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P R O S P E C T U S

May 22, 2008

WRL Evolution

issued through

WRL Series Life Account G by

Western Reserve Life Assurance Co. of Ohio

Administrative Office:

570 Carillon Parkway

St. Petersburg, Florida 33716

1-800-851-9777; (727) 299-1800

Direct payments made by check, and all correspondence

and notices to the Mailing Address:

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499

An Individual Flexible Premium Variable Life Insurance Policy

This prospectus describes the WRL Evolution, a flexible premium variable life insurance policy (the “Policy”). You can allocate your Policy’s cash value to the fixed account (which credits a specified guaranteed interest rate) and/or to the WRL Series Life Account G, which invests through its subaccounts in portfolios of the Transamerica Series Trust (formerly, AEGON/Transamerica Series Trust) – Initial Class, the Fidelity Variable Insurance Products Funds – Service Class 2 (“Fidelity VIP Fund”), the ProFunds, and the Access One Trust (“Access Trust”) (collectively, the “funds”). Please refer to the next page of this prospectus for the list of portfolios available to you under this Policy.

If you already own a life insurance policy, it may not be to your advantage to buy additional insurance or to replace your policy with the Policy described in this prospectus. And it may not be to your advantage to borrow money to purchase the Policy or to take withdrawals from another policy you own to make premium payments under the Policy.

Prospectuses for the portfolios of the funds must accompany this prospectus. Certain portfolios may not be available in all states. Please read these documents before investing and save them for future reference.

An investment in the Policy is not a bank deposit. The Policy is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

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.

PORTFOLIOS AVAILABLE TO YOU UNDER YOUR POLICY

TRANSAMERICA SERIES TRUST

• Transamerica Asset Allocation – Conservative VP

• Transamerica Asset Allocation – Growth VP

• Transamerica Asset Allocation – Moderate Growth VP

• Transamerica Asset Allocation – Moderate VP

• Transamerica Balanced VP

• Transamerica BlackRock Large Cap Value VP

• Transamerica Capital Guardian U.S. Equity VP

• Transamerica Capital Guardian Value VP

• Transamerica Clarion Global Real Estate Securities VP

• Transamerica Convertible Securities VP

• Transamerica Equity VP

• Transamerica Federated Market Opportunity VP

• Transamerica Growth Opportunities VP

• Transamerica Index 50 VP

• Transamerica Index 75 VP

• Transamerica International Moderate Growth VP

• Transamerica JPMorgan Core Bond VP

• Transamerica JPMorgan Enhanced Index VP

• Transamerica Legg Mason Partners All Cap VP

• Transamerica MFS High Yield VP

• Transamerica MFS International Equity VP

• Transamerica Marsico Growth VP

• Transamerica Money Market VP

• Transamerica Munder Net50 VP

• Transamerica PIMCO Total Return VP

• Transamerica Science & Technology VP

• Transamerica Small/Mid Cap Value VP

• Transamerica T. Rowe Price Equity Income VP

• Transamerica T. Rowe Price Small Cap VP

• Transamerica Templeton Global VP

• Transamerica Third Avenue Value VP

• Transamerica U.S. Government Securities VP

• Transamerica Value Balanced VP

• Transamerica Van Kampen Mid-Cap Growth VP

PROFUNDS*

• ProFund VP Asia 30

• ProFund VP Basic Materials

• ProFund VP Bull

• ProFund VP Consumer Services

• ProFund VP Europe 30

• ProFund VP Emerging Markets

• ProFund VP Falling U.S. Dollar

• ProFund VP Financials

• ProFund VP International

• ProFund VP Japan

• ProFund VP Mid-Cap

• ProFund VP Money Market

• ProFund VP Oil & Gas

• ProFund VP NASDAQ 100 (formerly, ProFund VP OTC)

• ProFund VP Pharmaceuticals

• ProFund VP Precious Metals

• ProFund VP Short Emerging Markets

• ProFund VP Short International

• ProFund VP Short NASDAQ-100

• ProFund VP Short Small-Cap

• ProFund VP Small-Cap

• ProFund VP Small-Cap Value

• ProFund VP Telecommunications

• ProFund VP UltraSmall-Cap

• ProFund VP U.S. Government Plus

• ProFund VP Utilities

FIDELITY VIP FUNDS

• Fidelity VIP Index 500 Portfolio

ACCESS ONE TRUST*

• Access VP High Yield Fund

*	The ProFunds and Access Trust portfolios permit frequent transfers. Investors in the ProFunds and/or Access Trust portfolios may bear the additional costs and investment risks of frequent transfers. See “Disruptive Trading and Market Timing” in this prospectus.

Table of Contents


Policy Benefits/Risks Summary		1
Policy Benefits		1
The Policy in General		1
Flexible Premiums		1
Variable Death Benefit		1
Cash Value		2
Transfers		2
Loans		2
Cash Withdrawals and Surrenders		3
Tax Benefits		3
Policy Risks		3
Tax Risks (Income Tax and MEC)		3
Loan Risks		3
Risk of an Increase in Current Fees and Expenses		4
Investment Risks		4
Risk of Lapse		4
Portfolio Risks		5
Fee Tables		5
Range of Expenses for the Portfolios		7
Western Reserve, the Separate Account, the Fixed Account and the Portfolios		7
Western Reserve		7
The Separate Account		7
The Fixed Account		8
The Portfolios		9
Selection of Underlying Portfolios		16
Addition, Deletion, or Substitution of Portfolios		16
Your Right to Vote Portfolio Shares		17
Charges and Deductions		17
Premium Expense Charge		17
Monthly Deductions		18
Recovery of Monthly Deductions		19
Mortality and Expense Risk Charge		19
Loan Interest Spread		19
Taxes		20
Rider Charge		20
Portfolio Expenses		20
Revenue We Receive		20
The Policy		21
Ownership Rights		21
Modifying the Policy		22
Purchasing a Policy		22
Tax-Free “Section 1035” Exchanges		22
When Insurance Coverage Takes Effect		22
Backdating a Policy		24
Policy Changes After Age 111		24
Policy Features		25
Premiums		25
Allocating Premiums		25
Premium Flexibility		26
Planned Periodic Payments		26
Premium Limitations		26
Making Premium Payments		26
Transfers		26
General		26
Disruptive Trading and Market Timing		27
Fixed Account Transfers		30
Conversion Rights		30


Dollar Cost Averaging		31
Asset Rebalancing Program		31
Third Party Asset Allocation Services		32
Policy Values		32
Cash Value		32
Net Surrender Value		33
Subaccount Value		33
Subaccount Unit Value		33
Fixed Account Value		34
Death Benefit		34
Death Benefit Proceeds		34
Death Benefit		34
Death Benefit After Age 111		36
Effect of Cash Withdrawals on the Death Benefit		37
Choosing Death Benefit Options		37
Changing the Death Benefit Option		37
Increasing/Decreasing the Specified Amount		37
Payment Options		38
Surrenders and Cash Withdrawals		38
Surrenders		38
Cash Withdrawals		38
Canceling a Policy		39
Loans		39
General		39
Interest Rate Charged		40
Loan Reserve Account Interest Rate Credited		40
Effect of Policy Loans		40
Policy Lapse and Reinstatement		41
Lapse		41
Reinstatement		41
Federal Income Tax Considerations		41
Tax Status of the Policy		41
Tax Treatment of Policy Benefits		42
Other Policy Information		44
Payments We Make		44
Split Dollar Arrangements		44
Policy Termination		45
Supplemental Benefit (Rider)		45
Living Benefit Rider (an Accelerated Death Benefit)		45
Additional Information		46
Sale of the Policies		46
Settlement Options		48
Legal Proceedings		49
Financial Statements		49
Performance Data		49
Rates of Return		49
Table of Contents of the Statement of Additional Information		51
Glossary		52
Appendix A – Illustrations		55
Prospectus Back Cover
Personalized Illustrations of Policy Benefits
Inquiries


Policy Benefits/Risks Summary		*WRL Evolution^SM*

This summary describes the Policy’s important benefits and risks. More detailed information about the Policy appears later in this prospectus and in the Statement of Additional Information (“SAI”). For your convenience, we have provided a Glossary at the end of this prospectus that defines certain words and phrases used in this prospectus.

Policy Benefits

The Policy in General

•

The WRL Evolution ^SM is an individual flexible premium variable life insurance policy. The Policy gives you the potential for long-term life insurance coverage with the opportunity for tax-deferred cash value accumulation. The Policy’s cash value will increase or decrease depending on the investment performance of the subaccounts, the premiums you pay, the fees and charges we deduct, the interest we credit to the fixed account, and the effects of any Policy transactions (such as transfers, loans and partial withdrawals). Because returns are not guaranteed, the Policy is not suitable as a short-term savings vehicle.

•

The Policy is designed to be long-term in nature in order to provide significant life insurance benefits for you. You should purchase the Policy only if you have the financial ability to keep it in force for a substantial period of time. You should consider the Policy in conjunction with other insurance you own.

•

Fixed Account. You may place money in the fixed account where it earns at least 2% annual interest. We may declare higher rates of interest, but are not obligated to do so. The fixed account is part of our general account.

•

Separate Account. You may direct the money in your Policy to any of the subaccounts of the separate account. Each subaccount invests exclusively in one of the portfolios listed on the cover of this prospectus. Money you place in a subaccount is subject to investment risk and its value will vary each day according to the investment performance of the portfolios in which the subaccounts invest.

Flexible Premiums

•

You select a premium payment plan but the plan is flexible – you are not required to pay premiums according to the plan. You can change the frequency and amount, within limits, and can skip premium payments. Unplanned premiums may be made, within limits. Premium payments must be at least $50. Under certain circumstances, extra premiums may be required to prevent lapse.

•

Once we deliver your Policy, the free-look period begins. You may return the Policy during this period and receive a refund. Depending on the laws of the state governing your Policy (usually the state where you live), we will either allocate your initial net premium(s) to the accounts you indicated on your application, or we will place your initial net premium(s) in the reallocation account until the reallocation date as shown on your Policy schedule page. For further information regarding the “free-look period,” please see “Canceling a Policy.”

Variable Death Benefit

•

If the insured dies while the Policy is in force, we will pay a death benefit to the beneficiary(ies), subject to applicable law and the forms of the Policy. The amount of the death benefit generally depends on the specified amount of insurance you select and the death benefit option you choose.

•

Choice Among Death Benefit Options. You must choose one of three death benefit options. We offer the following:

•

Option A is the greatest of:

•

the current specified amount; or

•

a specified percentage shown on your Policy’s schedule page, multiplied by the cash value of the Policy on the date of the insured’s death; or

•

the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

•

Option B is the greatest of:

•

the current specified amount, plus the Policy’s cash value on the date of the insured’s death; or

•

a specified percentage shown on your Policy’s schedule page, multiplied by the cash value of the Policy on the date of the insured’s death; or

•

the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

•

Option C is the greatest of:

•

the amount payable under Option A; or

•

the current specified amount, multiplied by an age-based “factor,” plus the Policy’s cash value on the date of the insured’s death; or

•

the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

We will reduce the death benefit proceeds by any outstanding loan amount, including accrued interest, and any due and unpaid charges.

•

Under current tax law, the death benefit should generally be U.S. federal income tax free to the beneficiary. Other taxes, such as estate taxes, may apply.

•

Change in Death Benefit Option and Specified Amount. You may increase the specified amount once a year on any Monthiversary. After the third Policy year, you may change the death benefit option and decrease the specified amount once a year. You may not increase the specified amount in the same year that you decrease the specified amount. Until attained age 65, we may limit the amount of any decrease to no more than 20% of the current specified amount. The new specified amount cannot be less than the minimum specified amount as shown in your Policy. You may increase the specified amount on any Monthiversary before the insured’s 86^th birthday. You may change the death benefit option on any Monthiversary before the insured reaches attained age 95.

Cash Value

•

The cash value is the sum of the Policy’s value in the subaccounts and the fixed account (including any amount held in the loan reserve account) and is the starting point for calculating important values under the Policy, such as net surrender value and the death benefit. There is no guaranteed minimum cash value. The Policy may lapse if you do not have sufficient cash value in the Policy to pay the monthly deductions and/or any outstanding loan amount(s) and accrued loan interest.

Transfers

•

You can transfer cash value among the subaccounts and the fixed account. You currently may make transfer requests in writing to our mailing address, by telephone or by fax to our administrative office, or electronically through our website.

•

Dollar cost averaging and asset rebalancing programs are available.

•

Each Policy year, the Policy allows a cumulative transfer out of the fixed account of the greater of up to 25% of the amount in the fixed account, or the amount transferred out in the previous Policy year. Currently, we do not, but reserve the right to, limit the number of transfers out of the fixed account to one per Policy year. If we modify or stop this current practice, we will notify you at the time of your transfer.

•

Unless otherwise required by state law, we may restrict transfers into the fixed account if the fixed account value, excluding amounts in the loan reserve, after the transfer has been made would exceed $250,000. This restriction does not apply to any transfer to the fixed account necessary in the exercise of conversion rights.

•

We may impose restrictions on the transfer privilege. See the discussion of our policy with regard to market timing, including transfers, and the costs and risks to you that can result from programmed, large, frequent, or short-term transfers, in our Statement of Policy on Disruptive Trading and Market Timing.

Loans

•

After the first Policy year (as long as your Policy is in force), you may take a loan against the Policy up to 90% of the net surrender value minus loan interest that will accrue before the next Policy anniversary. We may permit a loan before the first anniversary for Policies issued pursuant to 1035 Exchanges. The minimum loan amount is generally $500.

•

To secure the loan, we transfer an amount equal to your loan from your cash value to a loan reserve account. The loan reserve account is part of the fixed account. We will credit 2.00% interest annually on amounts in the loan reserve account.

•

Before the 11^th Policy year, we currently charge 2.75% interest annually, payable in arrears, on any outstanding loan amount. This charge is guaranteed not to exceed 3.00%. Interest not paid when due is added to the amount of the loan to be repaid.

•

After the 10^th Policy year, we will apply a preferred loan charge rate on an amount equal to the cash value minus total premiums paid (reduced by cash withdrawals), minus any outstanding loan amount and minus any accrued loan interest. We currently charge 2.00% interest on preferred loans. This charge is guaranteed not to exceed 2.25%. After attained age 111, all loans, new and existing, are considered preferred loans.

•

Federal income taxes and a penalty tax may apply to loans you take against the Policy. The federal tax consequence of loans with preferred rates is uncertain and there may be adverse tax consequences.

Cash Withdrawals and Surrenders

•

You may take withdrawals of cash value after the first Policy year. The amount of the withdrawal may be limited to:

•

at least $500; and

•

no more than the net surrender value minus $10,000 in Policy years 2 - 5.

•

after the 5^th Policy year, the amount of a withdrawal may be limited to no more than the net surrender value minus $500.

•

A cash withdrawal will reduce the cash value by at least the amount of the withdrawal. If the death benefit on your Policy is Option A, or if your death benefit is Option C and the insured’s attained age is 71 or older, then we will reduce the specified amount by the amount of cash withdrawal.

•

A cash withdrawal will reduce the cash value, so it will increase the risk that the Policy will lapse.

•

You may fully surrender the Policy at any time before the insured’s death. Once you surrender your Policy, life insurance coverage under your Policy will end and you will receive the net surrender value.

•

Federal income taxes and a penalty tax may apply to cash withdrawals and surrenders.

Tax Benefits

We intend the Policy to satisfy the definition of life insurance under the Internal Revenue Code so that the death benefit generally should be excludible from the taxable income of the beneficiary. If your Policy is not a Modified Endowment Contract (“MEC”), you should not be deemed in receipt of any taxable gains included in cash value until withdrawals and surrenders exceed your tax basis in the Policy, or other distributions are made as described in the Federal Income Tax Considerations section in this prospectus. If your Policy is a MEC, you will be taxable on any gains included in cash value when you take a withdrawal or a Policy loan, or assign, pledge, or surrender the Policy. Transfers between the subaccounts are not taxable transactions.

Policy Risks

Tax Risks (Income Tax and MEC)

We expect that the Policy will generally be deemed a life insurance contract under federal tax law, and that the death benefit paid to the beneficiary will generally not be subject to federal income tax.

Depending on the total amount of premiums you pay, the Policy may be treated as a MEC under federal tax laws. If a Policy is treated as a MEC, partial withdrawals, surrenders, assignments, pledges and loans will be treated first as distributions of gain that are taxable as ordinary income and treated as tax-free recovery of the owner’s basis in the Policy only after all gain has been distributed. In addition, a 10% penalty tax may be imposed on the taxable portion of cash withdrawals, surrenders, assignments, pledges and loans taken before you reach age 59 ¹/2. If a Policy is not treated as a MEC, partial surrenders and withdrawals will not be subject to tax to the extent of your basis in the Policy. Amounts withdrawn in excess of your basis in the Policy, while subject to tax as ordinary income, will not be subject to a 10% penalty tax. Also, if your Policy is not a MEC, loans, assignments and pledges are not taxable when made although they may be taxable on the lapse or surrender of the Policy. You should consult a qualified tax advisor for assistance in all tax matters involving your Policy.

Loan Risks

A Policy loan, whether or not repaid, will affect cash value over time because we subtract the amount of the loan from the subaccounts and the fixed account and place that amount in a loan reserve account within the fixed account as collateral. We then credit a fixed interest rate of 2.0% to the loan collateral. As a result, the loan collateral does not participate in the investment results of the subaccounts and may not continue to receive the current interest rates credited to the unloaned portion of the fixed account. The longer the loan is outstanding, the greater the effect is likely to be. Depending on the investment results of the subaccounts and the interest rates credited to the fixed account, the effect could be favorable or unfavorable.

We also currently charge interest on Policy loans at a rate of up to 2.75%, payable in arrears. This charge will not exceed 3.0%. Unpaid interest is added to the amount of the loan to be repaid.

The Policy may be purchased with the intention of accumulating cash value on a tax-free basis for some period (such as, until retirement) and then periodically borrowing from the Policy on a tax-free basis without allowing the Policy to lapse. The aim of this strategy is to continue borrowing from the Policy until its cash value is just enough to pay off the Policy loans that have been taken out. Anyone contemplating taking advantage of this strategy should be aware that it involves several risks. First, this strategy will fail to achieve its goal if the Policy is a MEC or becomes a MEC after the periodic borrowing begins because the loan will be taxable to the extent of gain then in the Policy. Second, this strategy has not been ruled on by the Internal Revenue Service or the courts and it may be subject to challenge by the IRS, since it is possible that loans under the Policy will be treated as taxable distributions.

A Policy loan will make it more likely that a Policy would lapse. There is also a risk that if the loan, insurance charges and unfavorable investment experience reduce your net surrender value, then the Policy will lapse. Assuming Policy loans have not already been subject to tax as distributions, a significant tax liability could arise when the lapse occurs. Anyone considering using the Policy as a source of tax-free income by taking out Policy loans should consult a qualified tax advisor about the tax risks inherent in such a strategy before purchasing the Policy.

If the Policy is not a MEC and lapses or is surrendered while a loan is outstanding, you will realize taxable income equal to the lesser of the gain in the Policy or the sum of the excess of the loan balance (including accrued interest) and any cash received on surrender over your basis in the Policy. If the Policy is a MEC or becomes a MEC within two years of taking a loan, the amount of the loan will be taxed as if it were a withdrawal from the Policy.

If the Policy lapses or terminates due to volatility in the investment performance of the underlying portfolios or another reason, you may incur tax consequences at an unexpected time.

You should consult with your own qualified tax advisor to apply the law to your particular circumstances.

Risk of an Increase in Current Fees and Expenses

Certain fees and expenses currently are assessed at less than their guaranteed maximum levels. In the future, we may increase these current charges up to the guaranteed (that is, maximum) levels. If fees and expenses are increased, you may need to increase the amount and/or frequency of premiums to keep the Policy in force.

Investment Risks

If you invest your Policy’s cash value in one or more subaccounts, then you will be subject to the risk that investment performance of the subaccounts will be unfavorable and that the cash value in your Policy will decrease. In addition, we deduct Policy fees and charges from your cash value, which can significantly reduce your cash value. During times of poor investment performance, this deduction will have an even greater impact on your cash value. You could lose everything you invest and your Policy could lapse without value, unless you pay additional premiums. If you allocate premiums to the fixed account, then we credit your fixed account value with a declared rate of interest. You assume the risk that the interest rate on the fixed account may decrease, although it will never be lower than a guaranteed minimum annual effective rate of 2%.

Risk of Lapse

If your Policy fails to meet certain conditions, we will notify you that the Policy has entered a 61-day “grace period” and will lapse without value unless you make a sufficient payment during the grace period. The Policy will enter a grace period if on any Monthiversary the net surrender value (that is, the cash value minus any outstanding loan amount and accrued loan interest) is not enough to pay the monthly deductions due.

A Policy lapse may have adverse tax consequences.

If your Policy lapses, we may allow you to reinstate the Policy within five years after it has lapsed, subject to underwriting.

Portfolio Risks

A comprehensive discussion of the risks of each portfolio may be found in each portfolio’s prospectus. Please refer to the prospectuses for the portfolios for more information.

There is no assurance that any portfolio will achieve its stated investment objective.

Fee Tables

The following tables describe the fees and expenses that you will pay when buying and owning the Policy. If the amount of a charge depends on the personal characteristics of the insured or the owner, then the fee table lists the minimum and maximum charges we assess under the Policy, and the fees and charges of a representative insured with the characteristics set forth below. These charges may not be representative of the charges you will pay.

The first table describes the fees and expenses that you will pay when buying the Policy, paying premiums or making cash withdrawals* from the Policy.

Transaction Fees


	When Charge is Deducted	Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge¹
Premium Expense Charge	Upon payment of each premium	2% of premium payments (6% for Policies issued to residents of Puerto Rico)	0% of premium payments (4% for Policies issued to residents of Puerto Rico)

Living Benefit Rider (an Accelerated Death Benefit)	When rider is exercised	Discount Factor²	Discount Factor²

When we incur the expense of expedited delivery of your partial withdrawal or complete surrender payment, we currently assess the following additional charges: $20 for overnight delivery ($30 for Saturday delivery); and $25 for wire service. You can obtain further information about these charges by contacting our administrative office.

¹	The Company reserves the right at any time to change the current charge but never to exceed the guaranteed charge.

We reduce the single sum benefit by a discount factor to compensate us for lost income resulting from the early payment of the death benefit. The discount factor is based on the current yield on 90-day Treasury bills or the Policy loan interest rate, whichever is greater. Complete details and a numerical example are included in this prospectus under “Supplemental Benefit (Rider).”

The table below describes the fees and expenses that you will pay periodically during the time that you own the Policy, not including portfolio fees and expenses.

Periodic Charges Other Than Portfolio Operating Expenses


	When Charge is Deducted	Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge¹
Cost of Insurance ³ (without Extra Ratings)⁴	Monthly, on the Policy date and on each Monthiversary until the insured reaches age 111
• Maximum Charge⁵		$49.94 per $1,000 of net amount at risk per month⁶	$49.94 per $1,000 of net amount at risk per month⁶

• Minimum Charge		$0.04 per $1,000 of net amount at risk per month^6,7	$0.01 per $1,000 of net amount at risk per month^6,8

• Initial Charge for male insured, issue age 55, in the preferred elite non-tobacco use class		$0.49 per $1,000 of net amount at risk per month⁶	$0.09 per $1,000 of net amount at risk per month⁶

Mortality and Expense Risk Charge	Daily	Annual rate of 1.00% for all Policy years, of average daily net assets of each subaccount in which you are invested	Annual rate of 0.50% for all Policy years, of average daily net assets of each subaccount in which you are invested

Cost of insurance charges are based on the insured’s issue age, gender, underwriting class, specified amount, Policy duration, Policy year, and the net amount at risk. Cost of insurance rates generally will increase each year with the age of the insured. The cost of insurance rates shown in the table may not be representative of the charges you will pay. Your Policy’s schedule page will indicate the guaranteed cost of insurance charges applicable to your Policy. You can obtain more detailed information concerning your cost of insurance charges by contacting your registered representative.

⁴

We may place an insured in a sub-standard underwriting class with extra ratings that reflect higher mortality risks and that result in higher cost of insurance rates. If the insured possesses additional mortality risks, we may add a surcharge to the cost of insurance rates of up to $49.94 monthly per $1,000 of net amount at risk.

⁵	This maximum charge is based on an insured with the following characteristics: male, age 25 at issue, standard tobacco class and in the 86^th Policy year. This maximum charge may also apply to insureds with other characteristics.

⁶	The net amount at risk equals the death benefit on a Monthiversary, minus the cash value on such Monthiversary.

⁷	This minimum charge is based on an insured with the following characteristics: female, age 25 at issue, non-tobacco class, in the first Policy year. This minimum charge may also apply to insureds with other characteristics.

⁸	This minimum charge is based on an insured with the following characteristics: female, age 26 at issue, preferred elite non-tobacco class and in the first Policy year. The minimum charge may also apply to insureds with other characteristics.

Periodic Charges Other Than Portfolio Operating Expenses


	When Charge is Deducted	Amount Deducted
Charge	When Charge is Deducted	Guaranteed Charge	Current Charge¹
Loan Interest Spread⁹	On Policy anniversary or earlier, as applicable¹⁰	1.0% (effective annual rate)	0.75% (effective annual rate)

For information concerning compensation paid for the sale of the Policy, see “Sale of the Policies.”

Range of Expenses for the Portfolios^{1, 2}

The next table shows the lowest and highest total operating expenses charged by the portfolios during the fiscal year ended December 31, 2007. Expenses of the portfolios may be higher or lower in the future. More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.


	Lowest		Highest
Total Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fees, and other expenses)	0.40	%	2.07	%
Net Annual Portfolio Operating Expenses (total of all expenses that are deducted from portfolio assets, including management fees, 12b-1 fees, and other expenses, after any contractual waiver of fees and expenses)³	0.40	%	1.63	%

The portfolio expenses used to prepare this table were provided to Western Reserve by the funds. Western Reserve has not independently verified such information. The expenses shown are those incurred for the year ended December 31, 2007. Current or future expenses may be greater or less than those shown.

The table showing the range of expenses for the portfolios takes into account the expenses of several Transamerica Series Trust asset allocation portfolios that are “fund of funds.” A “fund of funds” portfolio typically allocates its assets, within predetermined percentage ranges, among certain other Transamerica Series Trust portfolios and certain portfolios of the Transamerica Funds (each such portfolio an “Acquired Fund”). Each “fund of funds” has its own set of operating expenses, as does each of the portfolios in which it invests. In determining the range of portfolio expenses, Western Reserve took into account the information received from the Transamerica Series Trust on the combined actual expenses for each of the “fund of funds” and the portfolios in which it invests. (The combined expense information includes the pro rata portion of the fees and expenses incurred indirectly by a Transamerica Series Trust asset allocation portfolio as a result of its investment in shares of one or more Acquired Funds.) See the prospectus for the Transamerica Series Trust for a presentation of the applicable Acquired Fund fees and expenses.

³	The range of Net Annual Portfolio Operating Expenses takes into account contractual arrangements for 27 portfolios that require a portfolio’s investment adviser to reimburse or waive portfolio expenses until April 30, 2009.

Western Reserve, the Separate Account, the Fixed Account and the Portfolios

Western Reserve

Western Reserve Life Assurance Co. of Ohio, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, is the insurance company issuing the Policy. We are obligated to pay all benefits under the Policy.

The Separate Account

The separate account is a separate account of Western Reserve, established under Ohio law. We own the assets in the separate account and we may use assets in the separate account to support other variable life insurance policies we issue. The separate account is registered with the Securities and Exchange Commission (“SEC”) as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”).

⁹

The Loan Interest Spread is the difference between the amount of interest we charge you for a loan (currently, an effective annual rate of 2.75%, guaranteed not to exceed 3.0%) and the amount of interest we credit to your loan account (an effective annual rate of 2.0% guaranteed). After the 10^th Policy year, we will charge preferred loan interest rates on a portion of the loan that are lower. After attained age 111, all loans, new and existing, will be considered preferred loans. The maximum loan interest spread on preferred loans is 0.25%, and the current spread is 0.0%.

¹⁰	While a Policy loan is outstanding, loan interest is payable in arrears on each Policy anniversary, or, if earlier, on the date of loan repayment, Policy lapse, surrender, Policy termination, or the insured’s death.

The separate account is divided into subaccounts, each of which invests in shares of a specific portfolio of a fund. These subaccounts buy and sell portfolio shares at net asset value without any sales charge. Any dividends and distributions from a portfolio are reinvested at net asset value in shares of that portfolio.

Income, gains, and losses credited to, or charged against, a subaccount of the separate account reflect the subaccount’s own investment experience and not the investment experience of our other assets. The separate account’s assets may not be used to pay any of our liabilities other than those arising from the Policies and other variable life insurance policies we issue. If the separate account’s assets exceed the required reserves and other liabilities, we may transfer the excess to our general account.

Changes to the Separate Account. As permitted by applicable law, we reserve the right to make certain changes to the structure and operation of the separate account, including, among others, the right to:

•

Remove, combine, or add subaccounts and make the combined or new subaccounts available for allocation of net premiums;

•

Combine the separate account or any subaccount(s) with one or more different separate account(s) or subaccount(s);

•

Close certain subaccounts to allocations of new net premiums by current or new policyowners;

•

Transfer assets of the separate account or any subaccount, which we determine to be associated with the class of policies to which the Policy belongs, to another separate account or subaccount;

•

Operate the separate account as a management investment company under the 1940 Act, or as any other form permitted by law;

•

Establish additional separate accounts or subaccounts to invest in new portfolios of the funds;

•

Manage the separate account at the direction of a committee;

•

Endorse the Policy, as permitted by law, to reflect changes to the separate account and subaccounts as may be required by applicable law;

•

Change the investment objective of a subaccount;

•

Substitute, add, or delete fund portfolios in which subaccounts currently invest net premiums, to include portfolios of newly designated funds (Fund portfolios will not be added, deleted or substituted without prior approval of the SEC to the extent required by the 1940 Act or other applicable laws);

•

Fund additional classes of variable life insurance policies through the separate account; and

•

Restrict or eliminate any voting privileges of owners or other persons who have voting privileges in connection with the operation of the separate account.

Some, but not all, of these future changes may be the result of changes in applicable laws or interpretation of the laws.

The portfolios, which sell their shares to the subaccounts, may discontinue offering their shares to the subaccounts. We will not make any such changes without receiving any necessary approval of the SEC and applicable state insurance departments. We will notify you of any changes. We reserve the right to make other structural and operational changes affecting the separate account.

The Fixed Account

The fixed account is part of Western Reserve’s general account. We use general account assets to support our insurance and annuity obligations other than those funded by separate accounts. Subject to applicable law, Western Reserve has sole discretion over the investment of the fixed account’s assets. Western Reserve bears the full investment risk for all amounts contributed to the fixed account. Western Reserve guarantees that the amounts allocated to the fixed account will be credited interest daily at an annual net effective interest rate of at least 2.0%. We will determine any interest rate credited in excess of the guaranteed rate at our sole discretion. We have no formula for determining fixed account interest rates in excess of the guaranteed rate nor any duration for such rates.

Money you place in the fixed account will begin earning interest compounded daily at the current interest rate in effect at the time of your allocation. Unless otherwise required by state law, we may restrict your allocations and transfers to the fixed account if the fixed account value, excluding the loan reserve, following the allocation or transfer would exceed $250,000. We may declare current interest rates from time to time. We may declare more than one interest rate for different money based upon the date of allocation or transfer to the fixed account. When we declare a current interest rate higher than the guaranteed rate on amounts allocated to the fixed account, we guarantee the higher rate on those amounts for at least one year (the “guarantee period”) unless those amounts are transferred to the loan reserve. At the end of the guarantee period we may declare a new current interest rate on those amounts and any accrued interest thereon. We will guarantee this new current interest rate for another guarantee period. We credit interest greater than 2.0% during any guarantee period at our sole discretion. You bear the risk that interest we credit will not exceed 2.0%.

We allocate amounts from the fixed account for cash withdrawals, transfers to the subaccounts, or monthly deduction charges on a first in, first out basis (“FIFO”) for the purpose of crediting interest.

The fixed account has not been registered with the Securities and Exchange Commission and the staff of the Securities and Exchange Commission has not reviewed the disclosure in this prospectus relating to the fixed account.

The Portfolios

The separate account invests in shares of the portfolios of a fund. Each portfolio is an investment division of a fund, which is an open-end management investment company registered with the SEC. Such registration does not involve supervision of the management or investment practices or policies of the portfolios by the SEC.

Each portfolio’s assets are held separate from the assets of the other portfolios, and each portfolio has investment objectives and policies that are different from those of the other portfolios. Thus, each portfolio operates as a separate investment fund, and the income or loss of one portfolio has no effect on the investment performance of any other portfolio. Pending any required approval by a state insurance regulatory authority, certain subaccounts and corresponding portfolios may not be available to residents of some states.

Each portfolio’s investment objective(s) and policies are summarized below. There is no assurance that any of the portfolios will achieve its stated objective(s). Certain portfolios may have investment objectives and policies similar to other portfolios that are managed by the same investment adviser or sub-adviser. The investment results of the portfolios, however, may be higher or lower than those of such other portfolios. We do not guarantee or make any representation that the investment results of the portfolios will be comparable to any other portfolio, even those with the same investment adviser or manager.

You can find more detailed information about the portfolios, including a description of risks, in the fund prospectuses. You may obtain a free copy of the fund prospectuses by contacting us at our administrative office at 1-800-851-9777 or visiting our website at www.westernreserve.com. You should read the fund prospectuses carefully.


Portfolio		Sub-Adviser or Adviser and Investment Objective
*TRANSAMERICA SERIES TRUST:*
Transamerica Asset Allocation – Conservative VP^*		Transamerica Asset Management, Inc. Seeks current income and preservation of capital. Portfolio Construction Consultant: Morningstar Associates, LLC

Transamerica Asset Allocation – Growth VP^*		Transamerica Asset Management, Inc. Seeks long-term capital appreciation. Portfolio Construction Consultant: Morningstar Associates, LLC

*	Each asset allocation portfolio invests in a combination of underlying Transamerica Series Trust and Transamerica Funds portfolios.


Portfolio		Sub-Adviser or Adviser and Investment Objective
Transamerica Asset Allocation – Moderate Growth VP*		Transamerica Asset Management, Inc. Seeks capital appreciation with current income as a secondary objective. Portfolio Construction Consultant: Morningstar Associates, LLC

Transamerica Asset Allocation – Moderate VP^*		Transamerica Asset Management, Inc. Seeks capital appreciation and current income. Portfolio Construction Consultant: Morningstar Associates, LLC

Transamerica Balanced VP		Transamerica Investment Management, LLC Seeks to achieve long-term capital growth and current income with a secondary objective of capital preservation, by balancing investments among stocks, bonds, and cash or cash equivalents.

Transamerica BlackRock Large Cap Value VP		BlackRock Investment Management, LLC Seeks long-term capital growth.

Transamerica Capital Guardian Value VP		Capital Guardian Trust Company Seeks to provide long-term growth of capital and income.

Transamerica Capital Guardian U.S. Equity VP		Capital Guardian Trust Company Seeks to provide long-term growth of capital.

Transamerica Clarion Global Real Estate Securities VP		ING Clarion Real Estate Securities, L.P. Seeks long-term total return from investments primarily in equity securities of real estate companies. Total return will consist of realized and unrealized capital gains and losses plus income.

Transamerica Convertible Securities VP		Transamerica Investment Management, LLC Seeks maximum total return through a combination of current income and capital appreciation.

Transamerica Federated Market Opportunity VP		Federated Equity Management Company of Pennsylvania Seeks total return by investing in securities that have defensive characteristics.

*	Each asset allocation portfolio invests in a combination of underlying Transamerica Series Trust and Transamerica Funds portfolios.


Portfolio		Sub-Adviser or Adviser and Investment Objective
Transamerica Growth Opportunities VP		Transamerica Investment Management, LLC Seeks to maximize long-term growth.

Transamerica Index 50 VP		AEGON USA Investment Management, LLC Seeks to balance capital appreciation and income.

Transamerica Index 75 VP		AEGON USA Investment Management, LLC Seeks capital appreciation as a primary objective and income as a secondary objective.

Transamerica International Moderate Growth VP*		Transamerica Asset Management, Inc. Seeks capital appreciation with current income as a secondary objective. Portfolio Construction Consultant: Morningstar Associates, LLC

Transamerica JPMorgan Core Bond VP		JPMorgan Investment Advisors Inc. Seeks the highest possible current income within the confines of the primary goal of ensuring the protection of capital.

Transamerica JPMorgan Enhanced Index VP		J.P. Morgan Investment Management Inc. Seeks to earn a total return modestly in excess of the total return performance of the S&P 500 Composite Stock Index (including the reinvestment of dividends) while maintaining a volatility of return similar to the S&P 500 Composite Stock Index.

Transamerica Legg Mason Partners All Cap VP		ClearBridge Advisors, LLC Seeks capital appreciation.

Transamerica Marsico Growth VP		Columbia Management Advisors, LLC Seeks long-term growth of capital.

Transamerica MFS High Yield VP		MFS^® Investment Management Seeks to provide high current income by investing primarily in a professionally managed diversified portfolio of fixed income securities, some of which may involve equity features. Capital growth, if any, is a consideration incidental to the objective of high current income.

Transamerica MFS International Equity		MFS^® Investment Management Seeks capital growth.

Transamerica Money Market VP		Transamerica Investment Management, LLC Seeks to obtain maximum current income consistent with preservation of principal and maintenance of liquidity.

*	Each asset allocation portfolio invests in a combination of underlying Transamerica Series Trust and Transamerica Funds portfolios.


Portfolio		Sub-Adviser or Adviser and Investment Objective
Transamerica Munder Net50 VP		Munder Capital Management Seeks long-term capital appreciation.

Transamerica PIMCO Total Return VP		Pacific Investment Management Company LLC Seeks maximum total return consistent with preservation of capital and prudent investment management.

Transamerica Science & Technology VP		Transamerica Investment Management, LLC Seeks long-term growth of capital.

Transamerica Small/Mid Cap Value VP		Transamerica Investment Management, LLC Seeks to maximize total return.

Transamerica T. Rowe Price Equity Income VP		T. Rowe Price Associates, Inc. Seeks to provide substantial dividend income, as well as long-term growth of capital by primarily investing in the dividend-paying common stocks of established companies.

Transamerica T. Rowe Price Small Cap VP		T. Rowe Price Associates, Inc. Seeks long-term growth of capital by investing primarily in common stocks of small growth companies.

Transamerica Templeton Global VP		Templeton Investment Counsel, LLC Transamerica Investment Management, LLC Seeks long-term growth of capital.

Transamerica Third Avenue Value VP		Third Avenue Management LLC Seeks long-term capital appreciation.

Transamerica U.S. Government Securities VP		Transamerica Investment Management, LLC Seeks to provide as high a level of total return as is consistent with prudent investment strategies by investing under normal conditions at least 80% of its net assets in U.S. Government debt obligations and mortgage-backed securities issued or guaranteed by the U.S. government, its agencies or government-sponsored entities.

Transamerica Value Balanced VP		Transamerica Investment Management, LLC Seeks preservation of capital and competitive investment returns.

Transamerica Van Kampen Mid-Cap Growth VP		Van Kampen Asset Management Inc. Seeks capital appreciation.

*FIDELITY FUNDS:*

Fidelity VIP Index 500 Portfolio		Fidelity Management & Research Company Seeks investment results that correspond to the total return of common stocks publicly traded in the United States, as represented by the Standard & Poor’s 500^SM Index.


Portfolio		Sub-Adviser or Adviser and Investment Objective
**PROFUNDS:***

ProFund VP Asia 30		ProFund Advisors LLC Seeks daily investment results, before the fees and expenses, that correspond to the daily performance of the ProFunds Asia 30 Index.

ProFund VP Basic Materials		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Basic Materials Index.

ProFund VP Bull		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P 500 Index^SM.

ProFund VP Consumer Services		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Consumer Services Index.

ProFund VP Europe 30		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the ProFunds Europe 30 Index.

ProFund VP Emerging Markets		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the New York Emerging Markets 50 ADR Index.

ProFund VP Falling US Dollar		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the U.S. Dollar Index.

ProFund VP Financials		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Financials Index.

ProFund VP International		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index.

ProFund VP Japan		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Nikkei 225 Stock Average.

The ProFunds and Access Trust portfolios permit frequent transfers. Frequent transfers may increase portfolio turnover. A high level of portfolio turnover may negatively impact performance by increasing transaction costs. In addition, large movements of assets into and out of a ProFunds and/or Access Trust portfolio may negatively impact a fund’s ability to achieve its investment objective or maintain a consistent level of operating expenses. See “Disruptive Trading and Market Timing.” Some ProFunds and Access Trust portfolios may use investment techniques not associated with most mutual fund portfolios. Investors in the ProFunds and/or Access Trust portfolios will bear additional investment risks. See the ProFunds and Access Trust portfolios prospectus for a description of the investment objectives and risks associated with investing in the ProFunds and Access Trust portfolios.


Portfolio		Sub-Adviser or Adviser and Investment Objective
ProFund VP Mid-Cap		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P MidCap 400 Index.

ProFund VP Money Market		ProFund Advisors LLC Seeks a high level of current income consistent with liquidity and preservation of capital.

ProFund VP NASDAQ-100		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the NASDAQ-100 Index.

ProFund VP Oil & Gas		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Oil & Gas Index.

ProFund VP Pharmaceuticals		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Pharmaceuticals Index.

ProFund VP Precious Metals		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones Precious Metals Index.

ProFund VP Short Emerging Markets		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Bank of New York Emerging Markets 50 ADR Index.

ProFund VP Short International		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index.

ProFund VP Short NASDAQ-100		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the NASDAQ-100 Index.

ProFund VP Short Small-Cap		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the inverse (opposite) of the daily performance of the Russell 2000 Index.


Portfolio		Sub-Adviser or Adviser and Investment Objective
ProFund VP Small-Cap Value		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the S&P SmallCap 600/Citigroup Value Index.

ProFund VP Telecommunications		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Telecommunications Index.

ProFund VP UltraSmall-Cap		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the Russell 2000 Index.

ProFund VP U.S. Government Plus		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to one and one-quarter times (125%) the daily price movement of the most recently issued 30-year U.S. Treasury Bond (“Long Bond”).

ProFund VP Utilities		ProFund Advisors LLC Seeks daily investment results, before fees and expenses, that correspond to the daily performance of the Dow Jones U.S. Utilities Index.

**ACCESS TRUST:***

Access VP High Yield Fund**		ProFund Advisors LLC Seeks to provide investment results that correspond generally to the total return of the high yield market consistent with maintaining reasonable liquidity.

**	Under normal market conditions, this portfolio invests at least 80% of its net assets in credit default swaps and other financial instruments that in combination have economic characteristics similar to the high yield debt (“junk bonds”) market and/or in high yield debt securities.

Transamerica Asset Management, Inc. (“Transamerica Asset”), located at 570 Carillon Parkway, St. Petersburg, Florida 33716, is directly owned by Western Reserve (77%) and AUSA Holding Company (23%), and serves as investment adviser to the Transamerica Series Trust and manages the Transamerica Series Trust in accordance with policies and guidelines established by the Transamerica Series Trust’s Board of Trustees. For certain portfolios, Transamerica Advisors has engaged investment sub-advisers to provide portfolio management services. Transamerica Advisors and each investment sub-adviser are registered investment advisers under the Investment Advisers Act of 1940, as amended. See the Transamerica Series Trust prospectuses for more information regarding Transamerica Asset and the investment sub-advisers.

Morningstar Associates, LLC (“Morningstar”), located at 225 West Wacker Drive, Chicago, Illinois 60606, serves as a “consultant” to Transamerica Advisors for investment model creation and maintenance to Transamerica Asset Allocation – Conservative VP, Transamerica Asset Allocation – Moderate VP, Transamerica Asset Allocation – Moderate Growth VP, Transamerica Asset Allocation – Growth VP and Transamerica International Moderate Growth VP of the Transamerica Series Trust. Morningstar will be paid an annual fee for its services. See the Transamerica Series Trust prospectuses for more information regarding Morningstar.

Fidelity Management & Research Company (“FMR”), located at 82 Devonshire Street, Boston, Massachusetts 02109, serves as investment adviser to the Fidelity VIP Fund and manages the Fidelity VIP Fund in accordance with policies and guidelines established by the Fidelity VIP Fund’s Board of Trustees. For certain portfolios, FMR has engaged investment sub-advisers to provide portfolio management services with regard to foreign investments. FMR and each sub-adviser are registered investment advisers under the Investment Advisers Act of 1940, as amended. See the Fidelity VIP Fund prospectus for more information regarding FMR and the investment sub-adviser.

ProFund Advisors LLC (“ProFund Advisors”), located at 7501 Wisconsin Avenue, Suite 1000, Bethesda, Maryland 20814, serves as the investment advisor and provides management services to all of the ProFunds and Access Trust portfolios. ProFund Advisors oversees the investment and reinvestment of the assets in each ProFunds and Access Trust portfolio in accordance with policies and guidelines established by the ProFunds’ and Access Trust’s Boards of Trustees. ProFund Advisors is a registered investment adviser under the Investment Advisers Act of 1940, as amended. See the ProFunds and Access Trust prospectuses for more information regarding ProFund Advisors.

Selection of Underlying Portfolios

The underlying portfolios offered through this product are selected by Western Reserve, and Western Reserve may consider various factors, including, but not limited to, asset class coverage, the strength of the adviser’s or sub-adviser’s reputation and tenure, brand recognition, performance, and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying portfolio or its service providers (e.g., the investment adviser or sub-advisers) or its affiliates will make payments to us or our affiliates in connection with certain administrative, marketing, and support services, or whether affiliates of the portfolio can provide marketing and distribution support for sales of the Policies. (For additional information on these arrangements, see “Revenue We Receive.”) We review the portfolios periodically and may remove a portfolio, or limit its availability to new premiums and/or transfers of cash value if we determine that a portfolio no longer satisfies one or more of the selection criteria, and/or if the portfolio has not attracted significant allocations from policyowners. We have included the Transamerica Series Trust portfolios at least in part because they are managed by Transamerica Asset, our directly owned subsidiary.

You are responsible for choosing the portfolios, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Since investment risk is borne by you, decisions regarding investment allocations should be carefully considered.

In making your investment selections, we encourage you to thoroughly investigate all of the information regarding the portfolios that are available to you, including each fund’s prospectus, statement of additional information and annual and semi/annual reports. Other sources such as newspapers and financial and other magazines provide more current information, including information about any regulatory actions or investigations relating to a fund or portfolio. After you select portfolios for your initial premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate.

You bear the risk of any decline in the cash value of your Policy resulting from the performance of the portfolios you have chosen.

We do not recommend or endorse any particular portfolio and we do not provide investment advice.

Addition, Deletion, or Substitution of Portfolios

We do not guarantee that each portfolio will always be available for investment through the Policy. We reserve the right, subject to compliance with applicable law, 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. New or substitute portfolios may have different fees and expenses and their availability may be limited to certain classes of purchasers. We will not add, delete or substitute any 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.

Your Right to Vote Portfolio Shares

Even though we are the legal owner of the portfolio shares held in the subaccounts, and have the right to vote on all matters submitted to shareholders of the portfolios, we will vote our shares only as policyowners instruct, as long as such action is required by law.

Before a vote of a portfolio’s shareholders occurs, you will receive voting materials from us. We will ask you to instruct us on how to vote and to return your voting instructions to us in a timely manner. You will have the right to instruct us on the number of portfolio shares that corresponds to the amount of cash value you have in that portfolio (as of a date set by the portfolio).

If we do not receive voting instructions on time from some policyowners, we will vote those shares in the same proportion as the timely voting instructions we receive. Therefore, because of proportional voting, a small number of policyowners may control the outcome of a vote. Should federal securities laws, regulations and interpretations change, we may elect to vote portfolio shares in our own right. If required by state insurance officials, or if permitted under federal regulation, we may disregard certain owner voting instructions. If we ever disregard voting instructions, we will send you a summary in the next annual report to policyowners advising you of the action and the reasons we took such action.

Charges and Deductions

This section describes the charges and deductions that we make under the Policy in consideration for: (1) the services and benefits we provide; (2) the costs and expenses we incur; and (3) the risks we assume. The fees and charges deducted under the Policy may result in a profit to us.


Services and benefits we provide under the Policy:		• the death benefit, cash and loan benefits;

		• investment options, including premium allocations;

		• administration of elective options; and

		• the distribution of reports to owners.

Costs and expenses we incur:		• costs associated with processing and underwriting applications;

		• expenses of issuing and administering the Policy (including any Policy riders);

		• overhead and other expenses for providing services and benefits and sales and marketing expenses, including compensation paid in connection with the sale of the Policies; and

		• other costs of doing business, such as collecting premiums, maintaining records, processing claims, effecting transactions, and paying federal, state and local premium and other taxes and fees.

Risks we assume:		• that the charges we may deduct may be insufficient to meet our actual claims because insureds die sooner than we estimate; and

		• that the costs of providing the services and benefits under the Policies may exceed the charges we are allowed to deduct.

Some or all the charges we deduct are used to pay aggregate Policy costs and expenses we incur in providing the services and benefits under the Policy and assuming the risks associated with the Policy.

Premium Expense Charge

Before we allocate the net premium payments you make, we will deduct the premium expense charge.


The premium expense charge is equal to:		• Currently 0% of each premium payments (4% for Policies issued to residents of Puerto Rico).

		• We reserve the right to increase the premium expense charge to 2.00% in the future. (6.0% for Policies issued to residents of Puerto Rico)



		• Some or all of the premium expense charges we deduct are used to pay the aggregate Policy costs and expenses we incur, including distribution costs and/or state premium taxes. Although state premium tax rates imposed on us vary from state to state, the premium expense charge we deduct will not vary with the state of residence of the policyowner, except for Puerto Rico, as noted above.

Monthly Deductions

We take monthly deductions from the cash value on the Policy date and on each Monthiversary prior to the insured’s attained age 111. We deduct these charges on a pro rata basis from all accounts (i.e., in the same proportion that the value in each subaccount and the fixed account bears to the total cash value on the Monthiversary). Because the monthly cost of insurance can vary monthly, the monthly deductions will also vary.


The monthly deductions are equal to:		• the monthly cost of insurance charge for the Policy; plus

		• any surcharge associated with flat or table substandard ratings; plus

		• charges for any optional insurance benefits you add to your Policy by rider.

		Cost of Insurance Charge:

		• We deduct this charge each month. It varies each month and is determined as follows:

		1. reduce the death benefit on the Monthiversary by the cash value on the Monthiversary after it has been allocated among the layers of specified amount in force in the following order: first, initial specified amount, then, each increase in specified amount starting with the oldest increase, then the next oldest, successively, until all cash value has been allocated (the resulting amounts are the net amount at risk for each layer of specified amount);

		2. multiply each layer of net amount at risk provided under 1. (above) by the appropriate monthly cost of insurance rate for that layer; and add the results together.

		Optional Insurance Riders:

		• The monthly deductions will include charges for any optional insurance benefits you add to your Policy by rider. There are currently no optional insurance riders available under the Policy.

To determine the monthly cost of insurance rates, we refer to a schedule of current cost of insurance rates using the insured’s issue age on the Policy date, issue age at the time of any requested increase in specified amount, gender, underwriting class, and the length of time from the Policy date or from the date of any requested increase in specified amount. The factors that affect the net amount at risk for each layer of specified amount include the investment performance of the portfolios in which you invest, payment of premiums, the fees and charges deducted under the Policy, the death benefit option you chose, as well as any Policy transactions (such as loans, partial withdrawals, transfers, and changes in specified amount). The actual monthly cost of insurance rates are primarily based on our expectations as to future mortality experience and expenses. Monthly cost of insurance rates may be changed by us from time to time. The actual rates we charge will never be greater than the Table of Guaranteed Maximum Life Insurance Rates stated in your

Policy. These guaranteed rates are based on the Commissioners 2001 Standard Ordinary Tobacco and Non-Tobacco Mortality Tables (“2001 C.S.O. Tables”) and the insured’s attained age, gender, and rate class. For non sub-standard rate classes, these guaranteed rates will never be greater than the rates in the relevant 2001 C.S.O. Tables.

If you increase the specified amount, different monthly cost of insurance rates may apply to that layer of specified amount, based on the insured’s issue age and rate class at the time of the increase, gender, and the length of time since the increase.

Decreases in specified amount may cause an increase in the rates for the cost of insurance charge. Decreases in specified amount will be applied on a last-in, first-out basis to the specified amount in force, and will first reduce the specified amount provided by the most recent increase in specified amount in force, then reduce the next most recent increases, successively, and then reduce the initial specified amount.

The underwriting class of the insured will affect the cost of insurance rates. We use a standard method of underwriting in determining underwriting classes, which are based on the health of the insured. We currently place insureds into preferred and standard classes. Some insureds are placed in extra risk factor underwriting classes, which reflect higher mortality risks and will result in higher costs of insurance rates. Examples of reasons an insured may be placed into an extra risk factor underwriting class include, but are not limited to, medical history, avocation, occupation, driving record, or planned future travel (where permitted by state law).

We may issue certain Policies on a simplified issue, guaranteed issue or expedited basis. Cost of insurance rates charged for any Policies issued on a simplified or expedited basis may cause healthy individuals to pay higher cost of insurance rates than they would pay under a substantially similar Policy that we offer using different underwriting criteria.

Recovery of Monthly Deductions

If the net surrender value on any Monthiversary is not sufficient to cover the monthly deductions due on such day, the cash value of the Policy may be negative. This may occur during the grace period. (See “Policy Lapse and Reinstatement” for more information regarding the grace period.) We will accrue any such negative values without any accumulation of interest and require repayment by the owner out of future premiums. If the insured dies before the owner pays the amount due, we will subtract from any death benefit proceeds the amount required to provide insurance to the date the insured died.

Mortality and Expense Risk Charge

We deduct a daily charge from your Policy’s cash value in each subaccount that, together with other fees and charges, compensates us for services rendered, the expenses expected to be incurred and the risks assumed. This charge is equal to:

•

your Policy’s cash value in each subaccount; multiplied by

•

the daily pro rata portion of the annual mortality and expense risk charge rate.

The current annual rate for the mortality and expense risk charge is equal to 0.50% of the average daily net assets of each subaccount. We guarantee this charge to be no more than 1.00% annually for all Policy years.

If this charge, combined with other Policy fees and charges, does not cover our total actual costs for services rendered and expenses incurred, we absorb the loss. Conversely, if these fees and charges more than cover actual costs, the excess is added to our surplus. We expect to profit from these charges.

Loan Interest Spread

We currently charge you an effective annual interest rate on a Policy loan of 2.75% (3.0% maximum guaranteed) on each Policy anniversary. We will also credit the amount in the loan reserve account with an effective annual interest rate of 2.0%. After offsetting the 2.0% interest we credit, the net cost of loans currently is 0.75% annually (1.0% maximum guaranteed). After the 10^th Policy year, we will apply preferred loan rates charged on an amount equal to the cash value minus total premiums paid (less any cash withdrawals) and minus any outstanding loan amount including accrued interest. The current preferred loan effective annual interest rate charged is 2.00% and is guaranteed not to exceed 2.25%. After the insured’s attained age of 111, all loans, new and existing, are considered preferred loans.

Taxes

We currently do not make any deductions for taxes from the separate account. We may do so in the future to the extent that such taxes are imposed by federal or state agencies.

Rider Charge

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Living Benefit Rider (an Accelerated Death Benefit). We do not assess an administrative charge for this rider; however, we do reduce the single sum benefit by a discount factor to compensate us for expected lost income resulting from the early payment of the death benefit. The discount factor is based on the current yield on 90-day Treasury bills or the Policy loan interest rate, whichever is greater. Complete details and a numerical example are included in this prospectus under “Supplemental Benefit (Rider).”

Portfolio Expenses

The portfolios deduct management fees and expenses from the amounts you have invested in the portfolios. These fees and expenses reduce the value of your portfolio shares. Some portfolios also deduct 12b-1 fees from portfolio assets.

Revenue We Receive

We (and our affiliates) may directly or indirectly receive payments from the portfolios, their advisers, sub-advisers, distributors or affiliates thereof, in connection with certain administrative, marketing and other services we (and our affiliates) provide and expenses we incur. We (and/or our affiliates) generally receive three types of payments:

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Rule 12b-1 Fees. Our affiliate, Transamerica Capital, Inc. (“TCI”), serves as principal underwriter for the Policies. TCI receives some or all of the 12b-1 fees from the funds. Any 12b-1 fees received by TCI that are attributable to our variable insurance products are then credited to us. These fees range from 0.10% to 0.25% of the average daily assets of the certain portfolios attributable to the Policies and to certain other variable insurance products that we and our affiliates issue.

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Administrative, Marketing and Support Service Fees (“Service Fees”). The investment adviser, sub-adviser, administrators, and/or distributors (or affiliates thereof) of the portfolios may make payments to us and/or our affiliates, including TCI. These payments may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fee deducted from portfolio assets. Policyowners, through their indirect investment in the portfolios, bear the costs of these advisory fees (see the prospectuses for the funds for more information). The amount of the payments we receive is based on a percentage of the assets of the particular fund portfolios attributable to the Policy and to certain other variable insurance products that our affiliates and we issue. These percentages differ and may be significant. Some advisers or sub-advisers (or other affiliates) pay us more than others.

The chart below provides the maximum combined percentages of 12b-1 fees and Service Fees that we anticipate will be paid to us on an annual basis:

Incoming Payments to Western Reserve and TCI


Fund	Maximum Fee % of Assets *
Transamerica Series Trust **	—
Fidelity Variable Insurance Products Fund	0.50	%***
ProFunds	0.25	%
Access One Trust	0.25	%

Payments are based on a percentage of the average assets of each fund portfolio owned by the subaccounts that are available under this Policy and under certain other variable insurance products offered by our affiliates and us. We may continue to receive 12b-1 fees and administrative fees on subaccounts that are closed to new investments, depending on the terms of the agreements supporting those payments and on the services we provide.

Because the Transamerica Series Trust is managed by an affiliate, there are additional benefits to us and our affiliates for amounts you allocate to the Transamerica Series Trust portfolios, in terms of our and our affiliates’ overall profitability. During 2007 we received $42.5 million from Transamerica Asset.

***	We receive this percentage once $100 million in fund shares are held by the subaccounts of Western Reserve and its affiliates.

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Other payments. We and our affiliates, including TCI, InterSecurities, Inc. (“ISI”), and World Group Securities (“WGS”), also directly or indirectly receive additional amounts or different percentages of assets under management from certain advisers and sub-advisers to the portfolios (or their affiliates) with regard to variable insurance products or mutual funds that are issued or managed by us and our affiliates. These payments may be derived, in whole or in part, from the profits the investment adviser or sub-adviser receives from the advisory fees deducted from portfolio assets. Policyowners, through their indirect investment in the portfolios, bear the costs of these advisory fees (see the prospectuses for the funds for more information). Certain advisers and sub-advisers of the underlying portfolios (or their affiliates) (1) may pay TCI amounts up to $75,000 per year to participate in a “preferred sponsor” program that provides such advisers and sub-advisers with access to TCI’s wholesalers at TCI’s national and regional sales conferences that are attended by TCI’s wholesalers; (2) may provide our affiliates, and/or selling firms with wholesaling services to assist us in the distribution of the Policy; and (3) 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 portfolios and to cooperate with their promotional efforts. The amounts may be significant and provide the adviser or sub-adviser (or other affiliates) with increased access to us and to our affiliates involved in the distribution of the Policy.

For the calendar year ended December 31, 2007, TCI, and its predecessor, AFSG Securities Corporation (“AFSG”), received revenue sharing payments ranging from $2,500 to $49,350 (for a total of $381,768) from the following fund managers and/or sub-advisers to participate in TCI’s events: T. Rowe Price Associates, Inc.; American Century Investment Management; MFS Investment Management; Transamerica Investment Management, LLC; Pacific Investment Management Company LLC; Jennison Associates; Lehman Brothers/Neuberger Berman; Legg Mason; Alliance Bernstein; Federated Funds; Fidelity Funds; ING Clarion; Merrill Lynch; AMVESCAP; BlackRock; Columbia Management LLC; JPMorgan Investment Management, Inc.; Oppenheimer Funds; and SunTrust.

Please note some of the aforementioned managers and/or sub-advisers may not be associated with underlying fund portfolios currently available in this product.

Proceeds from certain of these payments by the funds, the advisers, the sub-advisers and/or their affiliates may be profit to us, and may be used for any corporate purpose, including payment of expenses (i) that we and our affiliates incur in promoting, issuing, marketing, distributing and administering the Policies; and (ii) that we incur in our role as intermediary, in promoting, marketing and administering the fund portfolios.

For further details about the compensation payments we make in connection with the sale of the Policies, see “Sale of the Policies” in this prospectus.

The Policy

Depending on the state of issue, your Policy may be an individual Policy or a certificate issued under a group Policy. The Policy is subject to the insurance laws and regulations of each state or jurisdiction in which it is available for distribution. There may be differences between the Policy issued and the general Policy description contained in this prospectus because of requirements of the state where your Policy is issued. Some of the state specific differences are included in the prospectus, but this prospectus does not include references to all state specific differences. All state specific Policy features will be described in your Policy.

Ownership Rights

The Policy belongs to the owner named in the application. The owner may exercise all of the rights and options described in the Policy. The owner is the insured unless the application specifies a different person as the insured. If the owner dies before the insured and no contingent owner is named, then ownership of the Policy will pass to the owner’s estate. The principal rights an owner may exercise are:

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to designate or change beneficiaries before the death of the insured;

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to receive amounts payable before the death of the insured;

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to assign the Policy (if you assign the Policy, your rights and the rights of anyone who is to receive payment under the Policy are subject to the terms of that assignment);

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to change the owner of the Policy; and

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to change the specified amount or death benefit option type of the Policy.

No designation or change in designation of an owner will take effect unless we receive written request thereof. When received, the request will take effect as of the date we receive it, subject to payment or other action taken by us before it was received.

Modifying the Policy

Any modifications or waiver of any rights or requirements under the Policy must be in writing and signed by our president or secretary. No registered representative may bind us by making any promise not contained in the Policy.

Upon notice to you, we may amend the Policy:

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to make the Policy or the separate account comply with any law or regulation issued by a governmental agency to which we are subject; or

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to assure qualification of the Policy as a life insurance contract under the Internal Revenue Code or to meet applicable requirements of federal or state laws relating to variable life policies; or

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to reflect a change in the operation of the separate account; or

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to provide additional subaccounts and/or fixed account options.

We may also decide to purchase for the separate account securities from other portfolios. We reserve the right to transfer separate account assets to another separate account that we determine to be associated with the class of contracts to which the Policy belongs.

Purchasing a Policy

To purchase a Policy, you must submit a completed application and an initial premium to us through any licensed life insurance agent who is also a registered representative of a broker-dealer having a selling agreement with TCI, the principal underwriter for the Policy, and us. We may require you to pay an initial premium of at least $30,000.

You select the specified amount of insurance coverage for your Policy within the following limits. Our current minimum specified amount for an insured issue age to 55 is $1,000,000; for an insured issue ages 56 - 85 is $500,000.

We will generally only issue a Policy to you if you provide sufficient evidence that the insured meets our insurability standards. Your application is subject to our underwriting rules, and we may reject any application for any reason permitted by law. We will not issue a Policy to you if the insured is under the age of 25 or over the age 85. The insured must be insurable and acceptable to us under our underwriting rules on the later of:

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the date of your application; or

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the date the insured completes all of the medical tests and examinations that we require.

Tax-Free “Section 1035” Exchanges

You can generally exchange one life insurance policy for another covering the same insured in a “tax-free exchange” under Section 1035 of the Internal Revenue Code. Before making an exchange, you should compare both life insurance policies carefully. Remember that if you exchange another life insurance policy for the one described in this prospectus, you might have to pay a surrender charge on your old policy, other charges may be higher (or lower) and the benefits may be different. If the exchange does not qualify for Section 1035 treatment, or if your current policy is subject to a policy loan, you may also have to pay federal income tax on the exchange. You should not exchange another life insurance policy for this one unless you determine, after knowing all the facts, that the exchange is in your best interest and not just better for the person selling you the Policy (that person will generally earn a commission if you buy the Policy through an exchange or otherwise).

When Insurance Coverage Takes Effect

Insurance coverage under the Policy will take effect only if all of the following conditions have been met: (1) the first full premium must be received by the Company; (2) during the lifetime of every proposed insured, the proposed owner must have personally received and accepted the Policy which was applied for and all answers on the application must be true and correct on the date such Policy is received and accepted; and (3) on the date of the later of either (1) or (2) above, all of the statements and answers given in the application must be true and complete, and there must have been no change in the insurability of any proposed insured.

Conditional Insurance Coverage. If you pay the full initial premium and have met all of the requirements listed in the conditional receipt attached to the application, and we deliver the conditional receipt to you, the insured may have conditional insurance coverage under the terms of the conditional receipt. The conditional insurance coverage may vary by state and/or underwriting standards. Because we do not accept initial premiums in advance for Policies with a specified amount in excess of $1,000,000, we do not offer conditional insurance coverage for Policies issued with a specified amount in excess of $1,000,000. Conditional insurance coverage is void if the check or draft you gave us to pay the initial premium is not honored when we first present it for payment.


The aggregate amount of conditional insurance coverage, if any, is the lesser of:		• the amounts applied for under all conditional receipts issued by us; or

		• $500,000 of life insurance.

Subject to the conditions and limitations of the conditional receipt, conditional insurance under the terms of the Policy applied for may become effective as of the later of:		• the date of application; or • the date of the last medical examination, test, and other screenings required by us, if any (the “Effective Date”). Such conditional insurance will take effect as of the Effective Date, as long as all of the following requirements are met:

		1. The person proposed to be insured is found to have been insurable as of the Effective Date, exactly as applied for in accordance with our underwriting rules and standards, without any modifications as to plan, amount, or premium rate;

		2. As of the Effective Date, all statements and answers given in the application must be true;

		3. The payment made with the application must not be less than the full initial premium for the mode of payment chosen in the application and must be received at our mailing address within the lifetime of the proposed insured;

		4. All medical examinations, tests, and other screenings required of the proposed insured by us are completed and the results received at our mailing address within 60 days of the date the application was signed; and

		5. All parts of the application, any supplemental application, questionnaires, addendum and/or amendment to the application are signed and received at our mailing address.

Any conditional life insurance coverage terminates on the earliest of:		a. 60 days from the date the application was signed;

		b. the date we either mail notice to the applicant of the rejection of the application and/or mail a refund of any amounts paid with the application;

		c. when the insurance applied for goes into effect under the terms of the Policy applied for; or

		d. the date we offer to provide insurance on terms that differ from the insurance for which you have applied.

Special limitations of the conditional receipt:		• The conditional receipt is not valid unless:

		• all blanks in the conditional receipt are completed; and

		• the receipt is signed by a registered representative or authorized Company representative.



Other limitations:		• There is no conditional receipt coverage for riders or any additional benefits, if any, for which you may have applied.

		• If one or more of the receipt’s conditions have not been met exactly, or if a proposed insured dies by suicide, we will not be liable except to return any payment made with the application.

		• If we do not approve and accept the application within 60 days of the date you signed the application, the application will be deemed to be rejected by us and there will be no conditional insurance coverage. In that case, Western Reserve’s liability will be limited to returning any payment(s) you have made upon return of this receipt to us.

Full Insurance Coverage and Allocation of Initial Premium. Once we determine that the insured meets our underwriting requirements and you have paid the initial premium, full insurance coverage will begin and we will begin to take the monthly deductions from your net premium. This date is the Policy date. On the Policy date (or on the record date if your Policy is backdated), we will allocate your initial net premium, minus monthly deductions, to the fixed account and the subaccounts you selected on your application, provided you live in a state that does not require a refund of full premium during the free-look period. If your state requires us to return the full premium in the event you exercise your free-look right, we will place your net premium in the reallocation account until the reallocation date. While held in the reallocation account, premium(s) will be credited with interest at the current fixed account rate.

On any day we credit net premiums or transfer cash value to a subaccount, we will convert the dollar amount of the net premium (or transfer) into subaccount units at the unit value for that subaccount, determined at the end of the day on which we receive the premium or transaction request. (Payments by check are priced when received at our mailing address or at the address on your billing coupon. Transfer requests, payments made by wire transfer, and electronic credit and debit transactions – e.g., payments through direct deposit, debit transfers, and forms of e-commerce payments – are priced when received at our administrative office). We will credit amounts to the subaccounts only on a valuation date, that is, on a date the New York Stock Exchange (“NYSE”) is open for trading.

Backdating a Policy

If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. However, in no event will we backdate a Policy earlier than the earliest date allowed by state law or by our underwriting rules. Your request must be in writing and, if we approve the request, will amend your application. Your premiums, however, will be credited on the date the Policy is issued, not the backdated Policy date.

Cost of insurance charges are based in part on the age of the insured on the Policy date or on the date of a requested increase in specified amount. Generally, cost of insurance charges are lower at a younger age. We will deduct the monthly deductions, that is, the cost of insurance charges, for the period that the Policy is backdated. This means that while the monthly deductions may be lower than what would have been charged had we not backdated the Policy, you will be paying for insurance during a period when the Policy was not in force.

Policy Changes After Age 111

If the Policy is still in force on the Policy anniversary on or following the insured’s 111 ^th birthday, the Policy will continue, with the following changes, unless state law otherwise requires:

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We will no longer accept any further premium payments;

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We will no longer deduct the monthly deductions;

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We will continue to deduct the mortality and expense risk charge, if any;

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Interest will continue to accrue on any Policy loans, as before, and all loans, new and existing, are considered preferred loans;

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We will continue to accept Policy loan repayments and loan interest payments; and

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We will continue to permit Policy loans and withdrawals to be made.

Policy Features

Premiums

Allocating Premiums

You must instruct us on how to allocate your net premium among the subaccounts and the fixed account. The fixed account may not be available in all states to direct or transfer money into. You must follow these guidelines:

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allocation percentages must be in whole numbers;

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if you select dollar cost averaging, we may require you to have a minimum of $5,000 in each subaccount from which we will make transfers and you may be required to transfer at least a total of $100 monthly;

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if you select asset rebalancing, the cash value of your Policy, if an existing Policy, or your minimum initial premium, if a new Policy, must be at least $5,000; and

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unless otherwise required by state law, we may restrict your allocations to the fixed account if the fixed account value, excluding amounts in the loan reserve, following the allocation would exceed $250,000.

Currently, you may change the allocation instructions for additional premium payments without charge at any time by writing us at our mailing address or calling us at our administrative office at 1-800-851-9777, Monday - Friday, between the hours of 8:30 a.m. - 7:00 p.m. Eastern time. The change will be effective as of the valuation date on which we receive the change at our mailing address or our administrative office. Upon instructions from you, the registered representative of record for your Policy may also change your allocation instructions for you. The minimum amount you can allocate to a particular subaccount is 1.0% of a net premium payment.

Whenever you direct money into a subaccount, we will credit your Policy with the number of units for that subaccount that can be bought for the dollar payment. Premium payments received at our mailing address, or at the address on your billing coupon (for payments made by check) or at our administrative office (for payments made by wire transfer and through electronic credit and debit transactions), before the NYSE closes are priced using the unit value determined at the closing of the regular business session of the NYSE (usually at 4:00 p.m. Eastern time). If we receive a premium payment after the NYSE closes, we will process the order using the subaccount unit value determined at the close of the next regular session of the NYSE. We will credit amounts to the subaccounts only on a valuation date, that is, on a date the NYSE is open for trading. Your cash value will vary with the investment experience of the subaccounts in which you invest. You bear the investment risk for amounts you allocate to the subaccounts.

You should periodically review how your cash value is allocated among the subaccounts and the fixed account because market conditions and your overall financial objectives may change.

Reallocation Account. If your state requires us to return your initial premium in the event you exercise your free-look right, we will allocate the initial net premium on the Policy date (or the record date if your Policy is backdated) to the reallocation account (or as otherwise mandated by state law) as shown on your Policy schedule page. While held in the reallocation account, net premium(s) will be credited with interest at the current fixed account rate and reduced by any monthly deductions due. The net premiums will remain in the reallocation account until the reallocation date. In such states, the reallocation date is the later of the Policy date or the record date, plus fifteen days. Please contact your registered representative for details concerning the free-look period for your state.

On the first valuation date on or after the reallocation date, we will reallocate all cash value from the reallocation account to the fixed account and the subaccounts you selected on the application. If you requested dollar cost averaging, on the reallocation date we will reallocate the cash value either to the fixed account, the WRL Transamerica Money Market VP subaccount or the WRL Transamerica JPMorgan Core Bond VP subaccount (depending on which subaccount you selected on your application).

For states that do not require a full refund of the initial premium, the reallocation date is the same as the Policy date. On the Policy date, we will allocate your initial net premium, minus monthly deductions, to the fixed account and the subaccounts in accordance with the instructions you gave us on your application.

Premium Flexibility

You generally have flexibility to determine the frequency and the amount of the premiums you pay. Unlike conventional insurance policies, you do not have to pay your premiums according to a rigid and inflexible premium schedule. Before we issue the Policy to you, we may require you to pay an initial premium of at least $30,000. Thereafter (subject to the limitations described below), you may make unscheduled premium payments at any time and in any amount over $50. Under some circumstances, you may be required to pay extra premiums to prevent a lapse.

Planned Periodic Payments

You will determine a planned periodic payment schedule, which allows you to pay level premiums at fixed intervals over a specified period of time. You are not required to pay premiums according to this schedule. You may change the amount, frequency, and the time period over which you make your planned periodic payments. Please be sure to notify us or your agent/registered representative of any address changes so that we may be able to keep your current address on record.

Even if you make your planned periodic payments on schedule, your Policy still may lapse. The duration of your Policy depends on the Policy’s net surrender value. If the net surrender value is not high enough to pay the monthly deductions when due, then your Policy will lapse (unless you make the payment we specify during the 61-day grace period).

Premium Limitations

We may require premium payments to be at least $50 ($1,000 if by wire). We may return premiums less than $50. We will not allow you to make any premium payments that would cause the total amount of the premiums you pay to exceed the current maximum premium limitation, if applicable, by which the Policy qualifies as life insurance under federal tax laws. Your maximum premium limitation can be obtained upon request to us at our mailing address or administrative office. If you make a payment that would cause your total premiums to be greater than the maximum premium limitations, we will return the excess portion of the premium payment, with interest, within 60 days after the end of that Policy year. We will not permit you to make additional premium payments until they are allowed by the maximum premium limitations. In addition, we reserve the right to refund a premium or require evidence of insurability if the premium would increase the death benefit by more than the amount of the premium. The guideline premium test has additional premium limitations. We will not accept a payment that will cause the Policy to become a modified endowment contract without your consent. (See “Death Benefit” for more information regarding the guideline premium test.)

Making Premium Payments

We will consider any payments you make to be premium payments, unless you clearly identify them as loan repayments. We will deduct certain charges from your premium payments. We will accept premium payments by wire transfer.

If you wish to make payments by wire transfer, you should contact our administrative office at 1-800-851-9777 for instructions on wiring federal funds to us.

Tax-Free Exchanges (“1035 Exchanges”). We will accept part or all of your initial premium from one or more contracts insuring the same insured that qualify for tax-free exchanges under Section 1035 of the Internal Revenue Code. If you contemplate such an exchange, you should consult a competent tax advisor to learn the potential tax effects of such a transaction.

Subject to our underwriting requirements, we will permit you to make one additional cash payment within three business days of our receipt of the proceeds from the 1035 Exchange before we finalize your Policy’s specified amount.

Transfers

General

You or your registered representative of record may make transfers among the subaccounts or from the subaccounts to the fixed account. You will be bound by any transfers made by your registered representative. We determine the amount you have available for transfers at the end of the valuation period when we receive your transfer request. We may, at any time, discontinue transfer privileges, modify our procedures, or limit the number of transfers we permit. The following features apply to transfers under the Policy:

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Each Policy year, the Policy allows a cumulative transfer out of the fixed account of the greater of up to 25% of the amount in the fixed account, or the amount transferred out the previous Policy year. Currently, we do not, but reserve the right to, limit the number of transfers out of the fixed account to one per Policy year. If we modify or stop this current practice, we will notify you at the time of your transfer.

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Unless otherwise required by state law, we may restrict transfers to the fixed account, if the fixed account value, excluding amounts in the loan reserve, following the transfer would exceed $250,000. This restriction does not apply to any transfer to the fixed account necessary in the exercise of conversion rights.

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You currently may request transfers in writing (in a form we accept) to our mailing address; by fax or by telephone to our administrative office; or electronically through our website (www.westernreserve.com).

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There is no minimum amount that must be transferred.

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There is no minimum amount that must remain in a subaccount after a transfer.

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We consider all transfers made in any one day to be a single transfer.

We will process any transfer order that is received in writing at our mailing address or by fax or by telephone at our administrative office before the NYSE closes (usually 4:00 p.m. Eastern time) using the subaccount unit value determined at the end of that session of the NYSE. If we receive the transfer order after the NYSE closes, we will process the order using the subaccount unit value determined at the close of the next regular business session of the NYSE.

Disruptive Trading and Market Timing

The market timing policy and the related procedures (discussed below) do not apply to the ProFunds or Access Trust subaccounts because the corresponding portfolios are specifically designed to accommodate frequent transfer activity. If you invest in the ProFunds and/or Access Trust subaccounts, you should be aware that you may bear the costs and increased risks of frequent transfers discussed below.

Statement of Policy. This variable insurance Policy was not designed for the use of market timers or frequent or disruptive traders. Such transfers may be harmful to the underlying fund portfolios and increase transaction costs.

Market timing and disruptive trading among the subaccounts or between the subaccounts and the fixed account can cause risks with adverse effects for other policyowners (and beneficiaries and underlying fund portfolios). These risks and harmful effects include:

(1) dilution of the interests of long-term investors in a subaccount if purchases or transfers into or out of an underlying fund portfolio are made at prices that do not reflect an accurate value for the underlying fund portfolio’s investments (some market timers attempt to do this through methods known as “time-zone arbitrage” and “liquidity arbitrage”);

(2) an adverse effect on portfolio management, such as:

(a)

impeding a portfolio manager’s ability to sustain an investment objective;

(b)

causing the underlying fund portfolio to maintain a higher level of cash than would otherwise be the case; or

(c)

causing an underlying fund portfolio to liquidate investments prematurely (or otherwise at an inopportune time) in order to pay withdrawals or transfers out of the underlying fund portfolio; and

(3) increased brokerage and administrative expenses.

These costs are borne by all policyowners 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 underlying fund portfolios) and we do not make special arrangements or grant exceptions to accommodate market timing or other potentially disruptive or harmful trading. As discussed herein, we cannot detect or deter all market timing or potentially disruptive trading. Do not invest with us if you intend to conduct market timing or potentially disruptive trading.

Detection. We employ various means in an attempt to detect and deter market timing and disruptive trading. However, despite our monitoring we may not be able to detect nor halt all harmful trading. In addition, because other

insurance companies (and retirement plans) with different policies and procedures may invest in the underlying fund portfolios, we cannot guarantee that all harmful trading will be detected or that an underlying fund portfolio will not suffer from market timing and disruptive trading among subaccounts of variable products issued by these other insurance companies or retirement plans.

Deterrence. If we determine you are engaged in market timing or disruptive trading, we may take one or more actions in an attempt to halt such trading. Your ability to make transfers is subject to modification or restriction if we determine, in our sole opinion, that your exercise of the transfer privilege may disadvantage or potentially harm the rights or interests of other policyowners (or others having an interest in the variable insurance products). As described below, restrictions may take various forms, but under our current policies and procedures will include loss of expedited transfer privileges. We consider transfers by telephone, fax, overnight mail, or the Internet to be “expedited” transfers. This means that we would accept only written transfer requests with an original signature transmitted to us only by standard United States Postal Service First Class 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 payment or transfer, or series of transfers, would have a negative impact on an underlying fund portfolio’s operations, or (2) if an underlying fund portfolio would reject or has rejected our purchase order or has instructed us not to allow that purchase or transfer, or (3) because of a history of market timing or disruptive trading. We may impose other restrictions on transfers, or even prohibit transfers for any owner who, in our view, has abused, or appears likely to abuse, the transfer privilege on a case-by-case basis. We may, at any time and without prior notice, discontinue transfer privileges, modify our procedures, impose holding period requirements or limit the number, size, frequency, manner, or timing of transfers we permit. 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 policyowners may be treated differently than others in that some transfers may be reversed and others allowed. For all of these purposes, we may aggregate two or more variable insurance products that we believe are connected. Please note: If you engage a third party investment advisor for asset allocation services, then you may be subject to these transfer restrictions because of the actions of your investment advisor in providing those services.

In addition to our internal policies and procedures, we will administer your variable insurance product to comply with any applicable state, federal, and other regulatory requirements concerning transfers. We reserve the right to implement, administer, and charge you for any fee or restriction, including redemption fees, imposed by any underlying fund portfolio. To the extent permitted by law, we also reserve the right to defer the transfer privilege at any time that we are unable to purchase or redeem shares of any of the underlying fund portfolios.

Under our current policies and procedures, we do not:

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impose redemption fees on transfers;

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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 may be more or less successful than ours in deterring market timing or other disruptive trading and in preventing or limiting harm from such trading.

In the absence of a defensive transfer restriction (e.g., expressly limiting the number of trades within a given period or their size), it is likely that some level of market timing and disruptive trading will occur before it is detected and steps taken to deter it (although some level of market timing and disruptive trading can occur with a defensive transfer restriction). As noted above, we do not impose a defensive transfer restriction and, therefore, it is likely that, some level of market timing and disruptive trading will occur before we are able to detect it and take steps in an attempt to deter it.

Please note that the limits and restrictions described herein are subject to our ability to monitor transfer activity. Our ability to detect market timing or other disruptive trading may be limited by operational and technological systems, as well as by our ability to predict strategies employed by policyowners (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 deter or detect market timing or disruptive trading by such policyowners 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 which 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 market timing or other harmful trading that may adversely affect other policyowners, 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 a relatively short period of time. The prospectuses for the underlying fund portfolios describe any such policies and procedures. The frequent trading policies and procedures of an underlying fund portfolio may be different, and more or less restrictive, than the frequent trading policies and procedures of other underlying fund portfolios and the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading. Policyowners should be aware that we may not have the contractual ability or the operational capacity to monitor policyowners’ transfer requests and apply the frequent trading policies and procedures of the respective underlying funds that would be affected by the transfers. Accordingly, policyowners and other persons who have material rights under our variable insurance products should assume that any protection they may have against potential harm from market timing and disruptive trading is the protection, if any, provided by the policies and procedures we have adopted for our variable insurance products to discourage market timing and disruptive trading in certain subaccounts.

You should be aware that, as required by SEC regulation, we have entered into a written agreement with each underlying fund or principal underwriter that obligates us to provide the fund, upon written request, with information about you and your trading activities in the fund’s portfolios. In addition, we are obligated to execute instructions from the funds that may require us to restrict or prohibit your investment in a specific portfolio if the fund identifies you as violating the frequent trading policies that the fund has established for that portfolio.

If we receive a premium payment from you that you allocate into a fund that has directed us to restrict or prohibit your trades, then we will request new allocation instructions from you and redirect your premium payment to the WRL Transamerica Money Market VP subaccount in the interim. If we receive from you a transfer request into a fund that has directed us to restrict or prohibit your trades, then we will not effect the transfer.

Omnibus Order. Policyowners and other persons with material rights under the variable insurance products also should be aware that the purchase and redemption orders received by the underlying fund portfolios generally are “omnibus” orders from intermediaries such as retirement plans and separate accounts funding variable insurance products. The omnibus orders reflect the aggregation and netting of multiple orders from individual retirement plan participants and individual owners of variable insurance products. The omnibus nature of these orders may limit the underlying fund portfolios’ ability to apply their respective frequent trading policies and procedures. We cannot guarantee that the underlying fund portfolios will not be harmed by transfer activity relating to the retirement plans or other insurance companies that may invest in the underlying fund portfolios. These other insurance companies are responsible for their own policies and procedures regarding frequent transfer activity. If their policies and procedures fail to successfully discourage harmful transfer activity, it will affect other owners of underlying fund portfolio shares, as well as the owners of all of the variable annuity or life insurance policies, including ours, whose variable investment 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.

ProFunds and Access Trust Subaccounts. Because the above restrictions do not apply to the ProFunds or Access Trust subaccounts, they may have a greater risk than others of suffering from the harmful effects of market timing and disruptive trading, as discussed above (i.e., dilution, an adverse effect on portfolio management and increased expenses).

Telephone Privileges. Telephone transfer privileges will automatically apply to your Policy unless you provide other instructions. The telephone transfer privileges allow you to give authority to the registered representative of record for your Policy to make telephone transfers and to change the allocation of future payments among the subaccounts and the fixed account on your behalf according to your instructions. To make a telephone transfer, you may call us at our administrative office at 1-800-851-9777, Monday - Friday, between the hours of 8:30 a.m. - 7:00 p.m. Eastern time, or fax your transfer instructions to 1-727-1648 (for all other requests made by facsimile, please use 1-727-299-1620).

Please note the following regarding telephone, Internet or fax transfers:

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We will employ reasonable procedures to confirm that instructions are genuine.

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If we follow these procedures, we are not liable for any loss, damage, cost or expense from complying with instructions we reasonably believe to be authentic. You bear the risk of any such loss.

•

If we do not employ reasonable confirmation procedures, we may be liable for losses due to unauthorized or fraudulent instructions.

•

Such procedures may include requiring forms of personal identification prior to acting upon telephone instructions, providing written confirmation of transactions to owners, and/or tape recording telephone instructions received from owners.

•

We may also require that you send us the telephone, Internet or fax transfer order in writing.

•

If you do not want the ability to make telephone or Internet transfers, you should notify us in writing at our mailing address.

•

We will not be responsible for same-day processing of transfers if faxed to a number other than 1-727-299-1648 or 1-727-299-1620.

•

We will not be responsible for any transmittal problems when you fax us your order unless you report it to us within five business days and send us proof of your fax transmittal. We may discontinue this option at any time.

We cannot guarantee that telephone and faxed transactions will always be available. For example, our offices may be closed during severe weather emergencies or there may be interruptions in telephone or fax service beyond our control. If the volume of calls is unusually high, we might not have someone immediately available to receive your order at our administrative office. Although we have taken precautions to help our systems handle heavy use, we cannot promise complete reliability under all circumstances.

Similarly, online transactions processed via the Internet may not always be possible. Telephone and computer systems, whether yours, your Internet service provider’s, your registered representative’s or Western Reserve’s, can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. If you are experiencing problems, you should make your request or inquiry in writing. You should protect your personal identification number (PIN) because self-service options will be available to your registered representative of record and to anyone who provides your PIN. We will not be able to verify that the person using your PIN and providing instructions online is you or one authorized by you.

Fixed Account Transfers

Currently, we do not, but reserve the right to, limit the number of transfers out of the fixed account to one per Policy year. If we change this, we will notify you. This current restriction does not apply if you have selected dollar cost averaging.

We reserve the right to limit the maximum amount you may transfer from the fixed account to the greater of:

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25% of the amount in the fixed account; or

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the amount you transferred from the fixed account in the immediately preceding Policy year.

We will make the transfer at the end of the valuation date on which we receive the request. We reserve the right to require that you make the transfer request in writing and that we receive the written transfer request no later than 30 days after a Policy anniversary. Transfers from the fixed account are not available through the Internet. Unless otherwise required by state law, we may restrict transfers to the fixed account, if the fixed account value, excluding amounts in the loan reserve, following the transfer would exceed $250,000. This restriction does not apply to any transfer to the fixed account necessary in the exercise of conversion rights.

Except when used to pay premiums, we may also defer payment of any amounts from the fixed account for no longer than six months after we receive such written notice.

Conversion Rights

If, within 24 months of your Policy date, you transfer all of your subaccount values to the fixed account, then we will not charge you a transfer fee, even if applicable. You must make your request in writing to our mailing address.

Dollar Cost Averaging

Dollar cost averaging is an investment strategy designed to reduce the average purchase price per unit. The strategy spreads the allocation of your premium into the subaccounts over a period of time. This potentially allows you to reduce the risk of investing most of your premium into the subaccounts at a time when prices are high. The success of this strategy is not assured and depends on market trends. You should consider carefully your financial ability to continue the program over a long enough period of time to purchase units when their value is low as well as when it is high. We make no guarantee that dollar cost averaging will result in a profit or protect you against loss.

Under dollar cost averaging, we automatically transfer a set dollar amount from the WRL Transamerica Money Market VP subaccount, the WRL Transamerica JPMorgan Core Bond VP subaccount or the fixed account to a subaccount that you choose. We will make the transfers monthly as of the end of the valuation date after the first Monthiversary after the reallocation date. We will make the first transfer in the month after we receive your request at our mailing address, provided that we receive the form by the 25^th day of the month.


To start dollar cost averaging:		• You must submit to us at our mailing address a completed form signed by the owner requesting dollar cost averaging;

		• You may be required to have at least $5,000 in each account from which we will make transfers;

		• Your total transfers each month under dollar cost averaging may be limited to a minimum of $100; and

		• Each month, you may not transfer more than one-tenth of the amount that was in your fixed account at the beginning of dollar cost averaging.

You may request dollar cost averaging at any time. There is no charge for dollar cost averaging.


Dollar cost averaging will terminate if:		• We receive at our mailing address a request to discontinue participation from you, your registered representative or your agent of record;

		• The value in the accounts from which we make the transfers is depleted;

		• You elect to participate in the asset rebalancing program; or

		• You elect to participate in any asset allocation services provided by a third party.

If you terminate your participation in the dollar cost averaging program, we will stop making dollar cost averaging transfers without a new completed dollar cost averaging request form, signed by the owner. We may modify, suspend, or discontinue dollar cost averaging at any time.

Asset Rebalancing Program

We also offer an asset rebalancing program under which you may transfer amounts periodically to maintain a particular percentage allocation among the subaccounts you have selected. Asset rebalancing is not available with the fixed account. Cash value allocated to each subaccount will grow or decline in value at different rates. The asset rebalancing program automatically reallocates the cash value in the subaccounts at the end of each period to match your Policy’s currently effective premium allocation schedule. Cash value in the fixed account and the dollar cost averaging program is not available for this program. This program does not guarantee gains. A subaccount may still have losses.

You may elect asset rebalancing to occur on a monthly, quarterly, semi-annual or annual basis. Once we receive the asset rebalancing request form at our mailing address, we will change your premium allocation instructions to match your asset rebalancing instructions, and we will implement the asset rebalancing program on the date you indicated. We will credit the amounts transferred at the unit value next determined on the dates the transfers are made. If a day on which rebalancing would ordinarily occur falls on a day on which the NYSE is closed, rebalancing will occur on the next day that the NYSE is open.


To start asset rebalancing:		• You must submit to us at our mailing address, a completed asset rebalancing request form signed by the owner; and



		• You may be required to have a minimum cash value of $5,000 or make a $5,000 initial premium payment.

There is no charge for the asset rebalancing program.


Asset rebalancing will cease if:		• you elect to participate in the dollar cost averaging program;

		• we receive at our mailing address a request to discontinue participation from you, your registered representative or your agent of record;

		• you make any transfer to or from any subaccount other than under a scheduled rebalancing; or

		• you elect to participate in any asset allocation services provided by a third party.

You may start and stop participation in the asset rebalancing program at any time, but we restrict your right to re-enter the program to once each Policy year. If you wish to resume the asset rebalancing program, you must complete a new request form. We may modify, suspend, or discontinue the asset rebalancing program at any time.

Third Party Asset Allocation Services

We do not offer any asset allocation programs or any investment models for use with your life insurance policy. You may authorize and engage your own investment advisor to manage your account. These investment advisors may be firms or persons who also are appointed by us, or whose affiliated broker-dealers are appointed by us, as authorized sellers of the Policies. Even if this is the case, however, please note that the investment advisor you engage to provide advice and/or make transfers for you is not acting on our behalf, but rather is acting on your behalf. We do not offer advice about how to allocate your cash value under any circumstance. We are not responsible for any recommendations such investment advisors make, any investment models or asset allocation programs they choose to follow, or any specific transfers they make on your behalf.

Any fee that is charged by your investment advisor is in addition to the fees and expenses that apply under your Policy. We are not a party to the agreement you have with your investment advisor. You will, however, receive confirmations of transactions that affect your Policy. (Note: If you make withdrawals of cash value to pay advisory fees, then taxes may apply to any such withdrawals and penalties may be assessed on withdrawals made before you attain age 59 ¹/2.)

If your investment advisor has also acted as your insurance agent with respect to the sale of your Policy, he or she may be receiving compensation for services provided both as an insurance agent and investment advisor. Alternatively, the investment advisor may compensate the insurance agent from whom you purchased your Policy for the referral that led you to enter into your investment advisory relationship with the investment advisor. If you are interested in the details about the compensation that your investment advisor and/or your insurance agent receive in connection with your Policy, you should ask them for more details.

We, or an affiliate of ours, will process the financial transactions placed by your registered insurance agent or investment advisor. We reserve the right to discontinue doing so at any time and for any reason. We may require insurance agents or investment advisors, who are authorized by multiple policyowners to make financial transactions, to enter into an administrative agreement with Western Reserve as a condition of our accepting transactions on your behalf. The administrative agreement may impose limitations on the insurance agent’s or investment advisor’s ability to request financial transactions on your behalf. These limitations, which are discussed in the section above entitled “Transfers—Disruptive Trading and Market Timing,” are intended (i) to minimize the detrimental impact of an investment professional who is in a position to transfer large amounts of money for multiple clients in a particular portfolio or type of portfolio or (ii) to comply with specific restrictions or limitations imposed by a portfolio(s) of Western Reserve.

Limitations that we may impose on your insurance agent or investment advisor under the terms of the administrative agreement do not apply to financial transactions requested by an owner on the owner’s own behalf, except as otherwise described in this prospectus.

Policy Values

Cash Value

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Varies from day to day, depending on the investment experience of the subaccounts you choose, the interest credited to the fixed account, the charges deducted and any other Policy transactions (such as additional premium payments, transfers, withdrawals and Policy loans);

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serves as the starting point for calculating values under a Policy;

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equals the sum of all values in each subaccount and the fixed account, including any amounts held in the loan reserve account (part of the fixed account) to secure any outstanding Policy loan;

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is determined on the Policy date and on each valuation date; and

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has no guaranteed minimum amount and may be more or less than premiums paid.

Net Surrender Value

The net surrender value is the amount we pay when you surrender your Policy while it is in force. We determine the net surrender value at the end of the valuation period when we receive your written surrender request at our mailing address.


Net surrender value on any valuation date equals:		• the cash value as of such date; minus

		• any outstanding Policy loan amount; minus

		• any accrued Policy loan interest.

Subaccount Value

Each subaccount’s value is the cash value in that subaccount. At the end of any valuation period, the subaccount’s value is equal to the number of units that the Policy has in the subaccount, multiplied by the unit value of that subaccount.


The number of units in any subaccount on any valuation date equals:		• the initial units purchased at unit value on the Policy date, or reallocation date, if different; plus

		• units purchased with additional net premium(s); plus

		• units purchased through transfers from another subaccount or the fixed account; minus

		• units redeemed to pay for monthly deductions; minus

		• units redeemed to pay for cash withdrawals; minus

		• units redeemed as part of a transfer to another subaccount, the loan reserve account or the fixed account.

Every time you allocate, transfer or withdraw money to or from a subaccount, we convert that dollar amount into units. We determine the number of units we credit to, or subtract from, your Policy by dividing the dollar amount of the allocation, transfer or cash withdrawal by the unit value for that subaccount next determined at the end of the valuation period on which the premium allocation, transfer request or cash withdrawal request is received: (i) at our mailing address (for written requests and payments); (ii) at our administrative office (for requests by fax or by telephone, or for payments made through electronic credit and debit transactions); or (iii) electronically through our website.

Subaccount Unit Value

The value (or price) of each subaccount unit will reflect the investment performance of the portfolio in which the subaccount invests. Unit values will vary among subaccounts. The unit value at the inception of each class of units of each subaccount was originally established at $10 per unit. The unit value may increase or decrease from one valuation period to the next.



The unit value of any subaccount at the end of a valuation period is calculated as:		• The total value of the portfolio shares held in the subaccount, including the value of any dividends or capital gains distribution declared and reinvested by the portfolio during the valuation period. This value is determined by multiplying the number of portfolio shares owned by the subaccount by the portfolio’s net asset value per share determined at the end of the valuation period; minus

		• A charge equal to the daily net assets of the subaccount multiplied by the daily equivalent of the mortality and expense risk charge; minus



		• The accrued amount of reserve for any taxes or other economic burden resulting from applying tax laws that we determine to be properly attributable to the subaccount; and the result divided by

		• The number of outstanding units in the subaccount before the purchase or redemption of any units on that date.

The portfolio in which any subaccount invests will determine its net asset value per share once daily, as of the close of the regular business session of the NYSE (usually 4:00 p.m. Eastern time) except on customary national holidays on which the NYSE is closed, which coincides with the end of each valuation period.

Fixed Account Value

On the Policy date, or the reallocation date, if different, the fixed account value is equal to the cash value allocated to the fixed account.


The fixed account value at the end of any valuation period is equal to:		• the sum of net premium(s) allocated to the fixed account; plus

		• any amounts transferred from a subaccount to the fixed account (including amounts transferred to the loan reserve account); plus

		• total interest credited to the fixed account; minus

		• amounts charged to pay for monthly deductions; minus

		• amounts withdrawn or surrendered from the fixed account to pay for cash withdrawals; minus

		• amounts transferred from the fixed account (including amounts transferred from the loan reserve account) to a subaccount.

Death Benefit

Death Benefit Proceeds

As long as the Policy is in force, we will determine the amount of and pay the death benefit proceeds on an individual Policy upon receipt at our mailing address of satisfactory proof of the insured’s death, plus written direction (from each eligible recipient of death benefit proceeds) regarding how to pay the death benefit payment, and any other documents, forms and information we need. We may require return of the Policy. We will pay the death benefit proceeds to the primary beneficiary(ies), if living, or to a contingent beneficiary. If each beneficiary dies before the insured and there is no contingent beneficiary, we will pay the death benefit proceeds to the owner or the owner’s estate. We will pay the death benefit proceeds in a lump sum or under a payment option.


Death benefit proceeds equal:		• the death benefit (described below); minus

		• any monthly deductions due during the grace period (if applicable); minus

		• any outstanding loan amount and accrued loan interest.

We may further adjust the amount of the death benefit proceeds if we contest the Policy or if you misstate the insured’s age or gender.

Death Benefit

The Policy provides a death benefit. The death benefit is determined at the end of the valuation period in which the insured dies. You must select one of the three death benefit options we offer in your application. If you do not choose a death benefit option in your application, the Option A death benefit option will automatically be in effect. No matter which death benefit option you choose, we guarantee that, as long as the Policy does not lapse, the death benefit will never be less than the specified amount on the date of the insured’s death.

The Policy is intended to qualify under Internal Revenue Code Section 7702 as a life insurance policy for federal tax purposes. The death benefit is intended to qualify for the federal income tax exclusion. The provisions of the Policy and any attached endorsement or rider will be interpreted to ensure such qualification, regardless of any language to the contrary.

To the extent the death benefit is increased to maintain qualification as a life insurance policy, we will make appropriate adjustments to any monthly deductions or supplemental benefits that are consistent with such an increase. Adjustments will be reflected in the monthly deductions.

Under Section 7702 of the Internal Revenue Code, a Policy will generally be treated as life insurance for federal tax purposes if at all times it meets the “guideline premium test (GLPT)”. The GLPT has two components, a premium limit component and a corridor component. The premium limit restricts the amount of premium that can be paid into the Policy. The corridor requires that the death benefit be at least a certain percentage (varying each year by age of the insured) of the cash value.


Death Benefit Option A equals the greatest of:		1. the current specified amount; or

		2. a specified percentage called the “limitation percentage,” as shown on your Policy’s schedule page, multiplied by the cash value on the insured’s date of death; or

		3. the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Under Option A, your death benefit remains level unless the limitation percentage multiplied by the cash value is greater than the specified amount; then the death benefit will vary as the cash value varies.

The limitation percentage is the minimum percentage of cash value we must pay as the death benefit under federal tax requirements. It is based on the attained age of the insured at the beginning of each Policy year. The following table indicates the limitation percentages for the guideline premium test for different ages:


Attained Age		Limitation Percentage
40 and under		250%
41 to 45		250% minus 7% for each age over age 40
46 to 50		215% minus 6% for each age over age 45
51 to 55		185% minus 7% for each age over age 50
56 to 60		150% minus 4% for each age over age 55
61 to 65		130% minus 2% for each age over age 60
66 to 70		120% minus 1% for each age over age 65
71 to 75		115% minus 2% for each age over age 70
76 to 90		105%
91 to 95		105% minus 1% for each age over age 90
96 to 99		100%
100 and older		101%

If the federal tax code requires us to determine the death benefit by reference to these limitation percentages, the Policy is described as “in the corridor.” An increase in the cash value will increase our risk, and we will increase the cost of insurance we deduct from the cash value.

Option A Illustration. Assume that the insured’s attained age is under 40, there have been no withdrawals or decreases in specified amount, and that there are no outstanding loans. Under Option A, a Policy with a $2,000,000 specified amount will generally pay $2,000,000 in death benefits. However, because the death benefit must be equal to or be greater than 250% of cash value, any time the cash value of the Policy exceeds $800,000, the death benefit will exceed the $2,000,000 specified amount. Each additional dollar added to the cash value above $800,000 will increase the death benefit by $2.50.

Similarly, as long as the cash value exceeds $800,000, each dollar taken out of the cash value will reduce the death benefit by $2.50. If at any time the cash value multiplied by the limitation percentage is less than the specified amount, the death benefit will equal the specified amount of the Policy.


Death Benefit Option B equals the greatest of:		1. the current specified amount; plus the cash value on the insured’s date of death; or

		2. the limitation percentage, as shown on your Policy’s schedule page, multiplied by the cash value on the insured’s date of death; or



		3. the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Under Option B, the death benefit always varies as the cash value varies.

Option B Illustration. Assume that the insured’s attained age is under 40 and that there are no outstanding loans. Under Option B, a Policy with a specified amount of $2,000,000 will generally pay a death benefit of $2,000,000 plus cash value. Thus, a Policy with a cash value of $100,000 will have a death benefit of $2,100,000 ($2,000,000 + $100,000). The death benefit, however, must be at least 250% of cash value. As a result, if the cash value of the Policy exceeds $1,333,333, the death benefit will be greater than the specified amount plus cash value. The figure of $1,333,333 is derived because 250% of $1,333,333 equals $2,000,000 + $1,333,333. Each additional dollar of cash value above $1,333,333 will increase the death benefit by $2.50.

Similarly, any time cash value exceeds $1,333,333, each dollar taken out of cash value will reduce the death benefit by $2.50. If at any time, cash value multiplied by the limitation percentage is less than the specified amount plus the cash value, then the death benefit will be the specified amount plus the cash value of the Policy.


Death Benefit Option C equals the greatest of:		1. death benefit Option A; or

		2. the current specified amount, multiplied by an age-based “factor” equal to the lesser of

		• 1.0; or

		• 0.04 times (95 minus insured’s attained age at death) (the “factor” will never be less than zero); plus

		the cash value on the insured’s date of death; or

		3. the amount required for the Policy to qualify as a life insurance policy under Section 7702 of the Internal Revenue Code.

Under Option C, the death benefit varies with the cash value and the insured’s attained age.

Option C – Three Illustrations.

1. Assume that the insured is under age 40 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $2,000,000 and with a cash value of $100,000 will have a death benefit of $2,100,000 ($2,000,000 x the minimum of (1.0 and (0.04 x (95-40))) + $100,000). Until the insured attains age 71, this benefit is the same as the Option B benefit.

2. Assume that the insured is attained age 75 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $2,000,000 and with a cash value of $500,000 will have a death benefit of $2,100,000 ($2,000,000 x the minimum of (1.0 and (0.04 x (95-75))) + $500,000).

3. Assume that the insured is attained age 75 and that there are no outstanding loans. Under Option C, a Policy with a specified amount of $2,000,000 and with a cash value of $300,000 will have a death benefit equal to the specified amount of $2,000,000, since the calculation of $2,000,000 times the minimum of (1.0 and (0.04 x (95-75))) plus $300,000 is less than the specified amount.

Death Benefit After Age 111

If the Policy is still in force on the Policy anniversary on or following the insured’s 111^th birthday, the Policy will continue and the death benefit payable will continue to be calculated in accordance with the death benefit option then in effect.

Effect of Cash Withdrawals on the Death Benefit

If you choose Option A, or if you choose Option C and the insured’s attained age is 71 or greater, a cash withdrawal will reduce the specified amount by an amount equal to the amount of the cash withdrawal. Regardless of the death benefit option you choose, a cash withdrawal will reduce the death benefit by at least the amount of the withdrawal.

Choosing Death Benefit Options

You must choose one death benefit option on your application. This is an important decision. The death benefit option you choose will have an impact on the dollar value of the death benefit, on your cash value, and on the amount of cost of insurance charges you pay. If you do not select a death benefit option on your application, Option A will become the death benefit option for your Policy, by default.

You may find Option A more suitable for you if your goal is to increase your cash value through positive investment experience. You may find Option B more suitable if your goal is to increase your total death benefit. You may find Option C more suitable if your goal is to increase your total death benefit before you reach attained age 70, and to increase your cash value through positive investment experience thereafter.

Changing the Death Benefit Option

After the third Policy year, you may change your death benefit option once each Policy year. We will notify you of the new specified amount.

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You must send your written request to our mailing address.

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The effective date of the change will be the Monthiversary on or following the date when we receive your request for a change.

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You may not make a change that would decrease the specified amount below the minimum specified amount shown on your Policy schedule page.

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You may not change the death benefit option after the insured attains age 95.

•

There may be adverse federal tax consequences. You should consult a tax advisor before changing your Policy’s death benefit option.

Increasing/Decreasing the Specified Amount

You may increase the specified amount once each Policy year if you have not already decreased the specified amount in that year. After the Policy has been in force for three years, you may decrease the specified amount once each Policy year if you have not already increased the specified amount in that year. An increase or decrease in the specified amount will affect your cost of insurance charge and may have adverse federal tax consequences.

You should consult a tax advisor before increasing or decreasing your Policy’s specified amount.


Conditions for and impact of decreasing the specified amount:		• You must send your written request to our mailing address;

		• Decreases are only allowed after the third Policy year;

		• You may not increase and decrease your specified amount in the same Policy year.

		• You may not decrease your specified amount lower than the minimum specified amount shown on your Policy schedule page;

		• You may not decrease your specified amount if it would disqualify your Policy as life insurance under the Internal Revenue Code;

		• Until the Policy anniversary on or following the insured’s 65^th birthday, we may limit the amount of decrease to no more than 20% of the then current specified amount; and

		• A decrease in specified amount will take effect on the Monthiversary on or after we receive your written request.

Conditions for and impact of increasing the specified amount:		• We will accept requests for increases in specified amount on any Monthiversary before the insured’s 86^th birthday;



		• Your request must be applied for on a supplemental application and must include evidence of insurability satisfactory to us;

		• A requested increase in specified amount requires our approval and will take effect on the Monthiversary on or after the day we approve your request;

		• We may require your requested increase in specified amount to be at least $10,000; and

		• You may not decrease and increase your specified amount in the same Policy year.

Payment Options

There are several ways of receiving proceeds under the death benefit and surrender provisions of the Policy, other than in a lump sum. These are described under “Settlement Options.”

Surrenders and Cash Withdrawals

Surrenders

You must make a written request containing an original signature to surrender your Policy for its net surrender value as calculated at the end of the valuation date on which we receive your request at our mailing address. Written requests to surrender a Policy that are received at our mailing address before the NYSE closes are priced using the subaccount unit value determined at the close of that regular business session of the NYSE (usually 4:00 p.m. Eastern time). If we receive the written request after the NYSE closes, we will process the surrender request using the subaccount unit value determined at the close of the next regular business session of the NYSE. The insured must be alive, and the Policy must be in force when you make your written request. A surrender is effective as of the date when we receive your written request at our mailing address. Once you surrender your Policy, all coverage and other benefits under it cease and cannot be reinstated. We will normally pay you the net surrender value in a lump sum within seven days or under a settlement option. See “Settlement Options” for more information about the settlement options available under the Policy. A surrender may have tax consequences. See “Federal Income Tax Considerations.”

Cash Withdrawals

After the first Policy year, you may request a cash withdrawal of a portion of your cash value subject to certain conditions.


Cash withdrawal conditions:		• You must send your written cash withdrawal request with an original signature to our mailing address. If your withdrawal request is less than $50,000, then you may fax it to us at 727-299-1620.

		• During Policy years 2 - 5, the amount of the withdrawal may be limited to no less than $500 and to no more than the net surrender value minus $10,000. After the 5^th Policy year, the amount of a withdrawal may be limited to no less than $500 and to no more than the net surrender value, minus $500.

		• You may not take a cash withdrawal if it will reduce the specified amount below the minimum specified amount set forth in the Policy.

		• You may specify the subaccount(s) and the fixed account from which to make the withdrawal. If you do not specify an account, then we will take the withdrawal from each account in accordance with your current premium allocation instructions.

		• We generally will pay a cash withdrawal request within seven days following the valuation date we receive the request at our mailing address at our mailing address.

		• You may not take a cash withdrawal that would disqualify your Policy as life insurance under the Internal Revenue Code.



		• A cash withdrawal may have tax consequences.

A cash withdrawal will reduce the cash value by the amount of the cash withdrawal, and will reduce the death benefit by at least the amount of the cash withdrawal. When death benefit Option A is in effect or when death benefit Option C is in effect and the insured’s attained age is 71 or greater, a cash withdrawal will reduce the specified amount by an amount equal to the amount of the cash withdrawal.

When we incur extraordinary expenses, such as overnight mail expenses or wire service fees, for expediting delivery of your partial withdrawal or complete surrender payment, we will deduct that charge from the payment. We currently charge $20 for an overnight delivery ($30 for Saturday delivery) and $25 for wire service. You can obtain further information about these charges by contacting us at our administrative office or mailing address.

Canceling a Policy

You may cancel a Policy for a refund during the “free-look period” by returning it, with a written request to cancel the Policy, to our administrative office or mailing address, to one of our branch offices, or to the registered representative who sold you the Policy. The “free-look” period expires 10 days after you receive the Policy. In some states you may have more than 10 days. If you decide to cancel the Policy during the “free-look period,” we will treat the Policy as if it had never been issued. We will pay the refund within seven days after we receive the written request and returned Policy at our administrative office or mailing address. The amount of the refund will be:

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your cash value in the subaccounts and the fixed account on the date the written request and Policy are received at our administrative office or mailing address; plus

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any charges and taxes we deduct from your premiums; plus

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any monthly deductions or other charges we deducted from amounts you allocated to the subaccounts and the fixed account.

Some states may require us to refund all of the premiums you paid for the Policy. (See “Policy Features – Premium – Allocating Premiums – Reallocation Account.”) In addition, some states may require us to allocate premium according to a policyowner’s instructions during the “free-look period.”

Loans

General

After the first Policy year (as long as the Policy is in force) you may borrow money from us using the Policy as the only security for the loan. We may permit a loan prior to the first anniversary for Policies issued pursuant to 1035 Exchanges. A loan that is taken from, or secured by, a Policy may have tax consequences. See “Federal Income Tax Considerations.”


Policy loans are subject to certain conditions:		• we may require you to borrow at least $500; and

		• the maximum amount you may borrow is 90% of the net surrender value minus loan interest that will accrue prior to the next Policy anniversary.

When you take a loan, we will withdraw an amount equal to the requested loan from each of the subaccounts and the fixed account based on your current premium allocation instructions (unless you specify otherwise). We will transfer that amount to the loan reserve account. The loan reserve account is the portion of the fixed account to which amounts are transferred as collateral for a Policy loan.

We normally pay the amount of the loan within seven days after we receive a proper loan request at our mailing address (or, in limited circumstances described below, by fax at our administrative office). We may postpone payment of loans under certain conditions.

You may request a loan by telephone by calling us at our administrative office at 1-800-851-9777, Monday - Friday, between the hours of 8:30 a.m. - 7:00 p.m. Eastern time. If the loan amount you request exceeds $50,000 or if the address of record has been changed within the past 10 days, we may reject your request or require a signature guarantee. If you do not want the ability to request a loan by telephone, you should notify us in writing at our mailing address. You

will be required to provide certain information for identification purposes when you request a loan by telephone. We may ask you to provide us with written confirmation of your request. We will not be liable for processing a loan request if we believe the request is genuine.

You may also fax your loan request to us at our administrative office at 727-299-1620 (subject to a $499,999 limit by fax). We will not be responsible for any transmittal problems when you fax your request unless you report it to us within five business days and send us proof of your fax transmittal.

You can repay a loan at any time while the Policy is in force. Loan repayments must be sent to our mailing address and will be credited as of the date received. We will consider any payments you make on the Policy to be premium payments unless the payments are clearly identified as loan repayments. Because we do not apply the premium expense charge to loan repayments, it is very important that you indicate clearly if your payment is intended to repay all or part of a loan.

At each Policy anniversary, we will compare the outstanding loan amount, including accrued loan interest, to the amount in the loan reserve account. We will also make this comparison any time you repay all or part of the loan, or make a request to borrow an additional amount. At each such time, if the outstanding loan amount, including accrued loan interest, exceeds the amount in the loan reserve account, we will withdraw the difference from the subaccounts and the fixed account and transfer it to the loan reserve account, in the same manner as when a loan is made. If the amount in the loan reserve account exceeds the amount of the outstanding loan, including accrued loan interest, we will withdraw the difference from the loan reserve account and transfer it to the subaccounts and the fixed account in the same manner as current premiums are allocated. No charge will be imposed for these transfers, and these transfers are not treated as transfers in calculating the transfer charge. We reserve the right to require a transfer to the fixed account if the loans were originally transferred from the fixed account.

Interest Rate Charged

We currently charge you an effective annual interest rate on a Policy loan of 2.75% (3.0% maximum guaranteed) on each Policy anniversary. We will also credit the amount in the loan reserve account with an effective annual interest rate of 2.0%. After offsetting the 2.0% interest we credit, the net cost of loans currently is 0.75% annually (1.0% maximum guaranteed). After the 10^th Policy year, we will apply preferred loan charged rates on an amount equal to the cash value minus total premiums paid (less any cash withdrawals) and minus any outstanding loan amount including accrued loan interest. The current preferred loan effective annual interest rate charged is 2.00% and is guaranteed not to exceed 2.25%. On and after the insured’s attained age 111, all loans, new and existing, are considered preferred loans.

Loan Reserve Account Interest Rate Credited

We will credit the amount in the loan reserve account with interest at an effective annual rate of 2.0%.

Effect of Policy Loans

A Policy loan reduces the death benefit proceeds and net surrender value by the amount of any outstanding loan amount, including accrued loan interest. Repaying the loan causes the death benefit proceeds and net surrender value to increase by the amount of the repayment. As long as a loan is outstanding, we hold a loan reserve equal to the loan as of the last Policy anniversary plus any accrued interest net of any loan payments. This amount is not affected by the separate account’s investment performance and may not be credited with the interest rates accruing on the unloaned portion of cash value in the fixed account. Amounts transferred from the separate account to the loan reserve will affect the value in the separate account because we credit such amounts with an interest rate of 2.0% rather than a rate of return reflecting the investment results of the separate account.

We also currently charge interest on Policy loans at an effective annual rate of up to 2.75%. Because interest is added to the amount of the Policy loan to be repaid, the size of the loan will constantly increase unless the Policy loan is repaid.

There are risks involved in taking a Policy loan, including the potential for a Policy to lapse if projected earnings, taking into account outstanding loans, are not achieved. A Policy loan may also have possible adverse tax consequences. You should consult a tax advisor before taking out a Policy loan.

We will notify you (and any assignee of record) if a loan causes your net surrender value to reach zero. If you do not submit a sufficient payment within 61 days from the date of the notice, your Policy may lapse.

Policy Lapse and Reinstatement

Lapse

Your Policy may not necessarily lapse (terminate without value) if you fail to make a planned periodic payment. However, even if you make all your planned periodic payments, there is a possibility that your Policy will lose value and lapse. Your Policy may lapse (terminate without value) if the net surrender value on any Monthiversary is less than the monthly deductions due on that day. Such lapse might occur if unfavorable investment experience, loans, accrued loan interest, and cash withdrawals cause a decrease in the net surrender value, or you have not paid sufficient premiums as discussed below to offset the monthly deductions.

If the net surrender value is not enough to pay the monthly deductions, we will mail a notice to your last known address and any assignee of record. The notice will specify the minimum payment you must pay and the final date by which we must receive the payment to prevent a lapse. We generally require that you make the payment within 61 days after the date of the notice. This 61-day period is called the grace period. We pay the death benefit proceeds if an insured dies during the grace period. If we do not receive the specified minimum payment by the end of the grace period, all coverage under the Policy will terminate without value.

Reinstatement

We may reinstate a lapsed Policy within five years after the lapse. To reinstate the Policy you must:

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submit a written application for reinstatement to our mailing address;

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provide evidence of insurability satisfactory to us;

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pay an amount sufficient to provide a net premium equal to any uncollected monthly deductions due up to the time of termination, plus two monthly deductions due in advance at the time of reinstatement.

The cash value of the loan reserve on the reinstatement date will be zero. Your net surrender value on the reinstatement date will equal the cash value at the time your Policy lapsed, plus any net premiums you pay at reinstatement, minus one monthly deduction. The reinstatement date for your Policy will be the Monthiversary on or following the day we approve your application for reinstatement. We may decline a request for reinstatement. We will not reinstate indebtedness.

Federal Income Tax Considerations

The following summarizes some of the basic federal income tax considerations associated with a Policy and does not purport to be complete or to cover all situations. This discussion is not intended as tax advice. Please consult counsel or other qualified tax advisors for more complete information. We base this discussion on our understanding of the present federal income tax laws as they are currently interpreted by the Internal Revenue Service (the “IRS”). Federal income tax laws and the current interpretations by the IRS may change.

Tax Status of the Policy

A Policy must satisfy certain requirements set forth in the Internal Revenue Code (the “Code”) in order to qualify as a life insurance policy for federal income tax purposes and to receive the tax treatment normally accorded life insurance policies under federal tax law. Guidance as to how these requirements are to be applied is limited. Nevertheless, we believe that the Policy should generally satisfy the applicable Code requirements.

In certain circumstances, owners of variable life insurance policies have been considered for federal income tax purposes to be the owners of the assets of the separate account supporting their policies due to their ability to exercise investment control over those assets. Where this is the case, the policyowners have been currently taxed on income and gains attributable to the separate account assets. There is little guidance in this area, and some features of the Policies, such as your flexibility to allocate premiums and cash values, have not been explicitly addressed in published rulings. We believe that the Policy does not give you investment control over separate account assets.

In addition, the Code requires that the investments of the separate account be “adequately diversified” in order to treat the Policy as a life insurance policy for federal income tax purposes. We intend that the separate account, through the portfolios, will satisfy these diversification requirements.

The following discussion assumes that the Policy will qualify as a life insurance policy for federal income tax purposes.

Tax Treatment of Policy Benefits

In General. We believe that the Policy described in this prospectus is a life insurance policy under Code Section 7702. Section 7702 affects the taxation of life insurance policies and places limits on the relationship of the accumulation value to the death benefit. As life insurance policies, the death benefits of the policies are generally excludable from the gross income of the beneficiaries. In the absence of any guidance from the IRS on the issue, we believe that providing an amount at risk after age 99 in the manner provided should be sufficient to maintain the excludability of the death benefit after age 99. However, lack of specific IRS guidance makes the tax treatment of the death benefit after age 99 uncertain. Also, any increase in accumulation value should generally not be taxable until received by you or your designee. However, if your Policy is a modified endowment contract you may be taxed when you take a Policy loan, pledge or assign the Policy. Federal, state and local transfer, estate and other tax consequences of ownership or receipt of Policy proceeds depend on your circumstances and the beneficiary’s circumstances. A tax advisor should be consulted on these consequences.

Generally, you will not be deemed to be in constructive receipt of the cash value until there is a distribution. When distributions from a Policy occur, or when loans are taken out from or secured by a Policy (e.g., by assignment), the tax consequences depend on whether the Policy is classified as a “Modified Endowment Contract” (“MEC”). Moreover, if a loan from a Policy that is not a MEC is outstanding when the Policy is surrendered or lapses, the amount of outstanding indebtedness will be used to determine the amount distributed and will be taxed accordingly.

Modified Endowment Contracts. Under the Code, certain life insurance policies are classified as MECs and receive less favorable tax treatment than other life insurance policies. The rules are too complex to summarize here, but generally depend on the amount of premiums paid during the first seven Policy years or in the seven Policy years following certain changes in the Policy. Certain changes in the Policy after it is issued could also cause the Policy to be classified as a MEC. Due to the Policy’s flexibility, each Policy’s circumstances will determine whether the Policy is classified as a MEC. Among other things, a reduction in benefits could cause a Policy to become a MEC. If you do not want your Policy to be classified as a MEC, you should consult a tax advisor to determine the circumstances, if any, under which your Policy would or would not be classified as a MEC.

Upon issue of your Policy, we will notify you as to whether or not your Policy is classified as a MEC based on the initial premium we receive. If your Policy is not a MEC at issue, then you will also be notified of the maximum amount of additional premiums you can pay without causing your Policy to be classified as a MEC. If a payment would cause your Policy to become a MEC, you and your registered representative will be notified. At that time, you will need to notify us if you want to continue your Policy as a MEC. Unless you notify us that you do want to continue your Policy as a MEC, we will refund the dollar amount of the excess premium that would cause the Policy to become a MEC.

Multiple Policies. All MECs that we issue (or that our affiliates issue) to the same owner during any calendar year are treated as one MEC for purposes of determining the amount includible in the owner’s income when a taxable distribution occurs.

Distributions (other than Death Benefits) from MECs. Policies classified as MECs are subject to the following tax rules:

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All distributions other than death benefits from a MEC, including distributions upon surrender and cash withdrawals, will be treated first as distributions of gain taxable as ordinary income. They will be treated as tax-free recovery of the owner’s investment in the Policy only after all gain has been distributed. Your investment in the Policy is generally your total premium payments. When a distribution is taken from the Policy, your investment in the Policy is reduced by the amount of the distribution that is tax-free.

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Loans taken from or secured by (e.g., by assignment) such a Policy are treated as distributions and taxed accordingly. If the Policy is part of a collateral assignment split dollar arrangement, the initial assignment as well as increases in cash value during the assignment may be distributions and taxable.

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A 10% additional federal income tax is imposed on the amount included in income

except where the distribution or loan is made when you have attained age 59 ¹/2 or are disabled, or where the distribution is part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and the beneficiary.

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If a Policy becomes a MEC, distributions that occur during the Policy year will be taxed as distributions from a MEC. In addition, distributions from a Policy within two years before it becomes a MEC will be taxed in this manner. This means that a distribution from a Policy that is not a MEC at the time when the distribution is made could later become taxable as a distribution from a MEC.

Distributions (other than Death Benefits) from Policies that are not MECs. Distributions from a Policy that is not a MEC are generally treated first as a recovery of your investment in the Policy, and as taxable income after the recovery of all investment in the Policy. However, certain distributions which must be made in order to enable the Policy to continue to qualify as a life insurance policy for federal income tax purposes if Policy benefits are reduced during the first 15 Policy years may be treated in whole or in part as ordinary income subject to tax. Distributions from or loans from or secured by a Policy that is not a MEC are not subject to the 10% additional tax.

Policy Loans. Loans from or secured by a Policy that is not a MEC are generally not treated as distributions. Instead, such loans are treated as indebtedness. If a loan from a Policy that is not a MEC is outstanding when the Policy is surrendered or lapses, the amount of the outstanding indebtedness will be taxed as if it were a distribution at that time. The tax consequences associated with Policy loans outstanding at and beyond the insured’s attained age 111, and with preferred loan rates, are less clear and a tax advisor should be consulted about such loans.

Deductibility of Policy Loan Interest. In general, interest you pay on a loan from a Policy will not be deductible. Before taking out a Policy loan, you should consult a tax advisor as to the tax consequences.

Investment in the Policy. Your investment in the Policy is generally the sum of the premium payments you made. When a distribution from the Policy occurs, your investment in the Policy is reduced by the amount of the distribution that is tax-free.

Withholding. To the extent that Policy distributions are taxable, they are generally subject to withholding for the recipient’s federal income tax liability. The federal income tax withholding rate is generally 10% of the taxable amount of the distribution. Withholding applies only if the taxable amount of all distributions are at least $200 during a taxable year. Some states also require withholding for state income taxes. With the exception of amounts that represent eligible rollover distributions from Pension Plans and 403(b) arrangements, which are subject to mandatory withholding of 20% for federal tax, recipients can generally elect, however, not to have tax withheld from distributions. If the taxable distributions are delivered to foreign countries, U.S. persons may not elect out of withholding. Taxable distributions to non-resident aliens are generally subject to withholding at a 30% rate unless withholding is eliminated under an international treaty with the United States. The payment of death benefits is generally not subject to withholding.

Business Uses of the Policy. The Policy may be used in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans and business uses of the Policy may vary depending on the particular facts and circumstances of each individual arrangement and business uses of the Policy. Therefore, if you are contemplating using the Policy in any such arrangement, you should be sure to consult a tax advisor as to tax attributes of the arrangement and in its use of life insurance. In recent years, moreover, Congress and the IRS have adopted new rules relating to nonqualified deferred compensation and to life insurance owned by businesses and life insurance used in split-dollar arrangements. The IRS has recently issued new guidance regarding concerns in the use of life insurance in employee welfare benefit plans, including, but not limited to, the deduction of employer contributions and the status of such plans as listed transactions. Any business contemplating the purchase of a new Policy or a change in an existing Policy should consult a tax advisor. Recent legislation under Section 101(j) of the Internal Revenue Code has imposed notice, consent and other provisions on policies owned by employers and certain other policies in order to receive death benefits tax-free and added additional tax reporting requirements.

Alternative Minimum Tax. There also may be an indirect tax upon the income in the Policy or the proceeds of a Policy under the federal corporate alternative minimum tax, if the policyowner is subject to that tax.

Living Benefit Rider (an Accelerated Death Benefit). We believe that the single-sum payment we make under this rider should be fully excludible from the gross income of the beneficiary, except in certain business contexts. You should consult a tax advisor about the consequences of adding this rider to your Policy, or requesting a single-sum payment.

Continuation of Policy Beyond Age 100. The tax consequences of continuing the Policy beyond the insured’s attained age 100 are unclear and may include taxation of the gain in the Policy or the taxation of the death benefit in whole or in part. You should consult a tax advisor if you intend to keep the Policy in force beyond the insured’s attained age 100.

Other Tax Considerations. The transfer of the Policy or designation of a beneficiary may have federal, state, and/or local transfer and inheritance tax consequences, including the imposition of gift, estate, and generation-skipping transfer taxes. The individual situation of each owner or beneficiary will determine the extent, if any, to which federal, state, and local transfer and inheritance taxes may be imposed and how ownership or receipt of Policy proceeds will be treated for purposes of federal, state and local estate, inheritance, generation-skipping and other taxes.

Special Rules for Pension Plans and Section 403(b) Arrangements. If the Policy is purchased in connection with a section 401(a) qualified pension or profit sharing plan, including a section 401(k) plan, or in connection with a section 403(b) plan or program, federal and state income and estate tax consequences could differ from those stated in this prospectus. The purchase may also affect the qualified status of the plan. You should consult a qualified tax advisor in connection with such purchase.

Policies owned under these types of plans may be subject to the Employee Retirement Income Security Act of 1974, or ERISA, which may impose additional requirements on the purchase of policies by such plans. You should consult a qualified advisor regarding ERISA.

Other Policy Information

Payments We Make

We usually pay the amounts of any surrender, cash withdrawal, death benefit proceeds, or settlement options within seven calendar days after we receive all applicable written notices and/or due proofs of death at our mailing address. However, we can postpone such payments if:

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the NYSE is closed, other than customary weekend and holiday closing, or trading on the NYSE is restricted as determined by the SEC; or

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the SEC permits, by an order, the postponement for the protection of policyowners; or

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the SEC determines that an emergency exists that would make the disposal of securities held in the separate account or the determination of their value not reasonably practicable.

If you have submitted a recent check or draft, we have the right to defer payment of surrenders, cash withdrawals, death benefit proceeds, or payments under a settlement option until such check or draft has been honored. We also reserve the right to defer payment of transfers, cash withdrawals, death benefit proceeds, or surrenders from the fixed account for up to six months.

If mandated under applicable law, we may be required to reject a premium payment and/or block a policyowner’s account and thereby refuse to pay any request for transfers, withdrawals, surrenders, loans or death benefits until instructions are received from the appropriate regulators. We may also be required to provide additional information about you or your account to governmental regulators.

Split Dollar Arrangements

You may enter into a split dollar arrangement with another owner or another person(s) whereby the payment of premiums and the right to receive the benefits under the Policy (i.e., cash surrender value of insurance proceeds) are split between the parties. There are different ways of allocating these rights.

For example, an employer and employee might agree that under a Policy on the life of the employee, the employer will pay the premiums and will have the right to receive the cash surrender value. The employee may designate the beneficiary to receive any insurance proceeds in excess of the cash surrender value. If the employee dies while such an arrangement is in effect, the employer would receive from the insurance proceeds the amount that he would have been entitled to receive upon surrender of the Policy and the employee’s beneficiary would receive the balance of the proceeds.

No transfer of Policy rights pursuant to a split dollar arrangement will be binding on us unless in writing and received by us at our mailing address. Split dollar arrangements may have tax consequences. You should consult a tax advisor before entering into a split dollar arrangement.

On July 30, 2002, President Bush signed into law significant accounting and corporate governance reform legislation, known as the Sarbanes-Oxley Act of 2002 (the “Act”). The Act prohibits, with limited exceptions, publicly-traded companies, including non-U.S. companies that have securities listed on exchanges in the United States, from extending, directly or through a subsidiary, many types of personal loans to their directors or executive officers. It is possible that this prohibition may be interpreted as applying to split-dollar life insurance policies for directors and executive officers of such companies, since such insurance arguably can be viewed as involving a loan from the employer for at least some purposes.

Although the prohibition on loans of publicly-traded companies is generally effective as of July 30, 2002, there is an exception for loans outstanding as of the date of enactment, as long as there is no material modification to the loan terms and the loan is not renewed after July 30, 2002. Any affected business contemplating the payment of a premium on an existing Policy, or the purchase of a new Policy, in connection with a split-dollar life insurance arrangement should consult legal counsel.

In addition, the IRS issued guidance that affects the tax treatment of split-dollar arrangements and the Treasury Department issued final regulations that would significantly affect the tax treatment of such arrangements. The IRS guidance and the final regulations affect all split dollar arrangements, not just those involving publicly-traded companies. Consult your qualified tax advisor with respect to the effect of this current and proposed guidance on your split dollar policy.

Policy Termination

Your Policy will terminate on the earliest of:

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the date the insured dies; or

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the end of the grace period; or

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the date the Policy is surrendered.

Supplemental Benefit (Rider)

The following supplemental benefit (rider) is available and may be issued automatically on a Policy. We do not assess an administrative charge for this rider. We will reduce the single-sum benefit by a discount factor, however, to compensate us for expected lost income as a result of early payment of the death benefit. The rider available with the Policies does not build cash value. This rider may not be available in all states, certain benefits and features may vary by state, and it may be available under a different name in some states. Adding this supplemental benefit to an existing Policy or canceling it may have tax consequences and you should consult a tax advisor before doing so.

Living Benefit Rider (an Accelerated Death Benefit)

This rider allows us to pay all or a portion of the death benefit once we receive satisfactory proof at our mailing address that the insured is ill and has a life expectancy of one year or less. A doctor must certify the insured’s life expectancy.

We will pay a “single-sum benefit” equal to:

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the death benefit on the date we pay the single-sum benefit; multiplied by

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the election percentage of the death benefit you elect to receive; divided by

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1 + i (“i” equals the current yield on 90-day Treasury bills or the Policy loan interest rate, whichever is greater) (“discount factor”); minus

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any indebtedness at the time we pay the single-sum benefit, multiplied by the election percentage.

The maximum terminal illness death benefit used to determine the single-sum benefit as defined above is equal to:

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the death benefit available under the Policy once we receive satisfactory proof that the insured is ill; plus

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a single-sum benefit may not be greater than $500,000.

The election percentage is a percentage that you select. It may not be greater than 100%.

We will not pay a benefit under the rider if the insured’s terminal condition results from self-inflicted injuries that occur during the period specified in your Policy’s suicide provision.

The rider terminates at the earliest of:

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the date the Policy terminates;

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the date a settlement option takes effect;

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the date we pay a single-sum benefit; or

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the date you terminate the rider.

We do not assess an administrative charge for this rider; however, we do reduce the single sum benefit by a discount factor to compensate us for expected lost income due to the early payment of the death benefit. This rider may not be available in all states, or its terms may vary depending on a state’s insurance law requirements.

For example, suppose before the owner elects the single sum benefit, a Policy has a $1,000,000 death benefit and a $10,000 loan balance. Suppose that the current yield on 90-day Treasury bills is 6.00% and the Policy loan interest rate is 2.75%. Because the greater of these is 6%, that is the interest rate that will be used to discount the single sum benefit. The owner elects to accelerate 50% of the death benefit, so the single sum benefit equals $466,698, which is [($1,000,000 x 0.50/ 1.06) - ($10,000 x 0.50)]. After the acceleration, the remaining death benefit is $500,000, which is 50% of $1,000,000, and all Policy values will be reduced by 50%.

The tax consequences of adding this rider to an existing Policy or requesting payment under the rider are uncertain and you should consult a tax advisor before doing so.

Additional Information

Sale of the Policies

Distribution and Principal Underwriting Agreement. Our affiliate, TCI, serves as principal underwriter for the Policies. We have entered into a principal underwriting and distribution agreement with TCI for the distribution and sale of the Policies. We reimburse TCI 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).

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/is also licensed under state insurance laws. The selling firms have entered into written selling agreements with us and with TCI as principal underwriter for the Policies. We pay commissions through TCI to the selling firms for their sales of the Policies.

A limited number of affiliated and unaffiliated broker-dealers may also be paid commissions and overrides to “wholesale” the Policies, that is, to provide sales support and training to sales representatives at selling firms. We may also provide compensation to a limited number of broker-dealers for providing ongoing service in relation to Policies that have already been purchased.

If you are purchasing the product through an investment advisor, you would be responsible for paying (to the advisory firm) any additional advisory fee charged under the investment advisory agreement that you have with your investment advisor.

To the extent permitted by FINRA rules, Western Reserve, ISI and other affiliated parties 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. These arrangements are described further below.

The registered 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 registered 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 revenue sharing arrangements that we and our affiliates may have with the selling firm, including the conflicts of interests that such arrangements may create.

Special Compensation that We Pay to Affiliated Wholesaling and Selling Firms. Our parent company provides paid-in capital to TCI and pays the cost of TCI’s operating and other expenses, including costs for facilities, legal and accounting services, and other internal administrative functions.

Western Reserve’s two main distribution channels are ISI and WGS, both affiliates, who sell Western Reserve products.

Western Reserve underwrites the cost of ISI’s various facilities, third-party services and internal administrative functions, including employee salaries, sales representative training and computer systems that are provided directly to ISI. These facilities and services are necessary for ISI’s administration and operation, and Western Reserve is compensated by ISI for these expenses based on ISI’s usage. In addition, Western Reserve and other affiliates pay for certain sales expenses of ISI, including the costs of preparing and producing prospectuses and sales promotional materials for the Policy.

Sales representatives and their managers at ISI and WGS may receive directly or indirectly additional cash benefits and non-cash compensation or reimbursements from us or our affiliates. Additional compensation or reimbursement arrangements may include payments in connection with the firm’s conferences or seminars, sales or training programs for invited selling representatives and other employees, seminars for the public, trips (such as travel, lodging and meals in connection therewith), entertainment, merchandise and other similar items, and payments, loans or loan guaranties to assist a firm or representative in connection with systems, operating, marketing and other business expenses. The amounts may be significant and may provide us with increased access to the sales representatives.

In addition, ISI’s managers and/or sales representatives who meet certain productivity standards may be eligible for additional compensation. Sales of the Policies by affiliated selling firms may help sales representatives and/or their managers qualify for certain benefits, and may provide such persons with special incentive to sell our Policies. For example, ISI’s and WGS’s registered representatives, general agents, marketing directors and supervisors may be eligible to participate in a voluntary stock purchase plan that permits participants to purchase stock of AEGON N.V. (Western Reserve’s ultimate parent) by allocating a portion of the commissions they earn to purchase such shares. A portion of the contributions of commissions by ISI’s representatives may be matched by ISI. ISI’s and WGS’s registered representatives may also be eligible to participate in a stock option and award plan. Registered representatives who meet certain production goals will be issued options on the stock of AEGON N.V.

Additional Compensation that We Pay to Selected Selling Firms. We may pay certain selling firms additional cash amounts for “preferred product” treatment of the Policies in their marketing programs in order to receive enhanced marketing services and increased access to their sales representatives. In exchange for providing us 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 and seminars, and/or other services they provide to us and our affiliates. To the extent permitted by applicable law, we and other parties may allow other non-cash incentives and compensation to be paid to these selling firms. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may differ between selling firms.

Special compensation arrangements are calculated in different ways by different selling firms and may be based on past or anticipated sales of the Policies or other criteria. For instance, Western Reserve made flat fee payments to several selling firms with payments ranging from $2,000 to $15,750 in 2007 for the sales of the Western Reserve’s insurance products.

During 2007, we had entered into “preferred product” arrangements with ISI, WGS, Berthel Fisher & Co Financial Services, H. Beck Inc., First Founders Securities Inc., Harbour Investments Inc., Coordinated Capital Securities, Inc., Trustmont Financial Group, Inc., Packerland Brokerage Services, Inc. and Investors Capital Corp. We paid the following amounts (in addition to sales commissions and expense allowances) to these firms:


Name of Firm	Aggregate Amount Paid During 2007
H. Beck, Inc.	$	10,000
Berthel Fisher	$	10,000
Investors Capital Corp.	$	15,750
First Founders Securities, Inc.	$	2,725
Harbour Investments, Inc.	$	6,000
Coordinated Capital Securities, Inc.	$	2,000
Trustmont Financial Group, Inc.	$	2,000
Packerland Brokerage Services, Inc.	$	3,000

No specific charge is assessed directly to policyowners or the separate account to cover commissions 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.

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 payments may create an incentive for the selling firm or its sales representatives to recommend or sell this Policy to you. You may wish to take such payments into account when considering and evaluating any recommendation relating to the Policies.

Settlement Options

If you surrender the Policy, you may elect to receive the net surrender value in either a lump sum or as a series of regular income payments under one of the three settlement options described below. In either event, life insurance coverage ends. Also, when the insured dies, the beneficiary may apply the lump sum death benefit proceeds to one of the same settlement options. If the regular payment under a settlement option would be less than $100, we will instead pay the proceeds in one lump sum. We may make other settlement options available in the future.

Once we begin making payments under a settlement option, you or the beneficiary will no longer have any value in the subaccounts or the fixed account. Instead, the only entitlement will be the amount of the regular payment for the period selected under the terms of the settlement option chosen. Depending upon the circumstances, the effective date of a settlement option is the surrender date or the insured’s date of death.

Under any settlement option, the dollar amount of each payment will depend on four things:

•

the amount of the surrender on the surrender date or death benefit proceeds on the insured’s date of death;

•

the interest rate we credit on those amounts (we guarantee a minimum annual interest rate of 2.0%);

•

the mortality tables we use; and

•

the specific payment option(s) you choose.


Option 1–Equal Monthly Installments for a Fixed Period		• We will pay the proceeds, plus interest, in equal monthly installments for a fixed period of your choice, but not longer than 240 months.

		• We will stop making payments once we have made all the payments for the period selected.

Option 2–Equal Monthly Installments for Life (Life Income)		At your or the beneficiary’s direction, we will make equal monthly installments:

		• only for the life of the payee, at the end of which payments will end; or

		• for the longer of the payee’s life, or for 10 years if the payee dies before the end of the first 10 years of payments; or

		• for the longer of the payee’s life, or until the total amount of all payments we have made equals the proceeds that were applied to the settlement option.

Option 3–Equal Monthly Installments for the Life of the Payee and then to a Designated Survivor (Joint and Survivor)		• We will make equal monthly payments during the joint lifetime of two persons, first to a chosen payee, and then to a co-payee, if living, upon the death of the payee.

		• Payments to the co-payee, if living, upon the payee’s death will equal either:

		• the full amount paid to the payee before the payee’s death; or

		• two-thirds of the amount paid to the payee before the payee’s death.


		• All payments will cease upon the death of the co-payee.

Legal Proceedings

Western Reserve, like other life insurance companies, is involved in lawsuits, including class action lawsuits. In some lawsuits involving insurers, substantial damages have been sought and/or material settlement payments have been made. Although the outcome of any litigation cannot be predicted with certainty, at the present time there are no pending or threatened lawsuits that are likely to have a material adverse impact on the separate account, on TCI’s ability to perform under its principal underwriting agreement, or on Western Reserve’s ability to meet its obligations under the Policy.

Financial Statements

The financial statements of Western Reserve and the separate account are included in the SAI. The separate account commenced operations in early 2007.

Performance Data

Rates of Return

When the first subaccount investing in the underlying portfolios has been in operation for 1, 3, 5, and 10 years, the total return for these periods will be provided, adjusted to reflect certain fees and charges for the Policy. Because the subaccounts have been in operation for less than six months, we are not showing performance for the subaccounts.

Some portfolios began operation before their corresponding subaccount. For these portfolios, we have included in the Table below adjusted portfolio performance from the portfolio’s inception date. The adjusted portfolio performance is designed to show the performance that would have resulted if the existing subaccount had been in operation during the time the portfolio was in operation.

These rates of return do not reflect charges that are deducted under the Policy or from the separate account (such as the mortality and expense risk charge, premium expense charge, or the monthly deductions). If these charges were deducted, performance would be significantly lower. These rates of return are not estimates, representations, projections or guarantees of future performance.

We also show below comparable figures for the unmanaged Standard & Poor’s Index of 500 Common Stocks (“S&P 500”), a widely used measure of stock market performance. The S&P 500 does not reflect any deduction for the expenses of operating and managing an investment portfolio.

Table 1

Adjusted Historical Portfolio Average Annual Total Return

For the Periods Ended on December 31, 2007


Portfolio	1 Year		3 Years		5 Years		10 Years or Inception		Portfolio Inception Date
Transamerica Asset Allocation – Conservative VP	5.85	%	6.46	%	10.01	%	6.82	%	05/01/02
Transamerica Asset Allocation – Growth VP	7.22	%	11.28	%	15.30	%	9.24	%	05/01/02
Transamerica Asset Allocation – Moderate Growth VP	7.28	%	9.95	%	13.70	%	8.71	%	05/01/02
Transamerica Asset Allocation – Moderate VP	7.42	%	8.41	%	11.90	%	7.83	%	05/01/02
Transamerica Balanced VP	13.04	%	9.66	%	10.58	%	8.20	%	05/01/02
Transamerica BlackRock Large Cap Value VP†	4.12	%	11.81	%	16.28	%	7.54	%	05/01/96
Transamerica Capital Guardian U.S. Equity VP⁽¹⁾	(0.65	)%	4.81	%	11.31	%	2.44	%	05/01/02
Transamerica Capital Guardian Value VP⁽²⁾	(6.75	)%	5.03	%	12.50	%	5.05	%	05/27/93
Transamerica Clarion Global Real Estate Securities VP	(7.17	)%	14.07	%	21.53	%	12.63	%	05/01/98
Transamerica Convertible Securities VP	18.05	%	10.43	%	13.29	%	10.19	%	05/01/02
Transamerica Equity VP†⁽³⁾	15.71	%	13,23	%	16.92	%	9.30	%	12/31/80
Transamerica Federated Market Opportunity VP†	(0.97	)%	1.88	%	7.72	%	7.72	%	03/01/94
Transamerica Growth Opportunities VP⁽⁴⁾	22.48	%	14.00	%	17.56	%	12.04	%	05/02/01
Transamerica International Moderate Growth VP	8.15	%	N/A		N/A		7.28	%	05/01/06


Transamerica JPMorgan Core Bond VP†	6.41	%	3.85	%	3.87	%	5.13	%	10/02/86
Transamerica JPMorgan Enhanced Index VP⁽⁵⁾	4.02	%	7.11	%	11.74	%	4.54	%	05/02/97
Transamerica Legg Mason Partners All CapVP	0.53	%	7.10	%	12.40	%	6.49	%	05/03/99
Transamerica MFS High Yield VP	1.35	%	4.27	%	7.73	%	4.03	%	06/01/98
Transamerica MFS International Equity VP	8.61	%	14.32	%	16.21	%	4.10	%	01/02/97
Transamerica Marsico Growth VP	19.81	%	10.72	%	13.77	%	2.54	%	05/03/99
Transamerica Money Market VP†⁽⁶⁾	4.51	%	3.69	%	2.36	%	3.09	%	10/02/86
Transamerica Munder Net50 VP	16.46	%	7.61	%	18.85	%	1.85	%	05/03/99
Transamerica PIMCO Total Return VP	8.41	%	4.61	%	4.44	%	4.95	%	05/01/02
Transamerica Science & Technology VP	32.11	%	10.48	%	16.85	%	(7.17	)%	05/01/00
Transamerica Small/Mid Cap Value	24.13	%	18.12	%	29.36	%	14.49	%	05/04/93
Transamerica T. Rowe Price Equity Income VP†⁽⁷⁾	2.80	%	8.03	%	12.48	%	7.06	%	01/03/95
Transamerica T. Rowe Price Small Cap VP	9.07	%	7.36	%	13.68	%	5.27	%	05/03/99
Transamerica Templeton Global VP†	14.68	%	13.18	%	14.05	%	7.02	%	12/03/92
Transamerica Third Avenue Value VP	0..70	%	11.20	%	18.46	%	12.01	%	01/02/98
Transamerica U.S. Government Securities VP⁽⁸⁾	5.52	%	3.33	%	3.04	%	3.98	%	5/13/94
Transamerica Value Balanced VP†	6.19	%	8.91	%	11.07	%	5.72	%	01/03/95
Transamerica Van Kampen Mid-Cap Growth VP†	21.93	%	12.59	%	14.18	%	7.70	%	03/01/93

Fidelity VIP Index 500 Portfolio	4.66	%	7.75	%	11.53	%	0.42	%	01/12/00

Access VP High Yield Fund	4.67	%	N/A		N/A		7.58	%	05/02/05

ProFund VP Asia 30	47.06	%	34.35	%	31.55	%	21.92	%	05/01/02
ProFund VP Basic Materials	30.10	%	15.08	%	16.96	%	11.62	%	05/01/02
ProFund VP Bull	3.03	%	6.01	%	10.01	%	1.31	%	05/01/01
ProFund VP Consumer Services	(8.71	)%	(1.18	)%	5.45	%	(0.87	)%	05/01/02
ProFund VP Europe 30	14.02	%	12.77	%	17.64	%	3.59	%	10/18/99
ProFund VP Financials	(19.54	)%	(0.93	)%	6.51	%	1.09	%	01/22/01
ProFund VP Japan	(10.45	)%	11.70	%	13.40	%	5.67	%	05/01/02
ProFund VP Money Market⁽⁶⁾	3.25	%	1.48	%	0.67	%	0.43	%	10/29/01
ProFund VP Oil & Gas	31.85	%	26.95	%	26.23	%	13.78	%	01/22/01
ProFund VP NASDAQ-100	17.04	%	6.91	%	13.97	%	(5.36	)%	01/22/01
ProFund VP Pharmaceuticals	1.81	%	2.67	%	0.51	%	(2.14	)%	05/02/02
ProFund VP Precious Metals	21.88	%	17.49	%	15.18	%	12.82	%	05/01/02
ProFund VP Short NASDAQ – 100	(12.01	)%	(4.91	)%	(14.04	)%	(10.88	)%	05/01/02
ProFund VP Short Small-Cap	4.01	%	(4.11	)%	(12.27	)%	(12.29	)%	09/03/02
ProFund VP Small-Cap	(2.70	)%	4.39	%	13.40	%	4.86	%	05/01/01
ProFund VP Small-Cap Value	(7.69	)%	3.64	%	12.22	%	4.33	%	05/01/02
ProFund VP Telecommunications	7.86	%	10.22	%	9.44	%	(5.12	)%	01/22/01
ProFund VP UltraSmall-Cap	(13.62	)%	2.33	%	22.08	%	3.44	%	10/18/99
ProFund VP U.S. Government Plus	9.61	%	4.15	%	3.53	%	5.91	%	05/01/02
ProFund VP Utilities	15.24	%	15.44	%	17.49	%	4.83	%	01/22/01

S&P 500†	3.53	%	6.61	%	10.79	%	4.23	%	10/02/86

†	Shows ten year performance.

⁽¹⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Capital Guardian U.S. Equity Portfolio of Endeavor Series Trust.

⁽²⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Capital Guardian Value Portfolio of Endeavor Series Trust.

⁽³⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Growth Portfolio of Transamerica Variable Insurance Fund, Inc.

⁽⁴⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Small Company Portfolio of Transamerica Variable Insurance Fund, Inc.

⁽⁵⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Endeavor High Yield Portfolio of the Endeavor Series Trust.

⁽⁶⁾

The current yield more closely reflects the current earnings of the subaccount than the total return. An investment in this subaccount is not insured or guaranteed by the FDIC. While this subaccount’s investment in shares of the underlying portfolio seeks to preserve its value at $1.00 per share, it is possible to lose money by investing in this subaccount.

⁽⁷⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, T. Rowe Price Equity Income Portfolio of the Endeavor Series Trust.

⁽⁸⁾	The historical financial information for periods prior to May 1, 2002 has been derived from the financial history of the predecessor portfolio, Dreyfus U.S. Government Securities Portfolio of Endeavor Series Trust.

Because the ProFund VP Emerging Markets, ProFund VP Falling U.S. Dollar, ProFund VP International, ProFund VP Mid-Cap, ProFund VP Short Emerging Markets and ProFund VP Short International did not commence operations until September 4, 2007, and the Transamerica Index 50 VP and Transamerica Index 75 VP did not commence operations until May 1, 2008, the above Table does not reflect rates of return for those portfolios.

The annualized yield for the Transamerica Money Market VP portfolio for the seven days ended December 31, 2007 was 3.86% and 2.13% for the ProFund VP Money Market portfolio.

Additional information regarding the investment performance of the portfolios appears in the fund prospectuses, which accompany this prospectus.

Table of Contents of the Statement of Additional Information


Glossary		1
The Policy – General Provisions		4
Ownership Rights		4
Our Right to Contest the Policy		5
Suicide Exclusion		5
Misstatement of Age or Gender		5
Modifying the Policy		5
Mixed and Shared Funding		5
Additional Information		6
Settlement Options
Additional Information about Western Reserve and the Separate Account		6
Legal Matters		6
Variations in Policy Provisions		6
Personalized Illustrations of Policy Benefits		7
Sale of the Policies		7
Reports to Owners		7
Records		8
Independent Registered Public Accounting Firm		8
Experts		8
Financial Statements		8
Underwriters		8
Underwriting Standards		8
IMSA		9
Performance Data		9
Other Performance Data in Advertising Sales Literature		9
Western Reserve’s Published Ratings		9
Index to Financial Statements		10
Western Reserve Life Assurance Co. of Ohio		10

Glossary


accounts		The options to which you can allocate your money. The accounts include the fixed account and the subaccounts in the separate account.

administrative office		Our administrative office address is P.O. Box 5068, Clearwater, Florida, 33758-5068. Our street address is 570 Carillon Parkway, St. Petersburg, Florida, 33716. Our phone number is 1-800-851-9777; our facsimile numbers are 1-727-299-1648 (for transfers only); and 1-727-299-1620 for all other requests. Our administrative office serves as the recipient of all website (www.westernreserve.com), telephonic and facsimile transactions, including, but not limited to transfer requests and premium payments made by wire transfer and through electronic credit and debit transactions (e.g., payments through direct deposit, debit transfers, and forms of e-commerce payments). Our hours are Monday – Friday from 8:30 a.m. – 7:00 p.m. Eastern time. Please do not send any checks, correspondence or notices to this office; send them to the mailing address.

attained age		The issue age of the person insured, plus the number of completed years since the Policy date (for the initial specified amount) or since the date of each increase in specified amount.

beneficiary(ies)		The person or persons you select to receive the death benefit proceeds from the Policy. You name the primary beneficiary and contingent beneficiaries.

cash value		At the end of any valuation period, the sum of your Policy’s value in the subaccounts and the fixed account. If there is a Policy loan outstanding, the cash value includes any amounts held in our fixed account to secure the Policy loan.

death benefit proceeds		The amount we will pay to the beneficiary(ies) on the insured’s death. We will reduce the death benefit proceeds by the amount of any outstanding loan amount, including any accrued loan interest, and any due and unpaid monthly deductions.

fixed account		An allocation option other than the separate account to which you may allocate net premiums and cash value. We guarantee that any amounts you allocate to the fixed account will earn interest at a declared rate. The fixed account is part of our general account.

free-look period		The period during which you may return the Policy and receive a refund as described in the prospectus. The length of the free-look period varies by state. The free-look period is listed in the Policy.

funds		Investment companies which are registered with the U.S. Securities and Exchange Commission. The Policy allows you to invest in the portfolios of the funds through our subaccounts.

in force		While coverage under the Policy is active and the insured’s life remains insured.

initial premium		The amount you must pay before insurance coverage begins under the Policy. The initial premium is shown on the schedule pages of your Policy.

insured		The person whose life is insured by the Policy.

issue age		The insured’s age on his or her birthday on or prior to the Policy date. When you increase the Policy’s specified amount of insurance coverage, the issue age for the new layer of specified amount coverage is the insured’s age on his or her birthday on or prior to the date that the increase in specified amount takes effect. This age may be different from the attained age on other layers of specified amount coverage.

lapse		When life insurance coverage ends and the Policy terminates because you do not have enough cash value in the Policy to pay the monthly deductions and any outstanding loan amount, including accrued loan interest, and you have not made a sufficient payment by the end of a grace period.


loan reserve account		A part of the fixed account to which amounts are transferred as collateral for Policy loans.

mailing address		Our mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa, 52499. All premium payments, loan repayments made by check, correspondence and notices must be sent to this address.

Monthiversary		This is the day of each month when we determine Policy charges and deduct them from cash value. It is the same date each month as the Policy date. If there is no valuation date in the calendar month that coincides with the Policy date, the Monthiversary is the next valuation date.

monthly deductions		The monthly cost of insurance, plus the portion of the monthly deduction for benefits provided by optional riders attached to the Policy, if any, which are deducted from the Policy’s cash value on each Monthiversary.

mortality and expense risk charge		This charge is a daily deduction from each subaccount that is taken before determining the unit value of that subaccount.

net premium		The part of your premium that we allocate to the fixed account or the subaccounts. The net premium is equal to the premium you paid minus the premium expense charge.

net surrender value		The amount we will pay you if you surrender the Policy while it is in force. The net surrender value on the date you surrender is equal to: the cash value minus any outstanding loan amount and accrued loan interest.

NYSE		The New York Stock Exchange.

planned periodic premium		A premium payment you make in a level amount at a fixed interval over a specified period of time.

Policy		The WRL Evolution variable life insurance policy without any supplemental riders (benefits).

Policy date		The date when our underwriting process is complete, full life insurance coverage goes into effect, the initial premium payment has been received, and we begin to take the monthly deductions. The Policy date is shown on the schedule pages of your Policy. If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. We measure Policy months, years, and anniversaries from the Policy date.

portfolio		One of the separate investment portfolios of a fund.

premiums		All payments you make under the Policy other than loan repayments.

premium expense charge		The charge that is deducted from each premium payment before determining the net premium that will be credited to the cash value.

reallocation account		That portion of the fixed account where we hold the net premium(s) until the reallocation date.

reallocation date		The date we reallocate all cash value held in the reallocation account to the fixed account and subaccounts you selected on your application. We place your net premium in the reallocation account (or as mandated by state law) only if your state requires us to return the full premium in the event you exercise your free-look right. In those states, the reallocation date is the later of the Policy date or the record date, plus fifteen days. In all other states, the reallocation date is the later of the Policy date or the record date.


record date		The date we record your Policy on our books. The record date is generally the Policy date, unless the Policy is backdated.

separate account		The WRL Series Life Account G is a separate investment account that is divided into subaccounts. We established the separate account to receive and invest net premiums under the Policy and other variable life insurance policies we issue.

specified amount		The initial specified amount of life insurance that you have selected is shown on the Policy’s schedule pages that you receive when the Policy is issued. The specified amount in force is the initial specified amount, adjusted for any increases or decreases in the Policy’s specified amount. Other events such as a request to increase or decrease the specified amount, change in death benefit option or a cash withdrawal (if you choose death benefit Option A or if you choose death benefit Option C and the insured is attained age 71 or greater) may also affect the specified amount in force.

subaccount		A subdivision of the separate account that invests exclusively in shares of one investment portfolio of a fund.

termination		When the insured’s life is no longer insured under the Policy or any rider, and the Policy or any rider is no longer in force.

valuation date		Each day the New York Stock Exchange is open for normal trading. Western Reserve is open for business whenever the New York Stock Exchange is open.

valuation period		The period of time over which we determine the change in the value of the subaccounts. Each valuation period begins at the close of normal trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time on each valuation date) and ends at the close of normal trading of the New York Stock Exchange on the next valuation date.

we, us, our (Western Reserve)		Western Reserve Life Assurance Co. of Ohio.

written notice		The written notice you must sign and send us to request or exercise your rights as owner under the Policy. To be complete, it must: (1) be in a form we accept, (2) contain the information and documentation that we determine we need to take the action you request, and (3) be received at our mailing address.

you, your (owner or policyowner)		The person entitled to exercise all rights as owner under the Policy.

Appendix A

Illustrations

The following illustrations show how certain values under a sample Policy would change with different rates of fictional investment performance over an extended period of time. In particular, the illustrations show how the death benefit, cash value, and net surrender value under a Policy issued to an insured of a given age, would change over time if the premiums indicated were paid and the return on the assets in the subaccounts were a uniform gross annual rate (before any expenses) of 0%, 6% or 10%. The tables illustrate Policy value that would result based on assumptions that you pay the premiums indicated, you do not change your specified amount, and you do not take any cash withdrawals or Policy loans. The values under the Policy will be different from those shown even if the returns averaged 0%, 6% or 10%, but fluctuated over and under those averages throughout the years shown.

We based the illustration on page 55 on a Policy for an insured who is a 55-year-old male in the Preferred Elite non-tobacco rate class (the “representative insured”), annual premium paid on the first day of the first four Policy years of $132,500 with no premium paid thereafter, a $2,000,000 initial specified amount and death benefit Option A. The illustration on that page also assumes cost of insurance charges based on our current cost of insurance rates for the representative insured. Generally, the cost of insurance rises with advancing age.

The illustration for the representative insured on page 56 is based on the same factors as those on page 55, except the cost of insurance charges are based on the guaranteed cost of insurance rates and expenses (based on the Commissioners 2001 Standard Ordinary Tobacco and Non-Tobacco Mortality Tables).

The amounts shown in the illustrations for the death benefits, cash values and net surrender values take into account the amount and timing of all Policy, subaccount and portfolio fees assessed under the Policy. The current illustration uses the current charges, and the guaranteed illustration uses the guaranteed charges. These charges are:

(1)	the daily charge for assuming mortality and expense risks assessed against each subaccount. This charge is currently equivalent to an annual charge of 0.50% of the average net assets of the subaccounts. We guarantee this charge will not be more than 1.00%.

(2)

estimated daily expenses equivalent to an effective arithmetic average annual expense level of 1.19% of the portfolios’ gross average daily net assets. The 1.19% gross average portfolio expense level assumes an equal allocation of amounts among the 62 subaccounts available to new investors. We used annualized actual audited expenses incurred during 2007 for the portfolios to calculate the gross average annual expense level; and

(3)	the premium expense charge (0% Current; 2% Guaranteed) of all premium payments.

The hypothetical returns shown in the tables are provided only to illustrate the mechanics of a hypothetical policy and do not represent past or future investment rates of return. Tax charges that may be attributable to the separate account are not reflected because we are not currently making such charges. If tax charges are deducted in the future, the separate account would have to earn a sufficient amount in excess of 0%, 6% or 10% or cover any tax charges to produce after tax returns of 0%, 6% or 10%. Your actual rates of return for a particular Policy likely will be more or less than the hypothetical investment rates of return. The actual return on your cash value will depend on factors such as the amounts you allocate to particular portfolios, the amounts deducted for the Policy’s monthly charges and other charges, the portfolios’ expense ratios, and your loan and withdrawal history, in addition to the actual investment experience of the portfolios.

We will furnish the owner, upon request, a personalized illustration reflecting the proposed insured’s age, gender, risk classification and desired Policy features. Contact your registered representative or our administrative office. (See prospectus back cover – Inquiries.)

WRL FREEDOM EVOLUTION

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

HYPOTHETICAL ILLUSTRATIONS

MALE ISSUE AGE 55


Specified Amount $2,000,000				Preferred Elite Class (Non-Smoker)
Annual Premium $132,500				Option Type A

Using Current Cost of Insurance Rates


	DEATH BENEFIT Assuming Hypothetical Gross and Net Annual Investment Return of			CASH VALUE Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy Year	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)
1	2,000,000	2,000,000	2,000,000	128,336	136,227	141,489
2	2,000,000	2,000,000	2,000,000	253,812	277,631	294,039
3	2,000,000	2,000,000	2,000,000	376,618	424,609	458,770
4	2,000,000	2,000,000	2,000,000	496,950	577,595	636,918
5	2,000,000	2,000,000	2,000,000	484,268	598,347	685,833
6	2,000,000	2,000,000	2,000,000	470,979	619,313	738,261
7	2,000,000	2,000,000	2,000,000	456,847	640,314	794,370
8	2,000,000	2,000,000	2,000,000	441,739	661,266	854,460
9	2,000,000	2,000,000	2,000,000	425,587	682,150	918,933
10	2,000,000	2,000,000	2,000,000	408,158	702,809	988,134
15	2,000,000	2,000,000	2,000,000	298,128	801,437	1,425,813
20	2,000,000	2,000,000	2,238,265	117,122	873,200	2,091,836
25	*	2,000,000	3,248,871	*	890,096	3,094,163
30 (Age 85)	*	2,000,000	4,781,167	*	773,407	4,553,492
35 (Age 90)	*	2,000,000	6,982,915	*	317,597	6,650,395
40 (Age 95)	*	*	9,840,064	*	*	9,742,637
45 (Age 100)	*	*	14,521,762	*	*	14,521,762
50 (Age 105)	*	*	21,504,907	*	*	21,291,987
55 (Age 110)	*	*	31,418,112	*	*	31,107,041
60 (Age 115)	*	*	46,628,484	*	*	46,166,816
65 (Age 120)	*	*	69,501,483	*	*	68,813,350


	NET SURRENDER VALUE Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy Year	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)
1	128,336	136,227	141,489
2	253,812	277,631	294,039
3	376,618	424,609	458,770
4	496,950	577,595	636,918
5	484,268	598,347	685,833
6	470,979	619,313	738,261
7	456,847	640,314	794,370
8	441,739	661,266	854,460
9	425,587	682,150	918,933
10	408,158	702,809	988,134
15	298,128	801,437	1,425,813
20	117,122	873,200	2,091,836
25	*	890,096	3,094,163
30(Age 85)	*	773,407	4,553,492
35(Age 90)	*	317,597	6,650,395
40(Age 95)	*	*	9,742,637
45(Age 100)	*	*	14,521,762
50(Age 105)	*	*	21,291,987
55(Age 110)	*	*	31,107,041
60(Age 115)	*	*	46,166,816
65(Age 120)	*	*	68,813,350

*	In the absence of an additional payment, the Policy would lapse.

WRL EVOLUTION

WESTERN RESERVE LIFE ASSURANCE CO. OF OHIO

FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE

HYPOTHETICAL ILLUSTRATIONS

MALE ISSUE AGE 55


Specified Amount $2,000,000				Preferred Elite Class (Non-Smoker)
Annual Premium $132,500				Option Type A

Using Guaranteed Cost of Insurance Rates


	DEATH BENEFIT Assuming Hypothetical Gross and Net Annual Investment Return of			CASH VALUE Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy Year	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)
1	2,000,000	2,000,000	2,000,000	116,215	123,673	128,649
2	2,000,000	2,000,000	2,000,000	229,397	251,627	266,956
3	2,000,000	2,000,000	2,000,000	339,773	384,260	415,968
4	2,000,000	2,000,000	2,000,000	447,526	521,959	576,801
5	2,000,000	2,000,000	2,000,000	424,582	529,037	609,360
6	2,000,000	2,000,000	2,000,000	400,517	535,079	643,453
7	2,000,000	2,000,000	2,000,000	374,981	539,746	678,998
8	2,000,000	2,000,000	2,000,000	347,642	542,712	715,963
9	2,000,000	2,000,000	2,000,000	318,251	543,720	754,417
10	2,000,000	2,000,000	2,000,000	286,643	542,582	794,535
15	2,000,000	2,000,000	2,000,000	88,652	496,717	1,028,816
20	*	2,000,000	2,000,000	*	328,419	1,343,616
25	*	*	2,000,000	*	*	1,819,607
30 (Age 85)	*	*	2,717,737	*	*	2,588,321
35 (Age 90)	*	*	3,815,136	*	*	3,633,463
40 (Age 95)	*	*	5,177,051	*	*	5,125,793
45 (Age 100)	*	*	7,465,455	*	*	7,465,455
50 (Age 105)	*	*	10,761,130	*	*	10,654,584
55 (Age 110)	*	*	15,273,212	*	*	15,121,992
60 (Age 115)	*	*	22,111,849	*	*	21,892,920
65 (Age 120)	*	*	32,204,777	*	*	31,885,918


	NET SURRENDER VALUE Assuming Hypothetical Gross and Net Annual Investment Return of
End of Policy Year	0% (Gross) -1.19% (Net)	6% (Gross) 4.81% (Net)	10% (Gross) 8.81% (Net)
1	116,215	123,673	128,649
2	229,397	251,627	266,956
3	339,773	384,260	415,968
4	447,526	521,959	576,801
5	424,582	529,037	609,360
6	400,517	535,079	643,453
7	374,981	539,746	678,998
8	347,642	542,712	715,963
9	318,251	543,720	754,417
10	286,643	542,582	794,535
15	88,652	496,717	1,028,816
20	*	328,419	1,343,616
25	*	*	1,819,607
30(Age 85)	*	*	2,588,321
35(Age 90)	*	*	3,633,463
40(Age 95)	*	*	5,125,793
45(Age 100)	*	*	7,465,455
50(Age 105)	*	*	10,654,584
55(Age 110)	*	*	15,121,992
60(Age 115)	*	*	21,892,920
65(Age 120)	*	*	31,885,918

*	In the absence of an additional payment, the Policy would lapse.

Prospectus Back Cover

Personalized Illustrations of Policy Benefits

In order to help you understand how your Policy values could vary over time under different sets of assumptions, we will provide you, without charge and upon request, with certain personalized hypothetical illustrations showing the death benefit, net surrender value and cash value. These hypothetical illustrations will be based on the age and insurance risk characteristics of the insured persons under your Policy and such factors as the specified amount, death benefit option, premium payment amounts, and hypothetical rates of return (within limits) that you request. The illustrations are not a representation or guarantee of investment returns or cash value.

Inquiries

To learn more about the Policy, you should read the SAI dated the same date as this prospectus. The SAI has been filed with the SEC and is incorporated herein by reference. The table of contents of the SAI is included near the end of this prospectus.

For a free copy of the SAI, for other information about the Policy, and to obtain personalized illustrations, please contact your registered representative, or our administrative office at:


		Western Reserve Life
		570 Carillon Parkway
		St. Petersburg, Florida 33716
		1-800-851-9777
		Facsimile: 1-727-299-1620 (or, for transfers only – 1-727-299-1648)
		(Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern time)
		www.westernreserve.com

More information about the Registrant (including the SAI) may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. For information on the operation of the Public Reference Room, please contact the SEC at 202-551-8090. You may also obtain copies of reports and other information about the Registrant on the SEC’s website at http://www.sec.gov and copies of this information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, D.C. 20549. The Registrant’s file numbers are listed below.

TCI serves as the principal underwriter for the Policies. More information about TCI is available at http://www.finra.org or by calling

1-800-289-9999. You also can obtain an investor brochure from the Financial Industry Regulatory Authority (“FINRA”) (formerly, NASD) describing its Public Disclosure Program.

SEC File No. 333-149387

AG05555-05/08

STATEMENT OF ADDITIONAL INFORMATION

May 22, 2008

WRL EVOLUTION

issued through

WRL Series Life Account G

Western Reserve Life Assurance Co. of Ohio

Administrative Office:

570 Carillon Parkway

St. Petersburg, Florida 33716

1-800-851-9777

(727) 299-1800

Direct all payments by check and all correspondence

and notices to the Mailing Address:

4333 Edgewood Road, N.E.

Cedar Rapids, Iowa 52499

This Statement of Additional Information (“SAI”) expands upon subjects discussed in the current prospectus for the WRL Evolution, a flexible premium variable life insurance policy offered by Western Reserve Life Assurance Co. of Ohio. You may obtain a copy of the prospectus dated May 22,2008, by calling our administrative office at 1-800-851-9777 (Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern time), or by writing to the mailing address at, Western Reserve Life, 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499. The prospectus sets forth information that a prospective investor should know before investing in a Policy. Terms used in this SAI have the same meanings as in the prospectus for the Policy.

This SAI is not a prospectus and should be read only in conjunction with the prospectuses for the Policy and the Transamerica Series Trust – Initial Class, the Fidelity Variable Insurance Products Funds – Service Class 2 Shares, the ProFunds, and the Access One Trust.

Table of Contents


Glossary		1
The Policy – General Provisions		4
Ownership Rights		4
Our Right to Contest the Policy		5
Suicide Exclusion		5
Misstatement of Age or Gender		5
Modifying the Policy		5
Mixed and Shared Funding		5
Additional Information		6
Additional Information about Western Reserve and the Separate Account		6
Legal Matters		6
Variations in Policy Provisions		6
Personalized Illustrations of Policy Benefits		7
Sale of the Policies		7
Reports to Owners		7
Records		8
Independent Registered Public Accounting Firm		8
Experts		8
Financial Statements		8
Underwriters		8
Underwriting Standards		8
IMSA		9
Performance Data		9
Other Performance Data in Advertising Sales Literature		9
Western Reserve’s Published Ratings		9
Index to Financial Statements		10
WRL Series Life Account G		10
Western Reserve Life Assurance Co. of Ohio		10

Glossary


accounts		The options to which you can allocate your money. The accounts include the fixed account and the subaccounts in the separate account.

administrative office		Our administrative office address is P.O. Box 5068, Clearwater, Florida, 33758-5068. Our street address is 570 Carillon Parkway, St. Petersburg, Florida, 33716. Our phone number is 1-800-851-9777; our facsimile numbers are 1-727-299-1620 and 1-727-299-1648 (for transfers only). Our administrative office serves as the recipient of all website (www.westernreserve.com), facsimile and telephonic transactions, including, but not limited to transfer requests and premium payments made by wire transfer and through electronic credit and debit transactions (e.g., payments through direct deposit, debit transfers, and forms of e-commerce payments). Our hours are Monday - Friday from 8:30 a.m. - 7:00 p.m. Eastern time. Please do not send any checks, correspondence or notices to this office; send them to the mailing address.

attained age		The issue age of the person insured, plus the number of completed years since the Policy date (for the initial specified amount) or the date of each increase in specified amount.

beneficiary(ies)		The person or persons you select to receive the death benefit proceeds from the Policy. You name the primary beneficiary and contingent beneficiaries.

cash value		At the end of any valuation period, the sum of your Policy’s value in the subaccounts and the fixed account. If there is a Policy loan outstanding, the cash value includes any amounts held in our fixed account to secure the Policy loan.

death benefit proceeds		The amount we will pay to the beneficiary(ies) on the insured’s death. We will reduce the death benefit proceeds by the amount of any outstanding loan amount, including any accrued loan interest, and any due and unpaid monthly deductions.

fixed account		An allocation option other than the separate account to which you may allocate net premiums and cash value. We guarantee that any amounts you allocate to the fixed account will earn interest at a declared rate. The fixed account is part of our general account.

free-look period		The period during which you may return the Policy and receive a refund as described in the prospectus. The length of the free-look period varies by state. The free-look period is listed in the Policy.

funds		Investment companies which are registered with the U.S. Securities and Exchange Commission. The Policy allows you to invest in the portfolios of the funds through our subaccounts.

in force		While coverage under the Policy is active and the insured’s life remains insured.

initial premium		The amount you must pay before insurance coverage begins under the Policy. The initial premium is shown on the schedule pages of your Policy.

insured		The person whose life is insured by the Policy.

issue age		The insured’s age on his or her birthday on or prior to the Policy date. When you increase the Policy’s specified amount of insurance coverage, the issue age for the new layer of specified amount coverage is the insured’s age on his or her birthday on or prior to the date that the increase in specified amount takes effect. This age may be different from the attained age on other layers of specified amount coverage.


lapse		When life insurance coverage ends and the Policy terminates because you do not have enough cash value in the Policy to pay the monthly deductions and any outstanding loan amount, including accrued loan interest, and you have not made a sufficient payment by the end of a grace period.

loan reserve account		A part of the fixed account to which amounts are transferred as collateral for Policy loans.

mailing address		Our mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa, 52499. All premium payments and loan repayments made by check, correspondence and notices must be sent to this address.

Monthiversary		This is the day of each month when we determine Policy charges and deduct them from cash value. It is the same date each month as the Policy date. If there is no valuation date in the calendar month that coincides with the Policy date, the Monthiversary is the next valuation date.

monthly deductions		The monthly cost of insurance, plus the portion of the monthly deduction for benefits provided by optional riders attached to the Policy, if any, which are deducted from the Policy’s cash value on each Monthiversary.

mortality and expense risk charge		This charge is a daily deduction from each subaccount that is taken before determining the unit value of that subaccount.

net premium		The part of your premium that we allocate to the fixed account or the subaccounts. The net premium is equal to the premium you paid minus the premium expense charge.

net surrender value		The amount we will pay you if you surrender the Policy while it is in force. The net surrender value on the date you surrender is equal to: the cash value minus any outstanding loan amount and accrued loan interest.

NYSE		The New York Stock Exchange.

planned periodic premium		A premium payment you make in a level amount at a fixed interval over a specified period of time.

Policy		The WRL Evolution variable life insurance policy without any supplemental riders (benefits).

Policy date		The date when our underwriting process is complete, full life insurance coverage goes into effect, the initial premium payment has been received, and we begin to take the monthly deductions. The Policy date is shown on the schedule pages of your Policy. If you request, we may backdate a Policy by assigning a Policy date earlier than the date the Policy is issued. We measure Policy months, years, and anniversaries from the Policy date.

portfolio		One of the separate investment portfolios of a fund.

premiums		All payments you make under the Policy other than loan repayments.

premium expense charge		The charge that is deducted from each premium payment before determining the net premium that will be credited to the cash value.


reallocation account		That portion of the fixed account where we hold the net premium(s) until the reallocation date.

reallocation date		The date we reallocate all cash value held in the reallocation account to the fixed account and subaccounts you selected on your application. We place your net premium in the reallocation account (or as mandated by state law) only if your state requires us to return the full premium in the event you exercise your free-look right. In those states, the reallocation date is the later of the Policy date or the record date, plus fifteen days. In all other states, the reallocation date is the later of the Policy date or the record date.

record date		The date we record your Policy on our books. The record date is generally the Policy date, unless the Policy is backdated.

separate account		The WRL Series Life Account G is a separate investment account that is divided into subaccounts. We established the separate account to receive and invest net premiums under the Policy and other variable life insurance policies we issue.

specified amount		The initial specified amount of life insurance that you have selected is shown on the Policy’s schedule pages that you receive when the Policy is issued. The specified amount in force is the initial specified amount, adjusted for any increases or decreases in the Policy’s specified amount. Other events such as a request to increase or decrease the specified amount, change in death benefit option or a cash withdrawal (if you choose death benefit Option A or if you choose death benefit Option C and the insured is attained age 71 or greater) may also affect the specified amount in force.

subaccount		A subdivision of the separate account that invests exclusively in shares of one investment portfolio of a fund.

termination		When the insured’s life is no longer insured under the Policy or any rider, and the Policy or any rider is no longer in force.

valuation date		Each day the New York Stock Exchange is open for normal trading. Western Reserve is open for business whenever the New York Stock Exchange is open.

valuation period		The period of time over which we determine the change in the value of the subaccounts. Each valuation period begins at the close of normal trading on the New York Stock Exchange (usually 4:00 p.m. Eastern time on each valuation date) and ends at the close of normal trading of the New York Stock Exchange on the next valuation date.

we, us, our (Western Reserve)		Western Reserve Life Assurance Co. of Ohio.

written notice		The written notice you must sign and send us to request or exercise your rights as owner under the Policy. To be complete, it must: (1) be in a form we accept, (2) contain the information and documentation that we determine we need to take the action you request, and (3) be received at our mailing address.

you, your (owner or policyowner)		The person entitled to exercise all rights as owner under the Policy.

In order to supplement the description in the prospectus, the following provides additional information about Western Reserve and the Policy, which may be of interest to a prospective purchaser.

The Policy – General Provisions

Ownership Rights


Changing the Owner		Change the owner by providing written notice at our mailing address at any time while the insured is alive and the Policy is in force.

		Change is effective as of the date that the written notice is accepted by us at our mailing address.

		Changing the owner does not automatically change the beneficiary.

		Changing the owner may have tax consequences. You should consult a tax advisor before changing the owner.

		We are not liable for payments we made before we received the written notice at our mailing address.

Choosing the Beneficiary		The owner designates the beneficiary (the person to receive the death benefit when the insured dies) in the application.

		If the owner designates more than one beneficiary, then each beneficiary shares equally in any death benefit proceeds unless the beneficiary designation states otherwise.

		If the beneficiary dies before the insured, then any contingent beneficiary becomes the beneficiary.

		If both the beneficiary and contingent beneficiary die before the insured, then the death benefit will be paid to the owner or the owner’s estate upon the insured’s death.

Changing the Beneficiary		The owner changes the beneficiary by providing written notice to us at our mailing address.
		Change is effective as of the date the owner signs the written notice.

		We are not liable for any payments we made before we received the written notice at our mailing address.

Assigning the Policy		The owner may assign Policy rights while the insured is alive.
		The owner retains any ownership rights that are not assigned.

		Assignee may not change the owner or the beneficiary, and may not elect or change an optional method of payment. Any amount payable to the assignee will be paid in a lump sum.

		Claims under any assignment are subject to proof of interest and the extent of the assignment.

		We are not:

		• bound by any assignment unless we receive a written notice of the assignment at our mailing address;

		• responsible for the validity of any assignment;

		• liable for any payment we made before we received written notice of the assignment at our mailing address; or

		• bound by any assignment which results in adverse tax consequences to the owner, insured(s) or beneficiary(ies).



		Assigning the Policy may have tax consequences. You should consult a tax advisor before assigning the Policy.

Our Right to Contest the Policy

In issuing the Policy, we rely on all statements made by or for the insured in the application or in a supplemental application. Therefore, if you make any material misrepresentation of a fact in the application (or any supplemental application), then we may contest the Policy’s validity or may resist a claim under the Policy for two years from the Policy date. For any portion of the specified amount that is issued as a result of a conversion, the contestability period is measured from the later of the policy date of the policy that was converted or the latest effective date of reinstatement of the converted policy.

A new two year contestability period shall apply to each increase in specified amount that requires evidence of insurability, beginning on the effective date of each increase and will apply only to statements made in the application for the increase.

In the absence of fraud, we cannot bring any legal action to contest the validity of the Policy after the Policy, or requested increase that requires evidence of insurability, has been in force during the insured’s lifetime for two years from the Policy date, or if reinstated, for two years from the date of reinstatement.

Suicide Exclusion

If the insured commits suicide, while sane or insane, within two years of the Policy date (or two years from the reinstatement date, if the Policy lapses and is reinstated), the Policy will terminate and our liability is limited to an amount equal to the premiums paid, less any outstanding loan amount, and less any cash withdrawals. We will pay this amount to the beneficiary in one sum. For any portion of the specified amount that is issued as a result of a conversion, the suicide period is measured from the later of the policy date of the policy that was converted or the latest effective date of reinstatement of the converted policy.

If the insured commits suicide, while sane or insane, within two years from the effective date of any increase in specified amount that requires evidence of insurability, our liability with respect to such increase will be limited to its cost of insurance charges.

Misstatement of Age or Gender

If the age or gender of the insured was stated incorrectly in the application or any supplemental application, then the death benefit will be adjusted based on what the cost of insurance charge for the most recent monthly deduction would have purchased based on the insured’s correct age and gender.

Modifying the Policy

Only our President or Secretary may modify the Policy or waive any of our rights or requirements under the Policy. Any modification or waiver must be in writing. No registered representative may bind us by making any promise not contained in the Policy.

If we modify the Policy, we will provide you notice and we will make appropriate endorsements to the Policy.

Mixed and Shared Funding

In addition to the separate account, shares of the portfolios are also sold to other separate accounts that we (or our affiliates) establish to support variable annuity contracts and variable life insurance policies. It is possible that, in the future, it may become disadvantageous for variable life insurance separate accounts and variable annuity separate accounts to invest in the portfolios simultaneously. Neither the funds nor we currently foresee any such

disadvantages, either to variable life insurance policyowners or to variable annuity contract owners. However, the funds’ Board of Directors/Trustees will monitor events in order to identify any material conflicts between the interests of such variable life insurance policyowners and variable annuity contract owners, and will determine what action, if any, it should take. Such action could include the sale of portfolio shares by one or more of the separate accounts, which could have adverse consequences. Material conflicts could result from, for example, (1) changes in state insurance laws, (2) changes in federal income tax laws, or (3) differences in voting instructions between those given by variable life insurance policyowners and those given by variable annuity contract owners.

If a fund’s Board of Directors/Trustees were to conclude that separate funds should be established for variable life insurance and variable annuity separate accounts, Western Reserve will bear the attendant expenses, but variable life insurance policyowners and variable annuity contract owners would no longer have the economies of scale resulting from a larger combined fund.

Additional Information

Additional Information about Western Reserve and the Separate Account

Western Reserve is a stock life insurance company and is 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 N.V. of the Netherlands, a public company under Dutch law. Western Reserve’s administrative office is located at 570 Carillon Parkway, St. Petersburg, Florida 33716-1202 and the mailing address is 4333 Edgewood Road, N.E., Cedar Rapids, Iowa 52499.

Western Reserve was initially incorporated in 1957 under the laws of Ohio and is subject to regulation by the Insurance Department of the State of Ohio, as well as by the insurance departments of all other states and jurisdictions in which it does business. Western Reserve is licensed to sell insurance in all states (except New York), Puerto Rico, Guam, and in the District of Columbia. Western Reserve submits annual statements on its operations and finances to insurance officials in all states and jurisdictions in which it does business. The Policy described in the prospectus has been filed with, and where required, approved by, insurance officials in those jurisdictions in which it is sold.

Western Reserve established the separate account as a separate investment account under Ohio law in 2002. We own the assets in the separate account and are obligated to pay all benefits under the Policies. The separate account is used to support other life insurance policies of Western Reserve, as well as for other purposes permitted by law. The separate account is registered with the SEC as a unit investment trust under the 1940 Act and qualifies as a “separate account” within the meaning of the federal securities laws.

Western Reserve holds the assets of the separate account physically segregated and apart from the general account. Western Reserve maintains records of all purchases and sales of portfolio shares by each of the subaccounts. A blanket bond was issued to AEGON USA, Inc. (“AEGON USA”) in the aggregate amount of $12 million, covering all of the employees of AEGON USA and its affiliates, including Western Reserve. A Stockbrokers Blanket Bond, issued to AEGON U.S.A. Securities, Inc. providing fidelity coverage, covers the activities of registered representatives of Transamerica Capital, Inc. (“TCI”) to a limit of $10 million.

Legal Matters

Sutherland Asbill & Brennan LLP, of Washington, D.C., has provided legal advice to Western Reserve regarding certain matters under the federal securities laws that relate to the Policy. Arthur D. Woods, Vice President and Senior Counsel of Western Reserve, has provided legal advice on certain matters in connection with the issuance of the Policy.

Variations in Policy Provisions

Certain provisions of the Policy may vary from the descriptions in the prospectus, depending on when and where the Policy was issued, in order to comply with different state laws. These variations may include differences in charges or Policy features may be unavailable or known by a different name. Please refer to your Policy, since any variations will be included in your Policy or in riders or endorsements attached to your Policy.

Personalized Illustrations of Policy Benefits

In order to help you understand how your Policy values would vary over time under different sets of assumptions, we will provide you with certain personalized illustrations upon request. These will be based on the age and insurance risk characteristics of the insured persons under your Policy and such factors as the specified amount, death benefit option, premium payment amounts, and rates of return (within limits) that you request.

The illustrations are not a representation or guarantee of investment returns or cash value. You may request illustrations that reflect the expenses of the portfolios in which you intend to invest.

Sale of the Policies

We currently offer the Policies on a continuous basis. We anticipate continuing to offer the Policies, but reserve the right to discontinue the offering.

Our affiliate TCI serves as principal underwriter for the Policies. TCI’s home office is located at 4600 S. Syracuse Street, Suite 1100, Denver, Colorado 80237. TCI is an affiliate of Western Reserve and, like Western Reserve, is an indirect, wholly owned subsidiary of AEGON USA. TCI is registered as a broker-dealer with the Securities and Exchange Commission under the Securities Exchange Act of 1934 and is a member of NASD, Inc. TCI is not a member of the Securities Investor Protection Corporation.

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 TCI. Sales representatives are appointed as our insurance agents. Under circumstances in which the product is purchased through an investment advisor, the advisory firm may also be a registered broker-dealer.

During fiscal year 2007, $44,112,185 was paid to TCI, and $21,215,096 was paid to AFSG Securities Corporation (“AFSG”)–the principal underwriter for the Policies before May 1, 2007, in connection with all Policies sold through the separate account. During 2006 and 2005, there were no amounts paid to TCI or AFSG in connection with Policies sold through the separate account because the separate account did not exist during those years. TCI will pass through commissions it receives to selling firms for their sales and will not retain any portion of them. Our parent company provides capital distributions to TCI and pays for TCI’s operating and other expenses, including overhead, legal and accounting fees.

We and/or TCI or our affiliate, InterSecurities, Inc., may pay certain selling firms additional cash amounts for: (1) “preferred product” treatment of the Policies in their marketing programs, 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 incurred by them. 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.

Reports to Owners

At least once each year, or more often as required by law, we will mail to policyowners at their last known address a report showing the following information as of the end of the report period:

•

the current cash value

•

the current net surrender value

•

the current death benefit

•

outstanding loans

•

any activity since the last report

•

projected values

•

investment experience of each subaccount

•

any other information required by law

You may request additional copies of reports, but we may charge a fee for such additional copies. In addition, we will send written confirmations of any premium payments and other financial transactions you request including: changes in specified amount, changes in death benefit option, transfers, partial withdrawals, increases in loan amount, loan interest payments, loan repayments, lapses and reinstatements. We also will send copies of the annual and semi-annual report to shareholders for each portfolio in which you are indirectly invested.

Records

We will maintain all records relating to the separate account and the fixed account.

Independent Registered Public Accounting Firm

The financial statements of the separate account as of December 31, 2007, and the statutory-basis financial statements and schedules of Western Reserve at December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, appearing herein, have been audited by Ernst & Young LLP, 801 Grand Avenue, Suite 3000, Des Moines, Iowa 50309, independent registered public accounting firm, as set forth in their respective reports thereon appearing elsewhere herein, and are included in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing.

Experts

Actuarial matters included in this SAI have been examined by Lorne Schinbein, Senior Vice President and Managing Actuary of Western Reserve, located at 570 Carillon Parkway, St. Petersburg, Florida 33716, as stated in the opinion filed as an exhibit to the registration statement.

Financial Statements

Western Reserve’s statutory-basis financial statements and schedules, which include the Report of Independent Registered Public Accounting Firm, appear on the following pages. These statutory-basis financial statements and schedules should be distinguished from the separate account’s financial statements and you should consider these statutory-basis financial statements and schedules only as bearing upon Western Reserve’s ability to meet our obligations under the Policies. You should not consider our statutory-basis financial statements and schedules as bearing upon the investment performance of the assets held in the separate account.

Western Reserve’s statutory-basis financial statements and schedules at December 31, 2007 and 2006, and for each of the three years in the period ended December 31, 2007, have been prepared on the basis of statutory accounting principles rather than U.S. generally accepted accounting principles.

The separate account’s financial statements, which include the Report of Independent Registered Public Accounting Firm, also appear on the following pages.

Underwriters

Underwriting Standards

The Policy uses mortality tables that distinguish between men and women. As a result, the Policy pays different benefits to men and women of the same age. Montana prohibits our use of actuarial tables that distinguish between males and females to determine premiums and policy benefits for policies issued on the lives of its residents. Therefore, we will base the premiums and benefits in Policies that we issue in Montana, to insure residents of that state, on actuarial tables that do not differentiate on the basis of gender.

Your cost of insurance charge will vary by the insured’s gender, issue age on the Policy date, issue age at the time of any increase in specified amount, rate band, length of time from the Policy date or from the date of any increase in specified amount, and rate class. We currently place insureds into the following rate classes:

preferred elite;

preferred plus;

preferred;

non-tobacco;

preferred tobacco; and

tobacco.

We also place insureds in various sub-standard rate classes, which involve a higher mortality risk and higher charges. We generally charge higher rates for insureds who use tobacco.

IMSA

We are a member of the Insurance Marketplace Standards Association (“IMSA”). IMSA is an independent, voluntary organization of life insurance companies. It promotes high ethical standards in the sales and advertising of individual life insurance, long-term care insurance and annuity products. Through its Principles and Code of Ethical Market Conduct, IMSA encourages its member companies to develop and implement policies and procedures to promote sound market practices. Companies must undergo a rigorous self and independent assessment of their practices to become a member of IMSA. The IMSA logo in our sales literature shows our ongoing commitment to these standards. You may find more information about IMSA and its ethical standards at www.imsaethics.org in the “Consumer” section or by contacting IMSA at 240-497-2900.

Performance Data

Other Performance Data in Advertising Sales Literature

We may compare each subaccount’s performance to the performance of other variable life issuers in general; variable life insurance policies which invest in mutual funds with similar investment objectives and policies, as reported by Lipper Analytical Services, Inc. (“Lipper”) and Morningstar, Inc. (“Morningstar”); and other services, companies, individuals, or industry or financial publications (e.g., Forbes, Money, The Wall Street Journal, Business Week, Barron’s, Kiplinger’s Personal Finance, and Fortune);

•

Lipper and Morningstar rank variable annuity contracts and variable life policies. Their performance analysis ranks such policies and contracts on the basis of total return, and assumes reinvestment of distributions; but it does not show sales charges, redemption fees or certain expense deductions at the separate account level.

the Standard & Poor’s Index of 500 Common Stocks, or other widely recognized indices;

•

unmanaged indices may assume the reinvestment of dividends, but usually do not reflect deductions for the expenses of operating or managing an investment portfolio; or

other types of investments, such as:

•

certificates of deposit;

•

savings accounts and U.S. Treasuries;

•

certain interest rate and inflation indices (e.g., the Consumer Price Index); or

•

indices measuring the performance of a defined group of securities recognized by investors as representing a particular segment of the securities markets (e.g., Donoghue Money Market Institutional Average, Lehman Brothers Corporate Bond Index, or Lehman Brothers Government Bond Index).

Western Reserve’s Published Ratings

We may publish in advertisements, sales literature, or reports we send to you the ratings and other information that an independent ratings organization assigns to us. These organizations include: A.M. Best Company, Moody’s Investors Service, Inc., Standard & Poor’s Insurance Rating Services, and Fitch Ratings. These ratings are opinions regarding an operating insurance company’s financial capacity to meet the obligations of its insurance policies in accordance with their terms. These ratings do not apply to the separate account, the subaccounts, the funds or their portfolios, or to their performance.

Index to Financial Statements

WRL Series Life Account G

Report of Independent Registered Public Accounting Firm, dated March 21, 2008

Statements of Assets and Liabilities at December 31, 2007

Statements of Operations for the year ended December 31, 2007

Notes to the Financial Statements

Western Reserve Life Assurance Co. of Ohio

Report of Independent Registered Public Accounting Firm, dated March 28, 2008

Balance Sheets Statutory-Basis at December 31, 2007 and 2006

Statements of Operations Statutory-Basis for the years ended December 31, 2007, 2006 and 2005

Statements of Changes in Capital and Surplus Statutory-Basis for the years ended December 31, 2007, 2006 and 2005

Statements of Cash Flow Statutory-Basis for the years ended December 31, 2007, 2006 and 2005

Notes to Financial Statements–Statutory-Basis

Statutory-Basis Financial Statement Schedules

Report of Independent Registered Public Accounting Firm

The Board of Directors and Contract Owners

of WRL Series Life Account G,

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statements of assets and liabilities of the subaccounts of Western Reserve Life Assurance Co. of Ohio Series Life Account G (comprised of the Transamerica Money Market, Transamerica Value Balanced, Transamerica Balanced, Transamerica Convertible Securities, Transamerica Equity, Transamerica Growth Opportunities, Transamerica Small/Mid Cap Value, Transamerica U.S. Government Securities, JPMorgan Core Bond, Templeton Transamerica Global, Van Kampen Mid-Cap Growth, Federated Market Opportunity, BlackRock Large Cap Value, MFS International Equity, Third Avenue Value, Clarion Global Real Estate Securities, Marsico Growth, Munder Net50, T.Rowe Price Equity Income, T.Rowe Price Small Cap, Legg Mason Partners All Cap, Transamerica Science & Technology, Asset Allocation-Conservative, Asset Allocation-Moderate, Asset Allocation-Moderate Growth, Asset Allocation – Growth, PIMCO Total Return Bond, MFS High Yield, Capital Guardian Value, JPMorgan Enhanced Index, International Moderate Growth Fund, Fidelity VIP Index 500, ProFund VP Bull, ProFund VP NASDAQ-100, ProFund VP Small-Cap, ProFund VP Short Small-Cap, ProFund VP Money Market, Access VP High Yield, ProFund VP Europe 30, ProFund VP Oil & Gas, ProFund VP Ultra Small-Cap, ProFund VP Utilities, ProFund VP Consumer Services, ProFund VP Pharmaceuticals, ProFund VP Small-Cap Value, ProFund VP Asia 30, ProFund VP Japan, ProFund VP Short NASDAQ-100, ProFund VP U.S. Government Plus, ProFund VP Basic Materials, ProFund VP Financials, ProFund VP Precious Metals, ProFund VP Telecommunications, ProFund VP Falling US Dollar, ProFund VP Emerging Markets, ProFund VP International, ProFund VP Mid-Cap, ProFund VP Short Emerging Markets, and ProFund VP Short International subaccounts) as of December 31, 2007, and the related statements of operations and changes in net assets for the periods indicated thereon. These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

S - 1

Separate Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007 by correspondence with the mutual funds’ transfer agents. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the respective subaccounts comprising the Western Reserve Life Assurance Co. of Ohio Series Life Account G at December 31, 2007, and the results of their operations and changes in their net assets for the periods indicated thereon, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

Des Moines, Iowa

March 21, 2008

S - 2

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Transamerica Money Market Subaccount		Transamerica Value Balanced Subaccount		Transamerica Balanced Subaccount		Transamerica Convertible Securities Subaccount		Transamerica Equity Subaccount
Assets
Investment in securities:
Number of shares		0.020		8,911.546		43,359.196		—		256.177

Cost	$	—	$	131,039	$	580,591	$	—	$	7,309

Investments in mutual funds, at net asset value	$	—	$	126,455	$	594,021	$	—	$	7,404
Receivable for units sold		—		—		—		—		—

Total assets		—		126,455		594,021		—		7,404

Liabilities
Payable for units redeemed		—		—		—		—		1

	$	—	$	126,455	$	594,021	$	—	$	7,403

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	126,455	$	594,021	$	—	$	7,403

Total net assets	$	—	$	126,455	$	594,021	$	—	$	7,403

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		12,172		54,507		—		654

Accumulation unit value:
M&E - 1.65%	$	10.036252	$	10.093173	$	10.256377	$	10.035649	$	10.449404

M&E - 3.20%	$	10.139072	$	10.389332	$	10.898099	$	11.461522	$	11.319809

See accompanying notes.

S - 3

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Transamerica Growth Opportunities Subaccount		Transamerica Small/Mid Cap Value Subaccount		Transamerica U.S. Government Securities Subaccount		JPMorgan Core Bond Subaccount		Templeton Transamerica Global Subaccount
Assets
Investment in securities:
Number of shares		6,478.569		5,028.561		18,520.884		—		—

Cost	$	113,677	$	114,781	$	220,253	$	—	$	—

Investments in mutual funds, at net asset value	$	117,780	$	111,131	$	222,251	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		117,780		111,131		222,251		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	117,780	$	111,131	$	222,251	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	117,780	$	111,131	$	222,251	$	—	$	—

Total net assets	$	117,780	$	111,131	$	222,251	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		9,974		9,292		21,858		—		—

Accumulation unit value:
M&E - 1.65%	$	9.865371	$	10.079710	$	10.037965	$	10.064633	$	10.220470

M&E - 3.20%	$	11.808290	$	11.960097	$	10.167770	$	—	$	—

See accompanying notes.

S - 4

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Van Kampen Mid-Cap Growth Subaccount		Federated Market Opportunity Subaccount		BlackRock Large Cap Value Subaccount		MFS International Equity Subaccount		Third Avenue Value Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	10.104525	$	9.905078	$	10.285353	$	10.070085	$	9.906495

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 5

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Clarion Global Real Estate Securities Subaccount		Marsico Growth Subaccount		Munder Net50 Subaccount		T. Rowe Price Equity Income Subaccount		T. Rowe Price Small Cap Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.579375	$	10.199726	$	10.064769	$	10.063751	$	10.057703

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 6

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Legg Mason Partners All Cap Subaccount		Transamerica Science & Technology Subaccount		Asset Allocation - Conservative Subaccount		Asset Allocation - Moderate Subaccount		Asset Allocation - Moderate Growth Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	10.110474	$	10.530488	$	10.005512	$	10.026010	$	10.029265

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 7

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	Asset Allocation - Growth Subaccount		PIMCO Total Return Bond Subaccount		MFS High Yield Subaccount		Capital Guardian Value Subaccount		JPMorgan Enhanced Index Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	10.023030	$	10.136019	$	9.967988	$	9.673421	$	10.077490

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 8

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	International Moderate Growth Fund Subaccount		Fidelity VIP Index 500 Subaccount		ProFund VP Bull Subaccount		ProFund VP NASDAQ-100 Subaccount		ProFund VP Small-Cap Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.943594	$	10.117256	$	10.106925	$	10.277403	$	9.911555

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 9

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	ProFund VP Short Small-Cap Subaccount		ProFund VP Money Market Subaccount		Access VP High Yield Subaccount		ProFund VP Europe 30 Subaccount		ProFund VP Oil & Gas Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.999645	$	10.018893	$	10.215922	$	9.962522	$	11.033257

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 10

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	ProFund VP Ultra Small-Cap Subaccount		ProFund VP Utilities Subaccount		ProFund VP Consumer Services Subaccount		ProFund VP Pharmaceuticals Subaccount		ProFund VP Small-Cap Value Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.703563	$	10.269217	$	9.737401	$	9.870840	$	9.792387

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 11

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	ProFund VP Asia 30 Subaccount		ProFund VP Japan Subaccount		ProFund VP Short NASDAQ-100 Subaccount		ProFund VP U.S. Government Plus Subaccount		ProFund VP Basic Materials Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.900938	$	9.979331	$	9.718985	$	10.177834	$	10.737587

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 12

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	ProFund VP Financials Subaccount		ProFund VP Precious Metals Subaccount		ProFund VP Telecommunications Subaccount		ProFund VP Falling US Dollar Subaccount		ProFund VP Emerging Markets Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—		—

Cost	$	—	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—		—

Total assets		—		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—		—

	$	—	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—		—

M&E - 3.20%		—		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.529076	$	10.117937	$	10.142132	$	9.941945	$	10.097173

M&E - 3.20%	$	—	$	—	$	—	$	—	$	—

See accompanying notes.

S - 13

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Assets and Liabilities

December 31, 2007


	ProFund VP International Subaccount		ProFund VP Mid-Cap Subaccount		ProFund VP Short Emerging Markets Subaccount		ProFund VP Short International Subaccount
Assets
Investment in securities:
Number of shares		—		—		—		—

Cost	$	—	$	—	$	—	$	—

Investments in mutual funds, at net asset value	$	—	$	—	$	—	$	—
Receivable for units sold		—		—		—		—

Total assets		—		—		—		—

Liabilities
Payable for units redeemed		—		—		—		—

	$	—	$	—	$	—	$	—

Net Assets:
Deferred annuity contracts terminable by owners	$	—	$	—	$	—	$	—

Total net assets	$	—	$	—	$	—	$	—

Accumulation units outstanding:
M&E - 1.65%		—		—		—		—

M&E - 3.20%		—		—		—		—

Accumulation unit value:
M&E - 1.65%	$	9.917929	$	10.019830	$	9.693888	$	10.023772

M&E - 3.20%	$	—	$	—	$	—	$	—

See accompanying notes.

S - 14

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Transamerica Money Market Subaccount		Transamerica Value Balanced Subaccount			Transamerica Balanced Subaccount			Transamerica Convertible Securities Subaccount			Transamerica Equity Subaccount
Net investment income (loss)
Income:
Dividends	$	—	$	2,483		$	5,450		$	—		$	—
Expenses:
Administrative, mortality and expense risk charge		—		1,835			8,967			—			47

Net investment income (loss)		—		648			(3,517	)		—			(47	)
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		1,527			2,099			—			—
Proceeds from sales		200		16,558			49,427			199			3,967
Cost of investments sold		200		16,974			47,858			200			3,938

Net realized capital gains (losses) on investments		—		1,111			3,668			(1	)		29
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—			—			—			—
End of period		—		(4,584	)		13,430			—			95

Net change in unrealized appreciation/depreciation of investments		—		(4,584	)		13,430			—			95

Net realized and unrealized capital gains (losses) on investments		—		(3,473	)		17,098			(1	)		124

Increase (decrease) in net assets from operations	$	—	$	(2,825	)	$	13,581		$	(1	)	$	77

See accompanying notes.

S - 15

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Transamerica Growth Opportunities Subaccount			Transamerica Small/Mid Cap Value Subaccount			Transamerica U.S. Government Securities Subaccount			JPMorgan Core Bond Subaccount ⁽¹⁾		Templeton Transamerica Global Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	49		$	909		$	9,302		$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		1,870			1,780			3,524			—		—

Net investment income (loss)		(1,821	)		(871	)		5,778			—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		7,833			8,422			—			—		—
Proceeds from sales		5,745			5,657			10,827			100		100
Cost of investments sold		5,349			5,672			10,979			100		100

Net realized capital gains (losses) on investments		8,229			8,407			(152	)		—		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—			—			—			—		—
End of period		4,103			(3,650	)		1,998			—		—

Net change in unrealized appreciation/depreciation of investments		4,103			(3,650	)		1,998			—		—

Net realized and unrealized capital gains (losses) on investments		12,332			4,757			1,846			—		—

Increase (decrease) in net assets from operations	$	10,511		$	3,886		$	7,624		$	—	$	—

See accompanying notes.

S - 16

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Van Kampen Mid-Cap Growth Subaccount ⁽¹⁾		Federated Market Opportunity Subaccount ⁽¹⁾		BlackRock Large Cap Value Subaccount ⁽¹⁾		MFS International Equity Subaccount ⁽¹⁾		Third Avenue Value Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—		—		—

Net investment income (loss)		—		—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—		—		—
Proceeds from sales		101		100		101		100		100
Cost of investments sold		100		100		100		100		100

Net realized capital gains (losses) on investments		1		—		1		—		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—		—		—
End of period		—		—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—		—		—

Net realized and unrealized capital gains (losses) on investments		1		—		1		—		—

Increase (decrease) in net assets from operations	$	1	$	—	$	1	$	—	$	—

See accompanying notes.

S - 17

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Clarion Global Real Estate Securities Subaccount ⁽¹⁾			Marsico Growth Subaccount ⁽¹⁾		Munder Net50 Subaccount ⁽¹⁾		T. Rowe Price Equity Income Subaccount ⁽¹⁾		T. Rowe Price Small Cap Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—		$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—			—		—		—		—

Net investment income (loss)		—			—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—		—		—		—
Proceeds from sales		99			100		100		100		100
Cost of investments sold		100			100		100		100		100

Net realized capital gains (losses) on investments		(1	)		—		—		—		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—			—		—		—		—
End of period		—			—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—			—		—		—		—

Net realized and unrealized capital gains (losses) on investments		(1	)		—		—		—		—

Increase (decrease) in net assets from operations	$	(1	)	$	—	$	—	$	—	$	—

See accompanying notes.

S - 18

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Legg Mason Partners All Cap Subaccount ⁽¹⁾		Transamerica Science & Technology Subaccount ⁽¹⁾		Asset Allocation - Conservative Subaccount ⁽¹⁾		Asset Allocation - Moderate Subaccount ⁽¹⁾		Asset Allocation - Moderate Growth Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—		—		—

Net investment income (loss)		—		—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—		—		—
Proceeds from sales		101		101		100		100		100
Cost of investments sold		100		100		100		100		100

Net realized capital gains (losses) on investments		1		1		—		—		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—		—		—
End of period		—		—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—		—		—

Net realized and unrealized capital gains (losses) on investments		1		1		—		—		—

Increase (decrease) in net assets from operations	$	1	$	1	$	—	$	—	$	—

See accompanying notes.

S - 19

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	Asset Allocation - Growth Subaccount ⁽¹⁾		PIMCO Total Return Bond Subaccount ⁽¹⁾		MFS High Yield Subaccount ⁽¹⁾		Capital Guardian Value Subaccount ⁽¹⁾		JPMorgan Enhanced Index Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—		—		—

Net investment income (loss)		—		—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—		—		—
Proceeds from sales		100		100		100		100		101
Cost of investments sold		100		100		100		100		100

Net realized capital gains (losses) on investments		—		—		—		—		1
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—		—		—
End of period		—		—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—		—		—

Net realized and unrealized capital gains (losses) on investments		—		—		—		—		1

Increase (decrease) in net assets from operations	$	—	$	—	$	—	$	—	$	1

See accompanying notes.

S - 20

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	International Moderate Growth Fund Subaccount ⁽¹⁾		Fidelity VIP Index 500 Subaccount ⁽¹⁾		ProFund VP Bull Subaccount ⁽¹⁾		ProFund VP NASDAQ-100 Subaccount ⁽¹⁾		ProFund VP Small-Cap Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—		—		—

Net investment income (loss)		—		—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—		—		—
Proceeds from sales		100		101		101		101		100
Cost of investments sold		100		100		100		100		100

Net realized capital gains (losses) on investments		—		1		1		1		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—		—		—
End of period		—		—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—		—		—

Net realized and unrealized capital gains (losses) on investments		—		1		1		1		—

Increase (decrease) in net assets from operations	$	—	$	1	$	1	$	1	$	—

See accompanying notes.

S - 21

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	ProFund VP Short Small-Cap Subaccount ⁽¹⁾		ProFund VP Money Market Subaccount ⁽¹⁾		Access VP High Yield Subaccount ⁽¹⁾		ProFund VP Europe 30 Subaccount ⁽¹⁾		ProFund VP Oil & Gas Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—		—		—

Net investment income (loss)		—		—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—		—		—
Proceeds from sales		100		100		100		100		102
Cost of investments sold		100		100		100		100		100

Net realized capital gains (losses) on investments		—		—		—		—		2
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—		—		—
End of period		—		—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—		—		—

Net realized and unrealized capital gains (losses) on investments		—		—		—		—		2

Increase (decrease) in net assets from operations	$	—	$	—	$	—	$	—	$	2

See accompanying notes.

S - 22

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	ProFund VP Ultra Small-Cap Subaccount ⁽¹⁾			ProFund VP Utilities Subaccount ⁽¹⁾		ProFund VP Consumer Services Subaccount ⁽¹⁾		ProFund VP Pharmaceuticals Subaccount ⁽¹⁾		ProFund VP Small-Cap Value Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—		$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—			—		—		—		—

Net investment income (loss)		—			—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—		—		—		—
Proceeds from sales		99			100		100		101		99
Cost of investments sold		100			100		100		100		100

Net realized capital gains (losses) on investments		(1	)		—		—		1		(1	)
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—			—		—		—		—
End of period		—			—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—			—		—		—		—

Net realized and unrealized capital gains (losses) on investments		(1	)		—		—		1		(1	)

Increase (decrease) in net assets from operations	$	(1	)	$	—	$	—	$	1	$	(1	)

See accompanying notes.

S - 23

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	ProFund VP Asia 30 Subaccount ⁽¹⁾		ProFund VP Japan Subaccount ⁽¹⁾		ProFund VP Short NASDAQ-100 Subaccount ⁽¹⁾			ProFund VP U.S. Government Plus Subaccount ⁽¹⁾		ProFund VP Basic Materials Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—		$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—			—		—

Net investment income (loss)		—		—		—			—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—			—		—
Proceeds from sales		100		100		99			100		100
Cost of investments sold		100		100		100			100		99

Net realized capital gains (losses) on investments		—		—		(1	)		—		1
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—			—		—
End of period		—		—		—			—		—

Net change in unrealized appreciation/depreciation of investments		—		—		—			—		—

Net realized and unrealized capital gains (losses) on investments		—		—		(1	)		—		1

Increase (decrease) in net assets from operations	$	—	$	—	$	(1	)	$	—	$	1

See accompanying notes.

S - 24

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	ProFund VP Financials Subaccount ⁽¹⁾			ProFund VP Precious Metals Subaccount ⁽¹⁾		ProFund VP Telecommunications Subaccount ⁽¹⁾		ProFund VP Falling US Dollar Subaccount ⁽¹⁾		ProFund VP Emerging Markets Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—		$	—	$	—	$	—	$	—
Expenses:
Administrative, mortality and expense risk charge		—			—		—		—		—

Net investment income (loss)		—			—		—		—		—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—			—		—		—		—
Proceeds from sales		99			101		101		100		102
Cost of investments sold		100			100		100		100		100

Net realized capital gains (losses) on investments		(1	)		1		1		—		2
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—			—		—		—		—
End of period		—			—		—		—		—

Net change in unrealized appreciation/depreciation of investments		—			—		—		—		—

Net realized and unrealized capital gains (losses) on investments		(1	)		1		1		—		2

Increase (decrease) in net assets from operations	$	(1	)	$	1	$	1	$	—	$	2

See accompanying notes.

S - 25

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Statements of Operations

For the Period March 12, 2007 through December 31, 2007, except as noted


	ProFund VP International Subaccount ⁽¹⁾		ProFund VP Mid-Cap Subaccount ⁽¹⁾		ProFund VP Short Emerging Markets Subaccount ⁽¹⁾			ProFund VP Short International Subaccount ⁽¹⁾
Net investment income (loss)
Income:
Dividends	$	—	$	—	$	—		$	—
Expenses:
Administrative, mortality and expense risk charge		—		—		—			—

Net investment income (loss)		—		—		—			—
Net realized and unrealized capital gains (losses) on investments
Net realized capital gains (losses) on investments:
Realized gain distributions		—		—		—			—
Proceeds from sales		100		100		98			100
Cost of investments sold		100		100		100			100

Net realized capital gains (losses) on investments		—		—		(2	)		—
Net change in unrealized appreciation/depreciation of investments:
Beginning of period		—		—		—			—
End of period		—		—		—			—

Net change in unrealized appreciation/depreciation of investments		—		—		—			—

Net realized and unrealized capital gains (losses) on investments		—		—		(2	)		—

Increase (decrease) in net assets from operations	$	—	$	—	$	(2	)	$	—

See accompanying notes.

S - 26

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	Transamerica Money Market Subaccount			Transamerica Value Balanced Subaccount				Transamerica Balanced Subaccount				Transamerica Convertible Securities Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—		$	648			$	(3,517	)		$	—
Net realized capital gains (losses) on investments		—			1,111				3,668				(1	)
Net change in unrealized appreciation/depreciation of investments		—			(4,584	)			13,430				—

Increase (decrease) in net assets from operations		—			(2,825	)			13,581				(1	)
Contract transactions
Net contract purchase payments		—			—				—				—
Transfer payments from (to) other subaccounts or general account		—			129,280				580,440				1
Contract terminations, withdrawals, and other deductions		—			—				—				—
Contract maintenance charges		—			—				—				—

Increase (decrease) in net assets from contract transactions		—			129,280				580,440				1

Net increase (decrease) in net assets		—			126,455				594,021				—
Net assets:
Beginning of the period		—			—				—				—

End of the period	$	—		$	126,455			$	594,021			$	—

See accompanying notes.

S - 27

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted

Transamerica Equity
Subaccount

Transamerica Growth
Opportunities
Subaccount

Transamerica Small/
Mid Cap Value
Subaccount

Transamerica U.S.
Government
Securities Subaccount

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

Operations

Net investment income (loss)

(47

)

(1,821

)

(871

)

5,778

Net realized capital gains (losses) on investments

8,229

8,407

(152

)

Net change in unrealized appreciation/depreciation of investments

4,103

(3,650

)

1,998

Increase (decrease) in net assets from operations

10,511

3,886

7,624

Contract transactions

Net contract purchase payments

—

Transfer payments from (to) other subaccounts or general account

7,326

107,269

107,245

214,626

Contract terminations, withdrawals, and other deductions

—

Contract maintenance charges

—

Increase (decrease) in net assets from contract transactions

7,326

107,269

107,245

214,627

Net increase (decrease) in net assets

7,403

117,780

111,131

222,251

Net assets:

Beginning of the period

—

End of the period

7,403

117,780

111,131

222,251

See accompanying notes.

S - 28

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	JPMorgan Core Bond Subaccount			Templeton Transamerica Global Subaccount			Van Kampen Mid-Cap Growth Subaccount				Federated Market Opportunity Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006
Operations
Net investment income (loss)	$	—		$	—		$	—			$	—
Net realized capital gains (losses) on investments		—			—			1				—
Net change in unrealized appreciation/depreciation of investments		—			—			—				—

Increase (decrease) in net assets from operations		—			—			1				—
Contract transactions
Net contract purchase payments		—			—			—				—
Transfer payments from (to) other subaccounts or general account		—			—			(1	)			—
Contract terminations, withdrawals, and other deductions		—			—			—				—
Contract maintenance charges		—			—			—				—

Increase (decrease) in net assets from contract transactions		—			—			(1	)			—

Net increase (decrease) in net assets		—			—			—				—
Net assets:
Beginning of the period		—			—			—				—

End of the period	$	—		$	—		$	—			$	—

See accompanying notes.

S - 29

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	BlackRock Large Cap Value Subaccount				MFS International Equity Subaccount			Third Avenue Value Subaccount			Clarion Global Real Estate Securities Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—			$	—		$	—		$	—
Net realized capital gains (losses) on investments		1				—			—			(1	)
Net change in unrealized appreciation/depreciation of investments		—				—			—			—

Increase (decrease) in net assets from operations		1				—			—			(1	)
Contract transactions
Net contract purchase payments		—				—			—			—
Transfer payments from (to) other subaccounts or general account		(1	)			—			—			1
Contract terminations, withdrawals, and other deductions		—				—			—			—
Contract maintenance charges		—				—			—			—

Increase (decrease) in net assets from contract transactions		(1	)			—			—			1

Net increase (decrease) in net assets		—				—			—			—
Net assets:
Beginning of the period		—				—			—			—

End of the period	$	—			$	—		$	—		$	—

See accompanying notes.

S - 30

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted

Marsico Growth
Subaccount

Munder Net50
Subaccount

T. Rowe Price
Equity Income
Subaccount

T. Rowe Price
Small Cap
Subaccount

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

Operations

Net investment income (loss)

—

Net realized capital gains (losses) on investments

—

Net change in unrealized appreciation/depreciation of investments

—

Increase (decrease) in net assets from operations

—

Contract transactions

Net contract purchase payments

—

Transfer payments from (to) other subaccounts or general account

—

Contract terminations, withdrawals, and other deductions

—

Contract maintenance charges

—

Increase (decrease) in net assets from contract transactions

—

Net increase (decrease) in net assets

—

Net assets:

Beginning of the period

—

End of the period

—

See accompanying notes.

S - 31

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	Legg Mason Partners All Cap Subaccount				Transamerica Science & Technology Subaccount				Asset Allocation - Conservative Subaccount			Asset Allocation - Moderate Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006
Operations
Net investment income (loss)	$	—			$	—			$	—		$	—
Net realized capital gains (losses) on investments		1				1				—			—
Net change in unrealized appreciation/depreciation of investments		—				—				—			—

Increase (decrease) in net assets from operations		1				1				—			—
Contract transactions
Net contract purchase payments		—				—				—			—
Transfer payments from (to) other subaccounts or general account		(1	)			(1	)			—			—
Contract terminations, withdrawals, and other deductions		—				—				—			—
Contract maintenance charges		—				—				—			—

Increase (decrease) in net assets from contract transactions		(1	)			(1	)			—			—

Net increase (decrease) in net assets		—				—				—			—
Net assets:
Beginning of the period		—				—				—			—

End of the period	$	—			$	—			$	—		$	—

See accompanying notes.

S - 32

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted

Asset Allocation -
Moderate Growth
Subaccount

Asset Allocation -
Growth Subaccount

PIMCO Total
Return Bond
Subaccount

MFS High Yield
Subaccount

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

2007 ⁽¹⁾

2006

Operations

Net investment income (loss)

—

Net realized capital gains (losses) on investments

—

Net change in unrealized appreciation/depreciation of investments

—

Increase (decrease) in net assets from operations

—

Contract transactions

Net contract purchase payments

—

Transfer payments from (to) other subaccounts or general account

—

Contract terminations, withdrawals, and other deductions

—

Contract maintenance charges

—

Increase (decrease) in net assets from contract transactions

—

Net increase (decrease) in net assets

—

Net assets:

Beginning of the period

—

End of the period

—

See accompanying notes.

S - 33

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	Capital Guardian Value Subaccount			JPMorgan Enhanced Index Subaccount				International Moderate Growth Fund Subaccount			Fidelity VIP Index 500 Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—		$	—			$	—		$	—
Net realized capital gains (losses) on investments		—			1				—			1
Net change in unrealized appreciation/depreciation of investments		—			—				—			—

Increase (decrease) in net assets from operations		—			1				—			1
Contract transactions
Net contract purchase payments		—			—				—			—
Transfer payments from (to) other subaccounts or general account		—			(1	)			—			(1	)
Contract terminations, withdrawals, and other deductions		—			—				—			—
Contract maintenance charges		—			—				—			—

Increase (decrease) in net assets from contract transactions		—			(1	)			—			(1	)

Net increase (decrease) in net assets		—			—				—			—
Net assets:
Beginning of the period		—			—				—			—

End of the period	$	—		$	—			$	—		$	—

See accompanying notes.

S - 34

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Bull Subaccount				ProFund VP NASDAQ-100 Subaccount				ProFund VP Small-Cap Subaccount			ProFund VP Short Small-Cap Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006
Operations
Net investment income (loss)	$	—			$	—			$	—		$	—
Net realized capital gains (losses) on investments		1				1				—			—
Net change in unrealized appreciation/depreciation of investments		—				—				—			—

Increase (decrease) in net assets from operations		1				1				—			—
Contract transactions
Net contract purchase payments		—				—				—			—
Transfer payments from (to) other subaccounts or general account		(1	)			(1	)			—			—
Contract terminations, withdrawals, and other deductions		—				—				—			—

Contract maintenance charges		—				—				—			—

Increase (decrease) in net assets from contract transactions		(1	)			(1	)			—			—
Net increase (decrease) in net assets		—				—				—			—
Net assets:
Beginning of the period		—				—				—			—

End of the period	$	—			$	—			$	—		$	—

See accompanying notes.

S - 35

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Money Market Subaccount			Access VP High Yield Subaccount			ProFund VP Europe 30 Subaccount			ProFund VP Oil & Gas Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—		$	—		$	—		$	—
Net realized capital gains (losses) on investments		—			—			—			2
Net change in unrealized appreciation/depreciation of investments		—			—			—			—

Increase (decrease) in net assets from operations		—			—			—			2
Contract transactions
Net contract purchase payments		—			—			—			—
Transfer payments from (to) other subaccounts or general account		—			—			—			(2	)
Contract terminations, withdrawals, and other deductions		—			—			—			—
Contract maintenance charges		—			—			—			—

Increase (decrease) in net assets from contract transactions		—			—			—			(2	)

Net increase (decrease) in net assets		—			—			—			—
Net assets:
Beginning of the period		—			—			—			—

End of the period	$	—		$	—		$	—		$	—

See accompanying notes.

S - 36

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Ultra Small-Cap Subaccount				ProFund VP Utilities Subaccount			ProFund VP Consumer Services Subaccount			ProFund VP Pharmaceuticals Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—			$	—		$	—		$	—
Net realized capital gains (losses) on investments		(1	)			—			—			1
Net change in unrealized appreciation/depreciation of investments		—				—			—			—

Increase (decrease) in net assets from operations		(1	)			—			—			1
Contract transactions
Net contract purchase payments		—				—			—			—
Transfer payments from (to) other subaccounts or general account		1				—			—			(1	)
Contract terminations, withdrawals, and other deductions		—				—			—			—
Contract maintenance charges		—				—			—			—

Increase (decrease) in net assets from contract transactions		1				—			—			(1	)

Net increase (decrease) in net assets		—				—			—			—
Net assets:
Beginning of the period		—				—			—			—

End of the period	$	—			$	—		$	—		$	—

See accompanying notes.

S - 37

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Small-Cap Value Subaccount				ProFund VP Asia 30 Subaccount			ProFund VP Japan Subaccount			ProFund VP Short NASDAQ-100 Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—			$	—		$	—		$	—
Net realized capital gains (losses) on investments		(1	)			—			—			(1	)
Net change in unrealized appreciation/depreciation of investments		—				—			—			—

Increase (decrease) in net assets from operations		(1	)			—			—			(1	)
Contract transactions
Net contract purchase payments		—				—			—			—
Transfer payments from (to) other subaccounts or general account		1				—			—			1
Contract terminations, withdrawals, and other deductions		—				—			—			—
Contract maintenance charges		—				—			—			—

Increase (decrease) in net assets from contract transactions		1				—			—			1

Net increase (decrease) in net assets		—				—			—			—
Net assets:
Beginning of the period		—				—			—			—

End of the period	$	—			$	—		$	—		$	—

See accompanying notes.

S - 38

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP U.S. Government Plus Subaccount			ProFund VP Basic Materials Subaccount				ProFund VP Financials Subaccount				ProFund VP Precious Metals Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾			2006
Operations
Net investment income (loss)	$	—		$	—			$	—			$	—
Net realized capital gains (losses) on investments		—			1				(1	)			1
Net change in unrealized appreciation/depreciation of investments		—			—				—				—

Increase (decrease) in net assets from operations		—			1				(1	)			1
Contract transactions
Net contract purchase payments		—			—				—				—
Transfer payments from (to) other subaccounts or general account		—			(1	)			1				(1	)
Contract terminations, withdrawals, and other deductions		—			—				—				—
Contract maintenance charges		—			—				—				—

Increase (decrease) in net assets from contract transactions		—			(1	)			1				(1	)

Net increase (decrease) in net assets		—			—				—				—
Net assets:
Beginning of the period		—			—				—				—

End of the period	$	—		$	—			$	—			$	—

See accompanying notes.

S - 39

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Telecommunications Subaccount				ProFund VP Falling US Dollar Subaccount			ProFund VP Emerging Markets Subaccount				ProFund VP International Subaccount
	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006
Operations
Net investment income (loss)	$	—			$	—		$	—			$	—
Net realized capital gains (losses) on investments		1				—			2				—
Net change in unrealized appreciation/depreciation of investments		—				—			—				—

Increase (decrease) in net assets from operations		1				—			2				—
Contract transactions
Net contract purchase payments		—				—			—				—
Transfer payments from (to) other subaccounts or general account		(1	)			—			(2	)			—
Contract terminations, withdrawals, and other deductions		—				—			—				—
Contract maintenance charges		—				—			—				—

Increase (decrease) in net assets from contract transactions		(1	)			—			(2	)			—

Net increase (decrease) in net assets		—				—			—				—
Net assets:
Beginning of the period		—				—			—				—

End of the period	$	—			$	—		$	—			$	—

See accompanying notes.

S - 40

WRL Series Life Account G

Statements of Changes in Net Assets

Year Ended December 31, 2007, Except as Noted


	ProFund VP Mid-Cap Subaccount			ProFund VP Short Emerging Markets Subaccount				ProFund VP Short International Subaccount
	2007 ⁽¹⁾		2006	2007 ⁽¹⁾			2006	2007 ⁽¹⁾		2006
Operations
Net investment income (loss)	$	—		$	—			$	—
Net realized capital gains (losses) on investments		—			(2	)			—
Net change in unrealized appreciation/depreciation of investments		—			—				—

Increase (decrease) in net assets from operations		—			(2	)			—
Contract transactions
Net contract purchase payments		—			—				—
Transfer payments from (to) other subaccounts or general account		—			2				—
Contract terminations, withdrawals, and other deductions		—			—				—
Contract maintenance charges		—			—				—

Increase (decrease) in net assets from contract transactions		—			2				—

Net increase (decrease) in net assets		—			—				—
Net assets:
Beginning of the period		—			—				—

End of the period	$	—		$	—			$	—

See accompanying notes.

S - 41

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

1. Organization and Summary of Significant Accounting Policies

Organization

The WRL Series Life Account G (the “Life Account”) was established as a variable accumulation deferred annuity separate account of Western Reserve Life Assurance Co. of Ohio (“WRL”) and is registered as a unit investment trust under the Investment Company Act of 1940, as amended.

The Life Account contains multiple investment options referred to as subaccounts. Each subaccount invests exclusively in the corresponding portfolio of a fund. The Life Account contains multiple subaccounts (collectively referred to as the “Series Funds”). Each is registered as an open-ended management investment company under the Investment Company Act of 1940, as amended.

Subaccount Investment by Fund:

AEGON/Transamerica Series Fund, Inc.:

Transamerica Money Market-Initial Class

Transamerica Value Balanced-Initial Class

Transamerica Balanced-Initial Class

Transamerica Convertible Securities-Initial Class

Transamerica Equity-Initial Class

Transamerica Growth Opportunities-Initial Class

Transamerica Small/Mid Cap Value-Initial Class

Transamerica U.S. Government Securities-Initial Class

JPMorgan Core Bond-Initial Class

Templeton Transamerica Global-Initial Class

Van Kampen Mid-Cap Growth-Initial Class

Federated Market Opportunity-Initial Class

BlackRock Large Cap Value-Initial Class

MFS International Equity-Initial Class

Third Avenue Value-Initial Class

Clarion Global Real Estate Securities-Initial Class

Marsico Growth-Initial Class

Munder Net50-Initial Class

T. Rowe Price Equity Income-Initial Class

T. Rowe Price Small Cap-Initial Class

Legg Mason Partners All Cap-Initial Class

Transamerica Science & Technology-Initial Class

Asset Allocation - Conservative-Initial Class

Asset Allocation - Moderate-Initial Class

Asset Allocation - Moderate Growth-Initial Class

Asset Allocation - Growth-Initial Class

PIMCO Total Return Bond-Initial Class

MFS High Yield-Initial Class

Capital Guardian Value-Initial Class

JPMorgan Enhanced Index-Initial Class

International Moderate Growth Fund-Initial Class

S - 42

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

1. Organization and Summary of Significant Accounting Policies (continued)

Fidelity Variable Insurance Products Fund (VIP):

Fidelity VIP Index 500-SC II

ProFunds Trust - Initial Class:

ProFund VP Bull

ProFund VP NASDAQ-100

ProFund VP Small-Cap

ProFund VP Short Small-Cap

ProFund VP Money Market

Access VP High Yield

ProFund VP Europe 30

ProFund VP Oil & Gas

ProFund VP Ultra Small-Cap

ProFund VP Utilities

ProFund VP Consumer Services

ProFund VP Pharmaceuticals

ProFund VP Small-Cap Value

ProFund VP Asia 30

ProFund VP Japan

ProFund VP Short NASDAQ-100

ProFund VP U.S. Government Plus

ProFund VP Basic Materials

ProFund VP Financials

ProFund VP Precious Metals

ProFund VP Telecommunications

ProFund VP Falling US Dollar

ProFund VP Emerging Markets

ProFund VP International

ProFund VP Mid-Cap

ProFund VP Short Emerging Markets

ProFund VP Short International

Each period reported on reflects inception to December 31, 2007. The inception dates are as follows:


Subaccount		Inception Date
Transamerica Money Market-Initial Class		March 12, 2007
Transamerica Value Balanced-Initial Class		March 12, 2007
Transamerica Balanced-Initial Class		March 12, 2007
Transamerica Convertible Securities-Initial Class		March 12, 2007
Transamerica Equity-Initial Class		March 12, 2007
Transamerica Growth Opportunities-Initial Class		March 12, 2007
Transamerica Small/Mid Cap Value-Initial Class		March 12, 2007
Transamerica U.S. Government Securities-Initial Class		March 12, 2007
JPMorgan Core Bond-Initial Class		November 15, 2007
Templeton Transamerica Global-Initial Class		November 15, 2007

S - 43

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

1. Organization and Summary of Significant Accounting Policies (continued)


Van Kampen Mid-Cap Growth-Initial Class		November 15, 2007
Federated Market Opportunity-Initial Class		November 15, 2007
BlackRock Large Cap Value-Initial Class		November 15, 2007
MFS International Equity-Initial Class		November 15, 2007
Third Avenue Value-Initial Class		November 15, 2007
Clarion Global Real Estate Securities-Initial Class		November 15, 2007
Marsico Growth-Initial Class		November 15, 2007
Munder Net50-Initial Class		November 15, 2007
T. Rowe Price Equity Income-Initial Class		November 15, 2007
T. Rowe Price Small Cap-Initial Class		November 15, 2007
Legg Mason Partners All Cap-Initial Class		November 15, 2007
Transamerica Science & Technology-Initial Class		November 15, 2007
Asset Allocation - Conservative-Initial Class		November 15, 2007
Asset Allocation - Moderate-Initial Class		November 15, 2007
Asset Allocation - Moderate Growth-Initial Class		November 15, 2007
Asset Allocation - Growth-Initial Class		November 15, 2007
PIMCO Total Return Bond-Initial Class		November 15, 2007
MFS High Yield-Initial Class		November 15, 2007
Capital Guardian Value-Initial Class		November 15, 2007
JPMorgan Enhanced Index-Initial Class		November 15, 2007
International Moderate Growth Fund-Initial Class		November 15, 2007
Fidelity VIP Index 500-SC II		November 15, 2007
ProFund VP Bull		November 15, 2007
ProFund VP NASDAQ-100		November 15, 2007
ProFund VP Small-Cap		November 15, 2007
ProFund VP Short Small-Cap		November 15, 2007
ProFund VP Money Market		November 15, 2007
Access VP High Yield		November 15, 2007
ProFund VP Europe 30		November 15, 2007
ProFund VP Oil & Gas		November 15, 2007
ProFund VP Ultra Small-Cap		November 15, 2007
ProFund VP Utilities		November 15, 2007
ProFund VP Consumer Services		November 15, 2007
ProFund VP Pharmaceuticals		November 15, 2007
ProFund VP Small-Cap Value		November 15, 2007
ProFund VP Asia 30		November 15, 2007
ProFund VP Japan		November 15, 2007
ProFund VP Short NASDAQ-100		November 15, 2007
ProFund VP U.S. Government Plus		November 15, 2007
ProFund VP Basic Materials		November 15, 2007
ProFund VP Financials		November 15, 2007
ProFund VP Precious Metals		November 15, 2007
ProFund VP Telecommunications		November 15, 2007
ProFund VP Falling US Dollar		November 15, 2007

S - 44

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

1. Organization and Summary of Significant Accounting Policies (continued)


ProFund VP Emerging Markets		November 15, 2007
ProFund VP International		November 15, 2007
ProFund VP Mid-Cap		November 15, 2007
ProFund VP Short Emerging Markets		November 15, 2007
ProFund VP Short International		November 15, 2007

Investments

Net purchase payments received by the Life Account are invested in the portfolios of the Series Funds, as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2007.

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

Dividend Income

Dividends received from the Series Funds investments are reinvested to purchase additional mutual fund shares.

S - 45

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

2. Investments

The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2007 were as follows:


	Purchases		Sales
AEGON/Transamerica Series Fund, Inc.:
Transamerica Money Market-Initial Class	$	200	$	200
Transamerica Value Balanced-Initial Class		148,013		16,558
Transamerica Balanced-Initial Class		628,449		49,427
Transamerica Convertible Securities-Initial Class		200		199
Transamerica Equity-Initial Class		11,247		3,967
Transamerica Growth Opportunities-Initial Class		119,026		5,745
Transamerica Small/Mid Cap Value-Initial Class		120,453		5,657
Transamerica U.S. Government Securities-Initial Class		231,232		10,827
JPMorgan Core Bond-Initial Class		100		100
Templeton Transamerica Global-Initial Class		100		100
Van Kampen Mid-Cap Growth-Initial Class		100		101
Federated Market Opportunity-Initial Class		100		100
BlackRock Large Cap Value-Initial Class		100		101
MFS International Equity-Initial Class		100		100
Third Avenue Value-Initial Class		100		100
Clarion Global Real Estate Securities-Initial Class		100		99
Marsico Growth-Initial Class		100		100
Munder Net50-Initial Class		100		100
T. Rowe Price Equity Income-Initial Class		100		100
T. Rowe Price Small Cap-Initial Class		100		100
Legg Mason Partners All Cap-Initial Class		100		101
Transamerica Science & Technology-Initial Class		100		101
Asset Allocation - Conservative-Initial Class		100		100
Asset Allocation - Moderate-Initial Class		100		100
Asset Allocation - Moderate Growth-Initial Class		100		100
Asset Allocation - Growth-Initial Class		100		100
PIMCO Total Return Bond-Initial Class		100		100
MFS High Yield-Initial Class		100		100
Capital Guardian Value-Initial Class		100		100
JPMorgan Enhanced Index-Initial Class		100		101
International Moderate Growth Fund-Initial Class		100		100
Fidelity Variable Insurance Products Fund (VIP) Fidelity VIP Index 500-SC II		100		101
ProFunds Trust - Initial Class
ProFund VP Bull		100		101
ProFund VP NASDAQ-100		100		101
ProFund VP Small-Cap		100		100
ProFund VP Short Small-Cap		100		100
ProFund VP Money Market		100		100
Access VP High Yield		100		100

S - 46

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

2. Investments (continued)


	Purchases		Sales
ProFund VP Europe 30	$	100	$	100
ProFund VP Oil & Gas		100		102
ProFund VP Ultra Small-Cap		100		99
ProFund VP Utilities		100		100
ProFund VP Consumer Services		100		100
ProFund VP Pharmaceuticals		100		101
ProFund VP Small-Cap Value		100		99
ProFund VP Asia 30		100		100
ProFund VP Japan		100		100
ProFund VP Short NASDAQ-100		100		99
ProFund VP U.S. Government Plus		100		100
ProFund VP Basic Materials		99		100
ProFund VP Financials		100		99
ProFund VP Precious Metals		100		101
ProFund VP Telecommunications		100		101
ProFund VP Falling US Dollar		100		100
ProFund VP Emerging Markets		100		102
ProFund VP International		100		100
ProFund VP Mid-Cap		100		100
ProFund VP Short Emerging Markets		100		98
ProFund VP Short International		100		100

S - 47

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding

A summary of changes in accumulation units outstanding follows:


	Transamerica Money Market Subaccount⁽¹⁾		Transamerica Value Balanced Subaccount⁽¹⁾		Transamerica Balanced Subaccount⁽¹⁾		Transamerica Convertible Securities Subaccount⁽¹⁾		Transamerica Equity Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	2		13,525		58,145		2		974
Units redeemed and transferred	(2	)	(1,353	)	(3,638	)	(2	)	(320	)

Units outstanding at December 31, 2007	—		12,172		54,507		—		654

S - 48

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	Transamerica Growth Opportunities Subaccount⁽¹⁾		Transamerica Small/Mid Cap Value Subaccount⁽¹⁾		Transamerica U.S. Government Securities Subaccount⁽¹⁾		JPMorgan Core Bond Subaccount⁽¹⁾		Templeton Transamerica Global Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	10,272		9,586		22,579		1		1
Units redeemed and transferred	(298	)	(294	)	(721	)	(1	)	(1	)

Units outstanding at December 31, 2007	9,974		9,292		21,858		—		—

S - 49

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	Van Kampen Mid-Cap Growth Subaccount⁽¹⁾		Federated Market Opportunity Subaccount⁽¹⁾		BlackRock Large Cap Value Subaccount⁽¹⁾		MFS International Equity Subaccount⁽¹⁾		Third Avenue Value Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 50

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	Clarion Global Real Estate Securities Subaccount⁽¹⁾		Marsico Growth Subaccount⁽¹⁾		Munder Net50 Subaccount⁽¹⁾		T. Rowe Price Equity Income Subaccount⁽¹⁾		T. Rowe Price Small Cap Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 51

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	Legg Mason Partners All Cap Subaccount⁽¹⁾		Transamerica Science & Technology Subaccount⁽¹⁾		Asset Allocation - Conservative Subaccount⁽¹⁾		Asset Allocation - Moderate Subaccount⁽¹⁾		Asset Allocation - Moderate Growth Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 52

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	Asset Allocation - Growth Subaccount⁽¹⁾		PIMCO Total Return Bond Subaccount⁽¹⁾		MFS High Yield Subaccount⁽¹⁾		Capital Guardian Value Subaccount⁽¹⁾		JPMorgan Enhanced Index Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 53

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	International Moderate Growth Fund Subaccount⁽¹⁾		Fidelity VIP Index 500 Subaccount⁽¹⁾		ProFund VP Bull Subaccount⁽¹⁾		ProFund VP NASDAQ-100 Subaccount⁽¹⁾		ProFund VP Small-Cap Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 54

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	ProFund VP Short Small-Cap Subaccount⁽¹⁾		ProFund VP Money Market Subaccount⁽¹⁾		Access VP High Yield Subaccount⁽¹⁾		ProFund VP Europe 30 Subaccount⁽¹⁾		ProFund VP Oil & Gas Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 55

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	ProFund VP Ultra Small-Cap Subaccount⁽¹⁾		ProFund VP Utilities Subaccount⁽¹⁾		ProFund VP Consumer Services Subaccount⁽¹⁾		ProFund VP Pharmaceuticals Subaccount⁽¹⁾		ProFund VP Small-Cap Value Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 56

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	ProFund VP Asia 30 Subaccount⁽¹⁾		ProFund VP Japan Subaccount⁽¹⁾		ProFund VP Short NASDAQ-100 Subaccount⁽¹⁾		ProFund VP U.S. Government Plus Subaccount⁽¹⁾		ProFund VP Basic Materials Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 57

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	ProFund VP Financials Subaccount⁽¹⁾		ProFund VP Precious Metals Subaccount⁽¹⁾		ProFund VP Telecommunications Subaccount⁽¹⁾		ProFund VP Falling US Dollar Subaccount⁽¹⁾		ProFund VP Emerging Markets Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—		—
Units purchased	1		1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—		—

S - 58

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

3. Accumulation Units Outstanding (continued)

A summary of changes in accumulation units outstanding follows:


	ProFund VP International Subaccount⁽¹⁾		ProFund VP Mid-Cap Subaccount⁽¹⁾		ProFund VP Short Emerging Markets Subaccount⁽¹⁾		ProFund VP Short International Subaccount⁽¹⁾
Units outstanding at January 1, 2005
Units purchased
Units redeemed and transferred

Units outstanding at January 1, 2007	—		—		—		—
Units purchased	1		1		1		1
Units redeemed and transferred	(1	)	(1	)	(1	)	(1	)

Units outstanding at December 31, 2007	—		—		—		—

S - 59

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

4. Financial Highlights

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


Subaccount	Year Ended		Units	Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*	Expense Ratio Lowest to Highest**					Total Return*** Corresponding to Lowest to Highest Expense Ratio
Transamerica Money Market	12/31/2007	⁽¹⁾	—	$	10.04	to	$	10.14	$	—	—	1.65	%	to	3.20	%	0.36	%	to	1.39	%
Transamerica Value Balanced	12/31/2007	⁽¹⁾	12,172		10.09	to		10.39		126,455	3.52	1.65		to	3.20		0.93		to	3.89
Transamerica Balanced	12/31/2007	⁽¹⁾	54,507		10.26	to		10.90		594,021	1.59	1.65		to	3.20		2.56		to	8.98
Transamerica Convertible Securities	12/31/2007	⁽¹⁾	—		10.04	to		11.46		—	—	1.65		to	3.20		0.36		to	14.62
Transamerica Equity	12/31/2007	⁽¹⁾	654		10.45	to		11.32		7,403	—	1.65		to	3.20		4.49		to	13.20
Transamerica Growth Opportunities	12/31/2007	⁽¹⁾	9,974		9.87	to		11.81		117,780	0.07	1.65		to	3.20		(1.35	)	to	18.08
Transamerica Small/Mid Cap Value	12/31/2007	⁽¹⁾	9,292		10.08	to		11.96		111,131	1.34	1.65		to	3.20		0.80		to	19.60
Transamerica U.S. Government Securities	12/31/2007	⁽¹⁾	21,858		10.04	to		10.17		222,251	6.94	1.65		to	3.20		0.38		to	1.68
JPMorgan Core Bond	12/31/2007	⁽¹⁾	—		10.06	to		10.06		—	—	1.65		to	1.65		0.65		to	0.65
Templeton Transamerica Global	12/31/2007	⁽¹⁾	—		10.22	to		10.22		—	—	1.65		to	1.65		2.20		to	2.20
Van Kampen Mid-Cap Growth	12/31/2007	⁽¹⁾	—		10.10	to		10.10		—	—	1.65		to	1.65		1.05		to	1.05
Federated Market Opportunity	12/31/2007	⁽¹⁾	—		9.91	to		9.91		—	—	1.65		to	1.65		(0.95	)	to	(0.95	)
BlackRock Large Cap Value	12/31/2007	⁽¹⁾	—		10.29	to		10.29		—	—	1.65		to	1.65		2.85		to	2.85
MFS International Equity	12/31/2007	⁽¹⁾	—		10.07	to		10.07		—	—	1.65		to	1.65		0.70		to	0.70
Third Avenue Value	12/31/2007	⁽¹⁾	—		9.91	to		9.91		—	—	1.65		to	1.65		(0.94	)	to	(0.94	)

S - 60

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

4. Financial Highlights (continued)


Subaccount	Year Ended		Units	Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*	Expense Ratio** Lowest to Highest					Total Return*** Corresponding to Lowest to Highest Expense Ratio
Clarion Global Real Estate Securities	12/31/2007	⁽¹⁾	—	$	9.58	to	$	9.58	$	—	—	1.65	%	to	1.65	%	(4.21	)%	to	(4.21	)%
Marsico Growth	12/31/2007	⁽¹⁾	—		10.20	to		10.20		—	—	1.65		to	1.65		2.00		to	2.00
Munder Net50	12/31/2007	⁽¹⁾	—		10.06	to		10.06		—	—	1.65		to	1.65		0.65		to	0.65
T. Rowe Price Equity Income	12/31/2007	⁽¹⁾	—		10.06	to		10.06		—	—	1.65		to	1.65		0.64		to	0.64
T. Rowe Price Small Cap	12/31/2007	⁽¹⁾	—		10.06	to		10.06		—	—	1.65		to	1.65		0.58		to	0.58
Legg Mason Partners All Cap	12/31/2007	⁽¹⁾	—		10.11	to		10.11		—	—	1.65		to	1.65		1.10		to	1.10
Transamerica Science & Technology	12/31/2007	⁽¹⁾	—		10.53	to		10.53		—	—	1.65		to	1.65		5.30		to	5.30
Asset Allocation - Conservative	12/31/2007	⁽¹⁾	—		10.01	to		10.01		—	—	1.65		to	1.65		0.06		to	0.06
Asset Allocation - Moderate	12/31/2007	⁽¹⁾	—		10.03	to		10.03		—	—	1.65		to	1.65		0.26		to	0.26
Asset Allocation - Moderate Growth	12/31/2007	⁽¹⁾	—		10.03	to		10.03		—	—	1.65		to	1.65		0.29		to	0.29
Asset Allocation - Growth	12/31/2007	⁽¹⁾	—		10.02	to		10.02		—	—	1.65		to	1.65		0.23		to	0.23
PIMCO Total Return Bond	12/31/2007	⁽¹⁾	—		10.14	to		10.14		—	—	1.65		to	1.65		1.36		to	1.36
MFS High Yield	12/31/2007	⁽¹⁾	—		9.97	to		9.97		—	—	1.65		to	1.65		(0.32	)	to	(0.32	)
Capital Guardian Value	12/31/2007	⁽¹⁾	—		9.67	to		9.67		—	—	1.65		to	1.65		(3.27	)	to	(3.27	)
JPMorgan Enhanced Index	12/31/2007	⁽¹⁾	—		10.08	to		10.08		—	—	1.65		to	1.65		0.77		to	0.77
International Moderate Growth Fund	12/31/2007	⁽¹⁾	—		9.94	to		9.94		—	—	1.65		to	1.65		(0.56	)	to	(0.56	)
Fidelity VIP Index 500	12/31/2007	⁽¹⁾	—		10.12	to		10.12		—	—	1.65		to	1.65		1.17		to	1.17

S - 61

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

4. Financial Highlights (continued)


Subaccount	Year Ended		Units	Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*	Expense Ratio** Lowest to Highest					Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Bull	12/31/2007	⁽¹⁾	—	$	10.11	to	$	10.11	$	—	—	1.65	%	to	1.65	%	1.07	%	to	1.07	%
ProFund VP NASDAQ-100	12/31/2007	⁽¹⁾	—		10.28	to		10.28		—	—	1.65		to	1.65		2.77		to	2.77
ProFund VP Small-Cap	12/31/2007	⁽¹⁾	—		9.91	to		9.91		—	—	1.65		to	1.65		(0.88	)	to	(0.88	)
ProFund VP Short Small-Cap	12/31/2007	⁽¹⁾	—		10.00	to		10.00		—	—	1.65		to	1.65		(0.00	)	to	(0.00	)
ProFund VP Money Market	12/31/2007	⁽¹⁾	—		10.02	to		10.02		—	—	1.65		to	1.65		0.19		to	0.19
Access VP High Yield	12/31/2007	⁽¹⁾	—		10.22	to		10.22		—	—	1.65		to	1.65		2.16		to	2.16
ProFund VP Europe 30	12/31/2007	⁽¹⁾	—		9.96	to		9.96		—	—	1.65		to	1.65		(0.37	)	to	(0.37	)
ProFund VP Oil & Gas	12/31/2007	⁽¹⁾	—		11.03	to		11.03		—	—	1.65		to	1.65		10.33		to	10.33
ProFund VP Ultra Small-Cap	12/31/2007	⁽¹⁾	—		9.70	to		9.70		—	—	1.65		to	1.65		(2.96	)	to	(2.96	)
ProFund VP Utilities	12/31/2007	⁽¹⁾	—		10.27	to		10.27		—	—	1.65		to	1.65		2.69		to	2.69
ProFund VP Consumer Services	12/31/2007	⁽¹⁾	—		9.74	to		9.74		—	—	1.65		to	1.65		(2.63	)	to	(2.63	)
ProFund VP Pharmaceuticals	12/31/2007	⁽¹⁾	—		9.87	to		9.87		—	—	1.65		to	1.65		(1.29	)	to	(1.29	)
ProFund VP Small-Cap Value	12/31/2007	⁽¹⁾	—		9.79	to		9.79		—	—	1.65		to	1.65		(2.08	)	to	(2.08	)
ProFund VP Asia 30	12/31/2007	⁽¹⁾	—		9.90	to		9.90		—	—	1.65		to	1.65		(0.99	)	to	(0.99	)
ProFund VP Japan	12/31/2007	⁽¹⁾	—		9.98	to		9.98		—	—	1.65		to	1.65		(0.21	)	to	(0.21	)
ProFund VP Short NASDAQ-100	12/31/2007	⁽¹⁾	—		9.72	to		9.72		—	—	1.65		to	1.65		(2.81	)	to	(2.81	)
ProFund VP U.S. Government Plus	12/31/2007	⁽¹⁾	—		10.18	to		10.18		—	—	1.65		to	1.65		1.78		to	1.78

S - 62

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

4. Financial Highlights (continued)


Subaccount	Year Ended		Units	Unit Fair Value Corresponding to Lowest to Highest Expense Ratio					Net Assets		Investment Income Ratio*	Expense Ratio** Lowest to Highest					Total Return*** Corresponding to Lowest to Highest Expense Ratio
ProFund VP Basic Materials	12/31/2007	⁽¹⁾	—	$	10.74	to	$	10.74	$	—	—	1.65	%	to	1.65	%	7.38	%	to	7.38	%
ProFund VP Financials	12/31/2007	⁽¹⁾	—		9.53	to		9.53		—	—	1.65		to	1.65		(4.71	)	to	(4.71	)
ProFund VP Precious Metals	12/31/2007	⁽¹⁾	—		10.12	to		10.12		—	—	1.65		to	1.65		1.18		to	1.18
ProFund VP Telecommunications	12/31/2007	⁽¹⁾	—		10.14	to		10.14		—	—	1.65		to	1.65		1.42		to	1.42
ProFund VP Falling US Dollar	12/31/2007	⁽¹⁾	—		9.94	to		9.94		—	—	1.65		to	1.65		(0.58	)	to	(0.58	)
ProFund VP Emerging Markets	12/31/2007	⁽¹⁾	—		10.10	to		10.10		—	—	1.65		to	1.65		0.97		to	0.97
ProFund VP International	12/31/2007	⁽¹⁾	—		9.92	to		9.92		—	—	1.65		to	1.65		(0.82	)	to	(0.82	)
ProFund VP Mid-Cap	12/31/2007	⁽¹⁾	—		10.02	to		10.02		—	—	1.65		to	1.65		0.20		to	0.20
ProFund VP Short Emerging Markets	12/31/2007	⁽¹⁾	—		9.69	to		9.69		—	—	1.65		to	1.65		(3.06	)	to	(3.06	)
ProFund VP Short International	12/31/2007	⁽¹⁾	—		10.02	to		10.02		—	—	1.65		to	1.65		0.24		to	0.24

These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the underlying Series Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that result in direct reductions in the unit values. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the underlying Series Fund in which the subaccounts invest. These ratios are annualized for periods less than one year.

These ratios represent the annualized contract expenses of the Life Account, consisting primarily of mortality and expense charges. The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the underlying Series Fund are excluded. These charges range from 1.65% to 3.20% of the average contract owner’s account value depending on the options selected. Refer to the product’s prospectus for specific details. Expense ratio(s) for periods of less than one year have been annualized.

***

These amounts represent the total return for the period indicated, including changes in the value of the underlying Series Fund, and reflect deductions for all items included in the expense ratio. The total return does not include any expenses assessed through the redemption of units; inclusion of these expenses in the calculation would result in a reduction in the total return presented. Total returns reflect a full twelve month period except for those subaccounts indicated as being a partial year in the Organization and Summary of Significant Accounting Policies footnote.

S - 63

Western Reserve Life Assurance Co. of Ohio

WRL Series Life Account G

Notes to Financial Statements

December 31, 2007

5. Administrative, Mortality, and Expense Risk Charge

Under some forms of the policies, a sales charge and premium taxes are deducted by WRL prior to allocation of policy owner payments to the subaccounts. Contingent surrender charges may also apply.

Under all forms of the policy, monthly charges against policy cash values are made to compensate WRL for costs of insurance provided.

A daily charge equal to an annual rate from 1.65% and 3.20% of average daily net assets is assessed to compensate WRL for assumption of mortality and expense risks in connection with the issuance and administration of the policies. This charge (not assessed at the individual contract level) effectively reduces the value of a unit outstanding during the year.

6. Income Taxes

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

7. Dividend Distributions

Dividends are not declared by the Life Account, since the increase in the value of the underlying investment in the Series Funds is reflected daily in the accumulation unit price used to calculate the equity value within the Life Account. Consequently, a dividend distribution by the underlying Series Funds does not change either the accumulation unit price or equity values within the Life Account.

S - 64

Report of Independent Registered Public Accounting Firm

The Board of Directors

Western Reserve Life Assurance Co. of Ohio

We have audited the accompanying statutory-basis balance sheets of Western Reserve Life Assurance Co. of Ohio (an indirect wholly-owned subsidiary of AEGON N.V.) as of December 31, 2007 and 2006, and the related statutory-basis statements of operations, changes in capital and surplus, and cash flow for each of the three years in the period ended December 31, 2007. Our audit also included the statutory-basis financial statement schedules required by Regulation S-X, Article 7. These financial statements and schedules are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedules based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

As described in Note 1 to the financial statements, the Company presents its financial statements in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles also are described in Note 1. The effects on the financial statement of these variances are not reasonably determinable but are presumed to be material.

In our opinion, because of the effects of the matter described in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of Western Reserve Life Assurance Co. of Ohio at December 31, 2007 and 2006, or the results of its operations or its cash flow for each of the three years in the period ended December 31, 2007.

G - 1

However, in our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Western Reserve Life Assurance Co. of Ohio at December 31, 2007 and 2006, and the results of its operations and its cash flow for each of the three years in the period ended December 31, 2007, in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance. Also, in our opinion, the related financial statement schedules, when considered in relation to the basic statutory-basis financial statements taken as a whole, present fairly in all material respects the information set forth therein.

As discussed in Note 2 to the financial statements, in 2006 Western Reserve Life Assurance Co. of Ohio changed its accounting for investments in certain low income housing tax credit properties.

March 28, 2008

G - 2

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis

(Dollars in Thousands, Except per Share Amounts)


	December 31
	2007		2006
Admitted assets
Cash and invested assets:
Bonds	$	696,849	$	623,828
Preferred stocks		4,673		4,796
Common stocks of affiliated entities (cost: 2007-$20,659 and 2006-$19,901)		24,397		23,000
Mortgage loans on real estate		24,493		25,548
Home office properties		38,574		39,428
Cash, cash equivalents and short-term investments		45,633		112,307
Policy loans		410,844		344,781
Other invested assets		10,358		11,993

Total cash and invested assets		1,255,821		1,185,681
Net deferred income tax asset		30,879		30,527
Premiums deferred and uncollected		4,970		5,027
Reinsurance receivable		8,579		3,235
Receivable from parent, subsidiaries and affiliates		16,005		31,579
Investment income due and accrued		7,722		6,941
Cash surrender value of life insurance policies		63,948		61,729
Other admitted assets		7,386		7,665
Separate account assets		10,373,595		10,196,130

Total admitted assets	$	11,768,905	$	11,528,514

G - 3

Western Reserve Life Assurance Co. of Ohio

Balance Sheets – Statutory Basis (continued)

(Dollars in Thousands, Except per Share Amounts)


	December 31
	2007			2006
Liabilities and capital and surplus
Liabilities:
Aggregate reserves for policies and contracts:
Life	$	1,055,742		$	986,405
Annuity		596,029			636,572
Life policy and contract claim reserves		15,373			12,884
Liability for deposit-type contracts		16,119			16,456
Other policyholders’ funds		50			50
Remittances and items not allocated		9,202			10,526
Borrowed funds		—			18,885
Federal and foreign income taxes payable		973			9,508
Transfers to separate account due or accrued		(888,410	)		(931,425	)
Asset valuation reserve		7,096			5,858
Funds held under coinsurance and other reinsurance treaties		16,541			16,095
Payable to affiliates		37,892			41,262
Amounts incurred under modified coinsurance agreements		3,607			4,351
Payable for securities		—			865
Unearned investment income		10,472			9,589
Other liabilities		25,921			27,405
Separate account liabilities		10,373,595			10,196,130

Total liabilities		11,280,202			11,061,416
Capital and surplus:
Common stock, $1.00 par value, 3,000,000 shares authorized and 2,500,000 shares issued and outstanding		2,500			2,500
Paid-in surplus		151,259			151,781
Unassigned surplus		334,944			312,817

Total capital and surplus		488,703			467,098

Total liabilities and capital and surplus	$	11,768,905		$	11,528,514

See accompanying notes.

G - 4

Western Reserve Life Assurance Co. of Ohio

Statements of Operations – Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2007			2006			2005
Revenues:
Premiums and other considerations, net of reinsurance:
Life	$	583,890		$	582,936		$	578,361
Annuity		429,894			584,189			568,168
Net investment income		68,832			64,109			86,812
Amortization of interest maintenance reserve		(510	)		(437	)		45
Commissions and expense allowances on reinsurance ceded		11,826			9,385			3,383
Reserve adjustments on reinsurance ceded		10,216			8,451			(1,018	)
Income from fees associated with investment management, administration and contract guarantees for separate accounts		137,410			128,081			114,078
Income earned on company owned life insurance		2,323			2,257			2,267
Income from administrative service agreement with affiliate		38,629			36,528			—
Other income		6,130			5,320			7,615

		1,288,640			1,420,819			1,359,711
Benefits and expenses:
Benefits paid or provided for:
Life		74,138			65,610			80,266
Surrender benefits		1,206,556			1,047,578			963,670
Annuity benefits		49,912			47,275			40,836
Other benefits		1,564			2,587			2,586
Increase (decrease) in aggregate reserves for policies and contracts:
Life		69,337			34,451			511,178
Annuity		(40,543	)		(56,276	)		(78,445	)

		1,360,964			1,141,225			1,520,091
Insurance expenses:
Commissions		174,497			167,682			156,876
General insurance expenses		111,553			101,204			92,552
Taxes, licenses and fees		20,455			16,459			15,204
Net transfers from separate accounts		(576,044	)		(186,676	)		(571,654	)
Other expenses		947			1,274			1,527

		(268,592	)		99,943			(305,495	)

Total benefits and expenses		1,092,372			1,241,168			1,214,596

Gain from operations before dividends to policyholders, federal income tax expense and net realized capital gains (losses) on investments		196,268			179,651			145,115
Dividends to policyholders		27			29			30

Gain from operations before federal income tax expense and net realized capital gains (losses) on investments		196,241			179,622			145,085
Federal income tax expense		61,963			67,978			39,955

Income from operations before net realized capital gains (losses) on investments		134,278			111,644			105,130
Net realized capital gains (losses) on investments (net of related federal income taxes and amounts transferred to interest maintenance reserve)		(2,623	)		345			(584	)

Net income	$	131,655		$	111,989		$	104,546

See accompanying notes.

G - 5

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis

(Dollars in Thousands)


	Common Stock		Paid-In Surplus			Unassigned Surplus			Total Capital and Surplus
Balance at January 1, 2005	$	2,500	$	151,019		$	124,402		$	277,921
Net income		—		—			104,546			104,546
Change in net unrealized capital gains and losses		—		—			17,411			17,411
Change in non-admitted assets		—		—			(27,593	)		(27,593	)
Change in asset valuation reserve		—		—			(2,828	)		(2,828	)
Change in liability for reinsurance in unauthorized companies		—		—			(259	)		(259	)
Change in surplus in separate accounts		—		—			(241	)		(241	)
Change in net deferred income tax asset		—		—			22,511			22,511
Surplus effect of reinsurance transaction		—		—			(1,185	)		(1,185	)
Contributed surplus related to stock appreciation rights plan of indirect parent		—		1,166			—			1,166

Balance at December 31, 2005		2,500		152,185			236,764			391,449
Net income		—		—			111,989			111,989
Change in net unrealized capital gains and losses		—		—			(43,656	)		(43,656	)
Change in non-admitted assets		—		—			(42,577	)		(42,577	)
Change in asset valuation reserve		—		—			7,027			7,027
Change in liability for reinsurance in unauthorized companies		—		—			259			259
Change in surplus in separate accounts		—		—			(141	)		(141	)
Change in net deferred income tax asset		—		—			24,874			24,874
Dividend to stockholder		—		—			(2,000	)		(2,000	)
Cumulative effect of changes in accounting principles		—		—			1			1
Surplus effect of reinsurance transaction		—		—			(969	)		(969	)
Contributed surplus related to stock appreciation rights plan of indirect parent		—		(404	)		—			(404	)
Correction of prior year error		—		—			21,246			21,246

Balance at December 31, 2006		2,500		151,781			312,817			467,098

G - 6

Western Reserve Life Assurance Co. of Ohio

Statements of Changes in Capital and Surplus – Statutory Basis (continued)

(Dollars in Thousands)

Common
Stock

Paid-In
Surplus

Unassigned
Surplus

Total
Capital and
Surplus

Balance at December 31, 2006

2,500

151,781

312,817

467,098

Net income

—

131,655

Change in net unrealized capital gains and losses

—

638

Change in non-admitted assets

—

(6,561

)

(6,561

)

Change in asset valuation reserve

—

(1,238

)

(1,238

)

Change in net deferred income tax asset

—

8,842

Dividend to stockholder

—

(110,000

)

(110,000

)

Surplus effect of reinsurance transaction

—

(1,209

)

(1,209

)

Contributed surplus related to stock appreciation rights plan of indirect parent

—

(522

)

—

(522

)

Balance at December 31, 2007

2,500

151,259

334,944

488,703

See accompanying notes.

G - 7

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis

(Dollars in Thousands)


	Year Ended December 31
	2007			2006			2005
Operating activities
Premiums collected, net of reinsurance	$	1,014,138		$	1,167,315		$	1,144,956
Net investment income received		73,854			71,408			92,755
Miscellaneous income received		204,010			187,060			118,762
Benefit and loss related payments		(1,333,939	)		(1,165,987	)		(1,093,337	)
Commissions, expenses paid and aggregate write-ins for deductions		(311,221	)		(282,359	)		(271,622	)
Net transfers to separate accounts and protected cell accounts		619,060			191,125			88,327
Dividends paid to policyholders		(27	)		(29	)		(30	)
Federal and foreign income taxes paid		(69,082	)		(60,364	)		(53,662	)

Net cash provided by operating activities		196,793			108,169			26,149
Investing activities
Proceeds from investments sold, matured or repaid:
Bonds		393,160			513,300			758,904
Preferred stocks		—			3,020			—
Common stocks		—			8,144			—
Mortgage loans on real estate		1,058			988			5,085
Other invested assets		—			—			3,750
Miscellaneous proceeds		7			962			245

Total investment proceeds		394,225			526,414			767,984
Cost of investments acquired:
Bonds		(467,479	)		(465,786	)		(778,751	)
Preferred stocks		—			(2,488	)		—
Common stocks		(758	)		(4,126	)		—
Mortgage loans on real estate		—			(8,501	)		(6,208	)
Real estate		(36	)		(39	)		(153	)
Other invested assets		(1,335	)		(484	)		(1,007	)
Miscellaneous applications		(4,506	)		—			(31,061	)

Total cost of investments acquired		(474,114	)		(481,424	)		(817,180	)
Net increase in policy loans		(66,063	)		(44,319	)		(20,804	)

Net cost of investments acquired		(540,177	)		(525,743	)		(837,984	)

Net cash provided by (used in) investing activities		(145,952	)		671			(70,000	)

G - 8

Western Reserve Life Assurance Co. of Ohio

Statements of Cash Flow – Statutory Basis (continued)

(Dollars in Thousands)


	Year Ended December 31
	2007			2006			2005
Financing and miscellaneous activities
Cash provided (applied):
Borrowed funds received (returned)	$	(18,791	)	$	12,384		$	6,407
Net deposits (withdrawals) on deposit-type contracts and other insurance liabilities		(835	)		(5,334	)		5,284
Dividends to stockholder		(110,000	)		(2,000	)		—
Other cash provided (applied)		12,111			(31,789	)		38,787

Net cash provided by (used in) financing and miscellaneous activities		(117,515	)		(26,739	)		50,478

Net increase (decrease) in cash, cash equivalents and short-term investments		(66,674	)		82,101			6,627
Cash, cash equivalents and short-term investments:
Beginning of year		112,307			30,206			23,579

End of year	$	45,633		$	112,307		$	30,206

Noncash proceeds:
Hybrid schedule reclass	$	—		$	4,308		$	—

See accompanying notes.

G - 9

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies

Organization

Western Reserve Life Assurance Co. of Ohio (the Company) is a stock life insurance company and is a wholly owned subsidiary of AEGON USA, Inc. (AEGON). AEGON is an indirect, wholly owned subsidiary of AEGON N.V., a holding company organized under the laws of The Netherlands.

Nature of Business

The Company operates predominantly in the variable universal life and variable annuity areas of the life insurance business. The Company is licensed in 49 states, District of Columbia, Puerto Rico and Guam. Sales of the Company’s products are through financial planners, independent representatives, financial institutions and stockbrokers. The majority of the Company’s new life insurance, and a portion of new annuities, are written through an affiliated marketing organization.

Basis of Presentation

The preparation of financial statements of insurance companies requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

The accompanying financial statements of the Company have been prepared in conformity with accounting practices prescribed or permitted by the Ohio Department of Insurance, which practices differ from accounting principles generally accepted in the United States (GAAP). The more significant variances from GAAP are:

Investments: Investments in bonds and mandatory redeemable preferred stocks are reported at amortized cost or fair value based on their National Association of Insurance Commissioners (NAIC) rating; for GAAP, such fixed maturity investments would be designated at purchase as held-to-maturity, trading or available-for-sale. Held-to-maturity fixed investments would be reported at amortized cost, and the remaining fixed maturity investments would be reported at fair value with unrealized holding gains and losses reported in operations for those designated as trading and as a separate component of other comprehensive income for those designated as available-for-sale. Fair value for statutory purposes is based on the price published by the Securities Valuation Office of the NAIC (SVO), if available, whereas fair value for GAAP is based on quoted market prices.

G - 10

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

All single class and multi-class mortgage-backed/asset-backed securities (e.g., CMOs) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discount or amortization of premium of such securities using either the retrospective or prospective methods. If it is determined that a decline in fair value is other than temporary, the cost basis of the security is written down to the undiscounted estimated future cash flows. For GAAP purposes, all securities, purchased or retained, that represent beneficial interests in securitized assets (e.g., CMO, CBO, CDO, CLO, MBS and ABS securities), other than high credit quality securities, are adjusted using the prospective method when there is a change in estimated future cash flows. If it is determined that a decline in fair value is other than temporary, the cost basis of the security is written down to fair value. If high credit quality securities are adjusted, the retrospective method is used.

Investments in real estate are reported net of related obligations rather than on a gross basis as for GAAP. Real estate owned and occupied by the Company is included in investments rather than reported as an operating asset as under GAAP, and investment income and operating expenses for statutory reporting include rent for the Company’s occupancy of those properties. Changes between depreciated cost and admitted amounts are credited or charged directly to unassigned surplus rather than to income as would be required under GAAP.

Valuation allowances for mortgage loans are established, if necessary, based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. Under GAAP, such allowances are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or, if foreclosure is probable, on the estimated fair value of the collateral.

The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus, rather than being included as a component of earnings as would be required under GAAP.

Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the bond or mortgage loan. That net deferral is reported as the “interest maintenance reserve” (IMR) in the accompanying balance sheets. Realized capital gains and losses are reported in income net of federal income tax and transfers to the IMR. Under GAAP, realized capital gains and losses would be reported in the income statement on a pretax basis in the period that the assets giving rise to the gains or losses are sold.

G - 11

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

The “asset valuation reserve” (AVR) provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus; AVR is not recognized for GAAP.

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company as would be required under GAAP.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred. Under GAAP, acquisition costs related to traditional life insurance and certain long-duration accident and health insurance, to the extent recoverable from future policy revenues, would be deferred and amortized over the premium-paying period of the related policies using assumptions consistent with those used in computing policy benefit reserves; for universal life insurance and investment products, to the extent recoverable from future gross profits, deferred policy acquisition costs are amortized generally in proportion to the present value of expected gross profits from surrender charges and investment, mortality and expense margins.

Non-admitted Assets: Certain assets designated as “non-admitted”, principally the non-admitted portion of deferred income tax assets and agent debit balances, and other assets not specifically identified as an admitted asset within the NAIC Accounting Practices and Procedures Manual are excluded from the accompanying balance sheets and are charged directly to unassigned surplus. Under GAAP, such assets are included in the balance sheet to the extent that those assets are not impaired.

Universal Life and Annuity Policies: Revenues for universal life and annuity policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and benefits incurred represent the total of surrender and death benefits paid and the change in policy reserves. Premiums received and benefits incurred for annuity policies without mortality or morbidity risk are recorded using deposit accounting, and credited directly to an appropriate policy reserve account, without recognizing premium income or benefits paid. Under GAAP, for universal life, premiums received in excess of policy charges would not be recognized as premium revenue and benefits would represent interest credited to the account values and the excess of benefits paid over the policy account value. Under GAAP, for all annuity policies without significant mortality risk, premiums received and benefits paid would be recorded directly to the reserve liability.

Benefit Reserves: Certain policy reserves are calculated based on statutorily required interest and mortality assumptions rather than on estimated expected experience or actual account balances as would be required under GAAP.

G - 12

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

Reinsurance: Any reinsurance balance amounts deemed to be uncollectible have been written off through a charge to operations. In addition, a liability for reinsurance balances has been provided 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.

Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves rather than as assets as would be required under GAAP.

Commissions allowed by reinsurers on business ceded are reported as income when incurred rather than being deferred and amortized with deferred policy acquisition costs as required under GAAP.

Deferred Income Taxes: Deferred income tax assets are limited to 1) the amount of federal income taxes paid in prior years that can be recovered through loss carrybacks for existing temporary differences that reverse by the end of the subsequent calendar year, plus 2) the lesser of the remaining gross deferred income tax assets expected to be realized within one year of the balance sheet date or 10% of capital and surplus excluding any net deferred income tax assets, electronic data processing equipment and operating software and any net positive goodwill, plus 3) the amount of remaining gross deferred income tax assets that can be offset against existing gross deferred income tax liabilities. The remaining deferred income tax assets are non-admitted.

Deferred income taxes do not include amounts for state taxes. Under GAAP, state taxes are included in the computation of deferred income taxes, a deferred income tax asset is recorded for the amount of gross deferred income tax assets expected to be realized in all future years, and a valuation allowance is established for deferred income tax assets not realizable.

Policyholder Dividends: Policyholder dividends are recognized when declared rather than over the term of the related policies.

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 of less. Under GAAP, the corresponding caption of cash and cash equivalents includes cash balances and investments with initial maturities of three months or less.

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined by the Company, but are presumed to be material.

G - 13

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

Other significant accounting policies are as follows:

Investments

Investments in bonds, except those to which the SVO has ascribed a designation of an NAIC 6, are reported at amortized cost using the interest method.

Single class and multi-class mortgage-backed/asset-backed securities, categorized as bonds, are valued at amortized cost using the interest method including anticipated prepayments, except for those with an NAIC designation of 6, which are valued at the lower of amortized cost or fair value. Prepayment assumptions are obtained from dealer surveys or internal estimates and are based on the current interest rate and economic environment. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities, which are valued using the prospective method.

Investments in both affiliated and unaffiliated preferred stocks in good standing are reported at cost. Investments in preferred stocks not in good standing are reported at the lower of cost or fair value as determined by the SVO and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.

Beginning in 2006, hybrid securities, not classified as debt by the SVO, are reported as preferred stock. 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. Reclassifications of securities from bonds to preferred stock have been made by the Company in the amount of $4,308 as of December 31, 2006, due to the SVO identification of such securities. Although the classification has changed, these hybrid securities continue to meet the definition of a bond, in accordance with SSAP No. 26, Bonds, excluding Loan-backed and Structured Securities and therefore, are reported at amortized cost based upon their NAIC rating. A corresponding reclassification was not made as of December 31, 2007 or 2005.

Common stocks of noninsurance subsidiaries are reported based on underlying audited GAAP equity. The net change in the subsidiaries’ equity is included in the change in net unrealized capital gains or losses.

There are no restrictions on common or preferred stock.

Home office properties are reported at cost less allowances for depreciation. Depreciation of home office properties is computed principally by the straight-line method.

G - 14

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

Short-term investments include investments with remaining maturities of one year or less at the time of acquisition and are principally stated at amortized cost.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost.

Mortgage loans are reported at unpaid principal balances, less an allowance for impairment. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines that the impairment is other than temporary, the mortgage loan is written down to realizable value and a realized loss is recognized.

Policy loans are reported at unpaid principal balances. Other “admitted assets” are valued principally at cost.

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.

Realized capital gains and losses are determined using specific identification and are recorded net of related federal income taxes. Changes in admitted asset carrying amounts of bonds, mortgage loans, preferred and common stocks are credited or charged directly to unassigned surplus.

The carrying values of all investments are reviewed on an ongoing basis for credit deterioration or changes in estimated cash flows. If this review indicates a decline in fair value that is other than temporary, the carrying value of the investment is reduced to its fair value, and a specific writedown is taken. Such reductions in carrying value are recognized as realized losses on investments.

Under a formula prescribed by the NAIC, the Company defers, in the IMR, the portion of realized gains and losses on sales of fixed income investments, principally bonds and mortgage loans, attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity of the security.

During 2007, 2006 and 2005 net realized capital (losses) gains of $(177), $(2,235) and $(2,416), respectively, were credited to the IMR rather than being immediately recognized in the statements of operations. Amortization of these net (losses) gains aggregated $(510), $(437) and $45, for the years ended December 31, 2007, 2006 and 2005, respectively.

G - 15

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

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. Further, income is not accrued when collection is uncertain. Investment income due and accrued of $13, $20 and $28 has been excluded for the years ended December 31, 2007, 2006 and 2005, respectively, with respect to such practices.

For dollar reverse repurchase agreements, the Company receives cash collateral in an amount at least equal to the market value of the securities transferred by the Company in the transaction as of the transaction date. Cash received as collateral will be invested as needed or used for general corporate purposes of the Company. At December 31, 2006, securities with a book value of $18,544, and a market value of $18,767, were subject to dollar reverse repurchase agreements. The Company did not participate in dollar reverse repurchase agreements as of December 31, 2007.

Derivative Instruments

Futures are marked to market on a daily basis and a cash payment is made or received by the Company. These payments are recognized as realized gains or losses in the financial statements.

Premiums and Annuity Considerations

Revenues for policies with mortality or morbidity risk (including annuities with purchase rate guarantees) consist of the entire premium received and are recognized over the premium paying periods of the related policies. Premiums received for annuity policies without mortality or morbidity risk are recorded using deposit accounting, and recorded directly to an appropriate policy reserve account, without recognizing premium income.

Aggregate Reserves for Policies and Contracts

Life and annuity reserves are developed by actuarial methods and are determined based on published tables using statutorily specified interest rates and valuation methods that will provide, in the aggregate, reserves that are greater than or equal to the minimum required by law. The Company waives deduction of deferred fractional premiums upon death and refunds portions of premiums beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. Additional premiums are charged or additional mortality charges are assessed for policies issued on substandard lives according to underwriting classification. Additional reserves are established when the results of cash flow testing under various interest rate scenarios indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in force.

G - 16

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

Tabular interest, tabular less actual reserves released and tabular cost have been determined by formula. Tabular interest on funds not involving life contingencies has also been determined by formula.

The aggregate policy reserves for life insurance policies are based principally upon the 1941, 1958, 1980 and 2001 Commissioners’ Standard Ordinary Mortality Tables. The reserves are calculated using interest rates ranging from 2.0 to 5.5 percent and are computed principally on the Net Level Premium Valuation and the Commissioners’ Reserve Valuation Methods. Reserves for universal life policies are based on account balances adjusted for the Commissioners’ Reserve Valuation Method.

Deferred annuity reserves are calculated according to the Commissioners’ Annuity Reserve Valuation Method including excess interest reserves to cover situations where the future interest guarantees plus the decrease in surrender charges are in excess of the maximum valuation rates of interest. Reserves for immediate annuities and supplementary contracts with life contingencies are equal to the present value of future payments assuming interest rates ranging from 4.0 to 11.25 percent and mortality rates, where appropriate, from a variety of tables.

The liabilities related to guaranteed investment contracts and policyholder funds left on deposit with the Company generally are equal to fund balances less applicable surrender charges.

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 statement date. These reserves are estimated using either individual case-basis valuations or statistical analysis techniques. These estimates are subject to the effects of trends in claim severity and frequency. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes available.

Liability for Deposit-Type Contracts

Deposit-type contracts do not incorporate risk from the death or disability of policyholders. These types of contracts may include supplemental contracts and certain annuity contracts. Deposits and withdrawals received on these contracts are recorded as a direct increase or decrease to the liability balance, and are not reflected as premiums, benefits or changes in reserve in the statement of operations.

G - 17

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

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 inforce blocks of business are included in unassigned surplus and are amortized into income over the estimated life of the policies. Premiums ceded and recoverable losses have been reported as a reduction of premium income and benefits, respectively.

Separate Accounts

Separate accounts held by the Company primarily represent funds which are administered for individual variable universal life and variable annuity contracts. Assets held in trust for purchases of variable universal life and variable annuity contracts and the Company’s corresponding obligation to the contract owners are shown separately in the balance sheets. The assets consist of shares in funds, considered common stock investments, which are valued daily and carried at fair value. The separate accounts, held for individual policyholders, do not have any minimum guarantees, and the investment risks associated with the fair value changes are borne entirely by the policyholder.

The Company received variable contract premiums of $910,067, $1,092,584 and $1,095,820, in 2007, 2006 and 2005, respectively. All variable account contracts are subject to discretionary withdrawal by the policyholder at the market value of the underlying assets less the current surrender charge. Separate account contract holders have no claim against the assets of the general account.

Income and gains and losses with respect to the assets in the separate accounts accrue to the benefit of the contract owners and, accordingly, the operations of the separate accounts are not included in the accompanying financial statements. In addition, the Company received $137,410, $128,081 and $114,078, in 2007, 2006 and 2005, respectively, related to fees associated with investment management, administration and contractual guarantees for separate accounts.

G - 18

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

1. Organization and Summary of Significant Accounting Policies (continued)

Stock Option Plan and Stock Appreciation Rights Plans

Prior to 2002 and in 2005 through 2007, AEGON N.V. sponsored a stock option plan for eligible employees of the company. Pursuant to the plan, the option price at the date of grant is equal to the market value of the stock. Under statutory accounting principles, the Company does not record any expense related to this plan. However, the Company is allowed to record a deduction in the consolidated tax return filed by the Company and certain affiliates. The tax benefit of this deduction has been credited directly to unassigned surplus.

The Company’s employees participate in various stock appreciation rights (SAR) plans issued by the Company’s indirect parent. In accordance with Statement of Statutory Accounting Principles (SSAP) No. 13, Stock Options and Stock Purchase Plans, the expense related to these plans for the Company’s employees has been charged to the Company, with an offsetting amount credited to paid-in surplus. The Company recorded an expense (benefit) of $(832), $(538) and $719 for the years ended December 31, 2007, 2006 and 2005, respectively. In addition, the Company recorded an adjustment to paid-in surplus for the income tax effect related to these plans over and above the amount reflected in the statement of operations in the amount of $310, $134 and $447 for years ended December 31, 2007, 2006 and 2005, respectively.

Reclassifications

Certain reclassifications have been made to the 2006 and 2005 financial statements to conform to the 2007 presentation.

Beginning in 2006, the manner in which the reserves on Variable Annuity and Variable Universal Life contracts are split between the separate account and general account statements was modified. This modification resulted in the contract surrender value being held as the reserve in the separate account statement, and any reserves in excess of the surrender value being held as the reserve in the general account. As a result, the total reserves held by the Company did not change, although the new reserve split resulted in an increase in the general account reserves of approximately $479,175 and an offsetting decrease in the separate account reserves by this same amount as of December 31, 2006. The 2005 general account reserves have increased by $483,831, the amount of reserves that would have been recorded as of December 31, 2005 had this new approach been implemented at that time.

G - 19

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

2. Accounting Changes and Corrections of Errors

Effective January 1, 2006, the Company adopted SSAP No. 93, Accounting for Low Income Housing Tax Credit Property Investments. This statement established statutory accounting principles for investments in federal and certain state sponsored LIHTC properties. SSAP No. 93 states that LIHTC investments shall be initially recorded at cost and amortized based on the proportion of tax benefits received in the current year to the total estimated tax benefits to be allocated to the investor. Prior to 2006, the Company’s investments in LIHTC investments were reported in accordance with SSAP No. 48, Joint Ventures, Partnerships and Limited Liability Companies and SSAP No. 88, Investments in Subsidiary, Controlled and Affiliated Entities and carried at audited GAAP equity. The cumulative effect is the difference between the audited GAAP equity amount at January 1, 2006 and the amortized cost assuming the new accounting principles had been applied retroactively for prior periods. As a result of the change, the Company reported a cumulative effect of a change of accounting principle that increased unassigned surplus by $1 at January 1, 2006.

During the preparation of the 2006 financial statements, the Company discovered an error in the reporting of cost basis in two of its noninsurance subsidiaries. At December 31, 2005, total cost for these subsidiaries was reported at $400, which was understated by a total of $21,246. This correction is reflected as a separate adjustment to unassigned surplus, with an offset to change in unrealized capital gains and losses in 2006. There is no income or surplus effect in the current or any prior period as a result of this correction.

3. Fair Values of Financial Instruments

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

Cash, Cash Equivalents and Short-Term Investments: The carrying amounts reported in the statutory-basis balance sheets for these instruments approximate their fair values.

Bonds and Preferred Stocks: Fair values for bonds and preferred stocks are based on unit prices published by the SVO or, in the absence of SVO published unit prices or when amortized cost is used by the SVO as the unit price, quoted market prices provided by other third party organizations, where available.

For fixed maturity securities (including redeemable preferred stock) not actively traded, fair values are estimated using values obtained from independent pricing services, or, in the case of private placements, are estimated by discounting the expected future cash flows using current market rates applicable to the coupon rate, credit and maturity of the investments. For equity securities that are not actively traded, estimated fair values are based on values of issues of comparable yield and quality.

G - 20

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

3. Fair Values of Financial Instruments (continued)

Mortgage Loans on Real Estate: The fair values for mortgage loans on real estate are estimated utilizing discounted cash flow analyses, using interest rates reflective of current market conditions and the risk characteristics of the loans.

Policy Loans: Carrying value of policy loans approximates their fair value.

Separate Account Assets: The fair value of separate account assets are based on quoted market prices.

Separate Account Annuity Liabilities: Separate account annuity liabilities are based upon the fair value of the related separate account assets.

Investment Contract Liabilities: Fair values for the Company’s liabilities under investment-type insurance contracts are estimated using discounted cash flow calculations, based on interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued.

Payable for Securities: The carrying amounts reported in the statutory-basis balance sheets for these instruments approximate their fair values.

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, which minimizes exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.

G - 21

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

3. Fair Values of Financial Instruments (continued)

The following sets forth a comparison of the fair values and carrying amounts of the Company’s financial instruments:


	December 31
	2007				2006
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Admitted assets
Cash, cash equivalents and short-term investments	$	45,633	$	45,633	$	112,307	$	112,307
Bonds		696,849		694,605		623,828		619,432
Preferred stock		4,673		4,646		4,796		4,844
Mortgage loans on real estate		24,493		24,249		25,548		25,556
Policy loans		410,844		410,844		344,781		344,781
Separate account assets		10,373,595		10,373,595		10,196,130		10,196,130
Liabilities
Investment contract liabilities		607,967		606,177		652,763		652,027
Borrowed funds		—		—		18,885		18,885
Payable for securities		—		—		865		865
Separate account annuity liabilities		6,137,949		6,137,949		6,287,948		6,287,948

4. Investments

The carrying amount and estimated fair value of investments in bonds and preferred stock are as follows:

Carrying
Amount

Gross
Unrealized
Gains

Gross
Unrealized
Losses 12
Months or
More

Gross
Unrealized
Losses Less
Than
12 Months

Estimated
Fair
Value

December 31, 2007

Bonds:

United States Government and agencies

152,325

5,531

—

157,855

State, municipal and other government

4,494

115

—

4,551

Public utilities

14,942

345

—

15,255

Industrial and miscellaneous

193,686

2,292

1,185

1,396

193,397

Mortgage and other asset-backed securities

331,402

1,787

3,673

5,969

323,547

696,849

10,070

4,890

7,424

694,605

Unaffiliated preferred stock

4,673

4,646

Total

701,522

10,130

4,966

7,435

699,251

G - 22

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)


	Carrying Amount		Gross Unrealized Gains		Gross Unrealized Losses 12 Months or More		Gross Unrealized Losses Less Than 12 Months		Estimated Fair Value
December 31, 2006
Bonds:
United States Government and agencies	$	60,003	$	6	$	1,763	$	68	$	58,178
State, municipal and other government		6,851		240		1		—		7,090
Public utilities		23,975		397		102		—		24,270
Industrial and miscellaneous		184,399		2,577		2,703		360		183,913
Mortgage and other asset-backed securities		348,600		1,281		3,553		347		345,981

		623,828		4,501		8,122		775		619,432
Unaffiliated preferred stock		4,796		129		81		—		4,844

Total	$	628,624	$	4,630	$	8,203	$	775	$	624,276

At December 31, 2007 and 2006, respectively, for securities in an unrealized loss position greater than or equal to twelve months, the Company held 57 and 81 securities with a carrying amount of $181,439 and $312,735 and an unrealized loss of $4,966 and $8,203, with an average price of 97.3 and 98.3 (NAIC fair value/amortized cost). Of this portfolio, 97.43% and 98.92% were investment grade with associated unrealized losses of $4,645 and $7,999, respectively.

At December 31, 2007 and 2006, respectively, for securities that have been in a continuous loss position for less than twelve months, the Company held 59 and 54 securities with a carrying amount of $181,236 and $132,359 and an unrealized loss of $7,435 and $775 with an average price of 95.9 and 99.9 (NAIC fair value/amortized cost). Of this portfolio, 93.47% and 87.39% were investment grade with associated unrealized losses of $7,145 and $588, respectively.

The Company closely monitors below investment grade holdings and those investment grade issuers where the Company has concerns. The Company also regularly monitors industry sectors. Securities in unrealized loss positions that are considered other than temporary are written down to fair value. 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 affect at the date of acquisition; and (2) the Company’s decision to sell a security prior to its maturity at an amount below its carrying amount. Additionally, financial condition, near term prospects of the issuer and nationally recognized credit rating changes are monitored. For asset-backed securities, cash flow trends and underlying levels of collateral are monitored. The Company will record a charge to the statement of operations to the extent that these securities are subsequently determined to be other than temporarily impaired.

G - 23

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)

Sub-prime mortgages are loans to homebuyers who have weak or impaired credit histories, are loans that are non-conforming or are loans that are second in priority. The Company’s businesses in the United States do not sell or buy sub-prime mortgages directly. The Company’s exposure to sub-prime mortgages is related to so-called “asset-backed securities” (ABS). These securities are pools of mortgages that have been securitized and offered to investors as asset-backed securities, where the mortgages are collateral. Most of the underlying mortgages within the pool have FICO scores below 660. Therefore, the ABS has been classified by the Company as a sub-prime mortgage position. Also included in the Company’s total sub-prime mortgage position are ABS with second lien mortgages as collateral. The second lien mortgages may not necessarily have sub-prime FICO scores; however, the Company has included these ABS in its sub-prime position as it’s the second priority in terms of repayment. The Company does not have any “direct” residential mortgages to sub-prime borrowers outside of the ABS structures.

For ABS in an unrealized loss position, the Company considers them for impairment when there has been an adverse change in estimated cash flows from the cash flows previously projected at purchase, which is in accordance with SSAP 43, Loan-backed and Structured Securities. The Company did not impair any of its sub-prime mortgage positions in 2006 or 2007.

The actual cost, carrying value and fair value of the Company’s sub-prime mortgage- backed ABS holdings at December 31, 2007 are $75,364, $75,328 and $68,859, respectively.

The estimated fair value of bonds and preferred stock with gross unrealized losses is as follows:


	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2007
Bonds:
United States Government and agencies	$	—	$	823	$	823
State, municipal and other government		—		1,851		1,851
Public utilities		4,963		—		4,963
Industrial and miscellaneous		61,784		48,785		110,569
Mortgage and other asset-backed securities		106,518		121,865		228,383

		173,265		173,324		346,589
Preferred stock		3,207		477		3,684

	$	176,472	$	173,801	$	350,273

G - 24

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)


	Losses 12 Months or More		Losses Less Than 12 Months		Total
December 31, 2006
Bonds:
United States Government and agencies	$	53,336	$	3,382	$	56,718
State, municipal and other government		345		—		345
Public utilities		7,904		4,999		12,903
Industrial and miscellaneous		96,635		29,104		125,739
Mortgage and other asset-backed securities		142,988		94,099		237,087

		301,208		131,584		432,792
Preferred stock		3,324		—		3,324

	$	304,532	$	131,584	$	436,116

The carrying amount and fair value of bonds at December 31, 2007, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.


	Carrying Amount		Estimated Fair Value
Due in one year or less	$	24,050	$	24,063
Due one through five years		142,162		141,987
Due five through ten years		39,191		39,448
Due after ten years		160,044		165,560

		365,447		371,058
Mortgage and other asset-backed securities		331,402		323,547

	$	696,849	$	694,605

G - 25

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)

A detail of net investment income is presented below:


	Year Ended December 31
	2007			2006			2005
Income:
Bonds	$	32,953		$	32,693		$	30,014
Preferred stocks		264			421			—
Common stock of affiliated entities		6,160			10,010			35,871
Mortgage loans on real estate		1,501			1,183			2,013
Real estate-home office properties		7,243			7,400			7,316
Policy loans		22,127			18,870			17,266
Cash, cash equivalents and short-term investments		9,852			4,722			2,090
Other		(2,503	)		(2,443	)		451

Gross investment income		77,597			72,856			95,021
Investment expenses		(8,765	)		(8,747	)		(8,209	)

Net investment income	$	68,832		$	64,109		$	86,812

Investment expenses include expenses for the occupancy of company-owned property of $3,759, $3,668 and $3,649 during 2007, 2006 and 2005, respectively, as well as depreciation expense on these properties of $890, $887 and $880, respectively.

Proceeds from sales and maturities of debt securities and related gross realized gains and losses were as follows:


	Year Ended December 31
	2007			2006			2005
Proceeds	$	393,160		$	521,904		$	758,904

Gross realized gains	$	2,154		$	1,685		$	1,555
Gross realized losses		(2,426	)		(4,689	)		(5,273	)

Net realized losses	$	(272	)	$	(3,004	)	$	(3,718	)

At December 31, 2007, bonds with an aggregate carrying value of $3,795 were on deposit with certain state regulatory authorities or were restrictively held in bank custodial accounts for benefit of such state regulatory authorities, as required by statute.

G - 26

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)

Net realized capital gains (losses) on investments and change in unrealized capital gains and losses are summarized below:


	Realized
	Year Ended December 31
	2007			2006			2005
Debt securities	$	(272	)	$	(3,004	)	$	(3,718	)
Common stock		—			(20	)		—
Cash equivalents		(1,230	)		—			—
Derivatives		(2,240	)		(858	)		(78	)
Other invested assets		(164	)		952			26

		(3,906	)		(2,930	)		(3,770	)
Tax benefit		1,106			1,040			770
Transfer to interest maintenance reserve		177			2,235			2,416

Net realized capital gains (losses) on investments	$	(2,623	)	$	345		$	(584	)


	Changes in Unrealized
	Year Ended December 31
	2007			2006			2005
Common stocks	$	638		$	(43,656	)	$	18,801
Other invested assets		—			—			(1,390	)

Change in unrealized capital gains and losses	$	638		$	(43,656	)	$	17,411

The Company did not recognize any impairment write-downs for its investments in limited partnerships during the years ended December 31, 2007, 2006 or 2005.

Gross unrealized gains (losses) on common stocks of affiliated entities were as follows:


	Unrealized
	December 31
	2007			2006
Unrealized gains	$	6,212		$	5,574
Unrealized losses		(2,475	)		(2,475	)

Net unrealized gains	$	3,737		$	3,099

G - 27

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)

During 2007, the Company did not issue any mortgage loans. During 2006, the Company issued one mortgage loan at an interest rate of 6.35%. The maximum percentage of any one mortgage loan to the value of the underlying real estate at origination was 72%. The Company holds the mortgage document, which gives it the right to take possession of the property if the borrower fails to perform according to the terms of the agreement.

During 2007, 2006 and 2005, no mortgage loans were foreclosed and transferred to real estate. At December 31, 2007, 2006 and 2005, the Company held a mortgage loan loss reserve in the asset valuation reserve of $233, $243 and $171, respectively.

At December 31, 2007, the Company had three Low Income Housing Tax Credits. The remaining years of unexpired tax credits ranged from four to ten and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from nine to fifteen years. The amount of contingent equity commitments expected to be paid during the years 2008 to 2012 are $2,053. There were no impairment losses, write-downs or reclassifications during 2007 related to these credits.

At December 31, 2006, the Company had two Low Income Housing Tax Credits. The remaining years of unexpired tax credits ranged from five to nine and none of the properties were subject to regulatory review. The length of time remaining for holding periods ranged from ten to eleven years. The amount of contingent equity commitments expected to be paid during the years 2007 to 2016 are $2,618. There were no impairment losses, write-downs, or reclassifications during 2006 related to any of these credits.

The Company issues products providing the customer a return based on the S&P 500 index. The Company uses S&P 500 index futures contracts to hedge the liability risk associated with these products.

Derivative instruments are subject to market risk, which is the possibility that future changes in market prices may make the instruments less valuable. The Company uses derivatives as hedges, consequently, when the value of the derivative changes, the value of a corresponding hedged asset or liability will move in the opposite direction. Market risk is a consideration when changes in the value of the derivative and the hedged item do not completely offset (correlation or basis risk) which is mitigated by active measuring and monitoring.

The Company did not recognize any unrealized gains or losses during 2007, 2006 or 2005 that represented the component of derivative instruments gain or loss that was excluded from the assessment of hedge effectiveness.

G - 28

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

4. Investments (continued)

The Company did not recognize any unrealized gains or losses during 2007 or 2006 for the component of derivative instruments utilized for hedging purposes that did not qualify for hedge accounting.

5. Reinsurance

The Company reinsures portions of 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 obligations under the reinsurance treaty.

Premiums earned reflect the following reinsurance ceded amounts for the year ended December 31:


	Year Ended December 31
	2007			2006			2005
Direct premiums	$	1,084,449		$	1,229,963		$	1,200,679
Reinsurance assumed – affiliated		3,853			2,382			791
Reinsurance ceded – affiliated		(48,572	)		(43,611	)		(36,972	)
Reinsurance ceded – non-affiliated		(25,946	)		(21,609	)		(17,969	)

Net premiums earned	$	1,013,784		$	1,167,125		$	1,146,529

The Company received reinsurance recoveries in the amount of $37,977, $34,248 and $42,537 during 2007, 2006 and 2005, respectively. At December 31, 2007 and 2006, estimated amounts recoverable from reinsurers that have been deducted from policy and contract claim reserves totaled $14,863 and $13,933, respectively. The aggregate reserves for policies and contracts were reduced for reserve credits for reinsurance ceded at December 31, 2007 and 2006 of $112,489 and $84,897, respectively. As of December 31, 2007 and 2006, the amount of reserve credits for reinsurance ceded that represented affiliated companies were $75,935 and $62,002, respectively.

The net amount of the reduction in surplus at December 31, 2007 if all reinsurance agreements were cancelled is $4,740.

G - 29

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

5. Reinsurance (continued)

During 2001, the Company entered into a reinsurance transaction with Transamerica International Re (Bermuda) Ltd., an affiliate of the Company. Under the terms of this transaction, the Company ceded the obligation for future guaranteed minimum death benefits included in certain of its variable annuity contracts. The difference between the initial premiums ceded of $37,176 and the reserve credit taken of $55,408 was credited directly to unassigned surplus on a net of tax basis. Over the course of this reinsurance treaty, the experience of the underlying policies will be reflected as a reduction to the amount initially credited to surplus. For years ended December 31, 2007, 2006 and 2005, the amount charged directly to unassigned surplus was $ 1,185. At December 31, 2007, the Company holds collateral in the form of letters of credit of $61,000 from the assuming company.

During 2006, the Company entered into a reinsurance agreement with Transamerica International Reinsurance Ireland, Ltd. (TIRI) an affiliate, to retrocede an inforce block of term life business effective January 1, 2006. The difference between the initial commission expense allowance received of $700 and ceded reserves of $332 resulted in an initial transaction gain of $368, which was credited to unassigned surplus on a net of tax basis in the amount of $240, in accordance with SSAP No. 61, Life, Deposit-Type and Accident and Health Reinsurance. For each of the years ended December 31, 2007 and 2006, the Company amortized $24 into earnings with a corresponding charge to unassigned surplus.

During 2007, the Company recaptured the risks related to the universal life business that was previously ceded to TIRI on a funds withheld basis. The Company paid recapture consideration of $525 and received $81 for assets recaptured related to the block. Reserves recaptured included $5,453 in life reserves and $30 in other claim reserves, resulting in a net pre-tax loss of $5,927, which is included in the statement of operations.

Letters of credit held for all unauthorized reinsurers as of December 31, 2007 and 2006 was $79,000 and $67,200, respectively.

G - 30

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

6. Income Taxes

The main components of deferred tax amounts are as follows:


	December 31
	2007		2006
Deferred tax assets:
Non-admitted assets	$	6,650	$	7,214
Tax-basis deferred acquisition costs		93,168		93,272
Reserves		135,841		138,064
Other		13,151		11,518

Total deferred income tax assets		248,810		250,068
Non-admitted deferred tax assets		165,305		156,815

Admitted deferred tax assets		83,505		93,253

Deferred tax liabilities:
§807(f) adjustment – liabilities		52,151		62,039
Other		475		687

Total deferred income tax liabilities		52,626		62,726

Net admitted deferred tax asset	$	30,879	$	30,527

The change in net deferred income tax assets is as follows:


	December 31
	2007		2006		Change
Total deferred tax assets	$	248,810	$	250,068	$	(1,258	)
Total deferred tax liabilities		52,626		62,726		(10,100	)

Net deferred tax asset	$	196,184	$	187,342	$	8,842


	December 31
	2006		2005		Change
Total deferred tax assets	$	250,068	$	236,815	$	13,253
Total deferred tax liabilities		62,726		74,347		11,621

Net deferred tax asset	$	187,342	$	162,468	$	24,874

Non-admitted deferred tax assets increased $8,490, $22,220 and $27,476 for 2007, 2006 and 2005, respectively.

G - 31

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

6. Income Taxes (continued)

Federal income tax expense differs from the amount computed by applying the statutory federal income tax rate to gain (loss) from operations before federal income tax expense and net realized capital gains (losses) on investments for the following reasons:


	Year Ended December 31
	2007			2006			2005
Income tax expense (benefit) on operational gains and capital gains (losses) on investments computed at the federal statutory rate (35%)	$	67,317		$	61,842		$	49,460
Deferred acquisition costs – tax basis		(314	)		327			981
Amortization of IMR		179			153			(16	)
Depreciation		(56	)		(178	)		(178	)
Dividends received deduction		(8,946	)		(11,099	)		(25,155	)
Low income housing credits		(3,198	)		(3,167	)		(3,157	)
Reinsurance transactions		(423	)		(339	)		(415	)
Reserves		6,380			17,750			17,967
Other		(82	)		1,649			(302	)

Federal income tax expense on operations and capital gains (losses) on investments		60,857			66,938			39,185
Less tax (benefit) on capital gains (losses)		(1,106	)		(1,040	)		(770	)

Total federal income tax expense	$	61,963		$	67,978		$	39,955

The total statutory income taxes are computed as follows:


	Year Ended December 31
	2007			2006			2005
Federal income tax expense on operations and capital gains (losses) on investments	$	60,857		$	66,938		$	39,185
Change in net deferred income taxes		(8,842	)		(24,874	)		(22,511	)

Total statutory income taxes	$	52,015		$	42,064		$	16,674

For federal income tax purposes, the Company joins in a consolidated income tax return filing with its indirect parent, Transamerica Corporation. Under the terms of a tax sharing agreement between the Company and its affiliates, the Company computes federal income tax expense as if it were filing a separate income tax return, except that tax credits and net operating loss carryforwards are determined on the basis of the consolidated group. At December 31, 2006, the life subgroup had no loss carryforwards. Additionally, the alternative minimum tax is computed for the consolidated group and the resulting tax, if any, is allocated back to the separate companies on the basis of the separate companies’ alternative minimum taxable income.

The consolidated tax group, in which the Company is included, incurred income taxes during 2007, 2006 and 2005 of $40,084, $0 and $286,973, respectively, which will be available for recoupment in the event of future net losses.

G - 32

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

6. Income Taxes (continued)

The amount of tax contingencies calculated for the Company as of December 31, 2007 and 2006 is not material to the Company’s financial position. Therefore, the total amount of tax contingencies that, if recognized, would affect the effective income tax rate is immaterial. The Company classifies interest and penalties related to income taxes as interest expense and penalty expense, respectively. The Company’s interest expense related to income taxes as of December 31, 2007 and 2006 was not material and the Company recorded no liability for penalties.

The Company’s federal income tax returns have been examined by the Internal Revenue Service and closing agreements have been executed through 2000. The examination for 2001 through 2004 has been completed and resulted in tax return adjustments that are currently being appealed. The Company believes that there are adequate defenses against or sufficient provisions established related to any open or contested tax provisions. An examination is underway for 2005 and 2006.

7. Policy and Contract Attributes

A portion of the Company’s policy reserves and other policyholders’ funds relate to liabilities established on a variety of the Company’s products, primarily separate accounts that are not subject to significant mortality or morbidity risk; however, there may be certain restrictions placed upon the amount of funds that can be withdrawn without penalty. The amount of reserves on these products, by withdrawal characteristics, is summarized as follows:


	December 31
	2007				2006
	Amount		Percent of Total		Amount		Percent of Total
Subject to discretionary withdrawal:
With market value adjustment	$	20,695	0	%	$	21,059	0	%
At book value less current surrender charge of 5% or more		81,307	1	%		97,945	1	%
At fair value		6,164,883	91	%		6,322,414	91	%

Total with adjustment or at market value		6,266,885	92	%		6,441,418	92	%
At book value without adjustment (minimal or no charge or adjustment)		431,030	6	%		462,789	7	%
Not subject to discretionary withdrawal		92,330	2	%		78,598	1	%

Total annuity reserves and deposit fund liabilities - before reinsurance		6,790,245	100	%		6,982,805	100	%

Less reinsurance ceded		35,260				33,153

Net annuity reserves and deposit fund liabilities	$	6,754,985			$	6,949,652

G - 33

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

7. Policy and Contract Attributes (continued)

Information regarding the separate accounts of the Company is as follows:

Guaranteed
Indexed

Nonindexed
Guaranteed
Less than or
Equal to 4%

Nonindexed
Guaranteed
Greater
than 4%

Nonguaranteed
Separate
Accounts

Total

Premiums, deposits and other considerations for the year ended December 31, 2007

—

909,554

Reserves at December 31, 2007 for accounts with assets at fair value

—

9,485,165

Reserves for separate accounts by withdrawal characteristics at December 31, 2007:

Subject to discretionary withdrawal:

With market value adjustment

—

At book value without market value adjustment and with current surrender charge of 5% or more

—

6,062,603

At fair value

—

3,422,562

At book value without market value adjustment and with current surrender charge of less than 5%

—

Subtotal

—

9,485,165

Not subject to discretionary withdrawal

—

Total separate account liabilities at December 31, 2007

—

9,485,165

G - 34

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

7. Policy and Contract Attributes (continued)


	Guaranteed Indexed		Nonindexed Guaranteed Less than or Equal to 4%		Nonindexed Guaranteed Greater than 4%		Nonguaranteed Separate Accounts		Total
Premiums, deposits and other considerations for the year ended December 31, 2006	$	—	$	—	$	—	$	1,092,105	$	1,092,105

Reserves at December 31, 2006 for accounts with assets at fair value	$	—	$	—	$	—	$	9,264,404	$	9,264,404

Reserves for separate accounts by withdrawal characteristics at December 31, 2006:
Subject to discretionary withdrawal:
With market value adjustment	$	—	$	—	$	—	$	—	$	—
At book value without market value adjustment and with current surrender charge of 5% or more		—		—		—		—		—
At fair value		—		—		—		9,264,404		9,264,404
At book value without market value adjustment and with current surrender charge of less than 5%		—		—		—		—		—

Subtotal		—		—		—		9,264,404		9,264,404
Not subject to discretionary withdrawal		—		—		—		—		—
Total separate account liabilities at December 31, 2006	$	—	$	—	$	—	$	9,264,404	$	9,264,404

A reconciliation of the amounts transferred to and from the separate accounts is presented below:


	Year Ended December 31
	2007			2006			2005
Transfers as reported in the Summary of Operations of the Separate Accounts Statement:
Transfers to Separate Accounts	$	910,067		$	1,092,584		$	1,095,820
Transfers from Separate Accounts		1,484,712			1,758,650			1,671,242

Net transfers to (from) Separate Accounts		(574,645	)		(666,066	)		(575,422	)
Reconciling adjustments:
Other		(1,399	)		215			3,768

Transfers as reported in the Summary of Operations of the Company	$	(576,044	)	$	(665,851	)	$	(571,654	)

G - 35

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

7. Policy and Contract Attributes (continued)

At December 31, 2007 and 2006, the Company had variable annuities with guaranteed living benefits as follows:


Year	Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
2007	Guaranteed Minimum Income Benefit	$	1,633,606	$	28,980	$	4,250
2006	Guaranteed Minimum Income Benefit	$	1,787,240	$	25,183	$	3,152

For Variable Annuities with Guaranteed Living Benefits (VAGLB), the Company complies with Actuarial Guideline 39. This guideline defines a two step process for the determination of VAGLB reserves. The first step is to establish a reserve equal to the accumulated VAGLB charges for the policies in question. The second step requires a standalone asset adequacy analysis to determine the sufficiency of these reserves. This step has been satisfied by projecting 30 years into the future along 1000 stochastic variable return paths using a variety of assumptions as to VAGLB charges, lapse, withdrawal, annuitization and death. The results of this analysis are discounted back to the valuation date and compared to the accumulation of fees reserve to determine if an additional reserve needs to be established.

At December 31, 2007 and 2006, the Company had variable annuities with guaranteed death benefits as follows:


Year	Benefit and Type of Risk	Subjected Account Value		Amount of Reserve Held		Reinsurance Reserve Credit
2007	Guaranteed Minimum Death Benefit	$	6,291,420	$	73,072	$	35,260
2006	Guaranteed Minimum Death Benefit	$	6,564,098	$	63,367	$	33,153

For Variable Annuities with Minimum Guaranteed Death Benefits (MGDB), the Company complies with Actuarial Guideline 34. This guideline requires that MGDBs be projected by assuming an immediate drop in the values of the assets supporting the variable annuity contract, followed by a subsequent recovery at a net assumed return until the maturity of the contract. The immediate drop percentages and gross assumed returns vary by asset class and are defined in the guideline. Mortality is based on the 1994 Variable Annuity MGDB Mortality Table, which is also defined in the guideline.

G - 36

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

7. Policy and Contract Attributes (continued)

Reserves on the Company’s traditional life insurance products are computed using mean reserving methodologies. These methodologies result in the establishment of assets for the amount of the net valuation premiums that are anticipated to be received between the policy’s paid-through date to the policy’s next anniversary date. At December 31, 2007 and 2006, these assets (which are reported as premiums deferred and uncollected) and the amounts of the related gross premiums and loading, are as follows:


	Gross		Loading			Net
December 31, 2007
Ordinary direct renewal business	$	3,046	$	1,813		$	4,859
Ordinary new business		262		(151	)		111

	$	3,308	$	1,662		$	4,970

December 31, 2006
Ordinary direct renewal business	$	2,749	$	1,475		$	4,224
Ordinary new business		910		(107	)		803

	$	3,659	$	1,368		$	5,027

At December 31, 2007 and 2006, the Company had insurance in force aggregating $2,170,424 and $3,640,805 respectively, in which the gross premiums are less than the net premiums required by the valuation standards established by the Ohio Department of Insurance. The Company established policy reserves of $15,281 and $21,377 to cover these deficiencies at December 31, 2007 and 2006, respectively.

8. Dividend Restrictions

The Company is subject to limitations, imposed by the State of Ohio, on the payment of dividends to its parent company. 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 statutory surplus as of the preceding December 31, or (b) net income for the preceding year. Subject to the availability of unassigned surplus at the time of such dividend, the maximum payment which may be made in 2008, without the prior approval of insurance regulatory authorities, is $131,655.

9. Capital and Surplus

Life/health insurance companies are subject to certain Risk-Based Capital (RBC) requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life/health insurance company is to be determined based on the various risk factors related to it. At December 31, 2007, the Company meets the RBC requirements.

G - 37

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

10. Sales, Transfer, and Servicing of Financial Assets and Extinguishments of Liabilities

During 2006 and 2005, the Company sold $32,428 and $51,983, respectively, of agent balances without recourse to an affiliated entity. Prior to July 29, 2005, the agent debit balances were sold to Money Services, Inc. (MSI), an affiliated company. Subsequent to July 29, 2005, agent debit balances were sold without recourse to ADB Corporation, LLC (ADB), an affiliated company, and all rights, title and interest in the prior net debit balances owned by MSI prior to July 29, 2005, were fully assigned, without recourse, to ADB. The Company did not realize a gain or loss as a result of the sales. As of July 1, 2006, the Company no longer sells agent debit balances and thus retains such balances as non-admitted receivables. Agent receivables in the amount of $18,673 and $20,261 were non-admitted as of December 31, 2007 and 2006, respectively.

11. Retirement and Compensation Plans

The Company’s employees participate in a qualified benefit plan sponsored by AEGON. The Company has no legal obligation for the plan. The Company recognizes pension expense equal to its allocation from AEGON. The pension expense is allocated among the participating companies based on International Accounting Standards 19 (IAS 19), Accounting for Employee Benefits as a percent of salaries. The benefits are based on years of service and the employee’s compensation during the highest five consecutive years of employment. Pension expense allocated to the Company aggregated $1,829, $1,432 and $1,280 for 2007, 2006 and 2005, respectively. The plan is subject to the reporting and disclosure requirements of the Employee Retirement and Income Security Act of 1974.

The Company’s employees also participate in a contributory defined contribution plan sponsored by AEGON which is qualified under Section 401(k) of the Internal Revenue Service Code. Employees of the Company who customarily work at least 1,000 hours during each calendar year and meet the other eligibility requirements are participants of the plan. Participants may elect to contribute up to twenty-five percent of their salary to the plan. The Company will match an amount up to three percent of the participant’s salary. Participants may direct all of their contributions and plan balances to be invested in a variety of investment options. The plan is subject to the reporting and disclosure requirements of the Employee Retirement and Income Security Act of 1974. Expense related to this plan was $905, $864 and $836 for 2007, 2006 and 2005, respectively.

G - 38

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

11. Retirement and Compensation Plans (continued)

AEGON sponsors supplemental retirement plans to provide the Company’s senior management with benefits in excess of normal pension benefits. The plans are noncontributory and benefits are based on years of service and the employee’s compensation level. The plans are unfunded and nonqualified under the Internal Revenue Code. In addition, AEGON has established incentive deferred compensation plans for certain key employees of the Company. The Company’s allocation of expense for these plans for 2007, 2006 and 2005 was insignificant. AEGON also sponsors an employee stock option plan/stock appreciation rights for employees of the Company and a stock purchase plan for its producers, with the participating affiliated companies establishing their own eligibility criteria, producer contribution limits and company matching formula. These plans have been funded as deemed appropriate by management of AEGON and the Company.

In addition to pension benefits, the Company participates in plans sponsored by AEGON that provide postretirement medical, dental and life insurance benefits to employees meeting certain eligibility requirements. Portions of the medical and dental plans are contributory. The postretirement expenses are charged to affiliates in accordance with an intercompany cost sharing arrangement. The Company expensed $179, $147 and $126 for 2007, 2006 and 2005, respectively.

12. Related Party Transactions

The Company shares certain officers, employees and general expenses with affiliated companies.

The Company is party to a Cost Sharing agreement between AEGON USA, Inc. companies, providing for services needed. The Company is also party to a Management and Administrative and Advisory agreement with AEGON USA Realty Advisors, Inc. whereby the Advisor serves as the administrator and advisor for the Company’s mortgage loan operations by administering the day-to-day real estate and mortgage loan operations of the Company. AEGON USA Investment Management, LLC acts as a discretionary investment manager under an Investment Management Agreement with the Company. The Company is part of a Tax Allocation Agreement with its parent and other affiliated companies as described in Note 6. During 2007, 2006 and 2005, the Company paid $106,392, $94,305 and $91,667, respectively, for such services, which approximates their costs to the affiliates. During 2006, the Company executed an administration service agreement with Transamerica Fund Advisors, Inc. to provide administrative services to the AEGON/Transamerica Series Trust. The Company received $38,629 and $36,528 from this agreement during 2007 and 2006, respectively. The Company provides office space, marketing and administrative services to certain affiliates. During 2007, 2006 and 2005, the Company received $100,815, $91,726 and $85,975, respectively, for such services, which approximates their cost.

G - 39

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

12. Related Party Transactions (continued)

Receivables from and payables to affiliates and intercompany borrowings bear interest at the thirty-day commercial paper rate. At December 31, 2007 and 2006, the Company has a net amount of $21,887 and $9,683, respectively, due to affiliates. Terms of settlement require that these amounts are settled within 90 days. During 2007, 2006 and 2005, the Company paid net interest of $1,954, $1,599 and $1,027, respectively, to affiliates.

At December 31, 2007, the Company had a short-term note receivable of $9,600 from AEGON USA, Inc. The note is due by September 27, 2008 and bears interest at 5.62%. This note is reported as a short-term investment.

In prior years, the Company purchased life insurance policies covering the lives of certain employees of the Company from an affiliate. At December 31, 2007 and 2006, the cash surrender value of these policies was $63,948 and $61,729, respectively.

The Company paid ordinary common stock dividends of $110,000 and $2,000 to its parent on December 19, 2007 and September 8, 2006, respectively. No dividends were paid during 2005.

13. Commitments and Contingencies

The Company is a party to legal proceedings incidental to its business. Although such litigation sometimes includes substantial demands for compensatory and punitive damages in addition to contract liability, it is management’s opinion that damages arising from such demands will not be material to the Company’s financial position.

The Company is subject to insurance guaranty laws in the states in which it writes business. These laws provide for assessments against insurance companies for the benefit of policyholders and claimants in the event of insolvency of other insurance companies. Assessments are charged to operations when received by the Company except where right of offset against other taxes paid is allowed by law; amounts available for future offsets are recorded as an asset on the Company’s balance sheet. The future obligation has been based on the most recent information available from the National Organization of Life and Health Insurance Guaranty Association. 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 $3,344 and $3,364 with no offsetting premium tax benefit at December 31, 2007 and 2006, respectively, for its estimated share of future guaranty fund assessments related to several major insurer insolvencies. The guaranty fund expense (credit) was $(22), $36 and $59 for 2007, 2006 and 2005, respectively.

G - 40

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

13. Commitments and Contingencies (continued)

The Company participates in an agent-managed securities lending program. The Company receives collateral equal to 100%/102% of the fair market value of the loaned government/other domestic securities, respectively, as of the transaction date. If the fair value of the collateral is at any time less than 100%/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 100%/102% of the fair value of the loaned government/other domestic securities, respectively. 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 market value of the loaned security.

At December 31, 2007 and 2006, respectively, securities in the amount of $158,452 and $59,321 were on loan under security lending agreements. At December 31, 2007 the collateral the Company received from securities lending was in the form of cash.

The Company has contingent commitments of $2,053 and $2,618 as of December 31, 2007 and 2006, respectively, for low income housing tax credit investments.

The Company is required by the Commodity Futures Trading Commission (CFTC) to maintain assets on deposit with brokers for futures trading activity done on behalf of the Company. The broker has a secured interest with priority in the pledged assets, however, the Company has the right to recall and substitute the pledged assets. At December 31, 2007 and 2006 respectively, the Company pledged assets in the amount of $6,449 and $2,191 to satisfy the requirements of futures trading accounts.

There continues to be significant federal and state regulatory activity relating to financial services companies. The Company and certain of its affiliates have been examined by, and received requests for information from, the staff of the Securities and Exchange Commission (SEC). In particular, the Company continues to respond to requests for documents and information from the SEC staff in connection with an ongoing investigation, which has included requests for testimony by the Company, its personnel and other related persons regarding potential market timing and matters affecting certain employees and affiliates of the Company.

G - 41

Western Reserve Life Assurance Co. of Ohio

Notes to Financial Statements – Statutory Basis (continued)

(Dollars in Thousands)

13. Commitments and Contingencies (continued)

A number of other companies in this industry have announced settlements of enforcement actions with various regulatory agencies such as the SEC; those settlements have encompassed a wide range of remediation including injunctive relief, monetary penalties and restitution. The Company and its affiliates are working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. Although it is not possible to provide a meaningful estimate of the range of potential outcomes at this time, the Company does not believe the resolution will be material to its financial position.

14. Debt

The Company had an outstanding liability for borrowed money in the amount of $18,885 as of December 31, 2006, due to participation in dollar reverse repurchase agreements. The Company did not participate in dollar reverse repurchase agreement at December 31, 2007. The Company enters reverse dollar repurchase agreements in which securities are delivered to the counterparty once adequate collateral has been received as stated in Note 1.

G - 42

Statutory-Basis Financial

Statement Schedules

G - 43

Western Reserve Life Assurance Co. of Ohio

Summary of Investments – Other Than

Investments in Related Parties

(Dollars in Thousands)

December 31, 2007

Schedule I


Type of Investment	Cost (1)		Fair Value		Amount at Which Shown in the Balance Sheet
Fixed maturities
Bonds:
United States Government and government agencies and authorities	$	161,206	$	167,011	$	161,206
States, municipalities and political subdivisions		30,832		31,404		30,832
Foreign governments		3,662		3,722		3,662
Public utilities		14,942		15,255		14,942
All other corporate bonds		486,207		477,213		486,207
Preferred stock		4,673		4,646		4,673

Total fixed maturities		701,522		699,251		701,522
Mortgage loans on real estate		24,493				24,493
Real estate		38,574				38,574
Policy loans		410,844				410,844
Cash, cash equivalents and short-term investments		45,633				45,633
Other invested assets		10,358				10,358

Total investments	$	1,231,424			$	1,231,424

(1)	Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accruals of discounts.

G - 44

Western Reserve Life Assurance Co. of Ohio

Supplementary Insurance Information

(Dollars in Thousands)

Schedule III


	Future Policy Benefits and Expenses		Policy and Contract Liabilities		Premium Revenue		Net Investment Income*		Benefits, Claims, Losses and Settlement Expenses		Other Operating Expenses*			Premium Written
Year ended December 31, 2007
Individual life	$	1,040,192	$	14,956	$	583,844	$	42,731	$	304,367	$	241,395		$	—
Group life		15,550		100		46		646		915		53			—
Annuity		596,029		317		429,894		25,455		1,055,682		(510,040	)		—

	$	1,651,771	$	15,373	$	1,013,784	$	68,832	$	1,360,964	$	(268,592	)	$	—

Year ended December 31, 2006
Individual life	$	971,044	$	12,448	$	582,703	$	33,573	$	727,802	$	(178,400	)	$	—
Group life		15,361		198		233		694		445		55			—
Annuity		636,572		238		584,189		29,842		892,153		(200,887	)		—

	$	1,622,977	$	12,884	$	1,167,125	$	64,109	$	1,620,400	$	(379,232	)	$	—

Year ended December 31, 2005
Individual life	$	941,322	$	18,346	$	578,049	$	34,086	$	252,018	$	244,614		$	—
Group life		15,288		100		312		1,026		1,722		1,357			—
Annuity		692,848		2		568,168		51,700		782,520		(67,635	)		—

	$	1,649,458	$	18,448	$	1,146,529	$	86,812	$	1,036,260	$	178,336		$	—

*	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.

G - 45

Western Reserve Life Assurance Co. of Ohio

Reinsurance

(Dollars in Thousands)

Schedule IV


	Gross Amount		Ceded to Other Companies		Assumed From Other Companies		Net Amount		Percentage of Amount Assumed to Net
Year ended December 31, 2007
Life insurance in force	$	99,363,588	$	48,566,371	$	17,211,679	$	68,008,896	25	%

Premiums:
Individual life	$	646,758	$	66,766	$	3,853	$	583,845	1	%
Group life		586		540		—		46	0
Annuity		437,105		7,212		—		429,893	0

	$	1,084,449	$	74,518	$	3,853	$	1,013,784	1	%

Year ended December 31, 2006
Life insurance in force	$	90,434,049	$	40,136,640	$	17,246,515	$	67,543,924	26	%

Premiums:
Individual life	$	637,660	$	57,339	$	2,382	$	582,703	0	%
Group life		725		492		—		233	0
Annuity		591,578		7,389		—		584,189	0

	$	1,229,963	$	65,220	$	2,382	$	1,167,125	0	%

Year ended December 31, 2005
Life insurance in force	$	85,891,325	$	35,360,079	$	4,106,724	$	50,531,246	0	%

Premiums:
Individual life	$	622,657	$	45,399	$	791	$	578,049	0	%
Group life		755		443		—		312	0
Annuity		577,267		9,099		—		568,168	0

	$	1,200,679	$	54,941	$	791	$	1,146,529	0	%

G - 46