N-VPFS 1 tlicfundb.htm
 
FINANCIAL STATEMENTS
Transamerica Life Insurance Company
Separate Account Fund B
Years Ended December 31, 2025 and 2024
 
 
 
 
 
 
 
 
 
 
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Transamerica Life Insurance Company
Separate Account Fund B
Financial Statements
Years Ended December 31, 2025 and 2024
 
 
Report of Independent Registered Public Accounting Firm3
Statements of Assets and Liabilities4
Statements of Operations and Changes in Net Assets6
Notes to Financial Statements7
 
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Report of Independent Registered Public Accounting Firm
 
To the Board of Directors of Transamerica Life Insurance Company and
Contract Owners of Separate Account Fund B
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of TA S&P 500 Index Initial Class of Separate Account Fund B (the Separate Account), as of December 31, 2025, the related statements of operations and changes in net assets for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of TA S&P 500 Index Initial Class of Separate Account Fund B as of December 31, 2025, the results of its operations and changes in its net assets for each of the two years in the period ended December 31 2025, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on TA S&P 500 Index Initial Class of Separate Account Fund B’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to TA S&P 500 Index Initial Class of Separate Account Fund B in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2025, by correspondence with the fund companies or their transfer agents, as applicable. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the auditor of the Separate Account since 2024.
 
Chicago, IL
April 24, 2026
 
 
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Transamerica Life Insurance Company
Separate Account Fund B
Statements of Assets and Liabilities
December 31, 2025
 
Subaccount Number of Shares Cost Assets at Market Value Due (to)/from General Account Net Assets Units Outstanding Range of Unit Values
TA S&P 500 Index Initial Class 317,423.211 $ 5,384,229 $ 9,011,645 $ 4 $ 9,011,649 471,455 $ 19.114547 $ 19.114547
 
See accompanying notes.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Statements of Assets and Liabilities
December 31, 2025
 
Subaccount Net Assets Representing: Accumulation Units   Net Assets Representing: Contracts in Payout (Annuitization) Period   Total Net Assets
TA S&P 500 Index Initial Class $ 9,002,846   $ 8,803   $ 9,011,649
 
See accompanying notes.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Statements of Operations and Changes in Net Assets
Years Ended December 31, 2025 and 2024
 
        TA S&P 500 Index Initial Class
        Subaccount
         
Net Assets as of December 31, 2023: $                                            9,745,330
         
Investment Income:  
  Reinvested Dividends 71,288
Investment Expense:  
  Mortality and Expense Risk and Administrative Charges 86,410
    Net Investment Income (Loss) (15,122)
         
Increase (Decrease) in Net Assets from Operations:  
  Capital Gain Distributions 143,043
  Realized Gain (Loss) on Investments 999,830
    Net Realized Capital Gains (Losses) on Investments 1,142,873
    Net Change in Unrealized Appreciation (Depreciation) 761,919
      Net Gain (Loss) on Investment 1,904,792
         
Net Increase (Decrease) in Net Assets Resulting from Operations 1,889,670
         
Increase (Decrease) in Net Assets from Contract Transactions (3,426,826)
         
Total Increase (Decrease) in Net Assets (1,537,156)
         
Net Assets as of December 31, 2024: $                                            8,208,174
         
Investment Income:  
  Reinvested Dividends 74,143
Investment Expense:  
  Mortality and Expense Risk and Administrative Charges 83,685
    Net Investment Income (Loss) (9,542)
         
Increase (Decrease) in Net Assets from Operations:  
  Capital Gain Distributions 41,751
  Realized Gain (Loss) on Investments 229,438
    Net Realized Capital Gains (Losses) on Investments 271,189
    Net Change in Unrealized Appreciation (Depreciation) 1,046,691
      Net Gain (Loss) on Investment 1,317,880
         
Net Increase (Decrease) in Net Assets Resulting from Operations 1,308,338
         
Increase (Decrease) in Net Assets from Contract Transactions (504,863)
         
Total Increase (Decrease) in Net Assets 803,475
         
Net Assets as of December 31, 2025: $                                            9,011,649
 
See Accompanying Notes.
(1)See Footnote 1
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
1. Organization
 
Separate Account Fund B (the Separate Account) is a segregated investment account of Transamerica Life Insurance Company (TLIC), an indirect wholly owned subsidiary of Aegon Ltd., a holding company organized under the laws of the Bermuda.
 
The Separate Account is registered with the Securities and Exchange Commission as a Unit Investment Trust pursuant to provisions of the Investment Company Act of 1940. TLIC and the Separate Account are regulated by the Securities and Exchange Commission. The assets and liabilities of the Separate Account are clearly identified and distinguished from TLIC's other assets and liabilities. The Separate Account consists of a single subaccount. The subaccount invests exclusively in the corresponding portfolio of a Mutual Fund. The Mutual Fund is registered as an open-end management investment company under the Investment Company Act of 1940, as amended. Activity in the specified investment subaccount is available to contract owners of Separate Account Fund B.
 
Subaccount Investment by Mutual Fund:
Subaccount         Mutual Fund        
  Transamerica Series Trust:       Transamerica Series Trust:    
    TA S&P 500 Index Initial Class         Transamerica S&P 500 Index VP Initial Class  
                               
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
2. Summary of Significant Accounting Policies
 
The financial statements included herein have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for variable annuity separate accounts registered as unit investment trusts. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions regarding matters that affect the reported amount of assets and liabilities. Actual results could differ from those estimates.
 
Investments
 
Net purchase payments received by the Separate Account are invested in the portfolios of the Mutual Fund as selected by the contract owner. Investments are stated at the closing net asset values per share on December 31, 2025.
 
Realized capital gains and losses from sales of shares in the Separate Account are determined on the first-in, first-out basis. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed) and dividend income is recorded on the ex-dividend date. Unrealized gains or losses from investments in the Mutual Fund are included in the Statements of Operations and Changes in Net Assets.
 
Dividend Income
 
Dividends received from the Mutual Fund investments are reinvested to purchase additional mutual fund shares.
 
Fair Value Measurements and Fair Value Hierarchy
 
The Accounting Standards Codification™ (ASC) 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the nature of inputs used to measure fair value and enhances disclosure requirements for fair value measurements.
 
The Separate Account has categorized its financial instruments into a three level hierarchy which is based on the priority of the inputs to the valuation technique. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure fair value fall within different levels of the hierarchy, the category level is based on the lowest priority level input that is significant to the fair value measurement of the instrument.
 
Financial assets and liabilities recorded at fair value on the Statements of Assets and Liabilities are categorized as follows:
 
Level 1. Unadjusted quoted prices for identical assets or liabilities in an active market.
Level 2. Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following:
 
a)  Quoted prices for similar assets or liabilities in active markets
b)  Quoted prices for identical or similar assets or liabilities in non-active markets
c)  Inputs other than quoted market prices that are observable
d) Inputs that are derived principally from or corroborated by observable market data through correlation or other means.
 
Level 3. Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. They reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability.
 
All investments in the Mutual Funds included in the Statements of Assets and Liabilities are stated at fair value and are based upon published closing NAV per share and therefore are considered Level 1.
 
There were no transfers between Level 1, Level 2 and Level 3 during the year ended December 31, 2025.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
3. Investments
 
The aggregate cost of purchases and proceeds from sales of investments for the period ended December 31, 2025 were as follows:
 
Subaccount Purchases Sales
TA S&P 500 Index Initial Class $ 115,945 $ 588,599
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
 
4. Change in Units
 
The change in units outstanding were as follows:
 
  Year Ended December 31, 2025   Year Ended December 31, 2024
Subaccount Units Purchased Units Redeemed and Transferred to/from Net Increase (Decrease)   Units Purchased Units Redeemed and Transferred to/from Net Increase (Decrease)
TA S&P 500 Index Initial Class 3 (28,742) (28,739)   603 (234,319) (233,716)
 
Change in Unit Dollars
 
    Year Ended December 31, 2025     Year Ended December 31, 2024
Subaccount   Units Purchased in Dollars   Units Redeemed and Transferred to/from in Dollars   Dollar Net Increase (Decrease)     Units Purchased  in Dollars   Units Redeemed and Transferred to/from in Dollars   Dollar Net Increase (Decrease)
TA S&P 500 Index Initial Class $ 52 $ (504,915) $ (504,863)   $ 8,929 $ (3,435,755) $ (3,426,826)
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
5. Financial Highlights
 
      At December 31   For the Year Ended December 31  
          Unit Fair Value           Expense Total Return***  
          Corresponding to       Investment Ratio**     Corresponding to    
          Lowest to Highest   Net   Income Lowest to     Lowest to Highest    
Subaccount Units   Expense Ratio   Assets   Ratio* Highest     Expense Ratio    
                                         
TA S&P 500 Index Initial Class                                  
    12/31/2025 471,455 $19.11 to $19.11 $       9,011,649   0.88 % 1.00 % to 1.00 % 16.48 % to 16.48 %
    12/31/2024 500,194 16.41 to 16.41 8,208,174   0.83   1.00   to 1.00   23.58   to 23.58  
    12/31/2023 733,910 13.28 to 13.28 9,745,330   1.18   1.00   to 1.00   24.85   to 24.85  
    12/31/2022 997,224 10.64 to 10.64 10,606,558   1.17   1.00   to 1.00   (19.03)   to (19.03)  
    12/31/2021 1,082,872 13.14 to 13.14 14,224,998   0.90   1.00   to 1.00   27.23   to 27.23  
                                         
(1) See Footnote 1
 
* These amounts represent the dividends, excluding distributions of capital gains, received by the subaccount from the Mutual Fund, net of management fees assessed by the fund manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against contract owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the subaccount is affected by the timing of the declaration of dividends by the Mutual Fund in which the subaccounts invest.
 
** These amounts represent the annualized contract expenses of the subaccount, consisting primarily of mortality and expense charges, for each period indicated. These ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to contract owner accounts through the redemption of units and expenses of the Mutual Fund have been excluded.
 
*** These amounts represent the total return for the periods indicated, including changes in the value of the Mutual Fund, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. Total returns reflect a full twelve month period and total returns for subaccounts opened during the year have not been disclosed as they may not be indicative of a full year return. Expense ratios not in effect for the full twelve months are not reflected in the total return as they may not be indicative of a full year return.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
6. Administrative and Mortality and Expense Risk Charges
 
The value of the Separate Account has been reduced by a charge of 1.00% on each valuation date for mortality and expense risks. Contract owners should see their actual policy and any related attachments to determine their specific charges.
 
7. Income Tax
 
Operations of the Separate Account form a part of TLIC, which is taxed as a life insurance company under Subchapter L of the Internal Revenue Code of 1986, as amended (the Code). The operations of the Separate Account are accounted for separately from other operations of TLIC for purposes of federal income taxation. The Separate Account is not separately taxable as a regulated investment company under Subchapter M of the Code and is not otherwise taxable as an entity separate from TLIC. Under existing federal income tax laws, the income of the Separate Account is not taxable to TLIC, as long as earnings are credited under the variable annuity contracts.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
8. Subsequent Events
 
The Separate Account has evaluated the financial statements for subsequent events through the date which the financial statements were issued.  During this period, there were no subsequent events requiring recognition in the financial statements.
 
9. Related Parties
 
Transamerica Capital, Inc. (TCI), a wholesaling broker-dealer, is an affiliated entity of TLIC and an indirect wholly owned subsidiary of Aegon Ltd. TCI distributes TLIC's products through broker-dealers and other financial intermediaries.
 
The subaccount invests in the mutual fund listed in Footnote 1. This investment includes a fund managed by Transamerica Asset Management, Inc. (TAM). Transamerica Fund Services, Inc. (TFS) serves as a transfer agent to TAM, and Aegon USA Asset Management Holding, LLC (AAM) serves as a sub-advisor for certain funds managed by TAM. TAM, TFS and AAM are affiliated entities of TLIC and indirect wholly owned subsidiaries of Aegon Ltd. Funds managed by TAM are identified by their fund name, which includes reference to Aegon, Transamerica or both. The Separate Account pays management fees to the related funds as detailed in the fund prospectus.
 
No charges other than those disclosed in Footnote 6 are deducted for the service rendered by related parties.
 
Contract owners may transfer funds between available subaccount options within the Separate Account. These transfers are performed at unit value at the time of the transfer.
 
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Transamerica Life Insurance Company
Separate Account Fund B
Notes to Financial Statements
December 31, 2025
 
10. Segment Reporting
 
Each fund of the Separate Account constitutes a single operating segment and therefore, a single reportable segment because the Chief Operating Decision Maker (CODM) manages the activities of the Separate Account using information of each fund. The Separate Account is engaged in a single line of business as a registered unit investment trust. The Separate Account is a funding vehicle for individual variable annuity contracts with the assets owned by TLIC to support the liabilities of the applicable insurance contracts. The subaccounts have identified the President and Chief Operating Officer as the CODM as the Separate Account does not have employees and is not a separate legal entity.
 
The CODM uses increase (decrease) in net assets from operations as their performance measure in order to make operational decisions while monitoring the net assets of each of the funds within the Separate Account. The Accounting policies used to measure profit and loss of the segments are the same as those described in the Summary of Significant Accounting Policies (see note 2). The measure of segment assets is reported on the balance sheet as total consolidated assets. Refer to the Statements of Operations and Changes in Net Assets for each fund’s operating segment and related footnotes for significant expenses principle and the existing segment requirements as of December 31, 2025 and for the year ended December 31, 2025 and December 31, 2024.
 
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