decrease) in cash, cash equivalents and short-term investments  (33)   (1,004)   1,042 
Cash, cash equivalents and short-term investments:            
Beginning of year  243   1,247   205 
End of year $210  $243  $1,247 
 
See accompanying notes.
 
10
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Years Ended December 31, 2025, 2024 and 2023
 
 1.Organization and Nature of Business
 
Transamerica Financial Life Insurance Company (the Company) is a stock life insurance company domiciled in the State of New York and is owned by Transamerica Corporation (TA Corp). TA Corp is an indirect, wholly-owned subsidiary of Aegon Ltd., a holding company organized under the laws of Bermuda.
 
Nature of Business
 
The Company sells individual life insurance, including indexed universal life, whole life, term life, and final expense whole life. It also sells variable annuities and registered index-linked annuities (RILA). In addition, the Company offers supplemental health insurance, group life insurance, group annuity contracts and stable value solutions. The Company is licensed in 50 states and the District of Columbia. Sales of the Company’s products are primarily through a network of independent agents and broker-dealers, affiliated agencies, and financial institutions.
 
 2.Basis of Presentation and Summary of Significant Accounting Policies
 
The accompanying financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York Department of Financial Services (NYDFS), which differ from accounting principles generally accepted in the United States of America (GAAP).
 
The NYDFS recognizes only statutory accounting practices prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of an insurance company, and for determining its solvency under the New York Insurance Law. The National Association of Insurance Commissioners’ (NAIC) Accounting Practices and Procedures Manual (NAIC SAP) has been adopted as a component of prescribed practices by the State of New York. The Commissioner of Insurance has the right to permit specific practices that deviate from prescribed practices.
 
The State of New York has adopted prescribed accounting practices that differ from the NAIC SAP related to the reported value of certain assets supporting the Company’s guaranteed and registered index-linked annuity (RILA) separate accounts. As prescribed by Section 1414 of the New York Insurance Law, the Company is entitled to generally value these assets at amortized cost, whereas the assets would be required to be reported at fair value under Statement of Statutory Accounting Principles (SSAP) No. 56, Separate Accounts, of the NAIC SAP. There are no impacts to the Company’s income or surplus as a result of utilizing these prescribed practices.
 
Use of Estimates
 
The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.
 
11
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The effects of the following variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material. Significant accounting policies and variances from GAAP are as follows:
 
Investments
 
Investments in bonds, except those to which the Securities Valuation Office (SVO) of the NAIC has ascribed a NAIC designation of 6, are reported at amortized cost using the interest method. Bonds containing call provisions, except make-whole call provisions, are amortized to the call or maturity value/date which produces the lowest asset value, often referred to as yield-to-worst method. Bonds ascribed a NAIC designation of 6 are reported at the lower of amortized cost or fair value with unrealized gains and losses reported in changes in capital and surplus. Prepayment penalty or acceleration fees received in the event a bond is liquidated prior to its scheduled termination date are reported as investment income.
 
Hybrid securities, as defined by the NAIC, are securities designed with characteristics of both debt and equity and provide protection to the issuer’s senior note holders. These securities meet the definition of a bond, in accordance with SSAP No. 26, Bonds, and therefore, are reported at amortized cost or fair value based upon their NAIC rating.
 
For GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in earnings for those designated as trading and as a separate component of other comprehensive income (OCI) for those designated as available-for-sale.
 
Single class and multi-class mortgage-backed/asset-backed securities are valued at amortized cost using the interest method, including anticipated prepayments, except for those with an initial NAIC designation of 6, which are valued at the lower of amortized cost or fair value. These securities are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium using either the retrospective or prospective methods. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. For statutory reporting, the retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.
 
For GAAP, all securities purchased or retained that represent beneficial interests in securitized assets, other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If high credit quality securities are adjusted, the retrospective method is used.
 
The Company closely monitors below investment grade holdings and investment grade issuers where the Company has concerns to determine if an other-than-temporary impairment (OTTI) has occurred. The Company also regularly monitors industry sectors. The Company considers relevant facts and circumstances in evaluating whether the impairment is other-than-temporary including: (1) the probability of the Company collecting all amounts due according to the contractual terms of the security in effect at the date of acquisition; (2) the Company’s decision to
 
12
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
sell a security prior to its maturity at an amount below its carrying amount; and (3) the Company’s ability to hold a structured security for a period of time to allow for recovery of the value to its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. Non-structured securities in unrealized loss positions that are considered other-than-temporary are written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairment.
 
For structured securities, cash flow trends and underlying levels of collateral are monitored. An OTTI is considered to have occurred if the fair value of the structured security is less than its amortized cost basis and the entity intends to sell the security or the entity does not have the intent and ability to hold the security for a period of time sufficient to recover the amortized cost basis. An OTTI is also considered to have occurred if the discounted estimated future cash flows are less than the amortized cost basis of the security and the security is in an unrealized loss position. Structured securities considered other-than-temporarily impaired are written down to discounted estimated cash flows if the impairment is the result of cash flow analysis. If the Company has an intent to sell or lack of ability to hold a structured security, it is written down to fair value. The Company will record a charge to the Statements of Operations for the amount of the impairments.
 
For GAAP, for debt securities classified as available-for-sale, management first assesses whether the Company has the intent to sell, or whether it is more likely than not it will be required to sell the security before the amortized cost basis is fully recovered. If either criterion is met, the amortized cost is written down to fair value through earnings as an impairment. If neither criterion is met, the securities are further evaluated to determine if the cause of the decline in fair value resulted from credit losses or other factors. When a credit loss is determined to exist and the present value of cash flows expected to be collected is less than the amortized cost of the security, an allowance for credit loss is recorded along with a charge to earnings, limited by the amount that the fair value is less than amortized cost. Any remaining unrealized loss after recording the allowance for credit loss is the non-credit amount and is recorded to other comprehensive income.
 
Investments in unaffiliated redeemable preferred stocks in good standing (those with NAIC designations 1 to 3) are reported at cost or amortized cost, depending on the characteristics of the securities. Investments in unaffiliated redeemable preferred stocks not in good standing (those with NAIC designations 4 to 6) are reported at the lower of cost, amortized cost, or fair value, depending on the characteristics of the securities. Investment in perpetual preferred stocks are reported at fair value, not to exceed any currently effective call price. Investment in mandatory convertible preferred stocks (regardless if the preferred stock is redeemable or perpetual) are reported at fair value, not to exceed any currently effective call price, in the periods prior to conversion. For preferred stocks reported at fair value, the related net unrealized capital gains and losses for all NAIC designations are reported in accordance with SSAP No. 7, Asset Valuation Reserve and Interest Maintenance Reserve.
 
Common stocks of affiliated noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in net unrealized capital gains or losses and are reported in changes in capital and surplus.
 
13
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Common stocks of unaffiliated companies, which include shares of mutual funds, are reported at fair value and the related net unrealized capital gains or losses are reported in changes in capital and surplus.
 
The Company owns stock issued by the Federal Home Loan Bank (FHLB), which is only redeemable at par, and its fair value is presumed to be par, unless other-than-temporarily impaired.
 
If the Company determines that a decline in the fair value of a common stock or a preferred stock is other-than-temporary, the Company writes it down to fair value as the new cost basis and the amount of the write down is accounted for as a realized loss in the Statements of Operations. The Company considers the following factors in determining whether a decline in value is other-than-temporary: (a) the financial condition and prospects of the issuer; (b) whether or not the Company has made a decision to sell the investment; and (c) the length of time and extent to which the value has been below cost.
 
Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines the impairment is other-than-temporary, the mortgage loan is written down to realizable value and a realized loss is recognized. Prepayment penalty or acceleration fees received in the event a loan is liquidated prior to its scheduled termination date are reported as investment income.
 
Valuation allowances are established for mortgage loans, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, an allowance for credit loss is recognized in earnings at time of purchase or origination based on an expected lifetime credit loss, which is an amount that represents the portion of the amortized cost basis of the mortgage loans that the Company does not expect to collect.
 
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.
 
The Company has 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 Statements of Operations. The Company considers an impairment to have occurred if it is probable that the Company will be unable to recover the carrying amount of the investment or if there is evidence indicating inability of the investee to sustain earnings which would justify the carrying amount of the investment.
 
14
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Investments in Low Income Housing Tax Credit (LIHTC) properties are valued at amortized cost. Tax credits are recognized in operations in the tax reporting year in which the tax credit is utilized by the Company. The carrying value is amortized over the life of the investment. Amortization is calculated as a ratio of the current year tax credits and tax benefits compared to the total expected tax credits and tax benefits over the life of the investment.
 
Cash equivalents are short-term highly liquid investments with original maturities of three months or less (principally stated at amortized cost) or money market mutual funds which are reported at fair value.
 
Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.
 
Other invested assets include surplus notes which are valued at either amortized cost (those that have an NAIC designation of 1 or 2) or the lesser of amortized cost or fair value (those that have an NAIC designation of 3 through 6).
 
Policy loans are reported at unpaid principal balances.
 
Realized capital gains and losses are determined using the specific identification method and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, common and preferred stocks are credited or charged directly to unassigned surplus.
 
Interest income is recognized on an accrual basis. The Company does not accrue income on bonds in default, mortgage loans on real estate in default and/or foreclosure or which are delinquent more than twelve months, or real estate where rent is in arrears for more than three months. Income is also not accrued when collection is uncertain. Due and accrued amounts determined to be uncollectible are written off through the Statements of Operations.
 
Valuation Reserves
 
Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, primarily bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals into net investment income over the remaining period to maturity of the bond or mortgage loan based on groupings of individual securities sold in five year bands. The net deferral is reported as the interest maintenance reserve (IMR) in the accompanying Balance Sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses are reported in the Statements of Operations on a pre-tax basis in the period that the assets giving rise to the gains or losses are sold.
 
The AVR provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.
 
15
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Derivative Instruments
 
Overview: The Company may use various derivative instruments (swaps 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. Replications, income generation and held for other investment/risk management activities do not qualify for hedge accounting under SSAP No. 86, Derivatives.
 
 (A)Derivative instruments used in hedging transactions that meet the criteria of an effective hedge are valued and reported in a manner that is consistent with the hedged asset or liability (amortized cost or fair value). Embedded derivatives are not accounted for separately from the host contract. Derivative instruments used in hedging transactions that do not meet or no longer meet the criteria of an effective hedge are accounted for at fair value, and the changes in the fair value are recorded in unassigned surplus as unrealized gains and losses. Under GAAP, the effective and ineffective portions of a single hedge are accounted for separately, and the change in fair value for cash flow hedges is credited or charged directly to a separate component of OCI rather than to income as required for fair value hedges, and an embedded derivative within a contract that is not clearly and closely related to the economic characteristics and the risk of the host contract is accounted for separately from the host contract and valued and reported at fair value.
 
 (B)Derivative instruments are also used in replication (synthetic asset) transactions (RSAT). A replication transaction is a derivative transaction entered into in conjunction with a cash instrument to reproduce the investment characteristics of an otherwise permissible investment. In these transactions, the derivative is accounted for in a manner consistent with the cash instrument and replicated asset. For GAAP, the derivative is reported at fair value, with the changes in fair value reported in income.
 
 (C)Derivative instruments used in income generation relationships are accounted for on a basis that is consistent with the associated covered asset or underlying interest to which the derivative relates (amortized cost or fair value).
 
 (D)Derivative instruments held for other investment/risk management activities are measured at fair value with value adjustments recorded in unassigned surplus.
 
Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the hedged asset or liability changes, the value of the hedging derivative is expected to move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.
 
16
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company is exposed to credit-related losses in the event of non-performance by counterparties to derivative instruments, but it does not expect any counterparties to fail to meet their obligations given their high credit rating of ‘BBB’ or better. The credit exposure of interest rate swaps and currency swaps is represented by the fair value of contracts, aggregated at a counterparty level, with a positive fair value at the reporting date. The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets on the Company’s behalf. The posted amount is equal to the difference between the net positive fair value of the contracts and an agreed upon threshold that is based on the credit rating of the counterparty. Inversely, if the net fair value of all contracts with this counterparty is negative, then the Company is required to post assets.
 
Cash flows from derivative instruments are presented within the Investing activities section of the Statements of Cash Flows, with the exception of cash received from written options, which are presented within the Financing activities section.
 
Instruments:
 
Interest rate swaps may be used in the overall asset/liability management process to modify the interest rate characteristics of the underlying asset or liability. These interest rate swaps generally provide for the exchange of the difference between fixed and floating rate amounts based on an underlying notional amount. Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Cross currency swaps may be used to mitigate risks when the Company holds foreign denominated assets or liabilities; therefore, converting the asset or liability to a U.S. dollar denominated security. These cross currency swap agreements involve the exchange of two principal amounts in two different currencies at the prevailing currency rate at contract inception. During the life of the swap, the counterparties exchange fixed or floating rate interest payments in the swapped currencies. At maturity, the principal amounts are again swapped at a pre-determined rate of exchange. Each asset or liability is hedged individually where the terms of the swap must meet the terms of the hedged instrument. For swaps qualifying for hedge accounting, the premium or discount is amortized into income over the life of the contract and the foreign currency translation adjustment is recorded as unrealized gain/loss in capital and surplus. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in capital and surplus. If a swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the hedged instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
Total return swaps may be used in the asset/liability management process to mitigate the delta risk created when the Company has issued minimum guarantee insurance contracts linked to an
 
17
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
index. These total return swaps generally provide for the exchange of the difference between fixed leg (tied to the Standard and Poor’s 500 (S&P) or other global market financial index) and floating leg (tied to Secured Overnight Financing Rate (SOFR)) amounts based on an underlying notional amount (also tied to the underlying index). Typically, no cash is exchanged at the outset of the swap contract and a single net payment is exchanged each due date; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal. Swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If the swap is terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Variance swaps may be 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; however, if there are upfront costs this is treated as book value and amortized into income over the duration of the deal. The variance swaps that meet hedge accounting rules are carried in a manner consistent with the hedged item, generally at amortized cost, in the financial statements. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Swaps not meeting hedge accounting rules are carried at fair value with fair value adjustments recorded in unassigned surplus.
 
Bond forwards may be used to hedge the interest rate risk (rho) that future liability claims increase as rates decrease, leading to higher guarantee values. Bond return swaps are also used to hedge interest rate risk of the underlying liability by exchanging performance and interest of a treasury asset for a funding level plus spread. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
Futures contracts may be used to hedge the liability risk associated with when the Company issues products providing the customer a return based on various global market indices. Futures are marked to market on a daily basis whereby a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment.
 
The Company may issue products providing the customer a return based on the various global equity market indices. The Company uses options to hedge the liability option risk associated with these products. The costs to acquire options are treated as book value and amortized into income over the duration of the deal. If terminated prior to maturity, proceeds equal to the fair
 
18
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment. Options are marked to fair value in the Balance Sheets and fair value adjustments are recorded as unassigned surplus in the financial statements.
 
Caps may be used in the asset/liability management process to mitigate the interest rate risk created due to a rapidly rising interest rate environment. The caps are similar to options where the underlying interest rate index provides for the market value movements. The caps do not accrue interest until the interest rate environment exceeds the caps strike rate. Cash is exchanged at the onset, and a single receipt or payment occurs at the maturity or termination of the contract. The costs to acquire caps are treated as book value and amortized into income over the duration of the deal. 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 equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR 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 use zero cost collars to hedge the interest rate risk associated with rising short term interest rates, whereby the exposure would otherwise adversely impact the Company’s capital generation. The collar position(s) help range bound the floating rate by combining a cap and floor position. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
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 may issue fixed liabilities that have a guaranteed minimum crediting rate. The Company may use receiver swaptions, whereby the swaption is designed to generate cash flows to offset lower yields on assets during a low interest rate environment. The Company pays a single premium at the beginning of the contract that is subsequently amortized throughout the life of the swaption. These swaptions are marked to fair value in the Balance Sheets and the fair value adjustment is recorded in unassigned surplus. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment; however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
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.
 
19
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company may replicate investment grade corporate bonds, sovereign debt, or commercial mortgage backed securities by combining a highly rated security as a cash component with a written credit default swap which, in effect, converts the high quality asset into an investment grade corporate asset, sovereign debt, or commercial mortgage backed security. 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 complies with the specific rules established in AVR for replication transactions whereby the representative issuer defaults. If terminated prior to maturity, proceeds equal to the fair value of the contract are exchanged. These gains and losses may be included in IMR or AVR if the underlying instrument receives that treatment however, gains and losses related to the unamortized book value at termination are not permitted to receive IMR treatment.
 
The Company may designate and account for fair value hedges when the effectiveness requirements of SSAP No. 86 are achieved. The following hedge type relationships are considered: (A) an interest rate swap that converts a fixed rate asset to a floating rate asset; (B) an interest rate swap that converts a fixed rate liability to a floating rate liability; (C) a cross currency interest rate swap that converts a foreign denominated fixed rate asset to a U.S. dollar floating rate asset; and (D) a cross currency interest rate swap that converts a foreign denominated fixed rate liability to a U.S. dollar floating rate liability.
 
The Company may designate and account for cash flow hedges when the effectiveness requirements of SSAP No. 86 are achieved. The following hedge-type relationships are considered: (A) an interest rate swap that converts a floating rate asset to a fixed rate asset; (B) an interest rate swap that converts a floating rate liability to a fixed rate liability; (C) a cross currency interest rate swap that converts a foreign denominated floating rate asset to a U.S. dollar fixed rate asset; (D) a cross currency interest rate swap that converts a foreign denominated floating rate liability to a U.S. dollar fixed rate liability; and (E) a forward starting interest rate swap to hedge the forecasted purchases of fixed rate assets.
 
Any deferred gain (loss) related to forecasted transaction cash flow hedging is recognized in income as the purchased asset affects income. If the forecasted transaction no longer qualifies for hedge accounting or if the forecasted transaction is no longer probable, the forward-starting swap will cease to be valued at amortized cost and will be marked to market through surplus. For the year ended December 31, 2025, 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.
 
The Company does not currently have exposure to forecasted hedge transactions.
 
The Company may enter into derivative transactions that economically mitigate risk associated with interest rate, exchange rate, credit, and equity movements within the marketplace. Due to the natural economic benefits of the hedge in relation to the hedged item, the Company chooses not to seek hedge accounting in these instances. Examples of these types of derivative transactions and the associated risks are as follows: (A) futures that hedge equity risk on universal life liabilities; (B) futures, options, swaps, or forward contracts that hedge the equity or interest rate
 
20
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
risk on minimum rate guarantee liabilities; (C) credit default swap purchases of protection that hedge the credit risk of specific bonds; (D) interest rate caps that hedge a rapidly rising interest rate environment and withdrawal activity in pension products; and (E) interest rate swaptions that hedge the risk of a low interest rate environment on in-force recurring premium products.
 
The Company may enter into replicated (synthetic asset) transactions used for purposes other than hedging by the following: (A) combining a written credit default swap with a highly rated cash instrument to synthetically create corporate debt; (B) combining a written credit default swap with a highly rated cash instrument to synthetically create sovereign debt; or (C) combining a written credit default swap with a highly rated cash instrument to synthetically create a portfolio of commercial mortgage backed securities.
 
Securities Lending Assets and Liabilities
 
The Company loans securities to third parties under agent-managed securities lending programs accounted for as secured borrowings. Cash collateral received which may be sold or repledged by the Company is reflected as a one-line entry on the Balance Sheets (Securities lending reinvested collateral assets) and a corresponding liability is established to record the obligation to return the cash collateral. Non-cash collateral received which may not be sold or repledged is not recorded on the Company’s Balance Sheets. Under GAAP, the reinvested collateral is included within invested assets and is not reported as a single line item.
 
Other Assets and Other Liabilities
 
Other assets consist primarily of disallowed IMR, reinsurance receivable, accounts receivable, and current federal income tax recoverable. Other “admitted assets” are valued principally at cost, as required or permitted by New York Insurance Laws.
 
Other liabilities consist primarily of payable to parent, subsidiaries and affiliates, amounts withheld or retained, other policyholders’ funds, general expenses due or accrued, and unearned investment income.
 
Separate Accounts
 
The majority of separate accounts held by the Company represent funds which are administered for pension plans. The assets in the managed separate accounts consist of common stock, long-term bonds, real estate and short-term investments. The non-managed separate accounts are invested by the Company in a corresponding portfolio of Diversified Investors Portfolios. The portfolios are registered under the Investment Company Act of 1940, as amended, as open-ended, diversified, management investment companies.
 
Assets held in trust for purchases of group annuities segregated by the Company for the benefit of contract holders and the Company’s corresponding obligation to the contract owners are shown separately in the Balance Sheets. The assets and liabilities of the non-guaranteed separate accounts are carried at fair value. Income and gains and losses with respect to these assets accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements.
 
21
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Modified guaranteed annuity separate accounts represent funds invested by the Company for the benefit of contract holders who are guaranteed certain returns as specified in the contracts. Separate account asset performance different than the guaranteed requirements is either transferred to or received from the general account and reported in the Statements of Operations. Modified guaranteed annuity separate account assets and liabilities are carried at amortized cost. Income and gains and losses with respect to the assets in the separate accounts supporting modified guaranteed annuity contracts are included in the Company’s Statements of Operations as a component of net transfers from separate accounts.
 
The investment risks associated with fair value changes of the separate account are borne entirely by the contract owners except in cases where minimum guarantees exist. Some of the guaranteed separate accounts provide a guarantee of principal and some include an interest guarantee of 4% or less, so long as the contract is in effect. Separate account asset performance less than guaranteed requirements is transferred from the general account and reported in the Statements of Operations.
 
Aggregate Reserves for Policies and Contracts
 
Life, annuity and accident and health benefit reserves are calculated by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation 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.
 
Surrender values are not promised in excess of the legally computed reserves. For annual premium variable life insurance there is an extra premium charged to the policyholder before the premium is transferred to the Separate Accounts. An additional reserve for this policy is held in the General Account that is a multiple of the reserve that would otherwise be held.
 
In accordance with SSAP No. 51, Life Contracts, and No. 54, Individual and Group Accident and Health Contracts, the Company reports the amount of insurance, if any, for which the gross premiums are less than the net premiums according to the valuation standards and any related premium deficiency reserve established. Anticipated investment income is not included as a factor in the health contract premium deficiency calculation.
 
For GAAP, policy reserves are calculated based on estimated expected experience or actual account balances.
 
Policy and Contract Claim Reserves
 
Claim reserves represent the estimated accrued liability for claims reported to the Company and claims incurred but not yet reported through the Balance Sheets date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are
 
22
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
continually reviewed and adjusted as necessary as experience develops or new information becomes available.
 
Deposit-Type Contracts
 
Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include guaranteed investment contracts (GICs), funding agreements and other annuity contracts. Deposits and withdrawals on these contracts are recorded as a direct increase or decrease, respectively, to the liability balance and are not reported as premiums, benefits or changes in reserves in the Statements of Operations. Interest on these policies is reflected in other benefits.
 
Premiums and Annuity Considerations
 
Revenues for life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received. Benefits incurred represent surrenders and death benefits paid and the change in policy reserves. Under GAAP, for universal life policies, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability using deposit accounting.
 
Policyholder Dividends
 
Policyholder dividends are recognized when declared rather than over the term of the related policies as would be required under GAAP.
 
Reinsurance
 
Coinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies and the terms of the reinsurance contracts. Gains associated with reinsurance of in force blocks of business are included in unassigned surplus and amortized into income as earnings emerge on the reinsured block of business. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively. Policy liabilities and accruals are reported in the accompanying financial statements net of reinsurance ceded.
 
Any reinsurance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances would be established for unsecured policy reserves ceded to reinsurers not authorized to assume such business. Changes to the liability are credited or charged directly to unassigned surplus. Under GAAP, an allowance for amounts deemed uncollectible would be established through a charge to earnings.
 
Losses associated with an indemnity reinsurance transaction are reported within income when incurred rather than being deferred and amortized over the remaining life of the underlying reinsured contracts as would be required under GAAP.
 
23
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
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.
 
Under GAAP, for certain reinsurance agreements whereby assets are retained by the ceding insurer (such as funds withheld or modified coinsurance) and a return is paid based on the performance of underlying investments, the assets and liabilities for these reinsurance arrangements must be adjusted to reflect the fair value of the invested assets. The NAIC SAP does not contain a similar requirement.
 
Deferred Income Taxes
 
The Company computes deferred income taxes in accordance with SSAP No. 101, Income Taxes. Unlike GAAP, SSAP No. 101 does not consider state income taxes in the measurement of deferred taxes. SSAP No. 101 also requires additional testing to measure gross deferred tax assets. The additional testing limits gross deferred tax asset admission to 1) the amount of federal income taxes paid in prior years recoverable through hypothetical loss carrybacks of existing temporary differences expected to reverse during a timeframe corresponding with the Internal Revenue Service tax loss carryback provisions, not to exceed three years, plus 2) the amount of remaining gross deferred tax assets expected to be realized within three years limited to an amount that is no greater than 15% of current period’s adjusted statutory capital and surplus, plus 3) the amount of remaining gross deferred tax assets that can be offset against existing gross deferred tax liabilities after considering character (i.e. ordinary versus capital) and reversal patterns. The Company’s reported deferred tax asset or liability is the sum of gross deferred tax assets admitted through this three-part test plus the sum of all deferred tax liabilities.
 
Policy Acquisition Costs
 
The costs of acquiring and renewing business are expensed when incurred. Under GAAP, incremental costs directly related to the successful acquisition of insurance and investment contracts are deferred.
 
Value of Business Acquired
 
Under GAAP, value of business acquired (VOBA) is an intangible asset resulting from a business combination that represents the excess of book value over the estimated fair value of acquired insurance, annuity, and investment-type contracts in-force at the acquisition date. The estimated fair value of the acquired liabilities is based on projections, by each block of business, of future contracts and contract changes, premiums, mortality and morbidity, separate account performance, surrenders, operation expenses, investment returns, nonperformance risk adjustment and other factors. VOBA is not recognized under the NAIC SAP.
 
24
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Subsidiaries and Affiliated Companies
 
Investments in subsidiaries, controlled and affiliated companies (SCA) are stated in accordance with the Purposes and Procedures Manual of the NAIC SVO, as well as SSAP No. 97, Investments in Subsidiary, Controlled and Affiliated Entities.
 
The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP. Dividends or distributions received from an investee are recognized in investment income when declared to the extent that they are not in excess of the undistributed accumulated earnings attributable to an investee. Changes in investments in SCA’s are recorded as a change to the carrying value of the investment with a corresponding amount recorded directly to unrealized gain/loss (capital and surplus).
 
Nonadmitted Assets
 
Certain assets designated as “nonadmitted”, primarily net deferred tax assets, reinsurance receivables, agent’s balances and other assets not specifically identified as an admitted asset within the NAIC SAP, are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the Balance Sheets to the extent that they are not impaired.
 
Statements of Cash Flow
 
Cash, cash equivalents and short-term investments in the Statements of Cash Flow represent cash balances and investments with initial maturities of one year or less and money market mutual funds. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.
 
 3.Accounting Changes and Correction of Errors
 
The Company’s policy is to disclose recently adopted accounting pronouncements that have been classified by the NAIC as a new statutory accounting principle (SAP) concept change, as well as items classified by the NAIC as SAP clarification changes that have been adopted and have had a material impact on the financial position or results of operations of the Company.
 
Recent Accounting Pronouncements
 
Effective January 1, 2025, the NAIC implemented substantive revisions to SSAP No. 26, Bonds and SSAP No. 43, Asset-Backed Securities, incorporating concepts from the principles-based bond definition (PBBD) project regarding the criteria for reporting long-term bonds. In accordance with the NAIC’s transition guidance specific to the project, this update does not constitute a change in accounting principle. The updated guidance has led to modifications in
 
25
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
how tables within footnotes 4 and 5 are presented, which may differ from the presentation used in previous reporting periods.
 
Effective January 1, 2025, the NAIC adopted revisions to SSAP No. 21, Other Admitted Assets, to reflect accounting and reporting guidance for investments that do not meet the requirements of PBBD, and for residual tranches or interests/loss positions.
 
No securities were reclassified from Schedule D upon the implementation of this guidance. There was no impact to the Company’s net income or capital and surplus.
 
On August 13, 2023, the Statutory Accounting Principles Working Group (SAPWG) adopted INT 23-01, Net Negative (Disallowed) Interest Maintenance Reserve, effective immediately. INT 23-01 provides optional, limited-time guidance, which allows the admittance of net negative (disallowed) IMR if certain conditions are met, up to 10% of adjusted general account capital and surplus. Refer to Note 5 for further detail.
 
Change in Estimates
 
During 2025, the Company implemented a change in estimate for TFLIC’s AG38 8C asset adequacy testing following updated regulatory guidance and actuarial review. These changes included extending projection periods, expanding the cohorts included in testing, and increasing retained spreads on certain closed indexed universal life (IUL) blocks. This resulted in an increase to TFLIC’s AG38 8C reserves of $41, resulting in a corresponding unfavorable pre-tax impact to statutory earnings.
 
Correction of Errors
 
During 2023, management identified and corrected an error in the Company’s prior year cash. The error resulted in an understatement of premiums and annuity considerations in the amount of $19, net of tax, which was corrected in accordance with SSAP No. 3, Accounting Changes and Corrections of Errors. This is reflected as a correction of an error in Other Changes - net in the Statements of Changes in Capital and Surplus.
 
There were additional errors identified in prior year financial statements that have been corrected in the years presented in the financial statements in accordance with SSAP No. 3. These errors do not have a material impact on the financial statements, individually or in aggregate, and therefore have not been separately disclosed.
 
26
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
 4.Fair Values of Financial Instruments
 
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
 
Determination of Fair Value
 
The fair values of financial instruments are determined by management after taking into consideration several sources of data. When available, the Company uses quoted market prices in active markets to determine the fair value of its investments. The Company’s valuation policy utilizes a pricing hierarchy which dictates that publicly available prices are initially sought from indices and third-party pricing services. In the event that pricing is not available from these sources, those securities are submitted to brokers to obtain quotes. Lastly, securities are priced using internal cash flow modeling techniques. These valuation methodologies commonly use reported trades, bids, offers, issuer spreads, benchmark yields, estimated prepayment speeds, and/ or estimated cash flows.
 
To understand the valuation methodologies used by third-party pricing services, the Company reviews and monitors their applicable methodology documents. Any changes to their methodologies are noted and reviewed for reasonableness. In addition, the Company performs in-depth reviews of prices received from third-party pricing services on a sample basis. The objective for such reviews is to demonstrate the Company can corroborate detailed information such as assumptions, inputs and methodologies used in pricing individual securities against documented pricing methodologies. Only third-party pricing services and brokers with a substantial presence in the market and with appropriate experience and expertise are used.
 
Each month, the Company performs an analysis of the information obtained from indices, third-party services, and brokers to ensure the information is reasonable and produces a reasonable estimate of fair value. The Company considers both qualitative and quantitative factors as part of this analysis, including but not limited to, recent transactional activity for similar securities, review of pricing statistics and trends, and consideration of recent relevant market events. Other controls and procedures over pricing received from indices, third-party pricing services, or brokers include validation checks such as exception reports which highlight significant price changes, stale prices or un-priced securities.
 
Fair Value Hierarchy
 
The Company’s financial assets and liabilities carried at fair value are classified, for disclosure purposes, based on a hierarchy defined by SSAP No. 100, Fair Value. The hierarchy gives the highest ranking to fair values determined using unadjusted quoted prices in active markets for identical assets and liabilities (Level 1), and the lowest ranking to fair values determined using methodologies and models with unobservable inputs (Level 3). An asset’s or a liability’s classification is based on the lowest level input that is significant to its measurement. For example, a Level 3 fair value measurement may include inputs that are both observable (Levels 1 and 2) and unobservable (Level 3). The levels of the fair value hierarchy are as follows:
 
27
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
 Level 1 -Unadjusted quoted prices for identical assets or liabilities in active markets accessible at the measurement date.
   
 Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
 
 a)Quoted prices for similar assets or liabilities in active markets
 b)Quoted prices for identical or similar assets or liabilities in non-active markets
 c)Inputs other than quoted market prices that are observable
 d)Inputs that are derived principally from or corroborated by observable market data through correlation or other means
 
 Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect the Company’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
 
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:
 
Cash Equivalents and Short-Term Investments: The carrying amounts reported in the accompanying Balance Sheets for these financial instruments is either reported at fair value or amortized cost (which approximates fair value). Cash is not included in the below tables.
 
Bonds and Stocks: The NAIC allows insurance companies to report the fair value determined by the SVO or to determine the fair value by using a permitted valuation method. The fair values of bonds and stocks are reported or determined using the following pricing sources: indices, third-party pricing services, brokers, external fund managers and internal models.
 
Fair values for fixed maturity securities (including redeemable preferred stock) actively traded are determined from third-party pricing services, which are determined as discussed above in the description of Level 1 and Level 2 values within the fair value hierarchy. For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from third-party pricing services, or are based on non-binding broker quotes or internal models. In the case of private placements, fair values are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments.
 
Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.
 
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
 
28
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
underlying characteristics of bonds, are determined primarily by using indices, third-party pricing services and internal models.
 
Derivative Financial Instruments: The fair value of futures and forwards are based upon the latest quoted market price and spot rates at the Balance Sheets date. The estimated fair values of equity and interest rate options (calls, puts, caps) are based upon the latest quoted market price at the Balance Sheets date. The estimated fair values of swaps, including interest rate and currency swaps, are based on pricing models or formulas using current assumptions. The estimated fair values of credit default swaps are based upon active market data, including interest rate quotes, credit spreads, and recovery rates, which are then used to calculate probabilities of default for the fair value calculation. The Company accounts for derivatives that receive and pass hedge accounting in the same manner as the underlying hedged instrument. If that instrument is held at amortized cost, then the derivative is also held at amortized cost.
 
Policy Loans: The book value of policy loans is considered to approximate the fair value of the loan, which is stated at unpaid principal balance.
 
Securities Lending Reinvested Collateral: The cash collateral from securities lending is reinvested in various short-term and long-term debt instruments. The fair values of these investments are determined using the methods described above under Cash Equivalents and Short-Term Investments and Bonds and Stocks.
 
Separate Account Assets and Annuity Liabilities: The fair value of separate account assets are based on quoted market prices when available. When not available, they are primarily valued either using third-party pricing services or are valued in the same manner as the general account assets as further described in this note. However, some separate account assets are valued using non-binding broker quotes, which cannot be corroborated by other market observable data, or internal modeling which utilizes input that are not market observable. The fair value of separate account annuity liabilities is based on the account value for separate accounts business without guarantees. For separate accounts with guarantees, fair value is based on discounted cash flows.
 
Investment Contract Liabilities: Fair value for the Company’s liabilities under investment contracts, which include deferred annuities and GICs, are estimated using discounted cash flow calculations. For those liabilities that are short in duration, carrying amount approximates fair value. For investment contracts with no defined maturity, fair value is estimated to be the present surrender value.
 
Deposit-Type Contracts: The carrying amounts of deposit-type contracts reported in the accompanying Balance Sheets approximate their fair values. These are included in the investment contract liabilities.
 
Fair values for the Company’s insurance contracts other than investment-type contracts (including separate account universal life liabilities) are not required to be disclosed. However, the fair values of liabilities under all insurance contracts are taken into consideration in the Company’s overall management of interest rate risk, such that the Company’s exposure to changing interest rates is minimized through the matching of investment maturities with amounts due under insurance contracts.
 
29
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company accounts for its investments in affiliated common stock in accordance with SSAP No. 97, as such, they are not included in the following disclosures.
 
The following tables set forth a comparison of the estimated fair values and carrying amounts of the Company’s financial instruments, including those not measured at fair value in the Balance Sheets, as of December 31, 2025 and 2024, respectively:
 
  December 31, 2025
  Aggregate
Fair Value		 Admitted
Value		 (Level 1) (Level 2) (Level 3)
Admitted assets                    
Cash equivalents and short-term investments, other than affiliates $153  $153  $153  $—  $— 
Bonds                    
Asset-backed securities  897   933   38   857   2 
Issuer credit obligations  3,325   3,796   268   3,057    — 
Preferred stocks, other than affiliates  4   4    —   4    — 
Common stocks, other than affiliates  3   3    —    —   3 
Mortgage loans on real estate  1,391   1,539    —    —   1,391 
Other invested assets  20   21    —   20    — 
Derivative assets:                    
Options  17   17    —   17    — 
Currency swaps  7   3    —   7    — 
Credit default swaps  5   2    —   5    — 
Equity futures   —   1    —    —    — 
Derivative assets total  29   23    —   29    — 
Policy loans  172   172    —   172    — 
Securities lending reinvested collateral  271   271   252   19    — 
Separate account assets  22,557   22,556   21,942   604   11 
Liabilities                    
Investment contract liabilities  3,453   3,460    —   1   3,452 
Derivative liabilities:                    
Options  5   5    —   5    — 
Interest rate swaps  29   41    —   29    — 
Currency swaps  5   5    —   5    — 
Equity swaps  10   10    —   10    — 
Interest rate futures  1   1   1    —    — 
Equity futures  2   2   2    —    — 
Derivative liabilities total  52   64   3   49    — 
Payable for securities lending  312   312    —   312    — 
Payable for derivative cash collateral  13   13    —   13    — 
Separate account liabilities  22,190   22,205    —   21,927   263 
 
30
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31, 2024
  
Aggregate
Fair Value
 
Admitted
Value
 
 
(Level 1)
 
 
(Level 2)
 
 
(Level 3)
Admitted assets                    
Cash equivalents and short-term investments, other than affiliates $91  $91  $91  $—   $—  
Short-term notes receivable from affiliates  100   100    —    100    —  
Bonds  3,956   4,586   261   3,692   3 
Preferred stocks, other than affiliates  4   4    —    4    —  
Common stocks, other than affiliates  3   3    —     —    3 
Mortgage loans on real estate  1,512   1,725    —     —    1,512 
Other invested assets  21   22    —    21    —  
Derivative assets:                    
Currency swaps  12   12    —    12    —  
Credit default swaps  8   4    —    8    —  
Equity swaps  5   5    —    5    —  
Derivative assets total  25   21    —    25    —  
Policy loans  160   160    —    160    —  
Securities lending reinvested collateral  265   265   265    —     —  
Separate account assets  20,954   20,961   20,389   565    —  
Liabilities                    
Investment contract liabilities  3,521   3,507    —    1   3,520 
Derivative liabilities:                    
Interest rate swaps  32   42    —    32    —  
Currency swaps  (1)    —     —    (1)    —  
Interest rate futures  1   1   1    —     —  
Derivative liabilities total  32   43   1   31    —  
Payable for securities lending  301   301    —    301    —  
Payable for derivative cash collateral  18   18    —    18    —  
Separate account liabilities  20,593   20,616    —    20,288   305 
 
31
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables provide information about the Company’s financial assets and liabilities measured at fair value as of December 31, 2025 and 2024:
 
  2025
  Level 1 Level 2 Level 3 Total
Assets:        
Bonds        
Asset-backed securities $—  $2  $—  $2 
Total bonds   —   2    —   2 
Preferred stock                
Industrial and miscellaneous   —   4    —   4 
Total preferred stock   —   4    —   4 
Common stock                
Industrial and miscellaneous   —    —   3   3 
Total common stock   —    —   3   3 
Cash equivalents and short-term investments                
Money market mutual funds  147    —    —   147 
Total cash equivalents and short-term investments  147    —    —   147 
Derivative assets   —   18    —   18 
Separate account assets  21,940   299    —   22,239 
Total assets $22,087  $323  $3  $22,413 
Liabilities:                
 
Derivative liabilities
 $3  $16  $—  $19 
Total liabilities $3  $16  $—  $19 
 
  2024
  Level 1 Level 2 Level 3 Total
Assets:        
Bonds        
Industrial and miscellaneous $—  $3  $—  $3 
Total bonds   —   3    —   3 
Preferred stock                
Industrial and miscellaneous   —   4    —   4 
Total preferred stock   —   4    —   4 
Common stock                
Industrial and miscellaneous   —    —   3   3 
Total common stock   —    —   3   3 
Cash equivalents and short-term investments                
Money market mutual funds  49    —    —   49 
Total cash equivalents and short-term investments  49    —    —   49 
Derivative assets  1   5    —   6 
Other long term   —   3    —   3 
Separate account assets  20,382   263    —   20,645 
Total assets $20,432  $278  $3  $20,713 
Liabilities:                
 
Derivative liabilities
 $1  $6  $—  $7 
Total liabilities $1  $6  $—  $7 
 
32
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Bonds classified as Level 2 are valued using inputs from third party pricing services or broker quotes.
 
Preferred stock classified as Level 2 are valued using inputs from third party pricing services or broker quotes.
 
Common stock classified as Level 3 are comprised primarily of shares in the FHLB of New York, which are valued at par as a proxy for fair value as a result of restrictions that allow redemptions only by FHLB.
 
Derivatives classified as Level 2 represent over-the-counter contracts valued using pricing models based on the net present value of estimated future cash flows, directly observed prices from exchange-traded derivatives, other over-the-counter trades, or external pricing services.
 
Separate account assets and liabilities are valued and classified in the same way as general account assets and liabilities (described above).
 
The following tables summarize the changes in assets classified as Level 3 for 2025 and 2024:
 
  Beginning
Balance at
January 1, 2025		 Transfers in
(Level 3)		 Transfers
out (Level 3)		 Total Gains
(Losses)
Included in
Net income (a)		 Total Gains
(Losses) Included in
Surplus (b)
Common stock $3  $—  $—  $—  $— 
Total $3  $—  $—  $—  $— 
 
  Purchases Issuances Sales Settlements Ending Balance at
December 31, 2025
Common stock $—  $—  $—  $—  $3 
Total $—  $—  $—  $—  $3 
 
 (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
 
  Beginning
Balance at
January 1, 2024		 Transfers in
(Level 3)		 Transfers
out (Level 3)		 Total Gains (Losses)
Included in
Net income (a)		 Total Gains
(Losses)
Included
in Surplus (b)
Common stock $3  $—  $—  $—  $— 
Total $3  $—  $—  $—  $— 
 
  Purchases Issuances Sales Settlements Ending Balance at
December 31, 2024
Common stock $—  $—  $—  $—  $3 
Total $—  $—  $—  $—  $3 
 
33
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
 (a)Recorded as a component of Net Realized Capital Gains (Losses) on Investments in the Statements of Operations
 (b)Recorded as a component of Change in Net Unrealized Capital Gains (Losses) in the Statements of Changes in Capital and Surplus
 
Transfers between fair value hierarchy levels are recognized at the beginning of the reporting period.
 
5.    Investments
 
Bonds and Stocks
 
The carrying amounts and estimated fair value of investments in bonds and stocks are as follows:
 
  Book Adjusted Carrying Value 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 Estimated Fair Value
December 31, 2025                
ICOs:                
U.S. Government obligations (exempt from RBC) $271  $—  $42  $229 
Other U.S. Government obligations (not exempt from RBC)  10    —   2   8 
Non-U.S. sovereign jurisdiction securities  97   1   13   85 
Municipal bonds - general obligations (direct & guaranteed)  1    —    —   1 
Municipal bonds - special revenue  3    —    —   3 
Corporate bonds  3,197   41   425   2,813 
Single entity backed obligation  217    —   30   187 
Total ICOs $3,796  $42  $512  $3,326 
ABS:                
Financial asset-backed securities - self liquidating:                
Agency RMBS - not/partially guaranteed (not exempt from RBC) $3  $—  $—  $3 
Non-agency CLOs/CBOs/CDOs - unaffiliated  47    —    —   47 
Non-agency CMBS - unaffiliated  256    —   21   235 
Non-agency RMBS - unaffiliated  38   6   1   43 
Other financial ABS - unaffiliated  304   3   16   291 
Non-financial ABS - full analysis:                
Lease backed transactions - unaffiliated  85    —   1   84 
Non-financial ABS - practical expedient:                
Lease backed transactions - unaffiliated  161   1   8   154 
Other non-financial ABS - unaffiliated  39    —    —   39 
Total ABS $933  $10  $47  $896 
Common stock $3  $—  $—  $3 
Preferred stock $4  $—  $—  $4 
  $4,736  $52  $559  $4,229 
 
34
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Book Adjusted Carrying Value 
Gross Unrealized
Gains
 
Gross Unrealized
Losses
 Estimated Fair Value
December 31, 2024                
Bonds:                
United States Government and agencies $271  $—  $45  $226 
State, municipal and other government  103    —   19   84 
Hybrid securities  29   1   3   27 
Industrial and miscellaneous  3,330   22   517   2,835 
Mortgage and other asset-backed securities  853   10   79   784 
Total unaffiliated bonds  4,586   33   663   3,956 
Unaffiliated preferred stocks  4    —    —   4 
  $4,590  $33  $663  $3,960 
 
  Cost 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
Unaffiliated common stocks $3  $—  $—  $3 
 
The carrying amount and estimated fair value of items held as bonds and short-term investments at December 31, 2025, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
 
  December 31, 2025
December 31: Carrying Value Fair Value
Due in one year or less $97  $97 
Due after one year through five years  661   649 
Due after five years through ten years  730   703 
Due after ten years through twenty years  1,139   1,023 
Due after twenty years  1,175   860 
Subtotal  3,802   3,332 
Mortgage and other asset-backed securities  933   898 
Total $4,735  $4,230 
 
35
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The estimated fair value of bonds, preferred stocks and common stocks with gross unrealized losses at December 31, 2025 and 2024 is as follows:
 
  2025
  
Equal to or Greater than 12
Months
 Less than 12 Months
  
Estimated
Fair Value
 Gross Unrealized
Losses		 
Estimated
Fair Value
 Gross Unrealized
Losses
ICOs:        
U.S. Government obligations (exempt from RBC) $69  $10  $160  $32 
Other U.S. Government obligations (not exempt from RBC)  9   2    —    — 
Non-U.S. sovereign jurisdiction securities  67   13    —    — 
Municipal bonds - special revenue  3    —    —    — 
Corporate bonds  1,914   422   85   3 
Single entity backed obligation  174   30   5    — 
Total ICOs $2,236  $477  $250  $35 
ABS:                
Financial asset-backed securities - self liquidating:                
Agency RMBS - not/partially guaranteed (not exempt from RBC) $1  $—  $—  $— 
Non-agency CLOs/CBOs/CDOs - unaffiliated  9    —   29    — 
Non-agency CMBS - unaffiliated  213   21   8    — 
Non-agency RMBS - unaffiliated  21   1    —    — 
Other financial ABS - unaffiliated  115   14   58   2 
Non-financial ABS - full analysis:                
Lease backed transactions - unaffiliated  29   1   14    — 
Non-financial ABS - practical expedient:                
Lease backed transactions - unaffiliated  34   8   25    — 
Other non-financial ABS - unaffiliated  2    —   26    — 
Total ABS $424  $45  $160  $2 
Common stock $—  $—  $3  $— 
Preferred stock $—  $—  $4  $— 
  $2,660  $522  $417  $37 
 
 
36
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  2024
  Equal to or Greater than 12 Months Less than 12 Months
  
Estimated
Fair Value
 Gross Unrealized
Losses		 
Estimated
Fair Value
 Gross Unrealized
Losses
United States Government and agencies $31  $8  $189  $37 
State, municipal and other government  71   19   1    — 
Hybrid securities  15   3   5    — 
Industrial and miscellaneous  2,050   503   412   14 
Mortgage and other asset-backed securities  577   78   98   1 
Total bonds  2,744   611   705   52 
Preferred stocks-unaffiliated   —    —    —    — 
Common stocks-unaffiliated   —    —    —    — 
  $2,744  $611  $705  $52 
 
During 2025 and 2023, respectively, there were no asset-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold. During 2024, there were $35 of loan-backed or structured securities with a recognized OTTI due to intent to sell or lack of intent and ability to hold for a period of time to recover the amortized cost basis.
 
For asset-backed and structured securities with a recognized OTTI due to the Company’s cash flow analysis, in which the security is written down to estimated future cash flows discounted at the security’s effective yield, in 2025, 2024 and 2023, the Company recognized OTTI of $4, $0 and $6, respectively.
 
The following asset-backed and structured securities were held at December 31, 2025, for which an OTTI was recognized during the current reporting period:
 
  
Amortized Cost Before Current
Period
 Present Value of Projected Recognized Amortized Cost After Fair Value at Time of 
Date of
Financial
Statement
Where
CUSIP OTTI Cash Flows OTTI OTTI OTTI Reported
BAE2XVVX7-TA $—  $—  $—  $—  $—  3/31/2025
46642 MAA6  8   5   3   5   3  3/31/2025
BAE3K7RU3-TA  —   —   —   —   —  3/31/2025
46642 MAA6  5   5   —   5   2  6/30/2025
12640 WAG5  —   —   —   —   —  6/30/2025
46642 MAA6  5   4   1   4   2  9/30/2025
12640 WAG5  —   —   —   —   —  9/30/2025
81744 FFC6  —   —   —   —   —  9/30/2025
22944 BCX4  3   3   —   3   3  12/31/2025
81744 FFC6  —   —   —   —   —  12/31/2025
          $4           
 
37
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The unrealized losses of asset-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, 2025 and 2024 is as follows:
 
  2025 2024
  Losses 12
Months or
More		 Losses Less
Than 12
Months		 Losses 12
Months or
More		 Losses Less
Than 12
Months
Year ended December 31:  
The aggregate amount of unrealized losses $46  $2  $82  $1 
The aggregate related fair value of securities with unrealized losses  424   158   580   112 
                 
 
At December 31, 2025 and 2024, 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 755 and 792 securities with a carrying amount of $3,182 and $3,355, and an unrealized loss of $522 and $611. Of this portfolio, at December 31, 2025 and 2024, 97.2% and 97.6% were investment grade with associated unrealized losses of $508 and $597, respectively.
 
At December 31, 2025 and 2024, respectively, for bonds and preferred stocks that have been in a continuous loss position for less than twelve months, the Company held 88 and 247 securities with a carrying amount of $451 and $756, and an unrealized loss of $37 and $52. Of this portfolio, at December 31, 2025 and 2024, 97.5% and 94.5% were investment grade with associated unrealized losses of $36 and $51, respectively.
 
At December 31, 2025 and 2024, there were no common stocks that have been in a continuous loss position for greater than or equal to twelve months.
 
At December 31, 2025 and 2024, for common stocks that have been in a continuous loss position for less than twelve months, the Company held 1 securities with a cost of $3 and 2 securities with an insignificant cost, respectively, and no unrealized losses.
 
During the years ended December 31, 2025 and 2024, the Company held no 5GI securities.
 
During 2025 and 2024, respectively, the Company sold, redeemed or otherwise disposed of 7 and 5 securities as a result of a callable feature which generated investment income of $1 and $2 as a result of a prepayment penalty and/or acceleration fee.
 
Proceeds from sales and other disposals of bonds and preferred stock and related gross realized capital gains and losses are reflected in the following table. The amounts exclude maturities and include transfers associated with reinsurance agreements, if applicable.
 
38
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Year Ended December 31
  2025 2024 2023
Proceeds $421  $457  $371 
Gross realized gains $1  $11  $8 
Gross realized losses  (3)   (19)   (5) 
Net realized capital gains (losses) $(2)  $(8)  $3 
 
The Company had gross realized losses, which relate to losses recognized on other-than-temporary declines in the fair value of bonds and preferred stocks, for the years ended December 31, 2025, 2024 and 2023 of $4, $7 and $5, respectively.
 
At December 31, 2025 and 2024, the Company had no investments in restructured securities. There were no capital gains (losses) taken as a direct result of restructures in 2025, 2024 and 2023.
 
Concentrations of Credit Risk
 
Credit risk represents the risk that a counterparty will fail to perform on its contractual obligations. The Company’s investment portfolio includes exposures that may be subject to concentrations of credit risk by industry sector and asset class. Such concentrations arise when multiple issuers share similar economic characteristics or are exposed to common industry, regulatory or macroeconomic factors that could affect their ability to meet contractual obligations.
 
The Company’s significant concentrations of credit risk are primarily related to corporate fixed-income securities and structured securities, diversified across a range of industries and asset types.
 
Banking (Stable)
 
The Company maintains material exposure to issuers within the banking sector. Credit risk in this sector is influenced by earnings stability, asset quality trends, capital and liquidity management, interest rate conditions and exposure to commercial real estate and other credit-sensitive asset classes.
 
Communications (Stable)
 
The Company maintains material exposure to issuers within the communications sector, including cable, media and telecommunications companies. Credit risk within this sector is influenced by competitive pressures, technological change, capital intensity and regulatory considerations that may impact issuer cash flows and overall credit quality.
 
39
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
Consumer Cyclical (Stable)
 
The Company holds investments in consumer cyclical industries, including retailers, restaurants, gaming entities and lodging and leisure companies. Credit risk within this sector is sensitive to changes in discretionary consumer spending, employment conditions, inflationary pressures and broader economic cycles that may affect revenues and profitability.
 
Consumer Noncyclical (Mostly Stable)
 
The Company’s consumer noncyclical exposure includes issuers in the food and beverage, consumer products, supermarkets, tobacco, healthcare and pharmaceutical industries. Credit risk in these sectors is influenced by factors such as pricing power, input cost volatility, regulatory environments, healthcare policy developments, and the relative stability of consumer demand.
 
Electric Utilities (Stable)
 
The Company’s electric utility exposure includes regulated issuers with capital-intensive operating models. Credit risk within this sector is influenced by capital expenditure requirements, regulatory frameworks, customer affordability considerations, weather-related events and sensitivity to interest rate movements.
 
Energy (Stable)
 
The Company holds investments in energy-related issuers, including integrated energy producers, independent exploration and production companies, midstream operators, refining companies and oilfield services providers. Credit risk in this sector is influenced by commodity price volatility, capital allocation discipline, regulatory considerations and broader energy demand trends.
 
Government and Government-Related Securities (Stable)
 
The Company also invests in government and government-related securities, including U.S. Treasury securities, municipal obligations, supranational entities and non-U.S. sovereign issuers. Credit risk for these investments is largely associated with changes in fiscal conditions, interest rates and geopolitical developments.
 
Technology (Stable)
 
The Company’s technology exposure includes issuers engaged in hardware manufacturing, software development and semiconductor production. Credit risk within this sector is affected by rapid technological advancement, capital investment requirements, product demand cycles and, in certain cases, global supply chain dynamics.
 
Transportation (Stable)
 
Transportation-related exposure includes airlines, automotive manufacturers, railroads and transportation service providers. Credit risk within this sector is affected by fuel and operating costs, labor dynamics, trade and tariff policies, supply chain disruptions and overall economic activity.
 
40
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company evaluated the near-term prospects of the issuers in relation to the severity and duration of unrealized losses in each of the above sectors and does not consider those investments to be other-than-temporarily impaired as of December 31, 2025.
 
Mortgage Loans
 
The credit quality of mortgage loans by type of property for the years ended December 31, 2025 and 2024 were as follows:
 
  Farm Commercial Total
December 31, 2025      
AAA - AA $—  $866  $866 
A  16   588   604 
BBB   —   67   67 
B   —   2   2 
  $16  $1,523  $1,539 
 
  Farm Commercial Total
December 31, 2024            
AAA - AA $—  $916  $916 
A  16   757   773 
BBB   —   34   34 
B   —   2   2 
  $16  $1,709  $1,725 
 
The credit quality for commercial and farm mortgage loans was determined based on an internal credit rating model which assigns a letter rating to each mortgage loan in the portfolio as an indicator of the credit quality of the mortgage loan. The internal credit rating model was designed based on rating agency methodology, then modified for credit risk associated with the Company's mortgage lending process, taking into account such factors as projected future cash flows, net operating income and collateral value. The model produces a credit rating score and an associated letter rating which is intended to align with S&P ratings as closely as possible. Information supporting the credit risk rating process is updated at least annually.
 
During 2025, the Company issued no new mortgage loans. During 2024, the Company issued mortgage loans with a maximum interest rate of 7.65% and a minimum interest rate of 7.65% for commercial loans. The maximum percentage of any one admitted loan to the value of the security (exclusive of insured or guaranteed or purchase money mortgages) originated or acquired during the year ending December 31, 2024 at the time of origination was 55%.
 
During 2025, the Company issued no farm mortgage loans. During 2024, the Company issued agricultural loans with both a maximum and minimum interest rate of 6.55%.
 
41
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
During 2025 and 2024, the Company did not reduce the interest rate on any outstanding mortgage loans.
 
The age analysis of mortgage loans and identification in which the Company is a participant or co-lender in a mortgage loan agreement is as follows for December 31, 2025 and 2024:
 
    Commercial  
  Farm All Other Total
December 31, 2025            
Recorded Investment (All)            
Current $16  $1,523  $1,539 
Participant or Co-lender in Mortgage Loan Agreement            
Recorded Investment $16  $484  $500 
 
    Commercial  
  Farm All Other Total
December 31, 2024            
Recorded Investment (All)            
Current $16  $1,709  $1,725 
Participant or Co-lender in Mortgage Loan Agreement            
Recorded Investment $16  $538  $554 
 
There were no impaired mortgage loans held without an allowance for credit losses as of December 31, 2025 and 2024, respectively, that were subject to participant or co-lender mortgage loan agreement for which the Company is restricted from unilaterally foreclosing on the mortgage loans.
 
As of December 31, 2025 and 2024, the Company had no mortgage loans derecognized as a result of foreclosure.
 
The Company accrues interest income on impaired loans to the extent deemed collectible (delinquent less than 91 days) and the loan continues to perform under its original or restructured contractual terms. Interest income on nonperforming loans generally is recognized on a cash basis. For the years ended December 31, 2025, 2024 and 2023, the Company has recognized no interest income on impaired loans or on a cash basis.
 
At December 31, 2025 and 2024, the Company held a mortgage loan loss reserve in the AVR of $15 and $17, respectively.
 
42
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company’s mortgage loan portfolio is diversified by geographic region and specific collateral property type as follows:
 
Geographic Distribution Property Type Distribution
   December 31    December 31
   2025  2024    2025  2024
 
Pacific
  33%  31% 
 
Apartment
  55%  56%
E. North Central  17   15  Industrial  22   21 
South Atlantic  14   17  Retail  15   14 
Middle Atlantic  14   13  Office  5   6 
Mountain  9   11  Medical  2   2 
W. South Central  5   4  Agricultural  1   1 
E. South Central  5   5           
W. North Central  2   3           
New England  1   1           
 
Other Invested Assets
 
During 2025, the Company recognized $5 of impairment write downs for its investments in joint ventures and limited partnerships. During 2024 and 2023, the Company recognized no impairment write downs for its investments in joint ventures and limited partnerships.
 
Tax Credits
 
The Company invests in projects designed to generate federal and state tax credits and other tax benefits through ownership interests in tax credit structures, including partnerships and limited liability entities. These investments primarily relate to affordable housing and historic rehabilitation. The Company’s objective in making these investments is to realize value through the receipt and utilization of tax credits and related tax benefits rather than through operating income or appreciation of the underlying assets.
 
Tax credits generated by these investments may be transferable or certificated in certain jurisdictions or non-transferable and usable only against the Company’s income tax liabilities. The investments are accounted for in accordance with SSAP No. 93 and SSAP No. 94, as applicable.
 
Tax credits generated from these investments are recognized as assets in accordance with SSAP No. 94 and are recorded at amounts expected to be realized through utilization or, where applicable, transfer or sale. The recognition of tax credits impacts the Company’s statutory financial position through the recording of admitted or nonadmitted tax credit assets.
 
Utilization of tax credits reduces income tax expense and current tax payable, favorably affecting statutory results of operations. Unused tax credits remain recorded as assets and are evaluated for admissibility and recoverability based on expected future taxable income, statutory limitations, and credit expiration provisions. Tax credits not expected to be realized are reduced through nonadmission or impairment, which negatively impacts statutory surplus and results of operations
 
43
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
in the period recognized. Tax credit benefits recognized in 2025, 2024 and 2023 was $13, $14 and $15, respectively, and other tax benefits recognized was $2, $2 and $2. The balance of the investment recognized as of December 31, 2025, 2024 and 2023 is $35, $49 and $64, respectively.
 
During the year ended December 31, 2025, 2024 and 2023, the Company recognized $14, ($14) and ($15), respectively, of investment amortization related to investments generating tax credits and other tax benefits. This amortization was recognized as a component of net investment income.
 
The Company recognized an insignificant amount of non-income tax related activity associated with these investments as a component of net investment income during 2025, 2024 and 2023.
 
There were no other returns allocated to these investments recognized outside of income tax expense.
 
The following schedule reflects the aggregate amount of tax credits expected to be generated in each of the subsequent five years and thereafter, disaggregated between transferable/certificated and non-transferable tax credits:
 
Year Transferable/
Certificated		 Nontransferable Total 
 2026 $— $12 $12 
 2027  —  10  10 
 2028  —  6  6 
 2029  —  2  2 
 2030  —  —  — 
 2031 and After  —  1  1 
   $— $31 $31 
 
The Company has commitments related to investments in tax credit structures, including obligations to make additional capital contributions upon the occurrence of specified events. The table below presents these commitments and the periods in which such amounts are expected to be funded:
 
Year Tax Credit 
 2026 $1 
 2027  — 
 2028  — 
 2029  — 
 2030  — 
 2031 and After  — 
   $1 
 
The Company is not subject to regulatory review for any underlying projects as of December 31, 2025, 2024 and 2023.
 
44
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company did not recognize impairment losses on tax credit investments as of December 31, 2025, 2024 and 2023.
 
The following tables provide the carrying value of tax credits, disaggregated by transferable/ certificated and non-transferable, gross of any related tax liabilities by jurisdiction and in total as of December 31, 2025 and 2024:
 
    December 31, 2025
Description of State Transferable and Non-Transferable Tax Credits Jurisdiction Carrying Value 
Unused
Amount*
Low-Income Housing Tax Credits United States $35  $31 
Economic Redevelopment and Growth Tax Credits NJ   —   1 
Total XXX $35  $32 
 
    December 31, 2024
Description of State Transferable and Non-Transferable Tax Credits Jurisdiction Carrying Value 
Unused
Amount
Economic Redevelopment and Growth Tax Credits NJ $—  $1 
Low-Income Housing Tax Credits United States  49   44 
Total XXX $49  $45 
 
The Company did not have any non-transferable state tax credits.
 
The following tables provide total unused tax credits by jurisdiction, disaggregated by transferable/certificated and non-transferable as of December 31, 2025 and 2024:
 
December 31, 2025
  Jurisdiction Transferable/ Certificated Nontransferable Total
State:        
New Jersey NJ $1  $—  $1 
Federal XXX   —   31   31 
Total XXX $1  $31  $32 
 
December 31, 2024
  Jurisdiction Transferable/ Certificated Nontransferable Total
State:        
New Jersey NJ $1  $—  $1 
Federal XXX   —   44   44 
Total XXX $1  $44  $45 
 
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.
 
45
 
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables identify tax credits by transferable/certificated and non-transferable classifications and identify the admitted and nonadmitted portions of each classification as of December 31, 2025 and 2024:
 
December 31, 2025
  Total Admitted   Total Nonadmitted 
State:        
Transferable $—  $— 
Non-transferable   —    — 
Federal:        
Transferable $—  $— 
Non-transferable  35    — 
 
December 31, 2024
  Total Admitted   Total Nonadmitted 
State:        
Transferable $—  $— 
Non-transferable   —    — 
Federal:        
Transferable $—  $— 
Non-transferable  49    — 
 
Derivatives
 
The Company has entered into collateral agreements with certain counterparties wherein the counterparty is required to post assets (cash or securities) on the Company's behalf in an amount equal to the difference between the net positive fair value of the contracts and an agreed upon threshold based on the credit rating of the counterparty. If the net fair value of all contracts with this counterparty is negative, then the Company is required to post similar assets (cash or securities). Fair value of derivative contracts, aggregated at a counterparty level at December 31, 2025 and 2024 was as follows:
 
  2025  2024 
Fair value - positive $32  $30 
Fair value - negative  (52)   (36) 
 
At December 31, 2025, 2024 and 2023, the Company has recorded unrealized gains (losses) of ($9), ($2) and $2, respectively, for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting. This has been recorded directly to unassigned surplus as an unrealized gain (loss). The Company did not recognize any unrealized gains or losses during 2025, 2024 and 2023 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.
 
46
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Summary of realized gains (losses) by derivative type for the years ended December 31, 2025, 2024 and 2023:
 
  2025  2024  2023 
Options:            
Calls $(7)  $(1)  $—  
Puts  1    —     —  
Total options $(6)  $(1)  $—  
Swaps:            
Interest rate $(1)  $8  $(40) 
Total return  (41)   (77)   (49) 
Total swaps $(42)  $(69)  $(89) 
Futures - net positions  35   (22)   (5) 
Total realized gains (losses) $(13)  $(92)  $(94) 
 
The average estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2025 and 2024:
 
  Asset(1) Liability(1)
  2025 2024 2025 2024
Derivative component of RSATs Credit default swaps $6  $9  $—  $— 
 
(1) Asset and liability classification of derivatives is based on each derivative's positive (asset) or negative (liability) book/adjusted carrying value.
 
The estimated fair value of derivatives held for other than hedging purposes is presented in the following table for the years ended December 31, 2025 and 2024:
 
  Asset(1) Liability(1)
  2025 2024 2025 2024
Derivative component of RSATs Credit default swaps $5  $8  $—  $— 
 
(1) Asset and liability classification of derivatives is based on each derivative's positive (asset) or negative (liability) book/adjusted carrying value.
 
The Company did not have net realized gains (losses) on derivatives held for other than hedging purposes for the years ended December 31, 2025, 2024 and 2023.
 
As stated in Note 2, the Company replicates investment grade corporate bonds, sovereign debt, and commercial mortgage backed securities by writing credit default swaps. As a writer of credit swaps, the Company actively monitors the underlying asset, being careful to note any events (default or similar credit event) that would require the Company to perform on the credit swap. If such events would take place, a payment equal to the notional amount of the contract, less any potential recoveries as determined by the underlying agreement, will be made by the Company to the counterparty to the swap.
 
47
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables present the estimated fair value, maximum amount of future payments and weighted average years to maturity of written credit default swaps at December 31, 2025 and 2024:
 
 2025
Rating Agency Designation of
Referenced Credit Obligations 
(1)		  
NAIC
Designation
 
Estimated
Fair Value of
Credit
Default
Swaps
  
Maximum
Amount of
Future
Payments
under Credit
Default
Swaps
   
Weighted
Average
Years to
Maturity 
(2)		 
AAA/AA/A  1             
 Single name credit default swaps (3)     $1  $1  $1.0 
Credit default swaps referencing indices       —   20   35.7 
Subtotal      1   123   7.1 
BBB  2             
Single name credit default swaps (3)      3   106   1.7 
Credit default swaps referencing indices      1   77   2.3 
Subtotal      4   183   2.0 
BB  3             
Single name credit default swaps (3)       —   10   0.5 
Subtotal       —   10   0.5 
Total     $5   316   3.9 
 
 (1)The rating agency designations are based on availability and the blending of the applicable ratings among Moody's Investors Service, S&P, and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.
 
 (2)The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
 
(3)Includes corporate, foreign government and state entities.
 
48
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
     2024
Rating Agency Designation of
Referenced Credit Obligations 
(1)		  
NAIC
Designation
 
Estimated
Fair Value of
Credit
Default
Swaps
  
Maximum
Amount of
Future
Payments
under Credit
Default
Swaps
   
Weighted
Average
Years to
Maturity 
(2)		 
AAA/AA/A  1             
Single name credit default swaps (3)     $1  $1  $1.0 
Credit default swaps referencing indices       —   20   36.7 
Subtotal      1   121   8.1 
BBB  2             
Single name credit default swaps (3)      4   176   2.1 
Credit default swaps referencing indices      2   143   2.2 
Subtotal      6   319   2.2 
BB  3             
Single name credit default swaps (3)       —   10   1.5 
Subtotal       —   10   1.5 
Total     $7   450   3.7 
 
(1) The rating agency designations are based on availability and the blending of the applicable ratings among Moody's Investors Service, S&P, and Fitch Ratings. If no rating is available from a rating agency, then an internally derived rating is used.
 
(2) The weighted average years to maturity of the credit default swaps is calculated based on weighted average notional amounts.
 
(3) Includes corporate, foreign government and state entities.
 
The Company may enter into credit default swaps to purchase credit protection on certain of the referenced credit obligations in the table above. At December 31, 2025 and 2024, there were not any potential future recoveries available to offset the $316 and $450, respectively, from the table above.
 
49
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, the Company’s outstanding derivative instruments, shown in notional or contract amounts and fair value, are summarized as follows:
 
  Contract or Notional Amount (1)  Fair Value 
  2025  2024  2025  2024 
Derivative assets:                
Credit default swaps $281  $434  $5  $8 
Currency swaps  62   147   7   12 
Equity swaps  11   258    —    5 
Options  62   13   17    —  
Derivative liabilities: Credit default swaps  46   35    —     —  
Currency swaps  92   7   5   1 
Equity futures   —     —    2    —  
Equity swaps  264   31   10    —  
Interest rate futures   —     —    1   1 
Interest rate swaps  90   282   28   32 
Interest rate forwards  60    —    1    —  
Options  (195)   (26)   5    —  
 
(1) Futures are presented in contract format. Swaps and options are presented in notional format.
 
Restricted Assets
 
The following tables show the pledged or restricted assets as of December 31, 2025 and 2024, respectively:
 
  Gross (Admitted & Nonadmitted) Restricted
  2025
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
Collateral held under security lending agreements $312  $—  $—  $—  $312 
FHLB capital stock  3    —    —    —   3 
On deposit with states  3    —    —    —   3 
Pledged as collateral not captured in other categories  159    —    —    —   159 
Collateral assets received and on balance sheet  13    —    —    —   13 
Total restricted assets $490  $—  $—  $—  $490 
 
50
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Gross (Admitted & Nonadmitted) Restricted  Percentage 
Restricted Asset Category Total From Prior Year (2024)  Increase/ (Decrease)  Total Nonadmitted Restricted  Total Admitted Restricted  Gross (Admitted & Nonadmitted) Restricted to Total Assets  Admitted Restricted to Total Admitted Assets 
Collateral held under security lending
agreements		 $301  $11  $—   $312   1.03%  1.04%
FHLB capital stock  3    —     —    3   0.01%  0.01%
On deposit with states  3    —     —    3   0.01%  0.01%
Pledged as collateral not captured in other
categories		  160   (1)    —    159   0.53%  0.53%
Collateral assets received and on balance sheet   —    13    —    13   0.04%  0.04%
Total restricted assets $467  $23  $—   $490   1.62%  1.63%
 
The following tables show the pledged or restricted assets in other categories as of December 31, 2025 and 2024, respectively:
 
  Gross (Admitted & Nonadmitted) Restricted
  2025
Description of Assets Total G/A G/A Supporting S/A Activity (a) Total S/A Restricted Assets S/A Assets Supporting G/A Activity (b) Total
Derivatives $159  $—  $—  $—  $159 
Total $159  $—  $—  $—  $159 
Total excluding derivative collateral (total minus amount of total pledged under derivative contracts) $159  $—  $—  $—  $159 
 
  Gross (Admitted & Nonadmitted) Restricted  Percentage 
Description of Assets Total From Prior Year (2024)  Increase/ (Decrease)  Total Admitted Restricted  Gross (Admitted & Nonadmitted) Restricted to Total Assets  Admitted Restricted to Total Admitted Assets 
Derivatives $160  $(1)  $159   0.53%  0.53%
Total $160  $(1)  $159   0.53%  0.53%
Total excluding derivative collateral (total minus amount of total pledged under derivative contracts) $160  $(1)  $159   0.53%  0.53%
 
51
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables show the collateral received and reflected as assets within the financial statements as of December 31, 2025 and 2024:
 
  2025
  BACV BACV BACV Fair Value Fair Value
Collateral Assets Collateral Modco FWH Collateral Modco
General Account                    
Cash $13  $—  $—  $13  $— 
Securities lending collateral assets  312    —    —   312    — 
Other   —    —    —    —    — 
Total collateral assets $325  $—  $—  $325  $— 
 
  2025 
Collateral Assets Fair Value
FWH		  % of BACV to Total Assets (Admitted and Nonadmitted)  % of BACV to Total Admitted  Assets  BACV FWH Including
Modco		 
General Account                
Cash $—    0.17%  0.17% $—  
Securities lending collateral assets   —    4.12%  4.17%   —  
Other   —     —%   —%   —  
Total collateral assets $—    4.29%  4.34% $—  
 
  Amount  % of Liability to Total Liabilities 
Recognized obligation to return collateral asset (General Account) $325   4.88%
 
  2024 
        % of CV to    
        Total Assets  % of CV to 
        (Admitted and  Total Admitted 
Collateral Assets Carrying Value  Fair Value  Nonadmitted)  Assets 
Cash $15  $15   0.20%  0.20%
Securities lending collateral assets  301   301   4.00   4.05 
Other  3   3   0.04   0.04 
Total collateral assets $319  $319   4.24%  4.29%
 
  Amount  % of Liability to Total Liabilities 
Recognized obligation to return collateral asset $319   4.84%
 
52
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Net Investment Income
 
Detail of net investment income is presented below:
 
  Year Ended December 31 
  2025  2024  2023 
Income:            
Bonds $195  $198  $212 
Common stocks   —     —    1 
Mortgage loans on real estate  67   72   74 
Policy loans  9   9   8 
Cash, cash equivalents and short-term investments  10   13   7 
Derivatives  25   24   25 
Other invested assets  (2)   11   17 
Gross investment income  304   327   344 
Less: investment expenses  17   18   17 
Net investment income before amortization of IMR  287   309   327 
Amortization of IMR  (1)   1   3 
Net investment income $286  $310  $330 
 
The gross, nonadmitted and admitted amounts for interest income due and accrued are presented in the following table:
 
  Year Ended December 31
  2025 2024
Gross $52  $52 
Nonadmitted $—  $— 
Admitted $52  $52 
 
At December 31, 2025, the Company had no cumulative amounts for paid-in-kind interest included in the principle balance. At December 31, 2024, the Company had insignificant cumulative amounts for paid-in-kind interest included in the principle balance.
 
53
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Realized Capital Gains (Losses)
 
Net realized capital gains (losses) on investments, including OTTI, are summarized below:
 
  Realized 
  Year Ended December 31 
  2025  2024  2023 
Bonds $(7)  $(15)  $(10) 
Common stocks   —     —    (1) 
Derivatives  (13)   (92)   (94) 
Other invested assets  (2)   5   1 
Net realized capital gains (losses), before taxes  (22)   (102)   (104) 
Federal income tax effect  (1)   3   (2) 
Transfer from (to) interest maintenance reserve  1   12   6 
Net realized capital gains (losses) on investments $(22)  $(87)  $(100) 
 
Unrealized Capital Gains (Losses)
 
The changes in net unrealized capital gains and losses on investments, including the changes in net unrealized foreign capital gains and losses were as follows:
 
  Change in Unrealized 
  Year Ended December 31 
  2025  2024  2023 
Bonds $20  $(4)  $2 
Common stocks   —     —    (2) 
Derivatives  (26)   (1)   (1) 
Other invested assets  (21)   (15)   19 
Change in unrealized capital gains (losses), before taxes  (27)   (20)   18 
Taxes on unrealized capital gains (losses)  3   3   (4) 
Change in unrealized capital gains (losses), net of tax $(24)  $(17)  $14 
 
54
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Admitted Disallowed IMR
 
The Company has admitted net negative (disallowed) IMR in accordance with the following criteria:
 
 A.Fixed income investments generating IMR losses comply with the reporting entity’s documented investment or liability management policies.
 B.IMR losses for fixed income related derivatives are all in accordance with prudent and documented risk management procedures, in accordance with a reporting entity’s derivative use plans and reflect symmetry with historical treatment in which unrealized derivative gains were reversed to IMR and amortized in lieu of being recognized as realized gains upon derivative termination.
 C.Any deviation to (a) was either because of a temporary and transitory timing issue or related to a specific event, such as a reinsurance transaction, that mechanically made the cause of IMR losses not reflective of reinvestment activities.
 D.Asset sales that were generating admitted negative IMR were not compelled by liquidity pressures (e.g., to fund significant cash outflows including, but not limited to excess withdrawals and collateral calls).
 
The aggregate net negative (disallowed) IMR allocation is presented in the following table for the years ended December 31, 2025 and 2024:
 
   Total   General
Account		   Insulated Separate Account   Non-Insulated Separate Account 
2025                
2024  27   9   18    — 
 
The allocation of the admitted negative (disallowed) IMR is presented in the following table for the years ended December 31, 2025 and 2024:
 
   Total   General
Account		   Insulated Separate Account   Non-Insulated Separate Account 
2025                
2024  27   9   18    — 
 
55
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The calculation of adjusted capital and surplus with consideration of the negative (disallowed) IMR is presented in the following table for the years ended December 31, 2025 and 2024:
 
  2025 2024
Prior period, as of September 30, the most recent statement filed with the NYDFS, general account capital and surplus $796  $814 
From prior period SAP financials:        
    Net positive goodwill (admitted)   —    — 
    EDP equipment & operating system software (admitted)   —    — 
    Net DTAs (admitted)  22   22 
    Net negative (disallowed) IMR (admitted)  11   8 
Adjusted capital and surplus $763  $784 
 
The admitted net negative (disallowed) IMR represents 3.67% and 3.44% of adjusted capital and surplus for 2025 and 2024.
 
The Company did not have gains/losses associated with derivatives sold allocated to IMR during 2025 and 2024.
 
6. Policy and Contract Attributes
 
Insurance Liabilities
 
Policy reserves, deposit-type contracts and policy claims at December 31, 2025 and 2024 were as follows:
 
  Year Ended December 31
  2025 2024
Life insurance reserves $1,786  $1,640 
Annuity reserves and supplementary contracts with life contingencies  3,907   3,942 
Accident and health reserves (including long term care)  206   281 
Total policy reserves $5,899  $5,863 
Deposit-type contracts  31   32 
Policy claims  33   32 
Total policy reserves, deposit-type contracts and claim liabilities $5,963  $5,927 
 
Life Insurance Reserves
 
The aggregate policy reserves for life insurance policies are based upon the 1941, 1958, 1980, 2001 and 2017 Commissioner's Standard Ordinary Mortality Tables. The reserves are calculated using interest rates ranging from 2.00 to 7.25 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
 
56
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Valuation Method. Indexed Universal Life Insurance issued after January 1, 2020, follows Valuation Manual section 20 (VM-20) reserve requirements.
 
Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula.
 
The Company waives deduction of deferred fractional premiums upon death of the insured and returns any portion of the final premium for periods beyond the date of death.
 
Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Generally, reserves are determined by computing the regular reserve for the plan at the true age and holding, in addition, the unearned portion 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.
 
As of December 31, 2025 and 2024, the Company had insurance in force aggregating $1,961 and $2,526, respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the NYDFS. The Company established policy reserves of $395 and $422 to cover these deficiencies as of December 31, 2025 and 2024, respectively.
 
The Company does not issue participating life insurance policies.
 
Annuity Reserves and Supplementary Contracts Involving Life Contingencies
 
Deferred annuity reserves are calculated according to the Commissioner’s Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest.
 
Reserves for immediate annuities and supplementary contracts with and without life contingencies are equal to the present value of future payments assuming interest rates ranging from 1.00 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.
 
Annuity reserves also include GICs and funding agreements classified as life-type contracts as defined in SSAP No. 50, Classifications of Insurance or Managed Care Contracts. These liabilities have annuitization options at guaranteed rates and consist of floating interest rate and fixed interest rate contracts. The contract reserves are carried at the greater of the account balance or the value as determined for an annuity with cash settlement option, on a change in fund basis, according to the Commissioner’s Annuity Reserve Valuation Method.
 
For variable annuities with guaranteed living benefits and/or minimum guaranteed death benefits, the Company complies with Reg 213. Reg 213 specifies statutory reserve requirements for variable annuity contracts (VACARVM) with benefit guarantees and without benefit guarantees and related products. Examples of covered guaranteed benefits include return of premium death benefits, guaranteed minimum accumulation benefits, guaranteed minimum income benefits, guaranteed minimum withdrawal benefits and guaranteed payout annuity floors. The Reg 213 reserve calculations include standard scenario calculations from the prior Actuarial Guideline 43
 
57
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
(AG 43) as well as reserve requirements based on the NAIC Valuation Manual Section 21 (VM-21) Principles Based Reserving for Variable Annuities. The reserve for contracts falling within the scope of Reg 213 is split into pre and post January 1, 2020 contract issues and is calculated at a contract level with no aggregation. For pre 2020 business, the reserve is the greater of the VM-21 reserve or the modified AG 43 standard scenario reserve. For post 2020 business, the reserve is the greater of the VM-21 reserve and the New York Objective Floor; the New York Objective Floor is the maximum of two distinct modified AG 43 standard scenario reserves, the cash surrender value and the option value floor.
 
The VM-21 reserve is equal to the Conditional Tail Expectation (CTE) amount plus an additional standard projection amount if the Company’s non-economic assumptions differ enough from industry assumptions. To determine the CTE amount, the Company uses 1,000 of the pre-packaged scenarios developed by the American Academy of Actuaries (AAA) and the Society of Actuaries and prudent estimate assumptions based on Company experience. The Standard Projection Amount is determined using the same CTE calculations but replaces the Company’s own assumptions with prescribed assumptions and methods specified in VM-21.
 
Accident and Health Liabilities
 
Accident and health policy reserves are equal to the greater of the gross unearned premiums or any required mid-terminal reserves plus net unearned premiums and the present value of amounts not yet due on both reported and unreported claims.
 
At December 31, 2025 and 2024, the Company had no premium deficiency reserve related to accident and health policies.
 
Liabilities for losses and loss/claim adjustment expenses for accident and health contracts are estimated using statistical claim development models to develop best estimates of liabilities for medical expense business and using tabular reserves employing mortality/morbidity tables and discount rates meeting minimum regulatory requirements for other business. Unpaid claims include amounts for losses and related adjustment expenses and are estimates of the ultimate net costs of all losses, reported and unreported. These estimates are subject to the impact of future changes in claim severity, frequency and other factors.
 
58
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Activity in the liability for unpaid claims and related processing costs net of reinsurance is summarized as follows:
 
  
Unpaid Claims Liability Beginning
of Year
 Claims
Incurred		 Claims
Paid		 
Unpaid Claims Liability End
of Year
Year ended December 31, 2025                
2025 $—  $80  $43  $37 
2024 and prior  41   2   34   9 
   41  $82  $77   46 
Active life reserve $255          $175 
Total accident and health reserves $296          $221 
 
  Unpaid Claims Liability Beginning of Year  Claims
Incurred		  Claims
Paid		  Unpaid Claims Liability End
of Year		 
Year ended December 31, 2024                
2024 $—   $72  $40  $32 
2023 and prior  41   (1)   31   9 
   41  $71  $71   41 
Active life reserve $252          $255 
Total accident and health reserves $293          $296 
 
The change in the Company's unpaid claims reserve was $2 and ($1) for the years ended December 31, 2025 and 2024, respectively, for health claims that were incurred prior to those Balance Sheets date. The change in 2025 was due to the LTC block releasing NY Sound Value at the end of 2025, causing a $75M reduction. There were no significant drivers of the change in 2024.
 
59
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Activity in the liability for unpaid claims adjustment expense is summarized as follows:
 
   
Liability
Beginning of
Year
   Incurred   Paid   
Liability
End of
Year
 
Year ended December 31, 2025                
2025                
2024 and prior   —   1   1    — 
    —   2   1   1 
Year ended December 31, 2024                
2024   —   1   1    — 
2023 and prior   —    —    —    — 
    —   1   1    — 
 
There was no significant change in the claim adjustment expense provision for insured events of prior years during 2025.
 
Premium and Annuity Considerations Deferred and Uncollected
 
Reserves on the Company's traditional life insurance products are computed using mean and interpolated or mid-terminal reserving methodologies. The mean 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. The interpolated methodologies do not require the establishment of such assets, however, it is required to hold unearned premium liabilities. At December 31, 2025 and 2024, the gross premiums and net of loading amounts related to these assets (which are reported as premiums deferred and uncollected), are as follows:
 
  2025 2024
  Gross Net of Loading Gross Net of Loading
Life and annuity: $—  $—  $2  $1 
Ordinary renewal business $—  $—  $2  $1 
 
Deposit-type Contracts
 
Tabular interest on funds not involving life contingencies has been determined primarily by formula.
 
60
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Withdrawal Characteristics of Annuity Reserves and Deposit Funds
 
A portion of the Company's policy reserves and other policyholders' funds (including separate account liabilities) relates to liabilities established on a variety of the Company's annuity, deposit fund and life products. There may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on annuity and deposit fund products, by withdrawal characteristics, is summarized as follows:
 
  December 31 2025 
  General Account  Separate Account with Guarantees  Separate Account Non Guaranteed  Total  Percent 
Individual Annuities:                    
Subject to discretionary withdrawal with adjustment:                    
With fair value adjustment $—   $82  $—   $82   2%
At book value less surrender charge of 5% or more  60    —     —    60   1 
At fair value   —     —    4,291   4,291   83 
Total with adjustment or at fair value  60   82   4,291   4,433   86 
At book value without adjustment
(minimal or no charge or adjustment)		  445    —     —    445   9 
Not subject to discretionary withdrawal provision  245    —    24   269   5 
Total individual annuity reserves  750   82   4,315   5,147   100%
Less reinsurance ceded  134    —     —    134     
Net individual annuities reserves $616  $82  $4,315  $5,013     
Amount included in book valueless surrender charge above that will move to book value without adjustment in the year after the statement date $20  $—   $—   $20     
 
61
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31 2025 
  General Account  
Separate
Account
with
Guarantees
  
Separate
Account
Non-
Guaranteed
  Total  Percent 
Group Annuities:                    
Subject to discretionary withdrawal with adjustment:                    
With fair value adjustment $821  $2  $—   $823   4%
At book value less surrender charge of 5% or more  383    —     —    383   2 
At fair value   —    221   16,863   17,084   81 
Total with adjustment or at fair value  1,204   223   16,863   18,290   87 
At book value without adjustment (minimal or no charge or adjustment)  1,645   41    —    1,686   8 
Not subject to discretionary withdrawal provision  417    —    680   1,097   5 
Total group annuities reserves  3,266   264   17,543   21,073   100%
Net group annuities reserves $3,266  $264  $17,543  $21,073     
 
  
December 31 2025
 
  General Account  Separate Account with Guarantees  Separate Account Non-Guaranteed  Total  Percent 
Deposit-type contracts (no life contingencies):                    
Subject to discretionary withdrawal with adjustment:                    
At book value without adjustment
(minimal or no charge or adjustment)		 $1  $—   $—   $1   2%
Not subject to discretionary withdrawal provision  43    —    2   45   98 
Total deposit-type contracts  44    —    2   46   100%
Less reinsurance ceded  13    —     —    13     
Net deposit-type contracts $31  $ —   $2  $33     
 
 
62
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Amount
Reconciliation to the Annual Statement:  
Life & Accident & Health Annual Statement:    
Exhibit 5, Annuities section, total (net) $3,825 
Exhibit 5, Supp contracts with life contingencies section, total (net)  57 
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance  31 
Subtotal  3,913 
Separate Accounts Annual Statement:    
Exhibit 3, Annuities section, total  22,170 
Exhibit 3, Supp contracts with life contingencies section, total  34 
Other contract deposit funds  2 
Subtotal  22,206 
Combined total $26,119 
 
  December 31 2024 
  General Account  Separate Account with Guarantees  Separate Account Non-Guaranteed  Total  Percent 
Individual Annuities:                    
Subject to discretionary withdrawal with adjustment:                    
With fair value adjustment $—   $17  $—   $17    —%
At book value less surrender charge of 5% or more  51    —     —    51   1 
At fair value   —     —    4,225   4,225   84 
Total with adjustment or at fair value  51   17   4,225   4,293   85 
At book value without adjustment (minimal or no charge or adjustment)  487    —     —    487   10 
Not subject to discretionary withdrawal provision  229    —    21   250   5 
Total individual annuity reserves  767   17   4,246   5,030   100%
Less reinsurance ceded  135    —     —    135     
Net individual annuity reserves $632  $17  $4,246  $4,895     
Amount included in book value less surrender charge above that will move to book value without adjustment in the year after the statement date $12  $—   $—   $12     
 
63
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31 2024 
  General Account  Separate Account with Guarantees  Separate Account Non-Guaranteed  Total  Percent 
Group Annuities:                    
Subject to discretionary withdrawal with adjustment:                    
With fair value adjustment $786  $1  $—   $787   4%
At book value less surrender charge of 5% or more  414    —     —    414   2 
At fair value   —    258   15,355   15,613   79 
Total with adjustment or at fair value  1,200   259   15,355   16,814   85 
At book value without adjustment (minimal or no charge or adjustment)  1,666   46    —    1,712   9 
Not subject to discretionary withdrawal provision  444    —    692   1,136   6 
Total group annuity reserves  3,310   305   16,047   19,662   100%
Net group annuity reserves $3,310  $305  $16,047  $19,662     
 
 
  December 31 2024 
  General Account  Separate Account with Guarantees  Separate Account Non- Guaranteed  Total  Percent 
Deposit-type contracts (no life contingencies):                    
Subject to discretionary withdrawal with adjustment:                    
At book value without adjustment (minimal or no charge or adjustment) $1  $—   $—   $1   2%
Not subject to discretionary withdrawal provision  44    —    1   45   98 
Total deposit-type contracts  45    —    1   46   100%
Less reinsurance ceded  13    —     —    13     
Net deposit-type contracts $32  $—   $1  $33     
 
64
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Amount
Reconciliation to the Annual Statement:    
Life & Accident & Health Annual Statement:    
Exhibit 5, Annuities section, total (net) $3,888 
Exhibit 5, Supp contracts with life contingencies section, total (net)  54 
Exhibit 7, Deposit-type contracts, net balance at the end of the current year after reinsurance  32 
Subtotal  3,974 
Separate Accounts Annual Statement:    
Exhibit 3, Annuities section, total  20,584 
Exhibit 3, Supp contracts with life contingencies section, total  31 
Other contract deposit funds  1 
Subtotal  20,616 
Combined total $24,590 
 
The amount of reserves on life products, by withdrawal characteristics, is summarized as follows:
 
  December 31 2025
  General Account
  Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:            
Term policies with cash value $—  $1  $1 
Universal life  691   675   735 
Universal life with secondary guarantees  39   22   82 
Indexed universal life with secondary guarantees  709   608   651 
Other permanent cash value life insurance   —   66   80 
Variable universal life  55   55   57 
Not subject to discretionary withdrawal or no cash values            
Term policies without cash value   —    —   270 
Accidental death benefits   —    —   1 
Disability - active lives   —    —   2 
Disability - disabled lives   —    —   7 
Miscellaneous reserves   —    —   91 
Total (gross)  1,494   1,427   1,977 
Reinsurance ceded  176   176   191 
Total (net) $1,318  $1,251  $1,786 
 
65
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
As of December 31, 2025, the Company did not hold any life reserves for separate accounts with guarantees.
 
  December 31 2025
  Separate Account - Nonguaranteed
  Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:            
Variable universal life $337  $337  $337 
Total (net) $337  $337  $337 
 
  Amount
Reconciliation to the Annual Statement:    
Life & Accident & Health Annual Statement:    
Exhibit 5, Life insurance section, total (net) $1,685 
Exhibit 5, Accidental death benefits section total (net)  1 
Exhibit 5, Disability - active lives section, total (net)  2 
Exhibit 5, Disability - disabled lives section, total (net)  7 
Exhibit 5, Miscellaneous reserves section, total (net)  91 
Subtotal  1,786 
Separate Accounts Annual Statement:    
Exhibit 3, Life insurance section, total  337 
Subtotal  337 
Combined total $2,123 
 
66
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31 2024
  General Account
  Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans:            
Term policies with cash value $—  $1  $2 
Universal life  681   587   721 
Universal life with secondary guarantees  31   26   84 
Indexed universal life with secondary guarantees  612   515   549 
Other permanent cash value life insurance   —   66   82 
Variable universal life  26   27   55 
Not subject to discretionary withdrawal or no cash values            
Term policies without cash value   —    —   275 
Disability - active lives   —    —   1 
Disability - disabled lives   —    —   8 
Miscellaneous reserves   —    —   56 
Total (gross)  1,350   1,222   1,833 
Reinsurance ceded  176   176   192 
Total (net) $1,174  $1,046  $1,641 
 
As of December 31, 2024, the Company did not hold any life reserves for separate accounts with guarantees.
 
  December 31 2024
  Separate Account - Nonguaranteed
  Account Value Cash Value Reserve
Subject to discretionary withdrawal, surrender values, or policy loans: Variable universal life $171  $170  $308 
Total (net) $171  $170  $308 
 
  Amount
Reconciliation to the Annual Statement:    
Life & Accident & Health Annual Statement:    
Exhibit 5, Life insurance section, total (net)
 $1,575 
Exhibit 5, Disability - active lives section, total (net)  1 
Exhibit 5, Disability - disabled lives section, total (net)  8 
Exhibit 5, Miscellaneous reserves section, total (net)  56 
Subtotal
  1,640 
Separate Accounts Annual Statement:    
Exhibit 3, Life insurance section, total  308 
Subtotal  308 
Combined total $1,948 
 
67
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
Separate Accounts
 
Information regarding the separate accounts of the Company as of and for the years ended December 31, 2025, 2024 and 2023 is as follows:
 
  
Guaranteed
Indexed
 
Nonindexed
Guarantee Less Than or
Equal to 4%
 Nonguaranteed Separate Accounts Total
Premiums, deposits and other considerations for the year ended December 31, 2025 $—  $31  $3,309  $3,340 
Reserves for separate accounts as of December 31, 2025 with assets at:                
Fair value $—  $—  $22,197  $22,197 
Amortized cost  67   279    —   346 
Total as of December 31, 2025 $67  $279  $22,197  $22,543 
Reserves for separate accounts by withdrawal characteristics as of December 31, 2025:                
With fair value adjustment $67  $17  $—  $84 
At fair value   —   221   21,491   21,712 
At book value without fair value adjustment and with current surrender charge of less than 5%   —   41    —   41 
Subtotal  67   279   21,491   21,837 
Not subject to discretionary withdrawal   —    —   706   706 
Total separate account reserve liabilities at December 31, 2025 $67  $279  $22,197  $22,543 
 
68
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  
Guaranteed
Indexed
 
Nonindexed
Guarantee Less Than or
Equal to 4%
 Nonguaranteed Separate Accounts Total
Premiums, deposits and other considerations for the year ended December 31, 2024 $—  $27  $4,154  $4,181 
Reserves for separate accounts as of December 31, 2024 with assets at:                
Fair value $—  $—  $20,601  $20,601 
Amortized cost  1   321    —   322 
Total as of December 31, 2024 $1  $321  $20,601  $20,923 
Reserves for separate accounts by withdrawal characteristics as of December 31, 2024:                
With fair value adjustment $1  $18  $—  $19 
At fair value   —   258   19,887   20,145 
At book value without fair value adjustment and with current surrender charge of less than 5%   —   46    —   46 
Subtotal  1   322   19,887   20,210 
Not subject to discretionary withdrawal   —    —   714   714 
Total separate account reserve liabilities at December 31, 2024 $1  $322  $20,601  $20,924 
 
69
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  
Nonindexed
Guarantee
Less Than or
Equal to 4%
 
Nonguaranteed
Separate
Accounts
 Total
Premiums, deposits and other considerations for the year ended December 31, 2023 $48  $2,576  $2,624 
Reserves for separate accounts as of December 31, 2023 with assets at:            
Fair value $—  $17,995  $17,995 
Amortized cost  391    —   391 
Total as of December 31, 2023 $391  $17,995  $18,386 
Reserves for separate accounts by withdrawal characteristics as of December 31, 2023:            
With fair value adjustment $19  $—  $19 
At fair value  323   17,177   17,500 
At book value without fair value adjustment and with current surrender charge of less than 5%  49    —   49 
Subtotal  391   17,177   17,568 
Not subject to discretionary withdrawal   —   818   818 
Total separate account reserve liabilities at December 31, 2023 $391  $17,995  $18,386 
 
A reconciliation of the amounts transferred to and from the Company’s separate accounts is presented below:
 
  Year Ended December 31 
  2025  2024  2023 
Transfer as reported in the Summary of Operations of the separate accounts statement:         
Transfers to separate accounts $3,345  $4,187  $2,635 
Transfers from separate accounts  4,541   3,979   (3,006) 
Net transfers from separate accounts  (1,196)   208   (371) 
Miscellaneous reconciling adjustments  1   1   6 
Net transfers as reported in the Summary
of Operations of the life, accident and health annual statement		 $(1,195)  $209  $(365) 
 
70
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The legal insulation of separate account assets prevents such assets from being generally available to satisfy claims resulting from the general account. The assets legally insulated from general account claims at December 31, 2025 and 2024 are attributed to the following products:
 
  2025 2024
Variable life $337  $138 
Variable universal life   —   171 
Variable annuities  4,640   4,550 
Group annuities  15,761   14,285 
Registered market value separate accounts  618   608 
Non-registered market value separate accounts  56   59 
Par annuities  827   831 
Registered market value annuity product - SPL   —   2 
Book value separate accounts  278   330 
Total separate account assets $22,517  $20,974 
 
At December 31, 2025 and 2024, the Company held separate account assets not legally insulated from the general account in the amount of $86 and $19, respectively.
 
Some separate account liabilities are guaranteed by the general account. In accordance with the guarantees provided, if the investment proceeds are insufficient to cover the rate of return guaranteed for the product, the policyholder proceeds will be remitted by the general account. To compensate the general account for the risk taken, the separate account paid risk charges of $47, $49, $49, $51 and $53, to the general account in 2025, 2024, 2023, 2022 and 2021, respectively. During the years ended December 31, 2025, 2024, 2023 and 2022, the general account of the Company had paid $1, $1, $2 and $2, respectively, toward separate account guarantees, with an insignificant amount paid in 2021.
 
At December 31, 2025 and 2024, the Company reported guaranteed separate account assets at amortized cost in the amount of $320 and $301, respectively, based upon the prescribed practice granted by the State of New York as described in Note 2. These assets had a fair value of $321 and $296 at December 31, 2025 and 2024, respectively, which would have resulted in an unrealized gain/(loss) of $1 and ($5), respectively, had these assets been reported at fair value.
 
The Company does not participate in securities lending transactions within the separate account.
 
71
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
7. Reinsurance
 
Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The Company coinsures up to 100% of select policies or 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 and annuity considerations include the following reinsurance amounts:
 
  Year Ended December 31 
  2025  2024  2023 
Direct premiums $4,344  $5,051  $3,527 
Reinsurance assumed - non affiliates  180   190   189 
Reinsurance ceded - non affiliates  (188)   (194)   (125) 
Reinsurance ceded - affiliates   —     —    (74) 
Net premiums earned $4,336  $5,047  $3,517 
 
The Company received reinsurance recoveries in the amount of $234, $212 and $238 during 2025, 2024 and 2023, respectively. At December 31, 2025 and 2024, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $77 and $89, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2025 and 2024 of $1,444 and $1,527, respectively, of which $0 and $0 were ceded to affiliates, respectively.
 
72
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
8. Income Taxes
 
The net deferred income tax asset at December 31, 2025 and 2024 and the change from the prior year are comprised of the following components:
 
  December 31, 2025 
  Ordinary  
 
Capital
  Total 
Gross Deferred Tax Assets $104  $10  $114 
Statutory Valuation Allowance Adjustment   —     —     —  
Adjusted Gross Deferred Tax Assets  104   10   114 
Deferred Tax Assets Nonadmitted  69    —    69 
Subtotal (Net Deferred Tax Assets)  35   10   45 
Deferred Tax Liabilities  7   17   24 
Net Admitted Deferred Tax Assets (Liabilities) $28  $(7)  $21 
 
  December 31, 2024 
  Ordinary  Capital  Total 
Gross Deferred Tax Assets $99  $10  $109 
Statutory Valuation Allowance Adjustment   —     —     —  
Adjusted Gross Deferred Tax Assets  99   10   109 
Deferred Tax Assets Nonadmitted  57    —    57 
Subtotal (Net Deferred Tax Assets)  42   10   52 
Deferred Tax Liabilities  15   16   31 
Net Admitted Deferred Tax Assets (Liabilities) $27  $(6)  $21 
 
  Ordinary  
Change
Capital
  Total 
Gross Deferred Tax Assets $5  $—   $5 
Statutory Valuation Allowance Adjustment   —     —     —  
Adjusted Gross Deferred Tax Assets  5    —    5 
Deferred Tax Assets Nonadmitted  12    —    12 
Subtotal (Net Deferred Tax Assets)  (7)    —    (7) 
Deferred Tax Liabilities  (8)   1   (7) 
Net Admitted Deferred Tax Assets (Liabilities) $1  $(1)  $—  
 
The Company recognized all of its deferred tax liabilities as of December 31, 2025 and 2024.
 
73
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The main components of deferred income tax amounts are as follows:
 
  Year Ended December 31    
  2025  2024  Change 
Deferred Tax Assets:            
Ordinary            
Policyholder reserves $58  $60  $(2) 
Investments  7   1   6 
Deferred acquisition costs  34   32   2 
Compensation and benefits accrual  1   1    —  
Receivables - nonadmitted  4   4    —  
Other   —    1   (1) 
Subtotal  104   99   5 
Statutory valuation allowance adjustment   —     —     —  
Nonadmitted  69   57   12 
Admitted ordinary deferred tax assets  35   42   (7) 
Capital            
Investments  10   10    —  
Other       —     —  
Subtotal  10   10    —  
Statutory valuation allowance adjustment   —     —     —  
Nonadmitted   —     —     —  
Admitted capital deferred tax assets  10   10    —  
Admitted deferred tax assets $45  $52  $(7) 
 
  Year Ended December 31    
  2025  2024  Change 
Deferred Tax Liabilities:            
Ordinary            
Investments $3  $3  $—  
Policyholder reserves  4   12   (8) 
Other   —     —     —  
Subtotal  7   15   (8) 
Capital            
Investments  17   16   1 
Other   —     —     —  
Subtotal  17   16   1 
Deferred tax liabilities  24   31   (7) 
Net admitted deferred tax assets (liabilities) $21  $21  $—  
 
As a result of the 2017 Tax Cuts and Jobs Act (TCJA), the Company’s tax reserve deductible temporary difference increased by $18. This change results in an offsetting $(18) taxable temporary difference that has been fully amortized into taxable income as of December 31, 2025.
 
74
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
On July 4, 2025, the One Big Beautiful Bill (Bill) was passed into US law. The Company has no material tax impacts related to the Bill in its December 31, 2025 results.
 
The Inflation Reduction Act was enacted during the third quarter 2022 reporting period on August 16, 2022. The act included a provision which subjects high earning corporate taxpayers to the Corporate Alternative Minimum Tax (CAMT). The Company is part of an affiliated group that has determined it is a nonapplicable reporting entity for CAMT in 2023, 2024, or 2025 and has not included any impacts of the CAMT in the financial statements as of December 31, 2025.
 
As discussed in Note 2, for the years ended December 31, 2025 and 2024, 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, 2025
  Ordinary Capital Total
Admission Calculation Components SSAP No. 101            
2(a)      Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $—  $1  $1 
2(b)      Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)  18   2   20 
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date  18   2   20 
2.     Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold  XXX   XXX   120 
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  17   7   24 
2(d)      Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c)) $35  $10  $45 
 
75
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31, 2024
  Ordinary Capital Total
Admission Calculation Components SSAP No. 101            
2(a)      Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $1  $—  $1 
2(b)      Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)  18   3   21 
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date  18   3   21 
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold  XXX   XXX   122 
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  23   7   30 
2(d)     Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c)) $42  $10  $52 
 
  Ordinary  Change
Capital		  Total 
Admission Calculation Components SSAP No. 101            
2(a)       Federal Income Taxes Paid in Prior Years Recoverable Through Loss Carrybacks $(1)  $1  $—  
2(b)      Adjusted Gross Deferred Tax Assets Expected to be Realized (Excluding The Amount of Deferred Tax Assets From 2(a) above) After Application of the Threshold Limitation (the Lesser of 2(b)1 and 2(b)2 below)   —    (1)   (1) 
1.      Adjusted Gross Deferred Tax Assets Expected to be Realized Following the Balance Sheet Date   —    (1)   (1) 
2.      Adjusted Gross Deferred Tax Assets Allowed per Limitation Threshold  XXX   XXX   (2) 
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  (6)    —    (6) 
2(d)      Deferred Tax Assets Admitted as the result of application of SSAP No. 101, Total (2(a) + 2(b) + 2(c)) $(7)  $—   $(7) 
 
76
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  December 31 
  2025  2024 
Ratio Percentage Used To Determine Recovery        
Period and Threshold Limitation Amount  1,148%  1,203%
Amount of Adjusted Capital and Surplus Used To Determine Recovery Period and Threshold        
Limitation in 2(b)2 Above $803  $810 
 
The impact of tax planning strategies at December 31, 2025 and 2024 was as follows:
 
   December 31, 2025 
   Ordinary
 Percent		   Capital
Percent		   Total Percent 
Impact of Tax Planning Strategies:            
(% of Total Adjusted Gross DTAs)  0%  0%  0%
(% of Total Net Admitted Adjusted Gross DTAs)  8%  0%  8%
 
   December 31, 2024 
   Ordinary
Percent		   Capital
Percent		   Total Percent 
Impact of Tax Planning Strategies:            
(% of Total Adjusted Gross DTAs)  0%  0%  0%
(% of Total Net Admitted Adjusted Gross DTAs)  7%  0%  7%
 
The Company’s tax planning strategies do not include the use of reinsurance-related tax planning strategies.
 
Current income taxes incurred consist of the following major components:
 
  Year Ended December 31 
  2025  2024  Change 
Current Income Tax            
Federal $17  $15  $2 
Subtotal  17   15   2 
Federal income tax on net capital gains  1   (3)   4 
Federal and foreign income taxes incurred $18  $12  $6 
 
77
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
  Year Ended December 31 
  2024  2023  Change 
Current Income Tax            
Federal $15  $24  $(9) 
Subtotal  15   24   (9) 
Federal income tax on net capital gains  (3)   2   (5) 
Federal and foreign income taxes incurred $12  $26  $(14) 
 
The Company’s current income tax incurred and change in deferred income tax differs from the amount obtained by applying the federal statutory rate to income before tax as follows:
 
  Year Ended December 31 
  2025  2024  2023 
 
Current income taxes incurred
 $18  $12  $26 
Change in deferred income taxes (without tax on unrealized gains and losses)  (9)    —    (1) 
Total income tax reported $9  $12  $25 
Income before taxes $155  $136  $210 
Federal statutory tax rate  21.00%  21.00%  21.00%
Expected income tax expense (benefit) at statutory rate $33  $29  $44 
Increase (decrease) in actual tax reported resulting from:            
Dividends received deduction $(3)  $(2)  $(3) 
Nondeductible expenses  1    —     —  
Pre-tax items reported net of tax   —     —    (2) 
Tax credits  (14)   (15)   (15) 
Prior period tax return adjustment  (2)   3   (1) 
Change in uncertain tax positions  (2)    —     —  
Deferred tax change on other items in surplus  (2)   4   2 
Other  (2)   (7)    —  
Total income tax reported $9  $12  $25 
 
The Company’s federal income tax return is consolidated with other includible affiliated companies. Please see the listing of companies in Appendix A. The method of allocation between the companies is subject to a written tax allocation agreement. Under the terms of the tax allocation agreement, allocations are based on separate income tax return calculations. The Company is entitled to recoup federal income taxes paid in the event the future losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in the year generated. The Company is also entitled to recoup federal income taxes paid in the event the losses and credits reduce the greater of the Company’s separately computed income tax liability or the consolidated group’s income tax liability in any carryback or carryforward year when so applied. Intercompany income tax balances are settled within thirty days of payment to or filing with the Internal Revenue Service. A tax return has not been filed for 2025.
 
78
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
There was an insignificant amount of operating loss and tax credit carryforwards available for tax purposes as of December 31, 2025.
 
The following is income tax expense for current year and preceding years that is available for recoupment in the event of future losses:
 
   Total 
 2023  $— 
 2024   — 
 2025   1 
 
The Company did not have any deposits admitted under Internal Revenue Code Section 6603 for December 31, 2025 and 2024.
 
The total amount of the unrecognized tax benefits that if recognized would affect the effective income tax rate:
 
  Unrecognized
Tax Benefits		 
Balance at January 1, 2024 $2 
Tax positions taken during prior period   —  
Tax positions taken during current period   —  
Settlements with taxing authorities   —  
Lapse of applicable statute of limitations   —  
Balance at December 31, 2024 $2 
Tax positions taken during prior period  (2) 
Tax positions taken during current period   —  
Settlements with taxing authorities   —  
Lapse of applicable statute of limitations   —  
Balance at December 31, 2025 $—  
 
The Company is not subject to the repatriation transition tax.
 
The Company did not have any alternative minimum tax credit carryovers as of December 31, 2025 and 2024.
 
The IRS has completed its examination of 2014 - 2017 with an expected refund for 2014 pending Joint Committee on Taxation approval. The 2018 amended tax return remains under audit, and the IRS opened exam on the 2019 tax return. Federal income tax returns filed in 2020 through 2024 remain open, subject to potential future examination. The statute of limitations for all other tax years have been closed. The Company believes there are adequate defenses against, or sufficient provisions established related to any open or contested tax positions.
 
79
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company classifies interest and penalties related to income taxes as income tax expense. The amount of interest and penalties accrued on the balance sheet as income taxes includes the following:
 
  Interest  Penalties  Total payable (receivable) 
Balance at January 1, 2023 $1  $—   $1 
Balance at December 31, 2023 $1  $—   $1 
Balance at December 31, 2024 $1  $—   $1 
Interest expense (benefit)  (1)    —    (1) 
Balance at December 31, 2025 $—   $—   $—  
 
9. Capital and Surplus
 
The Company has authorized 24,000 common stock shares at $125 per share par value, of which 15,067 shares were issued and outstanding at December 31, 2025 and 2024.
 
The Company is subject to limitations, imposed by the State of New York, on the payment of dividends to its stockholders. Generally, dividends during any twelve-month period may not be paid, without prior regulatory approval, in excess of the greater of (a) 10 percent of the Company’s statutory surplus as of the preceding December 31 (excluding any reported special surplus), or (b) the Company’s statutory gain from operations before net realized capital gains (losses) on investments for the preceding year, not to exceed earned surplus as of the preceding December 31. New York law grants the Commissioner authority to approve, or in some cases non-disapprove, distributions requested in excess of these limitations.
 
On September 26, 2025, the Company paid an ordinary common stock dividend of $65 to TA Corp.
 
On March 27, 2025, the Company paid an ordinary common stock dividend of $65 to TA Corp.
 
On September 26, 2024, the Company paid an ordinary common stock dividend of $125 to TA Corp.
 
On March 28, 2024, the Company paid an ordinary common stock dividend of $75 to TA Corp.
 
On September 28, 2023, the Company paid an ordinary common stock dividend of $95 to TA Corp.
 
On March 30, 2023, the Company paid an ordinary common stock dividend of $75 to TA Corp.
 
Life and health insurance companies are subject to certain RBC requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life or health insurance company is to be determined based on various risk factors. At December 31, 2025 and 2024, the Company met the minimum RBC requirements.
 
80
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company held special surplus funds in the amount of $15 and $14, as of December 31, 2025 and 2024, respectively, for annuitant mortality fluctuations as required under New York Regulation 47, Separate Account and Separate Account Annuities.
 
The Company held special surplus funds in the amount of $11 and $9, as of December 31, 2025 and 2024, respectively, for admitted disallowed IMR as required under INT 23-01.
 
10. Securities Lending
 
The Company participates in an agent-managed securities lending program in which the Company primarily loans out US Treasuries and other bonds. The Company receives collateral equal to 102% of the fair value of the loaned government or other domestic securities as of the transaction date. If the fair value of the collateral is at any time less than 102% of the fair value of the loaned securities, the counterparty is mandated to deliver additional collateral, the fair value of which, together with the collateral already held in connection with the lending transaction, is at least equal to 102% of the fair value of the loaned government or other domestic securities. In the event the Company loans a foreign security and the denomination of the currency of the collateral is other than the denomination of the currency of the loaned foreign security, the Company receives and maintains collateral equal to 105% of the fair value of the loaned security.
 
At December 31, 2025 and 2024, respectively, securities with a fair value of $301 and $289 were on loan under securities lending agreements. At December 31, 2025 and 2024, 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 $312 and $301 at December 31, 2025 and 2024, respectively.
 
The contractual maturities of the securities lending collateral positions are as follows:
 
 Fair Value
 2025  2024 
Open $312  $312 
Securities received   —    — 
Total collateral received $312   301 
 
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.
 
81
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The maturity dates of the reinvested securities lending collateral are as follows:
 
  2025 2024
  Amortized
Cost		 Fair
Value		 Amortized
Cost		 Fair
Value
Open $41  $41  $36  $36 
30 days or less  112   112   91   91 
31 to 60 days  18   18   27   27 
61 to 90 days  31   31   87   87 
91 to 120 days  13   13   8   8 
121 to 180 days  46   46   46   46 
181 to 365 days  32   32   6   6 
2 to 3 years  6   6    —    — 
Greater than 3 years  13   13    —    — 
Total  312   312   301   301 
Securities received   —    —    —    — 
Total collateral reinvested $312  $312  $301  $301 
 
For securities lending, the Company’s source of cash used to return the cash collateral is dependent upon the liquidity of the current market conditions. Under current conditions, the Company has securities with a par value of $313 (fair value of $312) that are currently tradable securities that could be sold and used to pay for the $312 in collateral calls that could come due under a worst-case scenario.
 
The following table presents collateral associated with securities lending transactions that extend beyond one year for 2025 and 2024:
 
Description of collateral 2025 2024
ABS credit cards $4  $— 
ABS autos  9    — 
ABS other non-housing  6    — 
Total collateral extending beyond        
one year of the reporting date $19  $— 
 
11. Retirement and Compensation Plans
 
Defined Contribution Plans
 
The Company’s employees participate in a contributory defined contribution plan sponsored by TA Corp which is qualified under Section 401(k) of the Internal Revenue Code. Generally, employees of the Company who customarily work at least 20 hours per week and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to 100% of eligible earnings, subject to government or other plan restrictions for certain key employees. The Company will contribute an amount up to four percent of the participant’s eligible earnings per the plan’s matching formula. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement Income Security Act of 1974
 
82
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
(ERISA), as amended. Benefits expense of $1, $1 and $1 was allocated to the Company for the years ended December 31, 2025, 2024 and 2023, respectively.
 
Defined Benefit Plans
 
The Company’s employees participate in a qualified defined benefit pension plan sponsored by TA Corp. Generally, employees of the Company who customarily work at least 20 hours per week and complete six months of continuous service and meet the other eligibility requirements are participants of the plan. The Company has no legal obligation for the plan. The benefits are based on the employee’s eligible compensation. The plan provides benefits based on a cash balance formula. The plan is subject to the reporting and disclosure requirements of the ERISA.
 
TA Corp sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The Company has no legal obligation for the plan. The plans are noncontributory. The benefits are based on the employee’s eligible compensation. The plans provide benefits based on a cash balance formula. The plans are unfunded and nonqualified under the IRS Code.
 
The Company recognizes pension expense equal to its allocation from TA Corp. The pension expense related to both the qualified defined pension plan and the supplemental retirement plans is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits, and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 102, Pensions. Pension expenses were $1, $1 and $1 for the years ended December 31, 2025, 2024 and 2023, respectively.
 
In addition to pension benefits, TA Corp sponsors unfunded plans that provide health care and life insurance benefits to retired Company employees meeting certain eligibility requirements. The Company has no legal obligation for the plans. Portions of the medical and dental plans are contributory. The expenses of the postretirement plans are allocated among the participating companies based on IAS 19 and based upon actuarial participant benefit calculations, which is within the guidelines of SSAP No. 92, Postretirement Benefits Other Than Pensions. The Company’s allocation of postretirement expenses for the years ended December 31, 2025, 2024 and 2023 was insignificant.
 
Other Plans
 
TA Corp has established deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for each of the years ended December 31, 2025, 2024 and 2023 was insignificant.
 
12. Related Party Transactions
 
The Company shares certain officers, employees and general expenses with affiliated companies.
 
In accordance with an agreement between TA Corp and the Company, TA Corp will ensure the maintenance of certain minimum tangible net worth, operating leverage and liquidity levels of the Company, as defined in the agreement, through the contribution of additional capital by TA Corp as needed.
 
83
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The Company and an affiliate, Transamerica Life Insurance Company, are parties to a Shared Services and Cost Sharing Agreement whereby both provide accounting, administrative, and other advisory services in accordance with the agreement. The net amount received/(paid) by the Company as a result of being a party to these agreements was ($60), $54 and $64 during 2025, 2024 and 2023, respectively. Fees charged between affiliates approximate their cost.
 
The Company is party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors (AURA), LLC whereby AURA serves as the administrator and advisor for the Company’s mortgage loan operations. The Company paid $5, $6 and $6 for these services during 2025, 2024 and 2023, respectively.
 
The Company is party to an Investment Management Agreement with AEGON USA Investment Management (AUIM), LLC whereby AUIM acts as a discretionary investment manager for the Company. The Company paid $11, $11 and $11 for these services during 2025, 2024 and 2023, respectively.
 
The Company has an administration service agreement with Transamerica Asset Management to provide administrative services to the Transamerica Series Trust. The Company received $6, $7 and $7 for these services during 2025, 2024 and 2023, respectively.
 
Transamerica Capital, LLC provides wholesaling distribution services for the Company under a distribution agreement. The Company incurred expenses under this agreement of $23 for the year ended December 31, 2025 and an insignificant amount of expenses under this agreement for the years ended December 31, 2024 and 2023.
 
During 2025, the Company purchased $152 of other invested assets from Transamerica Life Insurance Company (TLIC) and a modified separate account of TLIC for $130 and $22, respectively.
 
Receivables from (payables to) affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. During 2025 and 2024, respectively, the Company received (paid) net interest of ($1) and ($1) from (to) affiliates. During 2023, the Company received (paid) an insignificant amount of net interest from (to) affiliates. At December 31, 2025 and 2024, respectively, the Company reported net receivables (payables) from (to) affiliates of ($41) and ($27), respectively. Terms of settlement require that these amounts are settled within 90 days of quarter-end per the requirements of SSAP No. 25, Affiliates and Other Related Parties.
 
84
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025, the Company did not have an outstanding intercompany notes receivable.
 
At December 31, 2024, the Company had outstanding intercompany notes receivables of $100, as shown below:
 
Receivable from Amount  Transaction Date Due By Interest Rate Transaction Repaid Date 
TA Corp $50  March 27, 2024 March 27, 2025  5.33%   —  
TA Corp  25  April 26, 2024 April 26, 2025  5.33    —  
TA Corp  25  June 25, 2024 June 25, 2025  5.30    —  
 
The Company utilizes the look-through approach in valuing its investment in the following entities.
 
  
Book Adjusted
Carrying Value
Real Estate Alternatives Portfolio 4 HR, LLC $6 
Aegon Workforce Housing Fund 2, L.P.  35 
Natural Resources Alternatives Portfolio I, LLC  23 
Natural Resources Alternatives Portfolio II, LLC  86 
Natural Resources Alternatives Portfolio 3, LLC  38 
Zero Beta Fund, LLC  1 
TA-APOP I-A, LLC  12 
TA-APOP I, LLC  55 
  $256 
 
These entity’s financial statements are not audited and the Company has limited the value of its investment in these entities to the value contained in the audited financial statements of the underlying LP/LLC investments, including adjustments required by SSAP No. 97 entities and/or non-SCA SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies, entities owned by these entities. All liabilities, commitments, contingencies, guarantees or obligations of these entities which are required to be recorded as liabilities, commitments, contingencies, guarantees or obligations under applicable accounting guidance, are reflected in the Company’s determination of the carrying value of the investment in these entities.
 
85
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following tables show the disclosures for all SCA investments, except 8bi entities, Balance Sheets value (admitted and nonadmitted) and the NAIC responses for the SCA filings as of December 31, 2025 and 2024:
 
December 31, 2025
SCA EntityPercentage of SCA Ownership   Gross
Amount		   Admitted
Amount		   Nonadmitted Amount 
SSAP No. 97 8a Entities                
 None     —%   —%   —%   —%
Total SSAP No. 97 8a Entities  XXX    —     —     —  
SSAP No. 97 8b(ii) Entities                
 None     —%   —     —     —  
Total SSAP No. 97 8b(ii) Entities  XXX    —     —     —  
SSAP No. 97 8b(iii) Entities
Real Estate Alternatives Portfolio 3A, Inc.		  9%   —     —     —  
Total SSAP No. 97 8b(iii) Entities  XXX    —     —     —  
SSAP No. 97 8b(iv) Entities                
 None     —%   —     —     —  
Total SSAP No. 97 8b(iv) Entities  XXX    —     —     —  
Total SSAP No. 97 8b Entities (except 8bi entities)  XXX    —     —     —  
Aggregate Total  XXX    —     —     —  
 
December 31, 2024
SCA Entity  Percentage of
SCA  Ownership		   Gross  Amount   Admitted  Amount   Nonadmitted Amount 
SSAP No. 97 8a Entities                
 None     —%   —%   —%   —%
Total SSAP No. 97 8a Entities  XXX    —     —     —  
SSAP No. 97 8b(ii) Entities                
 None     —%   —     —     —  
Total SSAP No. 97 8b(ii) Entities  XXX    —     —     —  
SSAP No. 97 8b(iii) Entities
Real Estate Alternatives Portfolio 3A, Inc.
  9%   —     —     —  
Total SSAP No. 97 8b(iii) Entities  XXX    —     —     —  
SSAP No. 97 8b(iv) Entities                
 None     —%   —     —     —  
Total SSAP No. 97 8b(iv) Entities  XXX    —     —     —  
Total SSAP No. 97 8b Entities (except 8bi entities)  XXX    —     —     —  
Aggregate Total  XXX    —     —     —  
 
86
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
The following table shows the NAIC responses for the SCA filings (except 8bi entities):
 
December 31, 2025
SCA Entity  Type of NAIC Filing*   Date of Filing to
the NAIC		   NAIC
Valuation Amount (1)		   NAIC Response Received Y/N   NAIC
Disallowed
Entities
Valuation
Method,
Submission Required
Y/N		   Code** 
SSAP No. 97 8a Entities                        
 None           None             
Total SSAP No. 97 8a Entities   —    —    —    —    —    — 
SSAP No. 97 8b(ii) Entities                        
 None            —             
Total SSAP No. 97 8b(ii) Entities   —    —    —    —    —    — 
SSAP No. 97 8b(iii) Entities                        
Real Estate Alternatives Portfolio 3A, Inc.   NA        —    —    —   I 
Total SSAP No. 97 8b(iii) Entities   —    —    —    —    —    — 
SSAP No. 97 8b(iv) Entities                        
 None            —    —    —    — 
Total SSAP No. 97 8b(iv) Entities   —    —    —    —    —    — 
Total SSAP No. 97 8b Entities (except 8bi entities)   —    —    —    —    —    — 
Aggregate Total   —    —    —    —    —    — 
* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing
** I – Immaterial or M – Material
(1) NAIC Valuation Amount is as of the Filing Date to the NAIC
 
87
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
December 31, 2024
SCA Entity  
Type of NAIC
Filing *
   
Date of
Filing to
the NAIC
   
NAIC Valuation
Amount (1)
   
NAIC
Response Received Y/N
   
NAIC
Disallowed Entities Valuation Method,
Submission Required
Y/N
   Code** 
SSAP No. 97 8a Entities                        
 None           None             
Total SSAP No. 97 8a Entities   —    —    —    —    —    — 
SSAP No. 97 8b(ii) Entities                        
 None            —             
Total SSAP No. 97 8b(ii) Entities   —    —    —    —    —    — 
SSAP No. 97 8b(iii) Entities                        
Real Estate Alternatives Portfolio 3A, Inc.   NA        —    —    —   I 
Total SSAP No. 97 8b(iii) Entities   —    —    —    —    —    — 
SSAP No. 97 8b(iv) Entities                        
 None            —    —    —    — 
Total SSAP No. 97 8b(iv) Entities   —    —    —    —    —    — 
Total SSAP No. 97 8b Entities (except 8bi entities)   —    —    —    —    —    — 
Aggregate Total   —    —    —    —    —    — 
* S1 – Sub1, S2 – Sub2 or RDF – Resubmission of Disallowed Filing
** I – Immaterial or M – Material
(1) NAIC Valuation Amount is as of the Filing Date to the NAIC
 
Information regarding the Company’s affiliated reinsurance transactions is available in Note 7.
 
13. Managing General Agents and Third-Party Administrators
 
The Company utilizes managing general agents (MGA) and third-party administrators (TPA) in its operation. There were no MGA’s/TPA’s that wrote premiums in excess of 5% of the Company’s surplus.
 
14. Commitments and Contingencies
 
At December 31, 2025, the Company has no mortgage loan commitments. At December 31, 2024, the Company has mortgage loan commitments of $2.
 
The Company has contingent commitments of $94 and $42, as of December 31, 2025 and 2024, respectively, to provide additional funding for joint ventures, partnerships and limited liability companies, which includes LIHTC commitments of $1 and $0, respectively.
 
The Company leases office buildings and equipment under various non-cancelable operating lease agreements. Rental expense for the years 2025 and 2024 was insignificant.
 
At December 31, 2025, the minimum aggregate rental commitment was insignificant.
 
88
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, there were no private placement commitments outstanding.
 
The Company may pledge cash as collateral for derivative transactions. When cash is pledged as collateral, it is derecognized and a receivable is recorded to reflect the eventual return of that cash by the counterparty. There was no amount of cash collateral pledged by the Company as of December 31, 2025 and 2024.
 
Cash collateral received from derivative counterparties as well as the obligation to return the collateral is recorded on the Company’s Balance Sheets. The amount of cash collateral received as of December 31, 2025 and 2024, respectively, was $13 and $18.
 
At December 31, 2025 and 2024, securities in the amount of $7 and $7, respectively, were posted to the Company as collateral from derivative counterparties. The securities were not included on the Company’s Balance Sheets as the Company does not have the ability to sell or repledge the collateral.
 
The Company is a member of the FHLB of New York. Through its membership, the Company establishes the option to access funds through secured borrowing arrangements with the FHLB. The Company is not in an active borrowing position; therefore, collateral pledged and borrowings are not applicable for this Company.
 
At December 31, 2025 and 2024, the Company purchased/owned the following FHLB stock as part of the agreement:
 
  Year Ended December 31
  2025 2024
Membership Stock:        
Class B $3  $3 
Total $3  $3 
 
89
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
At December 31, 2025 and 2024, membership stock (Class A and B) eligible for redemption and the anticipated timeframe for redemption was as follows:
 
  Less Than 6
Months		 6 Months to
Less Than 1
Year		 1 to Less
Than 3
Years		 3 to 5 Years
December 31, 2025                
Membership Stock                
Class B $—  $—  $—  $3 
Total $—  $—  $—  $3 
 
  Less Than 6
Months		 6 Months to
Less Than 1
Year		 1 to Less
Than 3
Years		 3 to 5 Years
December 31, 2024                
Membership Stock                
Class B $—  $—  $—  $3 
Total $—  $—  $—  $3 
 
The Company may be a party to legal proceedings involving a variety of issues incidental to its business, including class action lawsuits. Lawsuits may be brought in any federal or state court in the United States or in an arbitral forum. In addition, there continues to be significant federal and state regulatory activity relating to financial services companies. The Company’s legal proceedings are subject to many variables, and given their complexity and scope, outcomes cannot be predicted with certainty. Although legal proceedings sometimes include substantial demands for compensatory and punitive damages, and injunctive relief, damages arising from such demands are typically not 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 Sheets. The future obligation for known insolvencies has been accrued based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Associations. Potential future obligations for unknown insolvencies are not determinable by the Company and are not required to be accrued for financial reporting purposes. The Company has established a reserve of $2 and $2 and an offsetting premium tax benefit of $1 and $1 at December 31, 2025 and 2024, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund (benefit) expense was $1 for the year ended December 31, 2024 and insignificant for the years ended December 31, 2025 and 2023.
 
15. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities
 
The Company does not maintain or utilize dollar repurchase agreements.
 
90
 
 
 
Transamerica Financial Life Insurance Company
 
Notes to Financial Statements – Statutory Basis
(Dollars in Millions, Except per Share amounts)
 
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 Company did not sell or reacquire any securities with an NAIC designation of 3 or below during 2025 or 2024.
 
16. Subsequent Events
 
The financial statements are adjusted to reflect events that occurred between the Balance Sheets date and the date when the financial statements are available to be issued, provided they give evidence of conditions that existed at the Balance Sheets date (Type I). The Company has not identified any Type I subsequent events for the year ended December 31, 2025 through April 9, 2026.
 
Events that are indicative of conditions that arose after the Balance Sheets date are disclosed, but do not result in an adjustment of the financial statements themselves (Type II). The Company has identified a Type II subsequent event for the year ended December 31, 2025. On March 26, 2026, the Company paid an ordinary common stock dividend of $65 to TA Corp.
 
91
 
 
 
Transamerica Financial Life Insurance Company
 
Appendix A – Listing of Affiliated Companies
 
Transamerica Corporation
EIN: 42-1484983
AFFILIATIONS SCHEDULE
YEAR ENDED DECEMBER 31, 2025
Entity NameFEIN
Transamerica Corporation42-1484983
AEGON Direct Marketing Services Inc42-1470697
AEGON Financial Services Group Inc41-1479568
AEGON Institutional Markets Inc61-1085329
AEGON Management Company35-1113520
AEGON USA Real Estate Services Inc61-1098396
AEGON USA Realty Advisors of CA20-5023693
AUSA Properties Inc27-1275705
Commonwealth General Corporation51-0108922
Creditor Resources Inc42-1079584
CRI Solutions Inc52-1363611
Financial Planning Services Inc23-2130174
Garnet Assurance Corporation11-3674132
Garnet Assurance Corporation II14-1893533
Garnet Assurance Corporation III01-0947856
Ironwood Re Corp47-1703149
LIICA RE II20-5927773
Money Services Inc42-1079580
Monumental General Administrators Inc52-1243288
Pearl Holdings Inc I20-1063558
Pearl Holdings Inc II20-1063571
Real Estate Alternatives Portfolio 3A Inc20-1627078
River Ridge Insurance Company20-0877184
Stonebridge Benefit Services Inc75-2548428
TLIC Oakbrook Reinsurance Inc.47-1026613
TLIC Watertree Reinsurance, Inc.81-3715574
Transamerica Affordable Housing Inc94-3252196
Transamerica Asset Management59-3403585
Transamerica Bermuda Re, Ltd98-1701849
Transamerica Casualty Insurance Company31-4423946
Transamerica Corporation (OREGON)98-6021219
Transamerica Finance Corporation95-1077235
Transamerica Financial Life Insurance Company36-6071399
 
92
 
 
 
Transamerica Financial Life Insurance Company
 
Appendix A – Listing of Affiliated Companies
 
Transamerica Corporation
EIN: 42-1484983
AFFILIATIONS SCHEDULE
YEAR ENDED DECEMBER 31, 2025
Entity NameFEIN
Transamerica Fund Services Inc59-3403587
Transamerica Life Insurance Company39-0989781
Transamerica Pacific Re, Inc.85-1028131
Transamerica Resources Inc52-1525601
Transamerica Stable Value Solutions Inc27-0648897
Transamerica Trust Company42-0947998
Transamerica United Financial Services LLC52-1263786
World Fin Group Ins Agency of Massachusetts Inc04-3182849
World Financial Group Inc42-1518386
World Financial Group Ins Agency of Hawaii Inc99-0277127
World Financial Group Insurance Agency of WY Inc42-1519076
Zahorik Company Inc95-2775959
Zero Beta Fund LLC26-1298094
 
93
 
 
 
Statutory-Basis Financial
Statement Schedules
 
94
 
 
 
 
Report of Independent Auditors
 
The Board of Directors
Transamerica Financial Life Insurance Company
 
We have audited the statutory-basis financial statements of Transamerica Financial Life Insurance Company (the Company) as of December 31, 2025 and 2024 and for the years then ended, and have issued our report thereon dated April 9, 2026. Our audit of the statutory-basis financial statements included the financial statement supplementary information, which includes Schedule I Summary of Investments – Other Than Investments in Related Parties, Schedule III – Supplementary Insurance Information, and Schedule IV - Reinsurance (the “supplementary information”). These schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s supplementary information based on our audit.
 
In our opinion, the supplementary information present fairly, in all material respects, the information set forth therein when considered in conjunction with the statutory-basis financial statements.
 
 
/s/ Ernst & Young LLP
April 9, 2026
Philadelphia, PA
 
95
 
 
 
Transamerica Financial Life Insurance Company
 
Summary of Investments – Other Than
Investments in Related Parties
(Dollars in Millions)
 
December 31, 2025
 
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 $241  $237  $281 
States, municipalities and political subdivisions  4   4   4 
Foreign governments  97   84   97 
Hybrid securities   —    —    — 
All other corporate bonds  4,347   3,896   4,347 
Preferred stocks  3   4   4 
Total fixed maturities  4,692   4,225   4,733 
Equity securities            
Common stocks:            
Industrial, miscellaneous and all other  3   3   3 
Total equity securities  3   3   3 
Mortgage loans on real estate  1,539       1,539 
Policy loans  172       172 
Other long-term investments  42       42 
Receivable for securities   —        — 
Securities lending  312       312 
Cash, cash equivalents and short-term investments  210       210 
Total investments $6,970      $7,011 
 
(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)Bonds of $2 are held at fair value rather than amortized cost. Preferred stock of $4 are held at fair value.
 
96
 
 
 
Transamerica Financial Life Insurance Company
 
Supplementary Insurance Information
(Dollars in Millions)
 
SCHEDULE III
 
  Future Policy Benefits and Expenses  Unearned Premiums  Policy and Contract Liabilities  Premium Revenue  Net Investment Income*  Benefits, Claims Losses and Settlement Expenses  Other Operating Expenses* 
Year ended December 31, 2025                            
Individual life $1,677  $—   $14  $173  $81  $243  $43 
Individual health  120   4   11   82   13   (26)   27 
Group life and health  190   1   7   67   4   50   19 
Annuity  3,907    —    1   4,014   188   5,362   (1,023) 
  $5,894  $5  $33  $4,336  $286  $5,629  $(934) 
Year ended December 31, 2024
                            
Individual life $1,540  $—   $14  $176  $72  $178  $43 
Individual health  195   3   11   78   12   48   25 
Group life and health  182   1   7   63   8   47   18 
Annuity  3,942    —     —    4,730   218   4,618   396 
  $5,859  $4  $32  $5,047  $310  $4,891  $482 
Year ended December 31, 2023
                            
Individual life $1,477  $—   $20  $174  $73  $234  $44 
Individual health  189   4   14   74   9   57   24 
Group life and health  176   2   2   54   8   (36)   15 
Annuity  4,325    —    1   3,215   240   3,639   (206) 
  $6,167  $6  $37  $3,517  $330  $3,894  $(123) 
 
*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.
 
97
 
 
 
Transamerica Financial Life Insurance Company
 
Reinsurance
(Dollars in Millions)
 
SCHEDULE IV
 
  Gross
Amount		  Ceded to
Other Companies		  Assumed
From Other Companies		  Net Amount  Percentage of Amount Assumed to Net 
Year ended December 31, 2025         
Life insurance in force $25,912  $41,751  $40,447  $24,608   164%
Premiums:                    
Individual life $182  $188  $179  $173   104%
Individual health  82    —     —    82   0%
Group life and health  66    —    1   67   1%
Annuity  4,014    —     —    4,014   0%
  $4,344  $188  $180  $4,336   4%
Year ended December 31, 2024                    
Life insurance in force $25,875  $49,127  $47,711  $24,459   195%
Premiums:                    
Individual life $185  $194  $185  $176   105%
Individual health  78    —     —    78   0%
Group life and health  62    —    1   63   1%
Annuity  4,726    —    4   4,730   0%
  $5,051  $194  $190  $5,047   4%
Year ended December 31, 2023                    
Life insurance in force $26,006  $55,692  $53,925  $24,239   222%
Premiums:                    
Individual life $187  $199  $184  $174   106%
Individual health  74    —     —    74   0%
Group life and health  54    —    1   54   1%
Annuity  3,212    —    4   3,215   0%
  $3,527  $199  $189  $3,517   5%
98

PART C

OTHER INFORMATION

Item 27. Exhibits

  
Exhibit No: Description
(a) Board of Directors Resolution
(a)(1) Resolution of the Board of Directors of Transamerica Life Insurance Company authorizing establishment of the Separate Account. Note 1
(b) Custodian Agreements. Not applicable
(c) Underwriting Contracts
(c)(1) 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 10
(d) Contracts
(d)(1) Policy. Note 26
(d)(10) Policy Endorsement (Income Payment Option Endorsement). Note 24
(d)(2) Policy Rider (Return of Premium). Note 10
(d)(3) Policy Rider (Annual Step-Up). Note 10
(d)(4) Policy Rider (Additional Death Distribution). Note 10
(d)(5) Policy Rider (Additional Death Distribution+). Note 10
(d)(6) Policy Rider (GPS). Note 16
(d)(7) Policy Rider (RIM). Note 16
(d)(8) Policy Rider (Retirement Income Choice 1.6). Note 10
(d)(9) Policy Rider (Transamerica Income Edge). Note 19
(e) Applications
(e)(1) Application. Note 22
(f) Depositor’s Certificate of Incorporation and By-laws
(f)(1) Articles of Incorporation Transamerica Life Insurance Company. Note 2
(f)(2) Bylaws of Transamerica Life Insurance Company. Note 2
(g) Reinsurance Contracts. Not applicable.
(h) Participation Agreements
(h)(1) Participation Agreement (AllianceBernstein). Note 3
(h)(1)(i) Amendment No. 1 to Participation Agreement (AllianceBernstein). Note 4
(h)(1)(ii) Amendment No. 5 to Participation Agreement (AllianceBernstein). Note 5
(h)(1)(iii) Amendment No. 11 to Participation Agreement (AllianceBernstein). Note 6
(h)(1)(iv) Amendment No. 13 to Participation Agreement (AllianceBernstein). Note 14
(h)(1)(ix) Amendment No. 15 to Participation Agreement (AllianceBernstein). Note 29
(h)(1)(v) Amended Schedule A to Participation Agreement dated May 1, 2015 (AllianceBernstein). Note 16
(h)(1)(vi) Amended Schedule A to Participation Agreement dated May 1, 2017 (AllianceBernstein). Note 22
(h)(1)(vii) Amended Schedule A to Participation Agreement dated May 1, 2020 (AllianceBernstein). Note 27
(h)(1)(viii) Amendment No. 14 to Participation Agreement (AllianceBernstein). Note 28
(h)(2) Participation Agreement (American Funds). Note 7
(h)(2)(i) Amendment No. 2 to Participation Agreement (American Funds). Note 7
(h)(2)(ii) Amendment No. 6 to Participation Agreement (American Funds). Note 1
(h)(2)(iii) Amendment No. 8 to Participation Agreement (American Funds). Note 13
(h)(2)(iv) Amendment No. 9 to Participation Agreement (American Funds). Note 15
(h)(2)(ix) Amendment No. 14 to Participation Agreement (American Funds). Note 29
(h)(2)(v) Amendment No. 10 to Participation Agreement (American Funds). Note 21
(h)(2)(vi) Amendment No. 11 to Participation Agreement (American Funds). Note 22
(h)(2)(vii) Amendment No. 12 to Participation Agreement dated May 1, 2020 (American Funds). Note 27
(h)(2)(viii) Amendment No. 13 to Participation Agreement (American Funds). Note 28
(h)(3) Amended and Restated Participation Agreement (Fidelity). Note 8
(h)(3)(i) Amendment No. 7 to Participation Agreement (Fidelity). Note 9
(h)(3)(ii) Summary Prospectus Agreement (Fidelity). Note 1
(h)(3)(iii) Amendment No. 8 to Participation Agreement (Fidelity). Note 11
(h)(3)(iv) Amended Schedule A to Participation Agreement dated May 1, 2017 (Fidelity). Note 22
(h)(3)(v) Amended Schedule A to Participation Agreement dated May 1, 2020 (Fidelity). Note 27
(h)(3)(vi) Amendment No. 9 to Participation Agreement (Fidelity). Note 28
(h)(3)(vii) Amendment No. 10 to Participation Agreement (Fidelity). Note 29
(h)(4) Participation Agreement (GE). Note 7
(h)(4)(i) Amendment No. 1 to Participation Agreement (GE). Note 6
(h)(4)(ii) Amendment No. 2 to Participation Agreement (GE). Note 11
(h)(4)(iii) Amendment No. 3 to Participation Agreement (GE/SSGA). Note 23
(h)(4)(iv) Amendment No. 5 to Participation Agreement (GE/SSGA). Note 28
(h)(4)(v) Amendment No. 6 to Participation Agreement (GE/SSGA). Note 29
(h)(5) Amended and Restated Participation Agreement (TST). Note 10
(h)(5)(i) Amendment No. 1 to Participation Agreement (TST). Note 11
(h)(5)(ii) Amended Schedule A to Participation Agreement dated September 18, 2013 (TST). Note 12
(h)(5)(iii) Amended Schedule A to Participation Agreement dated October 31, 2013 (TST). Note 13
(h)(5)(iv) Amended Schedule A to Participation Agreement dated May 1, 2014 (TST). Note 14
(h)(5)(ix) Amended Schedule A to Participation Agreement dated March 21, 2016 (TST). Note 18
(h)(5)(v) Amendment No. 2 to Participation Agreement (TST). Note 15
(h)(5)(vi) Amended Schedule A to Participation Agreement dated May 1, 2015 (TST). Note 16
(h)(5)(vii) Amended Schedule A to Participation Agreement dated July 1, 2015 (TST). Note 17
(h)(5)(viii) Amended Schedule A to Participation Agreement dated December 18, 2015 (TST). Note 18
(h)(5)(x) Amended Schedule A to Participation Agreement dated May 1, 2016 (TST). Note 18
(h)(5)(xi) Amended Schedule A to Participation Agreement dated December 16, 2016 (TST). Note 20
(h)(5)(xii) Amended Schedule A to Participation Agreement dated May 1, 2017 (TST). Note 22
(h)(5)(xiii) Amended Schedule A to Participation Agreement dated September 29, 2017 (TST). Note 23
(h)(5)(xiv) Amended Schedule A to Participation Agreement dated May 1, 2018 (TST). Note 25
(h)(5)(xix) Amendment No. 4 to Participation Agreement (TST). Note 29
(h)(5)(xv) Amended Schedule A to Participation Agreement dated November 1, 2018 (TST). Note 25
(h)(5)(xvi) Amended Schedule A to Participation Agreement dated May 1, 2020 (TST). Note 27
(h)(5)(xvii) Amended Schedule A to Participation Agreement dated May 1, 2023 (TST). Note 28
(h)(5)(xviii) Amendment No. 3 to Participation Agreement (TST). Note 28
(h)(5)(xx) Amended Schedule A to Participation Agreement dated May 1, 2024 (TST). Note 29
(i) Administrative Contracts. Not applicable.
(j) Other Material Contracts. Not applicable.
(k) Legal Opinion. Opinion and Consent of Counsel. Filed herewith.
(l) Other Opinions. Consent of Independent Registered Public Accounting Firm. Filed herewith.
(l)(1) Other Opinions. Consent of Independent Registered Public Accounting Firm. Filed herewith.
(m) Omitted Financial Statements. Not applicable
(n) Initial Capital Agreements. Not applicable
(o) Form of Initial Summary Prospectuses. Not applicable
(p) Powers of Attorney. Filed herewith.
(p)(1) Resolution of the Board of Directors Authorizing the Principal Executive Officer to sign on behalf of Transamerica Life Insurance Company pursuant to power of attorney. Note 29 
  
Note 1. Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-185573) filed on December 20, 2012.
Note 2. Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-169445) filed on September 17, 2010.
Note 3. Incorporated herein by reference to Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-26209) filed on April 28, 2000.
Note 4. Incorporated herein by reference to Post-Effective Amendment No. 11 to Form N-4 Registration Statement (File No. 333-7509) filed on January 18, 2002.
Note 5. Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-125817) filed on August 29, 2005.
Note 6. Incorporated herein by reference to Post-Effective Amendment No. 21 to Form N-4 Registration Statement (File No. 333-125817) filed on October 7, 2011.
Note 7. Incorporated herein by reference to Post-Effective Amendment No. 47 to Form N-4 Registration Statement (File No. 33-33085) filed on November 19, 2009.
Note 8. Incorporated herein by reference to Post-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-125817) filed on April 27, 2006.
Note 9. Incorporated herein by reference to Post-Effective Amendment No. 26 to Form N-4 Registration Statement (File No. 333-125817) filed on September 10, 2012.
Note 10. Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-185573) filed on April 10, 2013.
Note 11. Incorporated herein by reference to Post-Effective Amendment No. 59 to Form N-4 Registration Statement (File No. 33-33085) filed on August 16, 2013.
Note 12. Incorporated herein by reference to Pre-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-189435) filed on October 2, 2013.
Note 13. Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-186031) filed on February 21, 2014.
Note 14. Incorporated herein by reference to Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-185573) filed on April 29, 2014.
Note 15. Incorporated herein by reference to Post-Effective Amendment No. 67 to Form N-4 Registration Statement (File No. 33-56908) filed on December 30, 2014.
Note 16. Incorporated herein by reference to Post-Effective Amendment No 6 to Form N-4 Registration Statement (File No 333-185573) filed on April 24, 2015.
Note 17. Incorporated herein by reference to Post-Effective Amendment No. 4 to Form N-4 Registration Statement (File No. 333-186029) filed on October 13, 2015.
Note 18. Incorporated herein by reference to Post-Effective Amendment No. 7 to Form N-4 Registration Statement (File No. 333-185573) filed on April 27, 2016.
Note 19. Incorporated herein by reference to Post-Effective Amendment No. 6 to Form N-4 Registration Statement (File No. 333-186032) filed on October 31, 2016.
Note 20. Incorporated herein by reference to the Initial Filing of Form N-4 Registration Statement (File No. 333-215598) filed on January 18, 2017.
Note 21. Incorporated herein by reference to Post-Effective Amendment No. 12 to Form N-4 Registration Statement (File No. 333-189435) filed on August 8, 2016.
Note 22. Incorporated herein by reference to Pre-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-215598) filed on April 24, 2017.
Note 23. Incorporated herein by reference to Post-Effective Amendment No. 10 to Form N-4 Registration Statement (File No. 333-185573) filed on April 30, 2018.
Note 24. Incorporated herein by reference to Post-Effective Amendment No. 1 to Form N-4 Registration Statement (File No. 333-215598) filed on April 30, 2018.
Note 25. Incorporated herein by reference to Post-Effective Amendment No. 11 to Form N-4 Registration Statement (File No. 333-185573) filed on April 25, 2019.
Note 26. Incorporated herein by reference to Post-Effective Amendment No. 3 to Form N-4 Registration Statement (File No. 333-215598) filed on October 15, 2019.
Note 27. Incorporated herein by reference to Post-Effective Amendment No. 2 to Form N-4 Registration Statement (File No. 333-233836) filed on July 30, 2020.
Note 28. Incorporated herein by reference to Post-Effective Amendment No. 8 to Form N-4 Registration Statement (File No. 333-215598) filed on April 25, 2024.
Note 29. Incorporated herein by reference to Post-Effective Amendment No. 9 to Form N-4 Registration Statement (File No. 333-215598) filed on April 25, 2025.
Note 30. Filed Herewith.

Item 28.  Directors and Officers of the Depositor (Transamerica Life Insurance Company)

  
Name and Business Address
Principal Positions and Offices with Depositor
 
 
Jamie Ohl
Director and President
1801 California St. Suite 5200
 
Denver, CO 80202
 
 
 
Bonnie T. Gerst
Director, Chairman of the Board and Senior Vice President, Financial Assets
6400 C Street SW
 
Cedar Rapids, Iowa 52499
 
 
 
Andrew S. Williams
Director, General Counsel, Secretary and Senior Vice President
100 Light Street
 
Baltimore, MD 21202
 
 
 
Maurice Perkins
Director, Chief Corporate Affairs Officer
100 Light Street
 
Baltimore, MD 21202
 
 
 
Matt Keppler
Director, Chief Financial Officer, Executive Vice President and Treasurer
100 Light Street
 
Baltimore, MD 21202
 
 
 
Chris Giovanni
Director, Chief Strategy & Development Officer and Senior Vice President
100 Light Street
 
Baltimore, MD 21202
  
 

Item 29. Persons Controlled by or under Common Control with the Depositor or Registrant.

 
As of December 31, 2025, the following pages shows all corporations directly or indirectly controlled or under common control, with the Depositor, showing the state or other sovereign power under the laws of which each is organized and the percentage owner ship of voting securities giving rise to the control relationship.
 
Aegon Ltd. Subsidiaries Under Common Control
     
Company Name
Immediate Parent Ownership %
City Statutory Seat
State/Country
Parent
239 West 20th Street, LLC
17.64%
Wilmington
United States
Yarra Rapids, LLC
25 East 38th Street, LLC
17.64%
Wilmington
United States
Yarra Rapids, LLC
313 East 95th Street, LLC
17.64%
Wilmington
United States
Yarra Rapids, LLC
319 East 95th Street, LLC
17.64%
Wilmington
United States
Yarra Rapids, LLC
Administrative Group, LLC
100.00%
Cedar Rapids, Iowa
United States
AUSA Holding, LLC
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
Aegon Iberia Holding BV, Sucursal en España
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
AEGON España, S.A.U. de Seguros y Reaseguros
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
Aegon Mediacion S.L.U.
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
SANTANDER GENERALES SEGUROS Y REASEGUROS, S.A.
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
SANTANDER VIDA SEGUROS Y REASEGUROS, S.A.
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
Serenitas, S.L.U.
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
AEGON SANTANDER PORTUGAL NÃO VIDA - COMPANHIA DE SEGUROS S.A.
AEGON Administracion y Servicios Aie
100.00%
Madrid
Spain
AEGON SANTANDER PORTUGAL VIDA - COMPANHIA DE SEGUROS DE VIDA S.A.
AEGON Affordable Housing Debt Fund I, LLC
5.01%
Wilimington
United States
AHDF Manager I, LLC
AEGON Affordable Housing Debt Fund I, LLC
5.01%
Wilimington
United States
Transamerica Life Insurance Company
AEGON AM Funds, LLC
100.00%
Wilmington
United States
AEGON USA Investment Management, LLC
Aegon AM Private Equity Partners I, LLC
100.00%
Wilmington
United States
AEGON USA Investment Management, LLC
Aegon AM Private Equity Partners II, LLC
100.00%
Wilmington
United States
AEGON USA Investment Management, LLC
Aegon AM Private Equity Partners III, LLC
100.00%
Wilmington
United States
AEGON USA Investment Management, LLC
AEGON Asia B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
Aegon Asset Management (Asia) Limited
100.00%
Hong Kong
Hong Kong
AEGON Asset Management Holding B.V.
AEGON Asset Management Holding B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Asset Management Hungary B.V.
100.00%
The Hague
Netherlands
AEGON Asset Management Holding B.V.
Aegon Asset Management Limited
100.00%
Edinburgh
United Kingdom
Aegon Asset Management UK plc
Aegon Asset Management Pan-Europe B.V.
100.00%
The Hague
Netherlands
AEGON Asset Management Holding B.V.
Aegon Asset Management UK Holdings Limited
100.00%
Edinburgh
United Kingdom
AEGON Asset Management Holding B.V.
Aegon Asset Management UK plc
100.00%
Edinburgh
United Kingdom
Aegon Asset Management UK Holdings Limited
AEGON Brazil Holding B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
AEGON Brazil Holding II B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
AEGON CEE B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
Aegon Community Investments 50, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 51, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 52, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 53, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 54, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 55, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 56, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 57, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 58, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 59, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 60, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 61, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 62, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 63, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 64, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 65, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 66, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 67, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 68, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
1
     
Aegon Community Investments 69, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Community Investments 70, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
AEGON Corporate Center B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Custody B.V.
100.00%
The Hague
Netherlands
AEGON Asset Management Holding B.V.
AEGON Derivatives N.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Digital Investments Holding B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Direct Marketing Services International, LLC
100.00%
Baltimore
United States
AUSA Holding, LLC
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.
100.00%
Monterrey
Mexico
AEGON DMS Holding B.V.
AEGON Direct Marketing Services Mexico Servicios, S.A. de C.V.
100.00%
Monterrey
Mexico
AEGON Mexico Holding B.V.
AEGON Direct Marketing Services Mexico, S.A. de C.V.
98.78%
Mexico City
Mexico
AEGON DMS Holding B.V.
AEGON Direct Marketing Services Mexico, S.A. de C.V.
98.78%
Mexico City
Mexico
AEGON Mexico Holding B.V.
AEGON Direct Marketing Services, Inc.
100.00%
Baltimore, MD
United States
Transamerica Life Insurance Company
AEGON DMS Holding B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
AEGON EDC Limited
100.00%
Edinburgh
United Kingdom
Aegon Ltd.
Aegon Employees Netherlands B.V.
100.00%
The Hague
Netherlands
AEGON Europe Holding B.V.
Aegon Energy Management, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
Aegon Energy Partners Fund, LLC
100.00%
Wilmington
United States
Aegon Energy Management, LLC
AEGON España, S.A.U. de Seguros y Reaseguros
100.00%
Madrid
Spain
Aegon Iberia Holding BV, Sucursal en España
AEGON Europe Holding B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Financial Services Group, Inc.
100.00%
St. Paul, Minnesota
United States
Transamerica Life Insurance Company
AEGON Funding Company LLC
100.00%
Wilmington, Delaware
United States
Transamerica Corporation
Aegon Global Services, LLC
100.00%
Cedar Rapids, Iowa
United States
Commonwealth General Corporation
AEGON Growth Capital Fund I C.V.
100.00%
Amsterdam
Netherlands
AEGON Growth Capital Fund I GP B.V.
AEGON Growth Capital Fund I GP B.V.
100.00%
The Hague
Netherlands
AEGON Digital Investments Holding B.V.
AEGON Growth Capital Management B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Iberia Holding B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON India Holding B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
Aegon Insights Limited
100.00%
Hong Kong
Hong Kong
AEGON DMS Holding B.V.
AEGON Institutional Markets, Inc.
100.00%
Wilmington, DE
United States
Commonwealth General Corporation
Aegon Insurance Asset Management Company Limited
100.00%
Shanghai
China
Aegon Ltd.
AEGON International B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON Investment Management B.V.
100.00%
The Hague
Netherlands
AEGON Asset Management Holding B.V.
AEGON Investment Solutions - Nominee 1 (Gross) Ltd
100.00%
Edinburgh
United Kingdom
AEGON UK plc
AEGON Investment Solutions - Nominee 2 (Net) Ltd
100.00%
Edinburgh
United Kingdom
AEGON UK plc
AEGON Investment Solutions - Nominee 3 (ISA) Ltd
100.00%
Edinburgh
United Kingdom
AEGON UK plc
AEGON Investment Solutions Ltd
100.00%
Edinburgh
United Kingdom
Aegon UK Investment Holdings Limited
Aegon Investments Limited
100.00%
London
United Kingdom
Aegon UK Investment Holdings Limited
Aegon LIHTC Fund 51, LLC
0.01%
Wilmington
United States
Aegon Community Investments 51, LLC
Aegon LIHTC Fund 52, LLC
11.82%
Wilmington
United States
Aegon Community Investments 52, LLC
Aegon LIHTC Fund 52, LLC
11.82%
Wilmington
United States
Transamerica Life Insurance Company
Aegon LIHTC Fund 52, LLC
11.82%
Wilmington
United States
Transamerica Financial Life Insurance Company
Aegon LIHTC Fund 55, LLC
2.83%
Wilmington
United States
Aegon Community Investments 55, LLC
Aegon LIHTC Fund 55, LLC
2.83%
Wilmington
United States
Transamerica Life Insurance Company
Aegon LIHTC Fund 57, LLC
0.01%
Wilmington
United States
Aegon Community Investments 57, LLC
Aegon LIHTC Fund 58, LLC
2.93%
Wilmington
United States
Aegon Community Investments 58, LLC
Aegon LIHTC Fund 58, LLC
2.93%
Wilmington
United States
Transamerica Life Insurance Company
Aegon LIHTC Fund 62, LLC
0.01%
Wilmington
United States
Aegon Community Investments 62, LLC
Aegon LIHTC Fund 65, LLC
0.01%
Wilmington
United States
Aegon Community Investments 65, LLC
Aegon LIHTC Fund 66, LLC
0.01%
Wilmington
United States
Aegon Community Investments 66, LLC
Aegon LIHTC Fund 68, LLC
100.00%
Wilmington
United States
Aegon Community Investments 68, LLC
Aegon LIHTC Fund 70, LLC
100.00%
Wilmington
United States
Aegon Community Investments 70, LLC
Aegon Ltd.
 
Hamilton
Bermuda
 
AEGON Management Company
100.00%
Indianapolis, Indiana
United States
Transamerica Corporation
2
     
Aegon Mediacion S.L.U.
100.00%
Madrid
Spain
AEGON España, S.A.U. de Seguros y Reaseguros
AEGON Mexico Holding B.V.
100.00%
The Hague
Netherlands
AEGON DMS Holding B.V.
Aegon Opportunity Zone Fund Joint Venture 1, LP
0.16%
Wilmington
United States
Aegon OZF Investments 1, LLC
Aegon OZF Investments 1, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AEGON Pension Trustee Limited
100.00%
London
United Kingdom
AEGON UK plc
AEGON SANTANDER PORTUGAL NÃO VIDA - COMPANHIA DE SEGUROS S.A.
51.00%
Lisboa
Portugal
AEGON Iberia Holding B.V.
AEGON SANTANDER PORTUGAL VIDA - COMPANHIA DE SEGUROS DE VIDA S.A.
51.00%
Lisboa
Portugal
AEGON Iberia Holding B.V.
AEGON SIPP GUARANTEE NOMINEE LIMITED
100.00%
London
United Kingdom
AEGON UK plc
Aegon SIPP Nominee 2 Ltd
100.00%
Edinburgh
United Kingdom
AEGON UK plc
AEGON SIPP Nominee Ltd
100.00%
Edinburgh
United Kingdom
AEGON UK plc
AEGON Taiwan Holding B.V.
100.00%
The Hague
Netherlands
AEGON International B.V.
Aegon THTF Life Insurance Co., Ltd.
50.00%
Shenzhen
China
AEGON International B.V.
AEGON Treasury Investments B.V.
100.00%
The Hague
Netherlands
Aegon Ltd.
AEGON UK Corporate Services Limited
100.00%
Edinburgh
United Kingdom
AEGON UK plc
Aegon UK Investment Holdings Limited
100.00%
London
United Kingdom
AEGON UK plc
AEGON UK plc
100.00%
London
United Kingdom
AEGON Europe Holding B.V.
AEGON UK Property Fund Limited
100.00%
London
United Kingdom
AEGON UK plc
AEGON USA Asset Management Holding, LLC
100.00%
Cedar Rapids, IA
United States
AUSA Holding, LLC
AEGON USA Investment Management, LLC
100.00%
Cedar Rapids, Iowa
United States
AEGON USA Asset Management Holding, LLC
AEGON USA Real Estate Services, Inc.
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AEGON USA Realty Advisors of California, Inc.
100.00%
Des Moines
United States
AEGON USA Realty Advisors, LLC
AEGON USA Realty Advisors, LLC
100.00%
Des Moines
United States
AEGON USA Asset Management Holding, LLC
Aegon Workforce Housing Fund 2 Holding Company B, LLC
100.00%
Wilmington
United States
Aegon Workforce Housing Fund 2, L.P
Aegon Workforce Housing Fund 2 Holding Company C, LLC
100.00%
Wilmington
United States
Aegon Workforce Housing Fund 2, L.P
Aegon Workforce Housing Fund 2 Holding Company, LLC
100.00%
Wilmington
United States
Aegon Workforce Housing Fund 2, L.P
Aegon Workforce Housing Fund 2, L.P
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Workforce Housing Fund 2, L.P
100.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Aegon Workforce Housing Fund 3 Holding Company, LLC
70.00%
Wilmington
United States
Aegon Workforce Housing Fund 3, L.P
Aegon Workforce Housing Fund 3, L.P
70.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Workforce Housing Fund 3, L.P
70.00%
Wilmington
United States
Transamerica Life Insurance Company
Aegon Workforce Housing Fund 3, L.P
70.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Aegon Workforce Housing JV 4A, LLC
44.50%
Wilmington
United States
Aegon Workforce Housing Fund 2 Holding Company, LLC
Aegon Workforce Housing JV 4B, LLC
25.00%
Wilmington
United States
Aegon Workforce Housing Fund 2 Holding Company, LLC
Aegon Workforce Housing JV 4C, LLC
10.00%
Wilmington
United States
Aegon Workforce Housing Fund 2 Holding Company, LLC
Aegon Workforce Housing Park at Via Rosa REIT, LLC
20.83%
Cedar Rapids, Iowa
United States
Aegon Workforce Housing Separate Account 1, LLC
Aegon Workforce Housing Separate Account 1, LLC
20.83%
Cedar Rapids, Iowa
United States
Transamerica Life Insurance Company
Aegon Workforce Housing Separate Account 1, LLC
20.83%
Cedar Rapids, Iowa
United States
Transamerica Life Insurance Company
Aegon Workforce Housing Separate Account 1, LLC
20.83%
Cedar Rapids, Iowa
United States
Transamerica Financial Life Insurance Company
AEGONINDUSTRIAL Capital Management (Shanghai) Co., Ltd.
49.00%
Shanghai, China
China
AEGON-INDUSTRIAL Fund Management Co., LTD.
AEGON-INDUSTRIAL Fund Management Co., LTD.
49.00%
Shanghai
China
AEGON International B.V.
AGT Hungary IT Service Korlátolt Felelősségű Társaság
100.00%
Budapest
Hungary
AEGON EDC Limited
AHDF Manager I, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
ALH Properties Eight LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Eleven LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Four LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Nine LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Seven LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Seventeen LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Sixteen LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Ten LLC
100.00%
Wilmington
United States
FGH USA LLC
ALH Properties Twelve LLC
100.00%
Wilmington
United States
FGH USA LLC
3
     
ALH Properties Two LLC
100.00%
Wilmington
United States
FGH USA LLC
AMFETF Manager, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AMTAX Holdings 713 LLC
100.00%
Cleveland
United States
TAHP Fund 2, LLC
Andrews Nominees Limited
100.00%
London
United Kingdom
Cofunds Limited
Apollo Housing Capital Arrowhead Gardens, L.L.C.
0.01%
Wilmington
United States
Garnet LIHTC Fund XXXV, LLC
APOP III, LLC
98.44%
Wilmington
United States
Transamerica Life Insurance Company
APOP III, LLC
98.44%
Wilmington
United States
Transamerica Financial Life Insurance Company
APOP IV, LLC
99.00%
Wilmington
United States
Transamerica Life Insurance Company
APOP IV, LLC
99.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
ASR Nederland N.V.
26.60%
   
Aegon Ltd.
AUSA Holding, LLC
100.00%
Baltimore, MD
United States
Transamerica Corporation
AUSA Properties, Inc.
100.00%
Des Moines
United States
AEGON USA Realty Advisors, LLC
AWHF2 General Partner, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AWHF2 Subsidiary Holding Company C, LLC
100.00%
Wilmington
United States
Aegon Workforce Housing Fund 2 Holding Company C, LLC
AWHF3 General Partner, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AWHJV4 Manager, LLC
100.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
AWHSA Manager 1, LLC
100.00%
Cedar Rapids, Iowa
United States
AEGON USA Realty Advisors, LLC
Barfield Ranch Associates, LLC
50.00%
Bonita Springs
United States
Mitigation Manager LLC
Barrington Hamilton Personal Asset Management Ltd
100.00%
London
United Kingdom
Origen Financial Services Limited
Café e Restaurante MAG Ltda.
50.00%
São Paolo, Brazil
Brazil
Mongeral AEGON Holding Ltda.
Carle Place Leasehold SPE, LLC
100.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Cofunds Limited
100.00%
London
United Kingdom
Aegon UK Investment Holdings Limited
Cofunds Nominees Ltd
100.00%
London
United Kingdom
Cofunds Limited
Commonwealth General Corporation
100.00%
Wilmington, DE
United States
Transamerica Corporation
Coöperatieve AEGON Financieringsmaatschappij U.A.
100.00%
The Hague
Netherlands
AEGON International B.V.
Coöperatieve AEGON Financieringsmaatschappij U.A.
100.00%
The Hague
Netherlands
Aegon Ltd.
Cornerstone International Holdings Ltd.
100.00%
London
United Kingdom
AEGON DMS Holding B.V.
Creditor Resources, Inc.
100.00%
Bingham Farms, MI
United States
AUSA Holding, LLC
CRI Solutions, Inc.
100.00%
Elkridge, MD
United States
Creditor Resources, Inc.
Dawn Holdings LLC
19.90%
 
United States
Commonwealth General Corporation
Dawn Re, Inc
19.90%
 
United States
Dawn Holdings LLC
Dorset Nominees Limited
100.00%
London
United Kingdom
Cofunds Limited
Equitable AgriFinance, LLC
50.00%
Wilmington
United States
AEGON USA Realty Advisors, LLC
Favela Promoção e Vendas Ltda.
50.00%
Rio de Janeiro, Brazil
Brazil
Mongeral AEGON Holding Ltda.
FGH Realty Credit LLC
100.00%
Wilmington
United States
FGH USA LLC
FGH USA LLC
100.00%
Wilmington
United States
RCC North America LLC
Fifth FGP LLC
100.00%
Wilmington
United States
FGH USA LLC
Financial Planning Services, Inc.
100.00%
Washington, D.C.
United States
Commonwealth General Corporation
FINANCIERE DE L’ECHIQUIER
25.00%
Paris
France
LBP AM
First FGP LLC
100.00%
Wilmington
United States
FGH USA LLC
Fourth FGP LLC
100.00%
Wilmington
United States
FGH USA LLC
FSBA AAM Strategic Fund I, LP
2.44%
Wilmington
United States
TA-APOP II, LLC
FSBA AAM Strategic Fund II, LP
2.46%
Wilmington
United States
APOP III, LLC
FSBA AAM Strategic Fund III, LP
2.43%
Wilmington
United States
Aegon AM Private Equity Partners III, LLC
FSBA AAM Strategic Fund III, LP
2.43%
Wilmington
United States
APOP IV, LLC
Garnet Assurance Corporation
100.00%
Frankfort
United States
Transamerica Life Insurance Company
Garnet Assurance Corporation II
100.00%
Des Moines
United States
Commonwealth General Corporation
Garnet Assurance Corporation III
100.00%
Des Moines
United States
Transamerica Life Insurance Company
Garnet Community Investments IX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments V, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments VI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments VIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments X, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
4
     
Garnet Community Investments XI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XL, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLIV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLIX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLVI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLVII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XLVIII, LLC
100.00%
Wilminigton
United States
Transamerica Life Insurance Company
Garnet Community Investments XVIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXIV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXIX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXVI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXVII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXVIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXIX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXVI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXVII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments XXXVIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet Community Investments, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund IX, LLC
100.00%
Wilmington
United States
Garnet Community Investments IX, LLC
Garnet LIHTC Fund IX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund V, LLC
100.00%
Wilmington
United States
Garnet Community Investments V, LLC
Garnet LIHTC Fund V, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund VI, LLC
100.00%
Wilmington
United States
Garnet Community Investments VI, LLC
Garnet LIHTC Fund VI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund VIII, LLC
100.00%
Wilmington
United States
Garnet Community Investments VIII, LLC
Garnet LIHTC Fund VIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund X, LLC
0.01%
Wilmington
United States
Garnet Community Investments X, LLC
Garnet LIHTC Fund XI, LLC
100.00%
Wilmington
United States
Garnet Community Investments XI, LLC
Garnet LIHTC Fund XI, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XII, LLC
100.00%
Wilmington
United States
Garnet Community Investments XII, LLC
Garnet LIHTC Fund XII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XII-A, LLC
Garnet LIHTC Fund XII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XII-B, LLC
Garnet LIHTC Fund XII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XII-C, LLC
Garnet LIHTC Fund XII-A, LLC
100.00%
Wilmington
United States
Garnet Community Investments XII, LLC
Garnet LIHTC Fund XII-A, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XII-B, LLC
100.00%
Wilmington
United States
Garnet Community Investments XII, LLC
Garnet LIHTC Fund XII-B, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XII-C, LLC
100.00%
Wilmington
United States
Garnet Community Investments XII, LLC
Garnet LIHTC Fund XII-C, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XIII, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XIII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XIII-A, LLC
Garnet LIHTC Fund XIII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XIII-B, LLC
Garnet LIHTC Fund XIII-A, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
5
     
Garnet LIHTC Fund XIII-A, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XIII-B, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XIII-B, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XIV, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XIV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XIX, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XIX, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XL, LLC
0.01%
Wilmington
United States
Garnet Community Investments XL, LLC
Garnet LIHTC Fund XLI, LLC
10.01%
Wilmington
United States
Garnet Community Investments XLI, LLC
Garnet LIHTC Fund XLI, LLC
10.01%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XLII, LLC
0.01%
Wilmington
United States
Garnet Community Investments XLII, LLC
Garnet LIHTC Fund XLVI, LLC
0.01%
Wilmington
 
Garnet Community Investments XLVI, LLC
Garnet LIHTC Fund XLVII, LLC
15.00%
Wilmington
United States
Garnet Community Investments XLVII, LLC
Garnet LIHTC Fund XLVII, LLC
15.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XLVIII, LLC
75.19%
Wilmington
United States
Garnet Community Investments XLVIII, LLC
Garnet LIHTC Fund XLVIII, LLC
75.19%
Wilmington
United States
Transamerica Financial Life Insurance Company
Garnet LIHTC Fund XV, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XV, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XVI, LLC
0.01%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XVII, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XVII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XVIII, LLC
0.01%
Wilmington
United States
Garnet Community Investments XVIII, LLC
Garnet LIHTC Fund XX, LLC
100.00%
Wilmington
United States
Garnet Community Investments XX, LLC
Garnet LIHTC Fund XXII, LLC
0.01%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XXIII, LLC
100.00%
Wilmington
United States
Garnet Community Investments, LLC
Garnet LIHTC Fund XXIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XXIV, LLC
21.27%
Wilmington
United States
Garnet Community Investments XXIV, LLC
Garnet LIHTC Fund XXIV, LLC
21.27%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XXIX, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXIX, LLC
Garnet LIHTC Fund XXV, LLC
1.01%
Wilmington
United States
Garnet Community Investments XXV, LLC
Garnet LIHTC Fund XXV, LLC
1.01%
Wilmington
United States
Garnet LIHTC Fund XXVIII, LLC
Garnet LIHTC Fund XXVI, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXVI, LLC
Garnet LIHTC Fund XXVII, LLC
16.72%
Wilmington
United States
Garnet Community Investments XXVII, LLC
Garnet LIHTC Fund XXVII, LLC
16.72%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XXVIII, LLC
100.00%
Wilmington
United States
Garnet Community Investments XXVIII, LLC
Garnet LIHTC Fund XXVIII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Garnet LIHTC Fund XXXI, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXXI, LLC
Garnet LIHTC Fund XXXII, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXXII, LLC
Garnet LIHTC Fund XXXIII, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXXIII, LLC
Garnet LIHTC Fund XXXIX, LLC
1.00%
Wilmington
United States
Garnet Community Investments XXXIX, LLC
Garnet LIHTC Fund XXXV, LLC
0.01%
Wilmington
United States
Garnet Community Investments XXXV, LLC
Garnet LIHTC Fund XXXVI, LLC
1.00%
Wilmington
United States
Garnet Community Investments XXXVI, LLC
Garnet LIHTC Fund XXXVII, LLC
100.00%
Wilmington
United States
Garnet Community Investments XXXVII, LLC
Garnet LIHTC Fund XXXVII, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
GoBear (Philippines) Inc.
50.00%
Manila
Philippines
Woodpecker Asia Tech PTE Ltd.
GoBear (Vietnam) Co., Ltd.
50.00%
Ho Chi Minh City
Vietnam
Woodpecker Asia Tech PTE Ltd.
Hague Reinsurance Management N.V.
100.00%
The Hague
Netherlands
AEGON Digital Investments Holding B.V.
Horizons Acquisition 5, LLC
100.00%
Fort Lauderdale
United States
PSL Acquisitions Operating, LLC
Horizons St. Lucie Development, LLC
100.00%
Plantation
United States
PSL Acquisitions Operating, LLC
Hubei Xinhuaxin Insurance Sales Company Limited
12.40%
Hubei Province, China
China
AEGON International B.V.
Imani FE, L.P.
99.99%
Los Angeles
United States
TAH Imani Fe GP, LLC
Imani FE, L.P.
99.99%
Los Angeles
United States
Garnet LIHTC Fund XIV, LLC
Investors Warranty of America, LLC
100.00%
Iowa
United States
RCC North America LLC
6
     
Ironwood Re Corp.
100.00%
Honolulu, Hawaii
United States
Commonwealth General Corporation
IZNES SAS
0.64%
Paris
France
LBP AM
Kognita Lab S.A.
4.37%
São Paulo, Brazil
Brazil
Mongeral AEGON Holding Ltda.
LBP AM
25.00%
Paris
France
AEGON Asset Management Holding B.V.
LBP AM
25.00%
Paris
France
LBP AM
LBPAM Private Debt GP Lux SARL
25.00%
Luxembourg
Luxembourg
LBP AM
LCS Associates, LLC
100.00%
Wilmington
United States
RCC North America LLC
Life Investors Alliance LLC
100.00%
Wilmington, DE
United States
Transamerica Life Insurance Company
Lochside Nominees Limited
100.00%
London
United Kingdom
Cofunds Limited
Longevity Services Consultoria e Serviços Ltda.
50.00%
Rio de Janeiro
Brazil
Mongeral AEGON Holding Ltda.
MAG Consultoria de Investimentos Ltda.
50.00%
Rio de Janeiro, Brazil
Brazil
Mongeral AEGON Holding Ltda.
MAG Instituição de Pagamento Ltda.
50.00%
Rio de Janeiro
Brazil
Mongeral Aegon Holding Financeira
MAG Tanure Holding Participações S.A.
25.00%
Belo Horizonte, Minas Gerais
Brazil
Mongeral AEGON Holding Ltda.
Minster Nominees Limited
100.00%
London
United Kingdom
Cofunds Limited
Mitigation Manager LLC
100.00%
Wilmington
United States
RCC North America LLC
Momentum Group Limited
100.00%
London
United Kingdom
Aegon UK Investment Holdings Limited
Money Services, Inc.
100.00%
Wilimington
United States
AUSA Holding, LLC
Mongeral Aegon Administração de Benefícios LTDA.
50.00%
Rio de Janeiro
Brazil
Mongeral AEGON Holding Ltda.
Mongeral Aegon Capitalização S.A.
50.00%
Rio de Janeiro, Brazil
Brazil
Mongeral AEGON Seguros e Previdência SA
Mongeral Aegon Gestão de Fundos Imobiliários Ltda
20.00%
Rio de Janeiro, Brazil
Netherlands
AEGON Brazil Holding II B.V.
Mongeral Aegon Gestão de Fundos Imobiliários Ltda
20.00%
Rio de Janeiro, Brazil
Netherlands
Mongeral AEGON Investimentos Ltda.
Mongeral Aegon Holding Financeira
50.00%
Rio de Janeiro, Brazil
Brazil
Mongeral AEGON Holding Ltda.
Mongeral AEGON Holding Ltda.
50.00%
Rio de Janeiro
Brazil
AEGON Brazil Holding II B.V.
Mongeral AEGON Investimentos Ltda.
50.00%
Rio de Janeiro
Brazil
Mongeral AEGON Holding Ltda.
Mongeral Aegon Renda Variavel Ltda
50.00%
Rio de Janeiro, Brazil
Netherlands
Mongeral AEGON Investimentos Ltda.
Mongeral AEGON Seguros e Previdência SA
50.00%
Rio de Janeiro
Brazil
AEGON Brazil Holding B.V.
Monumental General Administrators, Inc.
100.00%
Baltimore, MD
United States
AUSA Holding, LLC
MT ADMINISTRADORA E CORRETORA DE SEGUROS LTDA
50.00%
São Paulo
Brazil
Mongeral AEGON Holding Ltda.
Natural Resources Alternatives Portfolio 3, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Natural Resources Alternatives Portfolio 3, LLC
100.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Natural Resources Alternatives Portfolio I, LLC
68.00%
Wilmington
United States
Transamerica Life Insurance Company
Natural Resources Alternatives Portfolio I, LLC
68.00%
Wilmington
United States
Transamerica Life Insurance Company
Natural Resources Alternatives Portfolio I, LLC
68.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Natural Resources Alternatives Portfolio II, LLC
100.00%
Wilmington, DE
United States
Transamerica Life Insurance Company
Natural Resources Alternatives Portfolio II, LLC
100.00%
Wilmington, DE
United States
Transamerica Financial Life Insurance Company
NEWCAST PROPERTY DEVELOPMENTS (ONE) LIMITED
100.00%
London
United Kingdom
AEGON UK Property Fund Limited
NEWCAST PROPERTY DEVELOPMENTS (TWO) LIMITED
100.00%
London
United Kingdom
AEGON UK Property Fund Limited
Nomagon Title Grandparent, LLC
100.00%
Wilmington
United States
AEGON USA Asset Management Holding, LLC
Nomagon Title Holding 1, LLC
100.00%
Wilmington
United States
Nomagon Title Parent, LLC
Nomagon Title Parent, LLC
100.00%
Wilmington
United States
Nomagon Title Grandparent, LLC
North Westerly Holding B.V.
100.00%
The Hague
Netherlands
AEGON Asset Management Holding B.V.
Origen Financial Services Limited
100.00%
London
United Kingdom
Momentum Group Limited
Origen Limited
100.00%
London
United Kingdom
Momentum Group Limited
Origen Trustee Services Limited
100.00%
London
United Kingdom
Momentum Group Limited
Osceola Mitigation Partners, LLC
50.00%
Bonita Springs
United States
Mitigation Manager LLC
Pearl Holdings, Inc. I
100.00%
Wilmington
United States
AEGON USA Asset Management Holding, LLC
Pearl Holdings, Inc. II
100.00%
Wilmington
United States
AEGON USA Asset Management Holding, LLC
Pension Geeks Limited
100.00%
London
United Kingdom
AEGON UK plc
Peoples Benefit Services, LLC
100.00%
Exton, PA
United States
Transamerica Life Insurance Company
Placer 400 Investors, LLC
50.00%
Sacremento
United States
RCC North America LLC
PSL Acquisitions Operating, LLC
100.00%
Des Moines
United States
RCC North America LLC
PT Futuready Insurance Broker
80.00%
Jakarta
Indonesia
AEGON DMS Holding B.V.
PT. Aegon Insights Indonesia
100.00%
Jakarta
Indonesia
Aegon Insights Limited
7
     
PT. Aegon Insights Indonesia
100.00%
Jakarta
Indonesia
AEGON DMS Holding B.V.
RCC North America LLC
100.00%
Wilmington
United States
Transamerica Corporation
Real Estate Alternatives Portfolio 2, L.L.C.
9.75%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 2, L.L.C.
9.75%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 2, L.L.C.
9.75%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 2, L.L.C.
9.75%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 2, L.L.C.
9.75%
Wilmington
United States
Transamerica Financial Life Insurance Company
Real Estate Alternatives Portfolio 3, L.L.C.
25.60%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 3, L.L.C.
25.60%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 3, L.L.C.
25.60%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 3A, Inc.
100.00%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 3A, Inc.
100.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Real Estate Alternatives Portfolio 4 HR, LLC
36.00%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 4 HR, LLC
36.00%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 4 HR, LLC
36.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
Real Estate Alternatives Portfolio 4 MR, LLC
36.00%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 4 MR, LLC
36.00%
Wilmington
United States
Transamerica Life Insurance Company
Real Estate Alternatives Portfolio 4 MR, LLC
36.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
River Ridge Insurance Company
100.00%
Burlington, VT
United States
AEGON Management Company
Rock Springs Drive, LLC
98.00%
Lutherville
United States
Investors Warranty of America, LLC
SANTANDER GENERALES SEGUROS Y REASEGUROS, S.A.
51.00%
Madrid
Spain
AEGON España, S.A.U. de Seguros y Reaseguros
SANTANDER VIDA SEGUROS Y REASEGUROS, S.A.
51.00%
Madrid
Spain
AEGON España, S.A.U. de Seguros y Reaseguros
Scottish Equitable (Managed Funds) Limited
100.00%
Edinburgh
United Kingdom
Scottish Equitable Holdings Limited
Scottish Equitable (Managed Funds) Limited
100.00%
Edinburgh
United Kingdom
Scottish Equitable plc
Scottish Equitable Holdings Limited
100.00%
Edinburgh
United Kingdom
AEGON UK plc
Scottish Equitable plc
100.00%
Edinburgh
United Kingdom
Scottish Equitable Holdings Limited
Scottish Equitable plc
100.00%
Edinburgh
United Kingdom
AEGON UK plc
Second FGP LLC
100.00%
Wilmington
United States
FGH USA LLC
Serenitas, S.L.U.
100.00%
Madrid
Spain
Aegon Iberia Holding BV, Sucursal en España
Seventh FGP LLC
100.00%
Wilmington
United States
FGH USA LLC
Sicoob Seguradora de Vida e Previdência S.A.
25.00%
Rio de Janeiro
Brazil
Mongeral AEGON Seguros e Previdência SA
Simple2u Seguros S.A.
50.00%
Rio de Janeiro, Brazil
Netherlands
Mongeral AEGON Seguros e Previdência SA
St. Lucie West Development Company, LLC
100.00%
Fort Lauderdale
United States
PSL Acquisitions Operating, LLC
Stonebridge Benefit Services, Inc.
100.00%
Wilmington, DE
United States
Commonwealth General Corporation
TA Private Equity Assets, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
TA-APOP I, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
TA-APOP I-A, LLC
100.00%
Wilmington
United States
Transamerica Life Insurance Company
TA-APOP I-A, LLC
100.00%
Wilmington
United States
Transamerica Financial Life Insurance Company
TA-APOP II, LLC
97.59%
Wilmington
United States
Transamerica Life Insurance Company
TA-APOP II, LLC
97.59%
Wilmington
United States
Transamerica Financial Life Insurance Company
TABR Realty Services, LLC
100.00%
Wilmington
United States
AUSA Holding, LLC
TAH Imani Fe GP, LLC
100.00%
Los Angeles
United States
Garnet Assurance Corporation
TAH Pentagon Funds, LLC
100.00%
Des Moines
United States
Transamerica Affordable Housing, Inc.
TAHP Fund 2, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund VIII, LLC
TAHP Fund VII, LLC
100.00%
Wilmington
United States
Garnet LIHTC Fund XIX, LLC
TAH-Solar SLP, LLC
100.00%
Des Moines
United States
Transamerica Affordable Housing, Inc.
Tenet Group Limited (Minority Shareholding)
23.27%
London
United Kingdom
AEGON UK plc
TLIC Oakbrook Reinsurance Inc.
100.00%
Cedar Rapids, IA
United States
Transamerica Life Insurance Company
TLIC Watertree Reinsurance Inc.
100.00%
Cedar Rapids, IA
United States
Transamerica Life Insurance Company
Tradition Development Company, LLC
100.00%
Fort Lauderdale
United States
PSL Acquisitions Operating, LLC
Transamerica (Bermuda) Services Center, Ltd.
100.00%
Hamilton, BM
Bermuda
AEGON International B.V.
Transamerica Affordable Housing, Inc.
100.00%
Los Angeles
United States
TABR Realty Services, LLC
Transamerica Agency Network, LLC
100.00%
Cedar Rapids
United States
AUSA Holding, LLC
8
     
Transamerica Asset Holding, LLC
100.00%
Wilmington, DE
United States
AUSA Holding, LLC
Transamerica Asset Management, Inc.
100.00%
Denver, CO
United States
AUSA Holding, LLC
Transamerica Asset Management, Inc.
100.00%
Denver, CO
United States
Transamerica Life Insurance Company
Transamerica Bermuda Re, Ltd.
100.00%
Hamilton, BM
Bermuda
Transamerica Life Insurance Company
Transamerica Capital, LLC
100.00%
Denver
United States
AUSA Holding, LLC
Transamerica Casualty Insurance Company
100.00%
Cedar Rapids, IA
United States
Transamerica Corporation
Transamerica Corporation
100.00%
Wilmington, DE
United States
AEGON International B.V.
Transamerica Corporation
100.00%
Portland, Oregon
United States
Transamerica Corporation
Transamerica Direct Marketing Asia Pacific Pty. Ltd.
100.00%
Sydney
Australia
AEGON DMS Holding B.V.
Transamerica Direct Marketing Consultants Private Limited
100.00%
Mumbai
India
AEGON DMS Holding B.V.
Transamerica Finance Corporation
100.00%
Wilmington, DE
United States
Transamerica Corporation
Transamerica Financial Advisors, LLC
100.00%
Wilmington
United States
AUSA Holding, LLC
Transamerica Financial Life Insurance Company
100.00%
Albany, New York
United States
Transamerica Corporation
Transamerica Foundation
100.00%
Des Moines, Iowa
United States
Transamerica Corporation
Transamerica Fund Services, Inc.
100.00%
Denver, CO
United States
AUSA Holding, LLC
Transamerica Fund Services, Inc.
100.00%
Denver, CO
United States
Transamerica Life Insurance Company
Transamerica Health Savings Solutions, LLC
100.00%
Wilmington, DE
United States
Transamerica Retirement Solutions, LLC
Transamerica Institute
100.00%
Cedar Rapids, Iowa
United States
Transamerica Corporation
Transamerica Insurance Marketing Asia Pacific Pty. Ltd.
100.00%
Sydney
Australia
Transamerica Direct Marketing Asia Pacific Pty. Ltd.
Transamerica International Direct Marketing Consultants, LLC
49.00%
Baltimore, Maryland
United States
AEGON Direct Marketing Services, Inc.
Transamerica Investors Securities, LLC
100.00%
Wilmington, DE
United States
Transamerica Retirement Solutions, LLC
Transamerica Life (Bermuda) Ltd.
100.00%
Hamilton, Bermuda
Bermuda
Transamerica Life Insurance Company
Transamerica Life Insurance Company
100.00%
Cedar Rapids, IA
United States
Commonwealth General Corporation
Transamerica Life International (Bermuda) Ltd.
100.00%
Hamilton, Bermuda
Bermuda
Aegon Ltd.
Transamerica Resources, Inc.
100.00%
Baltimore, MD
United States
Monumental General Administrators, Inc.
Transamerica Retirement Advisors, LLC
100.00%
Wilmington, DE
Netherlands
Transamerica Retirement Solutions, LLC
Transamerica Retirement Insurance Agency, LLC
100.00%
Wilmington, DE
United States
Transamerica Retirement Solutions, LLC
Transamerica Retirement Solutions, LLC
100.00%
Wilmington, DE
United States
AUSA Holding, LLC
Transamerica Stable Value Solutions Inc.
100.00%
Wilmington
United States
Commonwealth General Corporation
Transamerica Travel and Conference Services, LLC
100.00%
Cedar Rapids
United States
Money Services, Inc.
Transamerica Trust Company
100.00%
Cedar Rapids
Netherlands
AUSA Holding, LLC
Transamerica United Financial Services, LLC
100.00%
Baltimore, MD
United States
Transamerica Corporation
Transamerica Ventures Fund II, LLC
100.00%
Wilmington, Delaware
United States
AUSA Holding, LLC
ULI Funding, LLC
100.00%
Cedar Rapids, Iowa
United States
AUSA Holding, LLC
WFG Insurance Agency of Puerto Rico, Inc.
100.00%
San Juan
Puerto Rico
World Financial Group Insurance Agency, LLC
WFG Properties Holdings, LLC
100.00%
Atlanta, GA
United States
World Financial Group, Inc.
WFG Securities Inc.
100.00%
Vaughan
Canada
World Financial Group Holding Company of Canada Inc.
Winsocial Administradora de Benefícios Ltda.
50.00%
Rio de Janeiro
Brazil
AEGON Brazil Holding II B.V.
Woodpecker Asia Holding I B.V. in liquidation
50.00%
The Hague
Netherlands
Woodpecker Holding B.V.
Woodpecker Asia Holding II B.V. in liquidation
50.00%
The Hague
Netherlands
Woodpecker Holding B.V.
Woodpecker Asia Tech PTE Ltd.
50.00%
Singapore
Singapore
Woodpecker Holding B.V.
Woodpecker Holding B.V.
50.00%
The Hague
Netherlands
AEGON International B.V.
World Financial Group Holding Company of Canada Inc.
100.00%
Vaughan
Canada
Commonwealth General Corporation
World Financial Group Insurance Agency of Canada Inc.
100.00%
Toronto
Canada
World Financial Group Holding Company of Canada Inc.
World Financial Group Insurance Agency of Hawaii, Inc.
100.00%
Honolulu
United States
World Financial Group Insurance Agency, LLC
World Financial Group Insurance Agency of Massachusetts, Inc
100.00%
Quincy
United States
World Financial Group Insurance Agency, LLC
World Financial Group Insurance Agency of Wyoming, Inc.
100.00%
Cheyenne
United States
World Financial Group Insurance Agency, LLC
World Financial Group Insurance Agency, LLC
100.00%
Los Angeles
United States
AUSA Holding, LLC
World Financial Group, Inc.
100.00%
Wilmington
United States
Transamerica Asset Holding, LLC
Yarra Rapids, LLC
17.64%
Wilmington
United States
Real Estate Alternatives Portfolio 4 MR, LLC
Zahorik Company, Inc.
100.00%
Los Angeles
United States
AUSA Holding, LLC
Zero Beta Fund, LLC
49.86%
Wilmington
United States
Transamerica Life Insurance Company
Zero Beta Fund, LLC
49.86%
Wilmington
United States
Transamerica Life Insurance Company
Zero Beta Fund, LLC
49.86%
Wilmington
United States
Transamerica Financial Life Insurance Company
 

Item 30.  Indemnification

The Iowa Code (Sections 490.850 et. seq.) provides for permissive indemnification in certain situations, mandatory indemnification in other situations, and prohibits indemnification in certain situations. The Code also specifies producers for determining when indemnification payments can be made.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Depositor pursuant to the foregoing provisions, or otherwise, the Depositor has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Depositor of expenses incurred or paid by a director, officer or controlling person in connection with the securities being registered), the Depositor will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Item 31 Principal Underwriters

(a) Transamerica Capital, LLC serves as the principal underwriter for:

Transamerica Capital, LLC serves as the principal underwriter for the 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 Variable Life Separate Account II, Retirement Builder Variable Annuity Account, Separate Account Fund B, Separate Account Fund C, Separate Account VA AA, Separate Account VA B, Separate Account VA BB, Separate Account VA CC, Separate Account VA DD, Separate Account VA FF, Separate Account VA HH, Separate Account VA Q, Separate Account VA U, Separate Account VA V, 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 VL, Separate Account VL E, Separate Account VUL-A, Separate Account VUL-1; Separate Account VUL-2, Separate Account VUL-3, Separate Account VUL-4, Separate Account VUL-5, Separate Account VUL-6, Transamerica Corporate Separate Account Sixteen, Transamerica Separate Account R3, Variable Life Account A, WRL Series Annuity Account, WRL Series Annuity Account B, WRL Series Life Account, WRL Series Life Account G, and WRL Series Life Corporate Account. These accounts are separate accounts of Transamerica Life Insurance Company.

Transamerica Capital, LLC serves as principal underwriter for 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, ML of New York Variable Life Separate Account II, Separate Account VA BNY, Separate Account VA QNY, Separate Account VA-2LNY, Separate Account VA-5NLNY, Separate Account VA-6NY, TFLIC Separate Account B, TFLIC Separate Account C, TFLIC Separate Account VNY, TFLIC Pooled Account No. 44, TFLIC Series Annuity Account, TFLIC Series Life Account, and Transamerica Variable Funds. These accounts are separate accounts of Transamerica Financial Life Insurance Company.

Transamerica Capital, LLC also serves as principal underwriter for Transamerica Series Trust and Transamerica Funds.

(b) Directors and Officers of Transamerica Capital, LLC:

 
   
Name
Principal Business Address
Position and Officers with Underwriter
Timothy Ackerman
(3)
Manager, President & Asset Management Distribution
Brian Beitzel
(2)
Chief Financial Officer & Treasurer
Mark Halloran
(3)
Manager & Vice President
David Cheung
(3)
Assistant Secretary
Jonathan Cressman
(3)
President, Annuity Distribution
Daniel Goodman
(1)
Secretary
Doug Hellerman
(3)
Chief Compliance Officer & Vice President
Jennifer Pearce
(3)
Vice President
  1. 100 Light Street, Floor B1, Baltimore, MD 21202
  2. 6400 C Street SW, Cedar Rapids, IA 52499-0001
  3. 1801 California Street, Suite 5200, Denver, CO 80202

Item 32. 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 6400 C Street SW, Cedar Rapids, Iowa 52499.

Item 33. Management Services.

All management service policies, if any, are discussed in Part A or Part B.

Item 34. Undertakings

The Depositor 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 the Depositor.

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
 
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act and has duly caused this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the City of Brooksville and State of Florida, on April 27, 2026.
 
 
 
SEPARATE ACCOUNT VA B
 
(Registrant)
 
 
 
TRANSAMERICA LIFE INSURANCE COMPANY
 
(Depositor)
 
 
 
 
 
 *
 
By:
Jamie Ohl
 
 
Director and President
 
 
(Principal Executive Officer)
 
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated on April 27, 2026.
 
Signatures
 
Title
 
 
 
*
 
Director and President (Principal Executive Officer)
Jamie Ohl
 
 
 
 
 
*
 
Director, Chairman of the Board and Senior Vice President, Financial Assets
Bonnie T. Gerst
 
 
 
 
 
*
 
Director and Chief Corporate Affairs Officer
Maurice Perkins
 
 
 
 
 
*
 
Director, General Counsel, Senior Vice President and Secretary
Andrew S. Williams
 
 
 
 
 
*
 
Director, Chief Financial Officer, Executive Vice President and Treasurer (Principal Financial Officer and Principal Accounting Officer)
Matt Keppler
 
 
 
 
 
*
 
Director, Chief Strategy & Development Officer and Senior Vice President
Chris Giovanni
 
 
 
 
 
/s/ Brian Stallworth*
 
Assistant Secretary
Brian Stallworth
 
 
*By: Brian Stallworth – Attorney-in-Fact pursuant to Powers of Attorney filed previously and/or herewith.